Running head: DATA SCIENCE AND BUSINESS ANALYTICS 1

Data Science and Business Analytics

Name

Institutional Affiliation
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1. What is Data Science? Business Analytics? What are the differences between these
terms? What skills set are required for each?

Introduction
Data science and business analytics almost go hand-in-hand, with their similarity being in

the sense that they are needed to collect data, model and interpret it, and to make projections.

Data science is the science of extracting knowledge from data. It involves the use of automated

methods to analyze massive data amounts and to extract knowledge from them. It seeks to

accomplish this by defining and implementing methods and procedures that extract knowledge

and information from sets of data (Earnshaw, Dill & Kasik, 2019). Data science analyzes data

using the scientific method, and is mostly concerned with the rigorous data analytics-related

work.

On the other hand, business analytics, which refers to the psychoanalysis of data using

arithmetical concepts to draw conclusions and to get insights and solutions, is about simplifying

data upon the solving of a data problem and making it more accessible to deliver insights. By

business analytics, there is the focus on business using analytics. The first step in the

understanding of what business analytics is all about is the definition of business objectives.

Once there are objectives, data can be collected, then analyzed and finally visualized. Analytics

creates insights when applied to data. Business analytics as a part of analytics but in business

circles is concerned with taking the insights from analytics and using them to create value

(Liebowitz, 2013).

Data science and business analytics are closely-related in terms of their functions, mostly

because both need to collect data, the model and interpret it to create solutions and to make

projections. There are certain similarities between the two which explains why there are

instances during which the two are used interchangeably. The differences between them make
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them two different domains, especially in professional circles. It is business analytics which

leverages knowledge to provide the right data which is a natural input for data science. Business

analytics navigates and addresses the organizational challenges that arise in the adoption and use

of data science. It means that business analytics in itself is a set of data science. Business

analytics also is the end-product of data science and the two are related because business analysts

and data scientists use big data to inform decision-makers and organizational stakeholders for

optimal results (Provost & Fawcett, 2013). However, there are major differences between them.

Business analytics involves the evaluation of collected data, from which actionable

insights are developed, insights which are also solutions to specific problems and roadblocks for

businesses. On the other hand, data science mainly uses algorithms and statistics plus technology

to give actionable insights on structured as well as unstructured data, thereby solving issues like

customer behavior, which are on a broader perspective. While business analytics uses structured

data mostly, data science uses both structured and unstructured data. Structured data is the highly

organized information which can be located within a defined file or record, for example, point of

sales, financial, and customer data. It is usually contained in relational spreadsheets and

databases, and compiling and preparing, then storing it for purposes such as analysis is relatively

easy (Marr, 2015). Business analytics mainly uses this kind of data. Unstructured data on the

other hand is the data that does not work so well in formats such as those of databases and

spreadsheets, especially because it cannot be easily slotted into columns, fields, and rows. Text

heavy data and text files like PDFs and social media posts, graphic images and photos, videos,

and websites, and even PowerPoint presentations are examples of the unstructured data that

together with structured data are analyzed using algorithms, statistics, and technology under data

science (Marr, 2015).

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Business analytics leans more towards statistics, which is why the majority of the

analysis is based on traditional to some digital statistical concepts, unlike data science which

requires the data scientist to combine traditional analytics practices with proper computer

knowledge and skills such as coding. More so, statistics in the latter follows coding and

algorithm building. Another major difference between the two is that while business analytics

works on specific business issues and problems, data science studies and works on trends and

patterns. It explains why data scientists should be curious, result-oriented, and possess industry-

specific knowledge plus communication skills for them to explain the highly technical results to

some non-technical counterparts as the business analysts.

The data scientists need a strong quantitative background in such fields as statistics and linear

algebra as do business analysts, but the former also need a background in programming

knowledge, in particular skills in data mining, warehousing, and modeling (Zhu & Xiong,

2015). These skills enable them to build and analyze complex models and quantitative

algorithms that help organize and synthesize big data and information from where questions

regarding how to drive strategies by solving business problems can be answered. In addition to

modeling and coding skills, data scientists are required to be of great mathematical

understanding and aptitude, conversant with data visualization, and that possess significant

business knowledge. This allows them to easily translate data into a particular, understandable

narrative, data and results they can use to tell a story and show decision-makers and

stakeholders just how much the evidence that is provided by the analyzed data is important.

