How to Choose Your First Data Analysis Tool

Hey everyone, is everything good? I really hope so! When you're starting in the data analysis field, it's common to feel lost among so many available tools. I felt that way too; there are so many options. After all, which one should you learn first and use to help you? In this article, I'm going to help you understand which tools are available, how to use them, and how to choose the one that makes the most sense for you as a beginner.

So, Which Tools Should I Use?! If you're just starting, there are a few very user-friendly and widely used tools in the market, especially for beginners. The ones I consider most important are:

• Spreadsheets: Excel and Google Sheets.

• Data Visualization (DataViz) Tools: Power BI, Looker Studio, and Tableau.

• SQL: A specific language for dealing with data.

These tools are essential because they allow you to work with data in different and complementary ways, and they will help you greatly at the beginning of your journey.

Now I'm going to explain a bit more about what each of these tools is and provide some usage examples for each of them.

Spreadsheets: Excel and Google Sheets:

Spreadsheets are like a "magic notebook" where you can organize and manipulate data in tables. With them, you can perform calculations, create simple charts, and even automate some tasks with formulas and scripts.

Example of use: Imagine you have a list of monthly expenses. With a spreadsheet, you can sum all the values, calculate the average daily spending, and create a chart to visualize which categories consumed the most money.

Data Visualization (DataViz) Tools: Power BI and Looker Studio:

These tools are like the "graphic artists" of data. They help you transform tables and numbers into interactive charts and dashboards that facilitate decision-making.

Example of use: If you work at a restaurant, you can use Power BI to create a dashboard that shows total daily sales, the best-selling dishes, and the busiest times.

SQL (Structured Query Language):

SQL is a language used to communicate with databases. It’s like the "universal language" of data. With SQL, you can quickly and precisely retrieve specific information from large volumes of data, whether it's in a database or a data warehouse.

Example of use: Imagine you have a database with information about all orders placed on an e-commerce site. With SQL, you can quickly find out how many orders were placed in December or which products sold the most during a specific period.

It's important to note that there are differences between them. These tools have different purposes, but they often complement each other. Let's understand the main differences:

• Spreadsheets are great for small, quick, and personal data. They have an intuitive interface and are excellent for basic and quick analysis.

• DataViz tools excel at data presentation. They are ideal for creating interactive dashboards and sharing information with others.

• SQL is perfect for working with large volumes of data in structured databases. It's more technical but extremely powerful and very efficient.

Now let's talk about some use cases that these tools have in common.

1. Spreadsheets (Excel and Google Sheets):

Use Case: Managing a contact list or calculating the monthly budget.

• Complement: After working in the spreadsheets, you can export the data to a DataViz tool like Power BI to create more advanced charts. This export can be done in various ways, but that's a topic for other articles.

2. Data Visualization Tools (Power BI and Looker Studio):

Use Case: Presenting the monthly sales performance to the board of directors.

• Complement: Using SQL to extract the data from the database and then importing it into Power BI to build interactive charts with near real-time updates.

3. SQL:

Use Case: Extracting detailed data from a database with millions of records.

Complement: After extracting the data with SQL, you can organize it in a spreadsheet for additional analyses or create dashboards using DataViz tools.

But then which one should you choose? Choosing the right tool depends on your goal:

• Want something simple and intuitive to start? Spreadsheets are the best choice.

• Need to present data visually and interactively? Go with Power BI or Looker Studio.

• Do you work with large volumes of data and want precision? SQL is essential.

In the end, the good old "it depends" will always be there with you, so it's good to get used to it, haha. Each case will require one or more different tools.

Whatever your choice, take the first step and explore the possibilities of the data analysis world. After all, starting is what matters! If I could give one tip, I would start in the following order: spreadsheets, SQL, DataViz, and then a programming language—Python is a great choice; it's quite simple and easy to understand.

Ultimately, the most important thing to understand is that these tools don't compete with each other. They are complementary, and over time, you can learn to use them together to create even more complete solutions.

Anyway, that's it for today, everyone. All the best, and until the next topic. 😊