How does diagnostic analytics differ from descriptive analytics?

Diagnostic analytics is focused on understanding the reasons behind past performance or outcomes. It goes beyond merely presenting data and involves investigating patterns or anomalies to explain why certain results occurred. This type of analysis is essential for identifying root causes, understanding relationships between variables, and informing future decision-making based on historical insights.

In contrast, descriptive analytics primarily summarizes historical data to provide an overview of what has happened. While it offers valuable insights into trends and patterns, it does not delve into the "why" behind those patterns. Therefore, while both types of analytics work with historical data, diagnostic analytics takes a step further to provide explanations and insights into the reasons behind certain performance outcomes. This difference in focus makes diagnostic analytics particularly useful for organizations seeking to improve their strategies or operations based on past performance.