What is Diagnostic Analytics?
Diagnostic analytics is a form of advanced analytics that examines data or content to answer the question, "Why did it happen?" By using diagnostic analytics, companies can gain insights into the causes of patterns they've observed in their data. It can involve a variety of techniques, including drill-down, data discovery, data mining, and correlations.
Why it matters
Diagnostic analytics enables companies to make more-informed decisions about how to remediate problems and drive continued success. A drawback is that it focuses on historical data — it can only help businesses understand why events happened in the past, and further investigation may be needed to determine whether the correlations it surfaces truly show cause and effect. To look into the future, businesses complement diagnostic analytics with predictive and prescriptive analytics.
See how Diwo operationalizes Diagnostic Analytics.
Read the decision-intelligence playbooks that put this concept to work at Fortune 50 scale.
Related concepts
Prescriptive analytics is a type of data analytics — the use of technology to help businesses make better decisions through the analysis of raw data. Specifically, prescriptive analytics factors information about possible situations or scenarios, available resources, past performance, and current performance, and suggests a course of action or strategy. It can be used to make decisions on any time horizon, from immediate to long term.
Hindsight analysis is the analysis of results after recommendations have been made, compared to the prediction value associated with the recommendation. It is a retrospective evaluation process that assesses how actual outcomes matched the predicted values from prior recommendations.
Diwo's AI-driven Insight Engine framework delivers contextually relevant views into organizational data and business operations. The framework integrates with Diwo's Business Context graph to capture relationships between entities and their impact on decision-making. The engine analyzes trends and time-varying data changes, automatically surfacing and correlating actionable insights.
Actionable metrics are data that helps you make decisions and helps your business reach its goals or grow. They are related to something you can control or repeat meaningfully.