One of the most common questions I hear thrown around is, “what is the purpose of analytics?” It’s a great question, but that’s because the answer isn’t as straightforward as it might seem.
The purpose of analytics is to solve complex problems with many variables. Analytics provide a multifaceted view of data sets. Each different view of those data sets gives a slightly different understanding of the data.
However, that answer doesn’t specify which data is being used, or for what. Here’s why that matters:
The Purpose of Analytics Changes Depending per Application
Different business units will use analytics differently. In credit unions, you may have marketers, compliance teams, loan officers, and many more all looking to get something different from an analytics solution.
In that sense, there is no exact purpose of analytics. The purpose is decided by the people who require, gather, work with, and utilize data.