Business analysts should mainly be able to define business requirements using analytics and

problem-solving skills. They also need to be effective communicators, and they should have

developed process modeling skills that are necessary for roles and responsibilities like
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forecasting, pricing, budgeting, financial analysis, and the passing of regulations and reporting

requirements to decision-makers and stakeholders (Aston University Online, 2019). The

analytical strengths, business acumen, and efficiency business analysts need are necessary for

them to properly and efficiently discern insights and to help companies operate at peak

efficiency through their analysis and description of important guidelines as customer bases and

purchasing habits.

2. How can Data Science and/or Business Analytics help a business? How can it

enhance a business’s key performance indicators? Discuss briefly.

Data Science and Business Analytics in Business

The descriptive analytics, predictive, and prescriptive techniques that data scientist and

business analyst professionals hold and that make them fit for these or closely-related positions

in a business are needed because businesses need to collect, analyze, and understand data about

their customers, the market, and their industries to make predictions that improve business

performance. Data science plus business analytics equal to business intelligence, which

businesses need to make smarter decisions. In the decision-making process, for example, data

science ensures that the problems after being understood, and data quantified can be solved using

the relevant tools implemented by data scientists and that translate the data into insights for

better understanding of the business processes and teams. Companies analyze customer reviews

using the analytical tools operated by data scientists from where they find the best fit for their

products. It is a function that helps businesses understand and analyze the current market trends,

thereby devising products for the right masses using data science tools. Considering the extent to

which businesses today are data rich, they need data science to unearth the patterns hidden inside

that data, from where they can predict events and make meaningful analysis. For instance, it is

possible to use the raw data that is turned into cooked data by data scientists to predict the
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success rate of their business strategies, and all they need is key metrics identified by data

science and business analytics. Predictive analytics that are carried out using tools like IBM

SPSS fall under data science, and they help with customer segmentation, market analysis, sales

forecasting, and risk assessment purposes.

Business analytics helps businesses leverage data they then use to make calculated and

data-driven decisions. Business analytics is primarily concerned with statistical analysis from

where actionable recommendations result. Business analytics ensure that the data collected by

businesses is centralized and cleaned to steer of problems that may result in poor decision-

making as duplication. Business analytics tools filter the collected data to remove any instances

of incomplete, inaccurate, or inaccurate data. As a category of business analytics, business

intelligence analyzes historical data to gain insight into how a team, department, individual

employee, or the whole company has performed over a certain time period (Bichler, Heinzl &

van der Aalst, 2017). Statistical analysis works closely with business intelligence as the other

category through predictive analysis that is carried out using statistical algorithms and tools to

make predictions about that business’ future performance. The predictive analysis is based on the

historical data collected. Descriptive analytics too fall under business analytics and involve the

tracking of key performance indicators to know where business performance currently stands

(Evans & Lindner, 2012). Prescriptive analytics on the other hand are those that use past

performance to recommend how the business can handle similar situations should they arise in

the future. Company data is used to boost process and cost efficiency, to monitor and improve

financial performance, and to drive strategy and change, and all these happen when companies

use business analytics and data science correctly to make informed decision-making. They
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improve overall operational efficiency and may make higher revenue in the long-run because of

embracing data and analytics-related initiatives (Gavin, 2019).

3. Illustrate with ONE example how data analytics have been used to help a business.

Data Analytics in Use

Companies today depend on data they collect from mobile devices, applications,

websites, and social media platforms. Companies like Airbnb and Netflix among other streaming

platforms use data analytics, in particular data science to improve their service delivery. They

collect the data generated by users on the apps and websites and on social media platforms, then

process and analyze it to address requirements. The analytics they use help provide premium

services to their customers henceforth. They mainly use machine learning, one of the

applications of data analytics and data mining to build specific solutions. Airbnb’s Dataportal,

for example, captures guests’ and hosts’ metadata information in a graph that shows resources

like users, teams, reports, data tables, dashboards and business outcomes. The manner in which

they’re shown to be connected reflects their consumption, production, and association

relationships (Rodriguez, 2019). Data analytics has helped Airbnb develop workflow

management systems to avoid writing scripts regularly and to have scripts call other scripts.

