In contrast to a narrow constituency of operational data, analytical data is used by a widespread set of users. True False
The correct answer and explanation is:
The correct answer is True.
Explanation:
Analytical data is typically used by a broader group of individuals within an organization compared to operational data, which is more narrowly focused. Operational data primarily supports day-to-day business functions, such as transactions, inventory management, or customer service. It is essential for routine operations and is often accessed by frontline employees and managers who need real-time information to make operational decisions.
In contrast, analytical data is used for decision-making, strategic planning, and performance evaluation, and it is often aggregated, historical, or processed from operational data. This type of data is valuable for a wide range of users across various levels of the organization, including executives, analysts, and department heads, who are interested in trends, forecasts, or patterns. Analytical data helps organizations understand past performance and predict future trends, facilitating better long-term strategies.
While operational data tends to be specific, detailed, and transaction-focused, analytical data is more summary-based and involves data processing techniques like data mining, business intelligence, or big data analytics. Users of analytical data generally have specialized roles that require insights derived from complex analyses and are spread throughout the organization, not limited to operational departments.
In essence, analytical data is designed to inform strategic decision-making and support a wider audience across the organization. This contrasts with operational data, which is more transactional and usually limited to specific groups responsible for daily tasks and immediate decision-making.