Data aggregation is when data is collected and presented in a précised format to achieve business objectives for statistical analysis. This aggregation is vital to data warehousing as it helps make decisions based on vast data. Moreover, it can forecast future trends and aid in predictive modeling. Influential data aggregation companies help to minimize performance problems.
The aggregation offers more information based on related data clusters, like an individual’s income or profession. For instance, a store may want to look at the sales performance for different regions to aggregate the sales data based on area.
Queries with aggregation provide faster results. However, faster queries imply a better performance of the system.
Process of Data Aggregation
Data aggregation companies offer tools to evaluate your business progress. However, businesses that need to gain market intelligence usually rely on software tools to aggregate data processes. These tools tend to perform three basic actions:
- Data extraction: target or isolate relevant data from aggregated data in a way that agrees to the company’s requirements.
- Transformation: transform or adjust the data to correspond to the recommended template or format for data analysis.
- Data analysis and visualization: create a summary form or a visual representation of evaluated data and KPIs that you can use for business intelligence.
How do Data Aggregation Tools work?
Data aggregators tools denoted as data aggregators, capture data from numerous sources. Moreover, they calibrated to process that data or new insights and present them in summary. However, these tools can also track data lineage to avoid missing appropriate context, which is crucial, especially when encountering outliers.
Therefore, the collection is the first phase of data aggregators and extracted from the internet of things sources like:
- Social media
- Call centers
- Browsing experience or history
- News and podcasts
Processing the collected data is the next phase. It implies that newly formed databases or datasets need to be cleaned or transformed. However, this process allows you to target specific insights relevant to desired market intelligence.
Finally, they summarize all of your findings. It can take time as data needs to be analyze, and results must be accurate and relevant.