Moving back to our story, the obvious question our doctor would quickly come up is “Why is it happening?” This is quite logical , the doctor is now trying to diagnose and understand the reasons and causes of your illness. You will retort, “doctor, been to a hill station weather was extreme, caught up with a bad cold, cough & throat infection. In line with our business too once we know what is the business state, it is critical to know why is our business like this. Why are my sales down? Why my costs shooting up? What is the competition doing which I am not aware of ? We need a set of reports, analysis and numbers to know why are we are either growing or de-growing. This needs a structured approach of collecting data. Collecting information on each activity or process undertaken so as to arrive at the answer – “Why? “ . This is the second step in Data Analytics referred as “Diagnostic Analysis” Going back to our story, our doctor with patient hearing , utilising his experience and wisdom predicts, “you have a viral fever, take 5-10 days of complete rest, don’t go out or travel, no outside food, you should be fine in a weeks’ time, just have my medicines”. In business too, when we we continue to do what we are doing, in terms of our sales planning, price offers, focus on existing market focus, existing people, without any major changes, we end up with a predictive revenue, profit, topline by the end of the financial year. This is referred as Predictive analysis. This analysis by and large is common across organizations as we are always curious to know what will happen in current scheme of things. It is also commonly known as “Business Forecasting ” In the current scheme of things, the actions taken are same & routine, we could forecast our business in terms of topline revenue, bottom line profitability, market share, overall business performance. The doctors prediction puts you in a relief, you are at ease but, suddenly realise and share “No doctor, I need to go for a wedding this sunday and have an important meet, cant be at home, taking rest, work will suffer, I need to be up and running in next two days”. You seek a faster recovery, “doctor, can’t I be fit in say couple of days?, is it mandatory to take a leave for 5 days?”. We all are ambitious in our other areas too aside to personal health, the zeal to excel, driving that 10X growth. The doctor understands this and now he prescribes you an additional medicine, an antibiotic and may be some vitamin supplements. The doctor prescribes these to get you up and running faster and eventually reduces the time of your recovery. Similarly, once you identify the gaps of the business through predictive analysis, you would look to fix the gaps quickly and surge ahead Any business objective is to grow faster and beat competition. By analyzing the data points of your organization, by creating MIS reports, forecasting the you seeks help from experts, consultants who, prescribe certain process improvements, price corrections, revised market estimation and innovative costing measures to improve the business both at topline or bottom line. This process is known as Prescriptive Analysis. Across the businesses globally, all organizations large or small, use these standard basic principles of analytics. One we understand these simple processes, using these in small or large data bases asp per your organization is pretty simple. In case of smaller organizations, you may use an excel application to create reports and some simpler tools to analyse. In large data sets, you would have an SQL or any other large database management systems to do the same. In the next will share some ideas on what is the difference between ERP systems and Analytics systems, Till then, keep analyzing , have a great health, Cheers.