Differentiating gives the rate of change of a function. It is used any time you want to study how the change of one variable affects another. It has many practical examples.
Physics:
One, a physics example, being that the velocity is the derivative of the position function.
$$ s(t) = s_0 + v_0 t - \frac{1}{2}gt^2 \quad\text{# Position of an object at time }t$$
$$ v(t) = s'(t) = -gt + v_0 \quad\text{# Velocity of an object at time } t$$
$$ a(t) = v'(t) = -g \quad\text{# Acceleration of an object} $$
Note:
Here $g$ is the acceleration due to gravity ($-9.8 \frac{m}{s^2}$), $v_0$ is the initial velocity, and $s_0$ is the initial position.
Analysis:
The derivative can also be used for many other branches in mathematics. The branch mathematical analysis deals with analytic functions, rate of change, and therefore derivatives. For instance, one can approximate a function using a sum up to the n-th derivative in a Taylor Series
$$ f(x) = \sum_{n=0}^{\infty} \frac{(x-\alpha)^n}{n!}f^{(n)}(\alpha) $$
The derivative can be used to find information about a function such as maximums and minimums. All relative maxes and mins of $f(x)$ will lie on a point where $f'(x)=0 \text{ or is undefined}$. These are called critical points. In addition where $f''(x)=0 \text{ or is undefined}$ and changes signs represents a change in concavity of $f$.