Types of Analytics

Backward Looking Analytics

Backward Looking Analytics answers the questions of when, where, how much, and why. These questions are really the main focus of Business Intelligence teams. Many people break out backward looking analytics into two categories Descriptive and Diagnostic.

Forward Looking Analytics

Forward looking analytics focus on future events. Within this realm, Data Scientist and Machine Learning Engineers seek to predict what is going to happen based on historical data and provide recommended steps to navigate future events advantageously. Forward looking analytics are commonly broken out into Predictive and Prescriptive focus areas.

Data Analytics Program Maturity

Successful data analytics teams encompass both backward looking and forward looking analytics. Although they aren't always achieved at the same time. Usually, data analytic teams start out focused on backward looking analytics and eventually move into more predictive territory as capabilities grow and develop. Based on Kaggle's 2021 Data Science and Analytics Survey, a team is more likely to successfully implement predictive capabilities when its headcount exceeds 5 people. The likelihood of success increases with bigger and more mature analytics programs.

Summary

The goal of both backward looking analytic and forward looking analytics is to provide actionable insight into what key business leaders need to do to win in the competitive market. The methods to arrive at that goal vary, but they are nonetheless effective. When building your analytics program, you want to achieve both.