Data Analysis
Data analysis describes processes for processing, evaluating, and interpreting raw data to derive business-relevant insights.
Classification
- ComplexityMedium
- Impact areaBusiness
- Decision typeDesign
- Organizational maturityIntermediate
Technical context
Principles & goals
Use cases & scenarios
Compromises
- Wrong decisions due to misinterpreted results.
- Biases from unrepresentative samples.
- Excessive complexity leads to poor traceability.
- Embed automated data validation in pipelines.
- Document and version results reproducibly.
- Include interdisciplinary teams for interpretation.
I/O & resources
- Raw data from systems and sensors
- Metadata and data catalogs
- Business questions and objectives
- Analytical reports and dashboards
- Models, hypothesis tests and KPIs
- Recommendations for actions and changes
Description
Data analysis is the systematic process of inspecting, cleaning, transforming, and modeling data to extract meaningful insights and support decision-making. It encompasses descriptive, exploratory, and inferential techniques across quantitative and qualitative data. Proper analysis reveals patterns, validates hypotheses, and informs strategic actions.
✔Benefits
- Better decision basis through data-driven insights.
- Early identification of opportunities and risks.
- Efficiency gains through targeted action identification.
✖Limitations
- Limited validity with poor data quality.
- Correlation is not causation; interpretation risks exist.
- Privacy and compliance constraints may limit analyses.
Trade-offs
Metrics
- Time-to-Insight
Time from data availability to actionable insight.
- Data quality score
Measurement of completeness, accuracy, and consistency.
- Adoption rate of analysis outcomes
Share of recommendations that feed into decisions.
Examples & implementations
Sales data analysis for assortment optimization
A retailer uses transaction and inventory data to adjust assortment and order quantities.
Usage analysis of a SaaS platform
Product team analyzes feature adoption and derives product priorities.
Operational monitoring and anomaly reporting
A manufacturer detects machine failures early through time-series analysis.
Implementation steps
Define objectives and select relevant metrics.
Identify, collect, and clean data sources.
Perform exploratory analysis and form hypotheses.
Validate models, operationalize results, and monitor.
⚠️ Technical debt & bottlenecks
Technical debt
- Poorly documented transformation logic in ETL
- Manual steps in pipelines that block automation
- Missing versioning of datasets and models
Known bottlenecks
Misuse examples
- Deriving causal claims from purely correlative findings.
- Basing decisions on undocumented assumptions.
- Using confidential data without anonymization for exploration.
Typical traps
- Overfitting from overly complex models on small datasets.
- Selection bias from unsuitable sample selection.
- Confusing data quality symptoms with business problems.
Required skills
Architectural drivers
Constraints
- • Privacy regulations (e.g., GDPR)
- • Limited compute resources in infrastructure
- • Data access rights and silos