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sisense.com/glossary/descriptive-analytics
The field is used across a variety of industries and needs, and can cover a diverse range
of purposes, from inventory tracking to benchmarking yearly revenues and sales.
See it in action:
The field usually serves as a preliminary step in the business intelligence process,
creating a foundation for further analysis and understanding.
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The field usually employs simpler mathematics and statistical tools (such as arithmetic,
averages, and percent changes) instead of more complex calculations that predictive and
prescriptive analytics perform. It also includes the initial stages of data aggregation and
data mining in most data analytics software.
See it in action:
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On the surface, revenues of $1 million are a good thing. However, this raw number may
be misleading without the benefit of context. Historical data can provide a clearer picture
of the financial situation and show you how that $1 million in revenues compares to
previous months’ or years’ sales.
Similarly, a warehouse may need to understand why specific items are constantly out of
stock, or over-ordered.
A quick scan of historic data may show them that certain products have seasonal peaks
and troughs, or that there have been too many orders of an unpopular product.
See it in action:
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Even broader financial statistics fall in the descriptive analytics umbrella. For instance,
data like return on invested capital, yearly sales, year-over-year revenues, and price to
earnings ratios all arrive from performing descriptive analysis on financial figures.
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