Importance of Data Analysis
Overview
To make sense of all the data available to them, business leaders work alongside data scientists who generate data visualizations to understand business questions via analytics. This process gives companies insight on what is working and what is not: for example, whether the products or services offered are meeting expectations, or if a shift in strategy is necessary.
Prompt
For this assignment, you will take on the role of a business leader who wishes to analyze if a new product their company has introduced is meeting the expectations. Imagine that you would like to create a post in the company intranet that summarizes your findings in an easy-to-read format for your team. Pay special attention to creating meaningful data visualizations. You should use techniques that make content easy to follow but that also display charts accurately without distorting or skewing data. Your company’s profit goal is 25% of the cost of goods sold (COGS). Remember, COGS is the cost of manufacturing the product, including labor, materials, and overhead. You will need to build trust and an open channel of communication with other leaders on your team. Pay close attention to the story that data visualizations tell you and others reviewing your post.
The purpose of this analysis is to better understand the cost, revenue, and profit associated with the new product launch. Review the Cost, Revenue, and Profit Spreadsheet retrieved from the company’s data center and consider the following while developing your ideas in this assignment.
What is the importance of data analysis?
What are the results of your analysis?
Think about your analysis and its findings, including visuals. Use visuals and text to re-state the purpose of your analysis and summarize your most important findings.
What are you trying to represent with this data?
What kind of graphic have you selected and why?
How did adding visual representations of the data change your analysis?
Does the target audience influence the way you display information?
Guidelines for Submission
Complete the Making Data Driven Decisions worksheet in your Soomo webtext, download your completed work, and submit it in Brightspace for instructor feedback. You should write using a professional voice, and any sources should be cited according to APA style. Your assignment must be between 400 and 800 words in length.
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Module Four Assignment
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March 27, 2023
Explanation of the Importance of Data Analysis
Data are raw facts and, by themselves, are meaningless. Unless the data context is established, they are useless in themselves. Data analysis entails examining and modeling data to discover useful information. Here, the raw data is processed, and actional extracting is done to make decisions. Data analysis is a critical aspect of many industries. It offers insights and answers to complex questions, promoting sound decision-making to improve organizational performance. It can help understand if the launch of the new product was successful by analyzing data related to product sales, customer feedback, and other important metrics. This report analyzes product launch data to establish whether the company meets expectations. The analyses focus on the changes in the cost of goods sold (COGS) and profitability over the 12 month period, to establish if the company has managed to meet its profit goal equal to 25% of the COGS. Analyzing this information will allow the business to see if it is meeting its goal and make the necessary steps toward improving performance in the future. The data analysis will assist in identifying the success of a new product launch. The data will show the strengths and weaknesses of the product and help the business make better decisions to improve the product. a
Description of Findings
The business lost during the first five months since the COGS was more than the total revenue. However, in the last seven months, the company started making profits, where the total revenue exceeded the cost of goods sold. The business data is for 12 months since the product's launch. The company's goal is a profit that equals 25% of the COGS. The target for the entire year can be calculated by multiplying the COGS by 25%:
Target profit = COGS x 25/100
Target profit = 235,170.00 x 0.25
Target profit = 58,792.50
However, the company had negative profits in the first five months, then started making profits...