S.R.

LUTHRA Institute of Management

Business Analytics

Submitted by:-

Enrollment No. Name

207500592002 Riya Sagar
207500592037 Daxita Parmar
207500592039 Shweta Patel
207500592044 Meghna Parmar
207500592052 Ipsita Patel

Submitted to:-
Ms. Esha Pandya
Assistant Professor
S. R. Luthra Institute of Management
Surat
Table of Content

Sr no. Particulars Page no.

1. Analyze the role 1
of BI/BA
2. Ethical issues in 7
BA
3. Case Study 11

4. Bibliography 20
 The Role of Business Analytics in Healthcare
Healthcare analytics is the collection and analysis of data in the
healthcare industry in order to gain insights and support decision-
making. From key areas like medical costs, clinical data, patient
behaviour, and pharmaceuticals, healthcare analytics can be used on
both macro and micro levels to effectively streamline operations,
improve patient care, and lower overall costs.
Healthcare data is the most complex of any industry. From electronic
health records (EHR) to monitoring real-time vital signs, data not only
comes from several sources but has to comply with government
regulations. It’s a difficult and delicate process and requires a level of
security and connectivity only an embedded analytics solution can
provide.
As with any industry, a Business Intelligence (BI) and reporting solution
can significantly improve operational efficiency, reduce costs, and
streamline processes through measuring and leveraging KPIs to spot
opportunities and inform decision-making. From patients and providers
to payers and suppliers, unlocking the value of data benefits everyone.
Disaster Planning
Both natural and manmade disasters will put tremendous pressure on
the health care systems in that area. During a disaster, the demand for a
particular service will increase way beyond its capacity. For example,
during a flu outbreak, demand for ventilators will increase. Knowing the
real-time location and availability of such facilities will be very helpful
for the authorities in managing such disasters. Using data analytics, it is
also possible to predict the outbreaks of some diseases and thus putting
the authorities in a better position to manage it.

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Patient Flow
Healthcare is a time critical service and data analytics plays a crucial
role in ensuring smooth patient flow and reducing waiting period.
Predicting patient surge will help the authorities take the necessary step
to reduce patient waiting time thereby giving timely treatment.

Patient Care and Satisfaction

Medicinal services are progressively reliant on digital technology to help
the operations of a healthcare system.
Emergency clinics and other medicinal service associations need a
situation that supports the day-to-day practices of surgeons, physicians,
and all other healthcare personnel.
BI consolidates and presents all the cases to doctor which can be
obtained via Electronic Health Record. This software keeps track of all
the patient data.
The doctor can access every single test and treatment report of the
patient, both at the office as well as at home via a simple software
application installed on mobile, tablet, or laptop. Eliminating repeat tests
helps in saving a lot of money and fulfills the patient satisfaction level
who does not need to rehash a similar test, because of any missing data.
Likewise, the doctor is also happy as he/she gets to serve the patient
better.
Cost and Effectiveness: Data analytics can be used to compare the cost
and effectiveness of treatments, public policies etc. Organizations can

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use cost and outcome data to check the effectiveness of medicines and
stop prescribing medicines that are not effective.
Effective resource management: Location tracking technologies like
RFIDs are used to provide real-time management, identification, and
tracking of instruments within an organization. Along with tracking
instruments, now such technologies are increasingly being used to track
and manage patients and staffs. Data from such services can be used to
improve patient care, resource utilization, and staff management.
Pre-adjudication and fraud analysis: Hospitals receives large numbers of
insurance claims on a daily basis. Big data analytics can be employed to
process large numbers of claims to reduce fraud and abuse.
Improving decision making: For identifying and analyzing numerous
healthcare administration flaws and complexities, the need for BI
software is increasing.
Furthermore, progressed investigative capacities are important to
understand key difficulties and connections between patient, clinical,
and operational information.
BI software enables administrative heads to track Key Performance
Indicators (KPIs) that break down, oversee, and help healthcare
organizations to adjust their performance based on precise information
and examination based knowledge.

