Loading...

Advanced Analytics: Choosing the Right Tool for the Job

TL;DR

  • Choose analytics tools based on problem, not hype. Understand context, costs, and need for explainability.
  • Generative AI, deep learning, econometrics, and rule-based systems offer diverse solutions for business challenges.
  • Start with the problem, not the technology. Collaborate with experts to select the right analytics tool.

In the realm of modern business, the buzz around generative AI often overshadows the diverse array of advanced data science and analytics techniques available. However, a prudent approach advocates for understanding the full spectrum of analytics tools and selecting the most fitting one for specific business needs. Instead of starting with technology, leaders are encouraged to begin with the problem at hand, ensuring a tailored solution. Here’s a concise breakdown of key considerations and categories of advanced analytics techniques:

Diverse analytical approaches

Generative AI creates new data, images, text, or sounds similar to existing data. While powerful, it requires substantial computing power and can produce biased or low-quality outputs.

Traditional deep learning: It ingests complex data to learn patterns and relationships but lacks explainability.

Econometrics: offers powerful statistical tools for understanding causal relationships and mechanisms from observational data or experiments.

Rule-based automation utilizes straightforward if-then rules, providing transparency but requiring domain expertise.

Selecting the right tool: Key considerations

Cost of error: Evaluate whether the problem can tolerate occasional errors or demands precise accuracy.

Explainability: Determine whether transparency in decision-making is crucial for regulatory compliance or customer understanding.

Consistency of answers: Assess whether models need to generate the same outputs consistently or can adapt to changing conditions.

Data quality and source of truth: Ensure the availability of accurately labeled data and consider the representativeness of datasets to avoid bias.

Training data reflection: Verify if training data aligns with operational contexts to avoid biased outcomes and ensure effectiveness in real-world scenarios.

Practical applications and industry insights

In the aviation sector, companies like KLM and Boeing leverage a mix of AI and traditional analytics techniques to enhance operations, from predicting flight delays to optimizing routes and maintaining safety standards. Similarly, Airbus’s innovative approach to using AI in production showcases the effectiveness of starting with identifying specific challenges and then determining the suitable analytics tool.

In today’s rapidly evolving landscape, harnessing the power of advanced analytics requires a strategic approach. By focusing on the problem rather than the technology, leaders can navigate the complexities of choosing the right analytics tool for their organizations. Understanding the nuances of each technique and asking the right questions empowers decision-makers to drive innovation and achieve tangible results in diverse business domains.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisio

Share link:

Derrick Clinton

Derrick is a freelance writer with an interest in blockchain and cryptocurrency. He works mostly on crypto projects' problems and solutions, offering a market outlook for investments. He applies his analytical talents to theses.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Victoria
Cryptopolitan
Subscribe to CryptoPolitan