diagnostic analytics
What It Means
Diagnostic analytics is the detective work of data analysis - it digs into your business data to explain why something happened after the fact. Unlike basic reporting that just shows what occurred, diagnostic analytics connects the dots to reveal the root causes behind business events and outcomes.
Why Chief AI Officers Care
Understanding the 'why' behind business performance enables executives to make informed decisions, prevent recurring problems, and replicate successful outcomes. It transforms reactive management into strategic planning by providing the insights needed to address underlying issues rather than just symptoms.
Real-World Example
When quarterly sales dropped 15%, diagnostic analytics revealed it wasn't due to market conditions or pricing, but because a key competitor launched a feature your product lacked, causing customer churn in three specific regions where that competitor had strong presence.
Common Confusion
Many executives think any data analysis that explains past events is diagnostic analytics, but it specifically focuses on causation and root cause analysis, not just correlation or basic trend identification.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, diagnostic analytics examines patient data, clinical outcomes, and operational metrics to identify root c...
Finance: In finance, diagnostic analytics helps identify root causes behind financial performance variances, risk events, and com...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"Insights, reporting, and information answering the question, “Why did something happen?” Diagnostic analytics determines information useful to understanding the cause(s) of an event(s). "Source: IEEE_Guide_IPA
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