Yet another post for data analytics students
As a data analyst, your work isn’t finished until you can effectively communicate your findings. Reports are the primary tool for sharing the results of your analysis with others. However, not all reports are created equal, and choosing the right type is crucial for conveying your insights clearly and appropriately. In this post, I describe the essential categories of reports you’re likely to encounter and use.
Static vs. Dynamic Reports: Snapshot or Live Stream?
One fundamental way to distinguish reports is based on their connection to the original data.
Static reports, sometimes called point-in-time reports, are like a snapshot of the data at a specific moment. Once the data is collected, analyzed, and reported, the report becomes fixed. Even if the underlying data changes, the static report will not update unless a new report is generated. Historically, static reporting was the only option. These reports are ideal for situations where having the most recent data isn’t paramount, or when answering complex questions that require a more hands-on approach and analysis over time. Ad hoc and research reports typically fall into this category.
In contrast, dynamic reports, or real-time reports, maintain a live connection to the data source. This means they update automatically whenever the data changes. Think of them as a live stream of the data, reflecting changes instantly. Dynamic reporting is crucial when having the absolute most recent data is vital, such as in financial trading where data changes minute-by-minute. Dashboards and web services are common methods used when dynamic reports are delivered.
While some business professionals might believe static reports are obsolete, they fill different, necessary roles compared to dynamic reports. Setting up a dynamic report can be time-consuming, making static reports faster and easier for one-time questions8 ….
Ad hoc vs. Research Reports: Quick Answers or Deep Dives?
Another common distinction separates reports based on their purpose and depth.
Ad hoc reports are short, quick reports designed to answer a simple, often one-time question. The frequency with which you create ad hoc reports can vary greatly depending on your role. They are typically static reports with a short turnaround time. Ad hoc reports don’t usually include extensive analysis or debate; they provide direct results and sometimes a brief explanation to help someone make an informed decision quickly. Examples include questions about the impact of a new product feature or comparing the effectiveness of different marketing strategies.
Research reports, also known as tactical reports, are the “big, bad reports.” They are large, in-depth reports that tackle big, complicated business questions, often utilizing advanced statistical analyses. These reports are always static. Unlike ad hoc reports, research reports are comprehensive, much like a dissertation. They might involve gathering additional data or conducting entire studies. Research reports aim to answer major questions that can significantly impact the company’s direction, such as whether to merge with another company or change a flagship product. Due to their complexity and potential need for new data collection, research reports are often expensive and do not happen routinely.
Research reports break down large questions into smaller ones, answering each in turn to address the overall complexity. While the definition of a “research report” can vary by company, for the purpose of the exam, they are understood as longer, more in-depth reports tackling complex questions.
Self-Service and Recurring Reports
Self-service reports are becoming increasingly common, often powered by software designed for this purpose. The most common form is the dashboard report, which uses software, applications, or web services to provide limited access to specific metrics, data, or visualizations. Dashboards can have a dynamic connection to live data. However, they can also be static, relying on data pulled from a query that is manually refreshed or updated on a schedule. Self-service reports typically focus on simple analyses and visualizations of key metrics needed by the audience to perform their jobs .
Recurring reports are, as the name suggests, reports that are produced and delivered at regular intervals. For some data analysts, creating and maintaining these reports forms the majority of their work These reports are usually static. Recurring reports often contain more complicated analyses and interpretations compared to self-service reports, especially as they may be discussed in meetings to facilitate decision-making.
The sources break down recurring reports into three common categories:
- Compliance reports: These ensure that a company or individual is meeting specific requirements or regulations, which can come from internal policies, third parties, the industry, or government bodies. Non-compliance can lead to harsh consequences. Compliance reports are sometimes called regulatory reports.
- Risk and regulatory reports: Similar to compliance reports, these focus on identifying risks, often related to potential changes in regulations, and analyzing their potential impact. They assess the likelihood of an event and the severity of the damage if it occurs.
- Operational reports (KPI reports): These are the most common type of recurring report and are used to report the current state of normal operations. They typically focus on Key Performance Indicators (KPIs) to provide a quick check on how things are going. Operational reports are often generated quarterly, though their frequency depends on the report’s purpose.
Understanding these different report types is essential for any data analyst to effectively communicate insights, whether providing a quick answer, a deep analysis, or regular updates. By recognizing the purpose and characteristics of each type, you can choose the most appropriate method to deliver your data story.