1. The concept of data analysis

Data analysis refers to the use of appropriate statistical analysis methods to analyze a large amount of collected data, summarize them, understand and digest them, in order to maximize the development of data functions and give full play to the role of data. In simple terms, data analysis is the process of detailed research and summary of data in order to extract useful information and form conclusions.

2. The purpose of data analysis

The purpose of data analysis is to concentrate and extract information hidden in a large number of seemingly chaotic data, so as to find out the internal laws of the object of study. In practical applications, data analysis can help people make judgments so that they can take appropriate actions. Assuming that cross-border e-commerce business operators are ready to open up a new market, they need to fully understand the market conditions, market potential and sales forecasts of competitors, so as to find a breakthrough for discovering market opportunities. Therefore, data analysis plays an extremely important role in the operation of enterprises.

3. The role of data analysis

Data analysis has the following three functions in the operation of enterprises.

The first is status analysis: helping managers understand the overall operation of the enterprise at this stage, the composition of the enterprise’s various businesses, the development and changes of various businesses, and the operation of the enterprise.

Second, cause analysis: Based on the business operation situation, analyze the cause of a certain situation. For example, the store sales this month dropped by 15% month-on-month. What is the reason? Is it because the store traffic has decreased, or is there a problem with the conversion rate, or is the average customer price reduced? The company should find the root cause through cause analysis. Cause analysis is generally completed through thematic analysis.

Third, predictive analysis: predict the future development trend of the company, provide effective reference and decision-making basis for formulating the company’s operating goals and strategies, so as to ensure the sustainable and healthy development of the company. For example, cross-border e-commerce business operators generally predict next month’s sales based on the sales trend in recent months, and use it as the store’s operating goal and the basis for employee assessment. Predictive analysis is generally completed through thematic analysis.