Data analysis is a process of collecting, studying, and critically thinking about data for some specific objective. Most organizations use data analysis to study performance patterns in the business and make better decisions for the future; for example, they may study customer interactions with the brand and a specific product to glean insights about which future products should be created.
Data analysts make good money, with an average salary of $62,789 per year. But data analysis skills (and an analytic mentality) can help you in a variety of ways, both in your personal and professional lives.
The Growing Importance of Data Analysis
Let’s start by talking about the growing importance of data analysis. You’ve likely heard about data and data analysis discussed more frequently in the past several years than they ever have before. There are a few important reasons for this. One is the development of better technology, which allows us to capture larger volumes of data. Another is more sophisticated data science, which we can use to make more informative and predictive analyses. We also have an array of modern tools that allow us to create our own dashboards, customize our data analysis approaches, and perfect data analysis as it relates to our specific niche.
Data analysis is also growing in importance because of competition. As more individuals and businesses get involved in data analysis, anyone not involved in data analysis faces bigger and bigger disadvantages.
In the rest of this guide, we’ll talk about the ways that data analysis can improve your life. It’s important to keep this growth in mind, as you become aware that these advantages will become only more prominent in the next several years.
The obvious benefit here is career potential. Once you’ve mastered the art of data analytics, you could become a data analyst for a major organization. There’s significant room for growth in this role, eventually allowing you to become chief data officer (CDO) or attain some other powerful position. You could also pursue a more independent lifestyle, offering data analytics services as a consultant or an independent contractor. Even if you’re not interested in a role dedicated to data science, you can list your data science skills on a resume and become more attractive to companies that may want to hire you for something else.
To become a more accurate and effective data scientist, you’ll need to develop objective reasoning skills. You can’t simply trust your instincts or reason things out logically; you start trusting objective data and metrics more and more. This is also good for decision making in your own life, and as you start getting used to thinking in this objective capacity, you’ll find yourself making better decisions.
Creative Problem Solving
Mastering data analysis can also equip you with better creative problem-solving skills. Not all data-related questions have easy answers, and the solution to these problems is seldom straightforward. As you get more experience navigating this complex and nuanced terrain, you’ll develop a better foundation for creative problem solving in other situations and other capacities.
Demand for Answers
Studying data analytics and looking at different assortments of data can give you a thirst for knowledge. You’ll start looking for patterns and information everywhere, which can make you a more discerning and critical consumer. It’s a gateway to further learning and personal development.
You can use data analytics in a variety of personal endeavors and hobbies, including:
· Personal fitness. How many calories are you eating every day and how much weight are you losing? How is your mile time improving and how much weight are you lifting over time? Data analytics can help you answer these questions and figure out the root causes for the trends you discover.
· Investing. As you might imagine, data science also plays an important role in the world of investing. Once you grasp the fundamentals of data analysis and you understand the most important metrics related to stocks, you can make more intelligent trades and develop your personal finances.
· Sports betting. Though arguably less responsible, you could also use data analytic skills to better understand the performance of various sports teams and place more intelligent bets.
· Skill improvement. Generally, data analysis is great for tracking your development when learning a new skill or mastering a new craft.
These are just a handful of examples. You can probably think of more applications where data analytics would come in handy.
If you’ve ever been marginally interested in data analysis, now is a prime opportunity to develop your skills further. Enrolling in training, attending a class, or just reviewing the fundamentals online could all have a substantially positive impact on your career, your personal life, and your future.