Business school professor and innovation disseminator Pablo Foncillas uses couple relationships to illustrate the four stages of data analysis. “To simplify a lot, I see it as similar to life as a couple. For example, if I go out with my group of friends tonight, what consequences will it have on my partner? What if I do it frequently?” He comments.
In the first stage, descriptive analysis, raw data from multiple sources is handled to detect “if something is wrong or right”, but without explaining the reasons. While in the second stage, the diagnostic analysis, the cause and effect of what happened is sought. And in the third stage, predictive analysis, the data collected up to that point is used to predict future trends.
From here, it is possible to take preventive measures and seek solutions to avoid additional conflicts – prescriptive analysis – although this last stage can also be useful to “make the most of a promising trend.”
