How pivot table is important in data analysis ?

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Data analysis means different things to different people. Data analysis means nothing other than the fact that some sort of analysis is being performed on data. The first question one might ask is: What does analysis really mean, and what is the intended result? 

Analysis is a more difficult concept to pinpoint. The dictionary definition indicates that analysis is primarily about discovering the essential features or meaning of something. 

Analysis involves some sort of study and judgment made by human beings. Analysis isn’t like processing an order or issuing a refund to a customer. There’s no definite outcome. Is the goal simply to understand the data, or does it involve something more than mere data? 

A pivot table is essentially a dynamic summary report generated from a database. The database can reside in a worksheet or in an external file.

A pivot table can help transform endless rows and columns of numbers into a meaningful presentation of the data.

For example, a pivot table can create frequency distributions and cross-tabulations of several different data dimensions.

In addition, you can display subtotals and any level of detail that you want. Perhaps the most innovative aspect of a pivot table lies in its interactivity. After you create a pivot table, you can rearrange the information in almost any way imaginable and also insert special formulas that perform new calculations. You can even create post-hoc groupings of summary items: for example, combining Northern Region totals with Western Region totals. And the icing on the cake is that with but a few mouse clicks, you can apply formatting to a pivot table to convert it to boardroom-quality attractiveness.

When you are analyzing large chunks of data you can use Pivot table to summarize, sort, count total and take average.