Question

IN 200 WORDS OR MORE

Differentiate between metrics and statistical analysis of information. When may each of these be important? Give an example

Answer 1

Metrics are nothing but an integral constituent of accountability. It is used as a standard of measurement. The organization measures its performance through the use of metrics. Most commonly used metrics are the key performance indicators (KPIs).

• Activity metrics: the hard and soft costs associated with a product
• Operational metrics: cost per lead
• Output/Outcome metrics: website footfall

Analytics is the process to use the history data of the company to generate predictions for future course of business. In some predictions, analytics uses the metrics data to make business decisions. In analytics, maths and statistics are applied on the company’s data to create various strategies and business models.

The major differences between metrics and analytics:

• Metrics are informational while the analytics are strategical.
• Metrics is mainly involved in counting, tracing and representing past data of business. While Analytics uses both past and future data to analyze processes and give predictions.
• Metrics are used to give an internal perspective of business as they use the in-house data only. Analytics gives an outside-in perspective about the business of the organization as they employ both internal data and metrics and external trends and patterns.