Analytics in Action

While many people don’t want to admit they have an interest in a subject like analytics, others do not care what they world thinks about them. While analytics may involve a lot of math for the individuals who do calculations and ‘crunch the numbers’, for most of us it is the results and insights that are of interest. There are so many ways that analytics is being used that no matter what subjects interest you there are probably some statistics available.

One area that many people pursue as a career is Human Resources. There are many jobs in this field including recruiter, information technology associate, payroll administrator, training coordinator and many more. HR analytics touches all of these areas and today’s leading professionals understand the importance of using data in their jobs. For example, corporate trainers need to evaluate the success of the programs they design and deliver. An important part of this assessment is statistics such as course completion rate, employee retention, and productivity increases. Without follow and evaluation of the impact to the organization it is hard to tell if various programs are effective and should be continued. A tool as valuable as this can be, and commonly is, applied to all areas of human resources.

Many sports enthusiasts have caught the analytics bug. Over the past decade teams in all sports have been using analytics to not only select players but also to determine game strategy and which plays to employ in certain circumstances. The 2018 Philadelphia Eagles, under head coach Doug Pederson, had an analytics expert on standby during gaines. This expert was consulted in various situations to help determine which play had the highest likelihood of success. In addition, this guidance was also used in deciding whether to ‘go for it’ on fourth down. Based on the success of the Eagles and many other teams, it is now common to hear fans talk about analytics with great excitement.

One other area where people employ analytics is in managing their investments. Investing has always relied to some extent on financial analysis. However, certain investments like peer to peer lending have become a focal point for serious analytics based analysis. In order to optimize a P2P loan portfolio it is essential to employ a lending club strategy for investing that will produce an appropriate risk/return balance. Loan underwriting is heavily reliant upon data which makes it an ideal area to use modern analytics. Investors are always searching for ways to get an edge and beat the market. Many investors believe they have found that advantage with statistics.

As mentioned earlier, the interest in analytics is more about the information and insights that result from statistical analysis. The math involved can be complex but that is usually handled by computer programs or statistics experts. Applying their conclusions to everyday situations and problems is the interesting part, and that is what seems to be enticing so many people to take and interest in this field. There is no doubt that this interest will increase because the value of analytics has been proven many times and in many ways.

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