# 6 Important Steps in the Data Analysis Process
[Data analysis process](https://digi-texx.com/technology/data-analysis-process/) is vital for businesses, as it empowers them to make well-informed decisions instead of depending on gut feelings or arbitrary guesses. This article by DIGI-TEXX will explore the data processing and analysis framework, detailing six key steps from establishing objectives to implementation, ultimately helping to minimize costs and enhance competitive advantages.

# What is the data analysis process?
The data analysis process includes data inspection, cleaning, transformation, and modeling. It provides useful knowledge to support the final decision-making process for an object or event. These steps help convert raw information into knowledge so that action can be taken to solve the problem.
=> Maybe you need [CRM Data Cleansing Services](https://hackmd.io/@3RXAPgqjRJiO1awoatmhJg/Sk--6IA3Jg) to help your business grow up
# Why is data analytics necessary today?
As data is the most important factor in today’s time, organizations and large companies generate more than 120 zettabytes of data every day. Without an effective and systematic data analytics process, it will be difficult for businesses to convert this huge amount of data into important information to make decisions for the business.
Why is data analytics necessary today?
A modern and systematic data analytics process will help:
Make decisions based on data instead of relying on intuition or outdated practices.
Identify trends and patterns that can be missed by the naked eye in complex data sets.
Reduce costs by increasing the efficiency of operations and optimizing resources.
Create a competitive advantage in a rapidly changing market with timely knowledge and information.
Innovate the way you do things due to a deeper understanding of customer needs and market concerns.
Minimize & manage risks by identifying potential issues before they become major, out-of-control issues.
Easily track performance against initial goals through real-time metrics.
# What are the 6 basic steps of the data analysis process?
1. Define the Goal
When defining the goals for data analysis, consider the following factors:
Specific business issues that need to be addressed
Key metrics for a successful project
Stakeholder needs and expectations
What decisions will be made based on the results of the data analysis?
Time and resources for data analysis
2. Collect Data
Data sources may include:
Internal databases and customer relationship management (CRM) systems
Customer surveys and feedback forms
Website metrics and how users interact with the site
Social media engagement metrics
Market research and industry reports
Transaction history and sales statistics
IoT devices and sensor data
Public data and government decrees/policies
What are the 6 basic steps of the data analysis process?
3. Data Cleaning
At this point, people will look to automated data processing tools. Automatic data processing can help optimize these steps in the following ways:
Eliminate duplicate values ​​that can skew results
Handle missing values in data by assigning values ​​or deleting
Standardize formats and units across different data sources
Detect and correct unusual or outlier data points.
Normalize data for more consistent analysis
Validate data against given rules: business rules or logical constraints
4. Data Analysis
AI data processing will use machine-learning algorithms and natural language processing to carry out the following steps:
Identify complex data patterns in large data sets that traditional methods will miss or make mistakes.
Make predictions based on historical data with higher accuracy
Automatically classify multidimensional information.
Process unstructured data such as text, images, and videos, which contain valuable information.
Detect anomalies in data.
Generate real-time information due to the ability to access data on the Internet.
AI data processing will use machine-learning algorithms and natural language processing.
5. Data Interpretation, Visualization, and Data Storytelling
Steps include:
Create data charts, providing relevant information to decision-makers.
Create interactive tables and charts that easily reveal new information.
Storytelling with data and explaining the important things behind the numbers
Link the newly analyzed findings to business goals and KPIs.
Highlight new information that can be immediately acted upon, thereby driving decision-making.
Create a context, a hypothetical environment that is appropriate for interpreting the results.
6. Embrace Possible Failure
This step will include actions such as:
Reviewing the performance of the analysis based on the initial goals set
Noting limitations and assumptions that affect the results
Taking immediate action that could change the results
Collecting metrics on changes made to measure their impact
Optimizing and continuously improving the data analysis process
Creating a common knowledge repository to store lessons learned
Creating a process to develop, test, and repeat similar analyses
# Types of Data Analysis Techniques
Many different types of analysis serve different purposes depending on the end goal of the data analysis process, including:
Diagnostic Analysis
This type of analysis answers the question: Why did something happen? This will be solved by looking at causal relationships and root causes in data over time. Diagnostic analysis goes deeper into the descriptive, seeking to understand the underlying factors that drive the visual outcome.
Predictive Analysis
This type of analysis uses statistical models and machine learning to predict future outcomes based on data over time. This analysis will form the core points to be included in the AI ​​data processing system, helping companies and organizations predict changes and prepare appropriate adaptive solutions.
Types of Data Analysis Techniques.
Prescriptive analysis
This analysis will go beyond predictions to propose the most optimal actions. This technique will produce results that are recommendations for the best course of action based on different scenarios, constrained by many factors.
Inferential Analysis
This type of analysis is based on sample data collected from surveys or information collected on a certain sample. This type of analysis helps organizations generalize the majority of information when checking all the existing data is not possible..
# Tools for Data Processing and Analysis
To be able to process and analyze data in a modern way, it is necessary to rely on tools; powerful tools today are capable of handling different aspects of the analysis process. Below are some popular tools that you can refer to.
Python.
R.
SQL.
Power BI.
Tableau.
Excel.
RapidMiner.
Apache Spark.
Conclusion
This article goes through the data analysis process, pointing out 6 important steps from defining goals to accepting failure. This article provides a comprehensive roadmap to help businesses improve their ability to make data-driven decisions, optimize operations, and create competitive advantages. Contact DIGI-TEXX today for advice on personalized data processing and analysis solutions, helping your business maximize the potential of existing data warehouses and achieve achievements through digital transformation applications.