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Question: It is important to understand the different analytics and how they affect a business. We import the transactional data, modify it, transform it, organize it and then use it for analytics and strategic decision making. There are four main types of decisions, sometimes called the "Analytics Ladder". The first is "Descriptive Analytics". This type has been around for a long time. In fact, the first analytic charts were designed by William Playfair in the 1790s. Descriptive Analytics tells us what has happened in the past. The next type is Diagnostic Analytics. That's when we look at the data to decide why something occurred. Predictive is the next type of Analytics, in which we try to use the past to predict the future. This is often used in hurricane forecasting. We are still trying to develop the next stage of analytics, how to make what we want to happen, which is Predictive Analytics.
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