They take advantage of big data and data analytics to predict what consumers may like and the

market information, from where their decisions on the products and services they should offer

result.

Major

4. State your major. Pick the best or top 3 data science or business analytics software

relevant to your major and briefly discuss why you think they are relevant?

Data science and business analytics are now part of core business activities that their

software apply in human resources, my major. More companies now use data to support their
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evidence-based decision making in human resources. They use the software applications for

planning, forecasting, recruitment, development, and the retention of members of staff. Python, a

programming language, can now be used for people analytics. Companies now have teams

dedicate to people analytics, and are using Python, an open source programming language that is

relevant for its wide variety of developers and support, to improve HR functions as collaboration

among employees. Python is readable, almost better than Excel, because things on it are laid out

clearly (Kohli, 2018). HR in a company can easily carry out analysis and reuse scripts they have

saved using it. Python makes it possible to create predictive models and to deriver insights from

data. It is scalable and people can analyze large datasets in it. Companies that need to predict

employee churn can use Python.

Tableau, another modern software for HR analytics, can be used to make hiring, retention,

and investment decisions. It is an especially important tool for companies that need to visualize

the relationship between HR functions like hours, productivity, and tasks. Visualization helps

optimize schedules and resources with greater precision. Its relevance in HR comes from its

ability to bring together human resources data in a sleek visual interface, which can best help

drive insights. Companies like Walmart have noted that Tableau has provided them with efficient

people analytics (Diez, Busssin & Lee, 2019).

SAP SuccessFactors, the other business analytics software is used as a talent management

suite and is now a major human resources technology component in companies. It works as a

software as a service (SaaS) software for human capital management and is best suited for

functions of talent management as recruiting, performance management, learning and

development, and compensation management (Chang, 2015). It is relevant to business analytics

for its functionality in people analytics, for workforce planning, and as a time and attendance
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software with its hubs like Employee Central serving as human resources systems of record and

data repository can store employee information like their addresses, social security numbers, and

salary and benefits enrolments. Its workforce analytics uses accurate workforce intelligence to

make HR decisions (Yang, Smith & Churin, 2018).

References

Aston University Online. (2019). Data Science: Business Analytics and Big Data. Retrieved

from https://studyonline.aston.ac.uk/news/2019/10/25/data-science-business-analytics-

and-big-data

Bichler, M., Heinzl, A., & van der Aalst, W. M. (2017). Business analytics and data science:

once again?

Chang, V. (Ed.). (2015). Delivery and adoption of cloud computing Services in Contemporary

Organizations. IGI Global.

Diez, F., Bussin, M., & Lee, V. (2019). Fundamentals of HR Analytics: A Manual on Becoming

HR Analytical. Bingley: Emerald Publishing Limited.

Earnshaw, R. A., Dill, J., & Kasik, D. (2019). Data science and visual computing.

Evans, J. R., & Lindner, C. H. (2012). Business analytics: the next frontier for decision sciences.

Decision Line, 43(2), 4-6.

Gavin, M. (2019). Business Analytics: What it is & why it is important. Retrieved from

https://online.hbs.edu/blog/post/importance-of-business-analytics

Kohli, S. (2018). Innovative applications of big data in the railway industry.

Liebowitz, J. (Ed.). (2013). Business analytics: An introduction. CRC Press.

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Marr, B. (2015). Big data: Using smart big data, analytics and metrics to make better decisions

and improve performance. Chichester: Wiley.

Provost, F., & Fawcett, T. (2013). Data science and its relationship to big data and data-driven

decision making. Big data, 1(1), 51-59.

Rodriguez, J. (2019). How LinkedIn, Uber, Lyft, Airbnb, and Netflix are solving Data

Management and Discovery for Machine Learning Solutions. Retrieved from

https://towardsdatascience.com/how-linkedin-uber-lyft-airbnb-and-netflix-are-solving-

data-management-and-discovery-for-machine-9b79ee9184bb

Yang, A., Smith, J., & Churin, A. (2018). SAP SuccessFactors Learning: The Comprehensive

Guide (SAP PRESS). SAP PRESS.

Zhu, Y., & Xiong, Y. (2015). Towards data science. Data Science Journal, 14.