32 lines
5.3 KiB
Markdown
32 lines
5.3 KiB
Markdown
---
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title: "Analytics"
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chunk: 2/3
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source: "https://en.wikipedia.org/wiki/Analytics"
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category: "reference"
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tags: "science, encyclopedia"
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date_saved: "2026-05-05T06:37:35.112766+00:00"
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instance: "kb-cron"
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---
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=== People analytics ===
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People analytics uses behavioral data to understand how people work and change how companies are managed. It can be referred to by various names, depending on the context, the purpose of the analytics, or the specific focus of the analysis. Some examples include workforce analytics, HR analytics, talent analytics, people insights, talent insights, colleague insights, human capital analytics, and human resources information system (HRIS) analytics. HR analytics is the application of analytics to help companies manage human resources.
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HR analytics has become a strategic tool in analyzing and forecasting human-related trends in the changing labor markets, using career analytics tools. The aim is to discern which employees to hire, which to reward or promote, what responsibilities to assign, and similar human resource problems. For example, inspection of the strategic phenomenon of employee turnover utilizing people analytics tools may serve as an important analysis at times of disruption.
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It has been suggested that people analytics is a separate discipline to HR analytics, with a greater focus on addressing business issues, while HR Analytics is more concerned with metrics related to HR processes. Additionally, people analytics may now extend beyond the human resources function in organizations. However, experts find that many HR departments are burdened by operational tasks and need to prioritize people analytics and automation to become a more strategic and capable business function in the evolving world of work, rather than producing basic reports that offer limited long-term value. Some experts argue that a change in the way HR departments operate is essential. Although HR functions were traditionally centered on administrative tasks, they are now evolving with a new generation of data-driven HR professionals who serve as strategic business partners.
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Examples of HR analytic metrics include employee lifetime value (ELTV), labour cost expense percent, union percentage, etc. Quality of promotion is a metric used to assess a person's promotion decisions. The metric determines whether employees appropriately advanced on objective criteria rather or if a bias is present.
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=== Portfolio analytics ===
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A common application of business analytics is portfolio analysis. In this, a bank or lending agency has a collection of accounts of varying value and risk. The accounts may differ by the social status (wealthy, middle-class, poor, etc.) of the holder, the geographical location, its net value, and many other factors. The lender must balance the return on the loan with the risk of default for each loan. The question is then how to evaluate the portfolio as a whole.
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The least risk loan may be to the very wealthy, but there are a very limited number of wealthy people. On the other hand, there are many poor that can be lent to, but at greater risk. Some balance must be struck that maximizes return and minimizes risk. The analytics solution may combine time series analysis with many other issues in order to make decisions on when to lend money to these different borrower segments, or decisions on the interest rate charged to members of a portfolio segment to cover any losses among members in that segment.
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=== Risk analytics ===
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Predictive models in the banking industry are developed to bring certainty across the risk scores for individual customers. Credit scores are built to predict an individual's delinquency behavior and are widely used to evaluate the credit worthiness of each applicant. Furthermore, risk analyses are carried out in the scientific world and the insurance industry. It is also extensively used in financial institutions like online payment gateway companies to analyse if a transaction was genuine or fraud. For this purpose, they use the transaction history of the customer. This is more commonly used in Credit Card purchases, when there is a sudden spike in the customer transaction volume the customer gets a call of confirmation if the transaction was initiated by him/her. This helps in reducing loss due to such circumstances.
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=== Digital analytics ===
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Digital analytics is a set of business and technical activities that define, create, collect, verify, or transform digital data into reporting, research, analyses, recommendations, optimizations, predictions, and automation. This also includes SEO (search engine optimization), where the keyword search is tracked and that data is used for marketing purposes, and banner ad clicks. A growing number of brands and marketing firms rely on digital analytics for their digital marketing assignments, where marketing return on investment (MROI) is an important key performance indicator (KPI).
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=== Security analytics ===
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Security analytics refers to information technology (IT) to gather security events to understand and analyze events that pose the greatest security risks. Products in this area include security information and event management and user behavior analytics.
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=== Software analytics ===
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Software analytics is the process of collecting information about the way a piece of software is used and produced. |