Analytics and dashboards are perhaps the most often confused and interchangeably used terms. However, these terms are just as far apart from each other as they could be. Now, dashboards, we all understand and can imagine interactive, meaningful graphs and charts, but analytics can be daunting.
This distinction is particularly useful for users coming from the traditional BI perspective such as OBIEE, Cognos and SAP and are looking to improve reporting with Spotfire, Tableau, and Qlik, etc.
But I want to take a quick step back here first, and bring to the top of our minds the functions of dashboards. Then we’ll get to analytics.
Dashboards Answer the “What?”
Dashboards address our curiosity in that they serve to:
• Reveal the current state of our business
• Expose what happened in the business
• Disclose trends in our business
This information gives us something to chew on, and it is always the first step to touch, feel and assess what our data is telling us. Trends break down products by category (think line chart here), or even by time series, geography, heat maps etc. Dashboards also uncover the relative performance in our data. Think bar graph, scatter charts, or area charts.
All dashboard products enable us to share our insights and data discoveries throughout our organization via the ‘server’ option. Simply put, dashboards can help get out the word about data reveals.
Indeed dashboards lend themselves well to structured data discovery processes and structured sharing of those discoveries. Here the “what?” of data is brought to light with the excellent technological workings of the dashboard.
Analytics Answers the “Why Behind the What”
So if dashboards answer the “what,” then analytics answer the “why” behind the what. Analytics take it a step further, digging down deeper into the data. We might pose analytics questions like:
“When users search my site, what are the solid business outcomes/conversions?”
Or:
“Why did sales suddenly fall or increase? What are the causal factors, and how strong is the correlation between sales and these business drivers?”
I also call these business drivers as the ‘vectors’ of the business. There may always be a correlation between the business cyclicality and say, the migration of Monarch Butterflies, but is that a really a causal factor?
That’s really what we are looking for – and that is what analytics answers.
Once we have identified those six key vectors that really have a causal relationship to business outcomes, then and only then, should you start modeling and use the models for testing the historical performance and venture into predictive world.
When renowned statistician, George E.P. Box said, “Essentially, all models are wrong, but some are useful,” I believe he said it for those of us who jump in too soon to model without fully understanding the vectors of their business, and without completely grasping data meaning. Read more about George E.P. Box here.
Your Takeaway: Do not sell yourself short, start with just the dashboarding tool, if you have to, but I recommend investing in a true analytics solution right at the outset because sooner rather than later, you will mature to that point! This, I guarantee.
FAQs
So if dashboards answer the “what,” then analytics answer the “why” behind the what. Analytics take it a step further, digging down deeper into the data. We might pose analytics questions like: “When users search my site, what are the solid business outcomes/conversions?”
What is the difference between analytical and operational dashboards? ›
Operational types of dashboards tell you what is happening now. Strategic types of dashboards track key performance indicators. Analytical types of dashboards process data to identify trends. Tactical types of dashboards offer detailed insights into short-term projects and departmental goals.
How are dashboards different from reports in business analytics? ›
Reports tend to be broader and feature historic data. Because they must be delivered periodically, they represent a snapshot of a specific area or organization rather than its real-time situation. Dashboards, on the other hand, are built to visualize and organize data in real-time.
Are dashboards outdated? ›
The data needs of modern BI users has evolved past what dashboards can provide, leading to a bold proclamation they are dead. The reality? The dashboard's role isn't over - but its decline is helping usher in a new wave of analytics solutions.
Are dashboards actually useful? ›
Dashboards are designed to offer a comprehensive overview of company performance, and do so through the use of data visualization tools like charts and graphs. These tools are auto-generated, so you don't need to be an expert to use them.
What type of analytics is a dashboard? ›
There are three types of data analytics dashboards: operational, strategic, and analytical. Operational: Operational analytics dashboards focus on the progress of work and show the current state of operations.
What is the difference between a dashboard and a KPI? ›
Key Performance indicators (KPIs) are individual metrics that can be displayed on a dashboard to track key measurements. You can think of them as a single important number that is displayed in large text. Dashboards are a collection of Insights and KPIs put together on a page.
What is the purpose of a dashboard in analytics? ›
Dashboards are useful for monitoring, measuring, and analyzing relevant data in key areas. They take raw data from many sources and clearly present it in a way that's highly tailored to the viewer's needs—whether you're a business leader, line of business analyst, sales representative, marketer, and more.
What is the difference between KPI report and dashboard? ›
You can keep track of your KPIs using reports or dashboards. Dashboards provide at-a-glance, dynamic, high-level information. Reports are often the longer, more in-depth summaries about how the business has performed in a specific past period.
What is better than dashboards? ›
Dashboards are great for an everyday overview of what's going on in the business thanks to its interactivity and timeliness of real-time updated data, while reports are best for a more in-depth look at a particular data-set, which can provide deeper insight than an at-a-glance summary.
The Limitations of Dashboards
- Lack of real-time anomaly detection prevents proactive incident management. ...
- Over-reliance on historical data. ...
- Missing small incidents that have a negative impact. ...
- CEO dashboards lack correlation. ...
- Cluttered dashboards and false positives. ...
- Lack of intelligent prioritization.
Overwhelming data overload
Excessive data points, charts, or KPIs cluttering your dashboards can render them unwieldy and counterproductive. In fact, users often find it challenging to extract meaningful insights when confronted with a large quantity of information.
Why do most dashboards fail? ›
Far and away the most common reason dashboards are abandoned is that the user doesn't know how to apply the information the dashboard provides. The best description of working with a dashboard begins with having access to the data, understanding what it means, and then applying that knowledge to generate action.
Why do dashboards fail? ›
People try to make dashboards as extensible as possible, but dashboards meant to answer many different questions are unwieldy. Answering your initial question almost requires a user guide for the tool, and dashboard navigation takes the mental effort best used for just answering the question you have.
Why does no one use your dashboard? ›
Your dashboard overall could be providing data and insights but it may not to be relevant to the tasks and responsibilities of the users. Users are more likely to engage with a dashboard that offers information directly related to their job functions, enabling them to make informed decisions.
What is the difference between operational and analytical? ›
While analytical data reveals patterns, trends, and insights that aid in strategic decision-making, operational data includes real-time, transactional information that is critical for immediate decision-making and execution of tasks.
What is the difference between operational and analytical reporting? ›
Operational reporting keeps you informed about day-to-day operations, while analytical reporting delves deeper, uncovering patterns and offering strategic insights.
What is the difference between analytics and operations? ›
Operational data is about individual entities at specific points in time. Analytical data is about populations of entities throughout time. Applying analytical insights or models to individual entities always comes with uncertainty.
What is an operational dashboard? ›
An operational dashboard is a business dashboard whose function is to monitor the performance of different business operations related to a specfici business area. It is primarily used to monitor and evaluate the performance and execution of ongoing processes and operations.
