Data Analysis Process, Steps, Methods, and How to Get Started

Not only to maintain a business, data analysis is needed to develop a company. For example, in making decisions, you need to first find out what is at stake, the pros and cons, and the likely outcomes.

Likewise, companies are unlikely to make decisions based on bad data. They need information and data. This is where data analysis has an important role for an organization or company.

Data analysis is the process of cleaning, transforming, and processing raw data, and extracting relevant, actionable information that helps companies make informed decisions.

These procedures help reduce risk in decision making by providing useful insights and statistics, often presented in charts, figures, tables and graphs.

Stages of the Data Analysis Process

The data analysis process involves gathering all the information, processing it, exploring it, and using it to discover patterns and other insights. The data analysis process consists of:

1. Data Requirement Gathering

Find out why you are doing this analysis, what type of data analysis you want to use, and what data you plan to analyze.

2. Data Collecting

After identifying needs, the next step is to collect data from sources which include case studies, surveys, interviews, questionnaires and direct observation. Make sure you organize the data you have collected for analysis.

3. Data cleaning

Not all data collected is useful. So, clean the data that you think is not useful. This process includes spaces, duplicate records and basic errors. You must clean your data before sending it for analysis.

4. Data analysis

It is at this stage that you use data analysis software and other tools to help you interpret and understand the data to come to conclusions.

5. Data interpretation

After getting the results, the next step is to interpret the data and create the best course of action based on your findings.

6. Data visualization

Data visualization is a great way to graphically display your information in a way that people can read and understand. You can use charts, graphs, maps, bullet points, or any number of other methods. Visualization helps you gain important information by comparing data sets and observing relationships.

Data analysis method

The data analysis methods used will vary depending on the data collection method used. The principle is the use of appropriate procedures and techniques to interpret results and plan data collection techniques. This aims to make data analysis easy with accurate results. The following are various data analysis methods that are generally used:

1. Qualitative Analysis

This method uses interviews and observations by answering what, why, or how questions. The data analyzed using this method is in the form of text or narrative. Next, a classification process is carried out based on needs using a coding process.

The final stage of this method is data interpretation. The data interpretation process is carried out simultaneously with the coding process. Interpretation is carried out to analyze data and obtain the required information. A more subjective approach is required in this method. The advantage of this method is the level of depth of the data analysis results.

2. Quantitative Analysis

This method relies on your ability to calculate data accurately. Apart from that, the ability to interpret complex data is also required. Quantitative methods have various types of analysis, such as correlation, regression, comparison, descriptive techniques, and so on.

This method approaches data processing using statistics or mathematics collected from secondary data. The advantage of quantitative methods is that you can get more measurable and comprehensive conclusions. Other methods that can be used to analyze data are text analysis, statistical, diagnostic, predictive and perspective analysis,

3. Combination of Qualitative and Quantitative

This method is an approach that combines or combines quantitative and qualitative analysis methods. This includes a philosophical basis, using quantitative and qualitative approaches, as well as combining the two.

Creswell (2009) states that this combination method is also called the multimethods method. Combination methods are used together in analysis activities to obtain more comprehensive, valid, reliable and objective data.

4. Regression Analysis

Regression analysis is part of qualitative data analysis. The regression analysis method is carried out to predict the data that has been collected. The data you have collected can be the basis for predicting future trends.

The regression analysis method can measure the relationship between the dependent variable and one or more independent variables. Regression analysis is considered effective for finding out what things can be optimized by looking at trends or trends and the relationship between factor data. Regression analysis models can be linear, non-linear, logistic, life data, and so on.

How to Start the Data Analysis Process

The various problems that arise make companies increasingly re-evaluate their current level of data maturity. This is done to determine how the company can improve its capabilities and develop them. You and your company can start the data analysis process to an advanced stage by implementing the following steps:

• Conduct an internal assessment of current data analysis processes to develop advanced data maturity that can help the business.
• Create sets of goals and action items. Identify what you want to achieve with the results of data analysis and create a clear map to ensure it.
• Invest in advanced analytics solutions that simplify the data analysis process. All data will be analyzed in one platform and organized into simplified reports that provide actionable insights.
• Thoroughly review insights and apply them to business operational workflows.

Later, this data will be processed and used by the marketing division. The marketing department needs to know what kind of data is needed and the process of using the right data to create a strategy. To become more proficient in processing data for product marketing, take the Certificate of Business Management: Marketing Management training from Prasmul Eli. Improve your skills in terms of effective marketing here.