What are the three main types of business analytics?

The three main types of business analytics are descriptive, predictive, and prescriptive analytics.

Descriptive analytics focuses on summarizing past data and events to understand what has happened. It provides insights through the use of historical data, often utilizing data visualization techniques and reporting tools to help stakeholders grasp the context and trends that have occurred.

Predictive analytics involves forecasting future outcomes based on historical data. It employs statistical models and machine learning techniques to identify patterns and make informed predictions about future scenarios, helping businesses plan and make strategic decisions.

Prescriptive analytics takes it a step further by recommending actions and outlining potential outcomes based on data analysis. It uses optimization and simulation algorithms to suggest the best course of action, factoring in multiple variables and possible future states.

This structured approach outlines the three forms of analytics used to analyze business data effectively, providing a comprehensive understanding of past performances, predictions for future trends, and actionable recommendations.