The Difference Between Data Reporting and Data Analysis

Recently, Forbes gifted us an article that so perfectly explains the difference between Data Report and Data Analysis.

In the article, Forbes ranked the State of Utah as 2nd in their ranking of states based on standardized test scores.

Data Reporting Example

Data Reporting is the act of collecting and observing data and then providing some commentary:

“Utah students received the highest average SAT score in the nation, with average ACT and MCAT scores trailing just below Massachusetts.”

Data Analysis Example

Data Analysis is undertaking a much deeper exploration of the data, questioning the data, and finding patterns:

Utah students received the highest average SAT score in the nation, however, it should be noted that the state mandates all high school juniors take the ACT, resulting in a near 100% participation rate. The SAT, however, is not required.

In 2023, only about 4,000 students took the SAT, out of an eligible 40,000 students. The 9% of SAT takers are a sub-segment of students whom are more likely aiming for admission to competitive colleges, more likely to be enrolled in advanced placement courses, have at least one parent with a college degree, and come from higher-income families.

When observing all Utah high school juniors, we observe that Utah ranks 29th.

‼️This same scenario plays out in businesses, both large and small, across the world. Business owners and key stakeholders are demanding meaningful insights from their analytics teams however most analtyics teams stop at providing basic, often times misleading, commentary about data reports.