Analytics as defined by Thomas H. Davenport is, "The extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact based management [used] to drive decisions and actions." This is a subset of Business Intelligence which refers to a set of skills, knowledge, technologies, applications, and practices combined to acquire understanding of the market behavior and business context.
Analytics involves several steps.
1. The collection of data
2. The integration of data
3. The analysis of data
4. The interpretation of data
5. The presentation of business information
Through the use if business intelligence you will be able to answer the following critical questions:
* What happened?
* How many, how often, where?
* Where exactly is the problem?
* What actions are needed?
* Why is this happening?
* What if these trends continue?
* What will happen next?
* What's the best that can happen?
When it comes to social media here are some questions that need to be addressed from an analytics perspective:
Standard Reports: What conversations are occurring?
Ad hoc reports: When & Where are the conversation occurring?
Query/drill down : What are the sentiment of the conversations?
Alerts : What actions are needed?
Statistical Analysis : Why are these conversation occurring?
Forecasting/Extrapolation : What if these conversations continue?
Predictive Modeling : What conversations are next?
Optimization : How can we lead these conversations?
Where is your organization when it comes to Social Media Analytics?