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 Role of Business Analytics in Manufacturing Industry
Manufacturing Industry is amongst the most data-intensive business
vertical today. The industry is evolving and leveraging the available
tools and technology like IIoT and Cloud that allow them to connect
with the supply chain and customers like never before. Each and every
connection and communication are delivering access to massive
volumes of data, i.e., big data. Big data uncover hidden patterns,
unknown correlations, market trends, customer preferences, and other
useful information.

Why Data Analytics Needed for Manufacturing Industry?

Manufacturing is predominantly process-driven industry. These various
processes involved in manufacturing create innumerable data-points that
can be used for effective reporting and decision support systems.
Historically, manual analysis (audits and statistical reports) was relied
upon by decision-makers for various purposes. Today, business analysts
use software and tools for real-time data analysis and historical trend
help in making a decision for an organization.
Improved Inventory Management
Pretty much every entity in manufacturing has inventory based on the
nature of the business.
• Raw Materials
• Work-In-Progress (WIP)
• Finished Goods
• Packing Material, Etc

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The amount of profit a business obtain is considerably based on how
well the inventory is managed, from procurement of inventory to
inventory control & warehouse management to the shipping of goods
and finally the post-sales activities, such as customer service and returns
management. Whether an inventory is located in one warehouse or
multiple locations, businesses should keep a tight inventory control.
Data analytics allows you to understand how much inventory you have
as well as understand trends in your use. Accurate inventory can
enhance ordering and lower loss, making it possible to optimize your
inventory expenses fully.

Optimized Staffing for Efficient Workforce Management

Resources, like inventory, can pose some challenges that impact the
production, supply, and quality of the goods. A staff shortage implies
longer hold up times and delayed production, delivery as well as might
be compromised quality with the produced products. Being overstaffed
means increased overhead. Looking at historical data for resource
planning and different seasons can make for better forecasting and
scheduling of staff. Whereas, real-time data allows managers to move
the right people to the right shifts and roles — even more efficiently than
possible when analyzing past trends. With real-time data, managers have
a birds-eye view of staffing across departments and functions, enabling
rapid response to unexpected circumstances such as call-offs.
Enhanced Supply Chain Practices
Supply chain builds building blocks for manufacturers. Connecting
people, process and supply chains provide end-to-end visibility and
control over superior quality and optimized utilization of resources.

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Big data of this particular business process helps here for predictive
analysis to plan better and set the right expectations internally and
externally. Real-time data analysis enables you to determine the
materials required for a master production schedule, where you easily
track when what and how much to buy and make.
With changing customer expectations, you can still deliver world-class
performance over shorter order lead times, last-minute order changes,
custom products orders, and perfect order deliveries. Connected supply
chain practices influence your financial and operational plans thus
enables growth and prioritizes investments.

Cost Modelling and Forecasting

“What price should we quote our product to ensure profits and generate
a winning bid?” Cost modeling and forecasting makes a difference in
manufacturing a product. Cost modeling helps businesses to
systematically capture all factor input costs including material, labour,
production, administration, sales, and research and development
essential in estimating the cost of the final manufactured product.
Cost modeling helps manufacturers to be confident in their ability to
predict costs and enable them to get better at developing quotes for
winning bids that ensure long-term profitability.
Pulling together all the data of every department costs including
significant indexes, process parameters, etc. which is highly structured
and help develop a useful cost model and forecast.

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 Ethical Issues in Business Analytics
Business analytics involves the use of detailed and often confidential
customer data.

Some ethical issues may arise:

Discrimination
One of the biggest ethical issues affecting the business analytics in 2020
is discrimination. In the last few months, many corporations have come
under fire for lacking a diverse workforce, which is often down to
discrimination. However, discrimination can occur at businesses of all
sizes. It applies to any action that causes an employee to receive unequal
treatment.
Discrimination is not just unethical; in many cases, it is also illegal.
There are statutes to protect employees from discrimination based on
age, gender, race, religion, disability, and more. Nonetheless, the gender
and race pay gaps show that discrimination is still rampant. Other
common instances of discrimination include firing employees when they
reach a certain age or giving fewer promotions to people of ethnic
minorities.

Get Consent
The issue of consent is not just important from a customer perspective,
but also from a legal perspective. It is crucial to ensure that your users
are legally bound by your privacy policy, by giving them reasonable
notice of policy or terms and getting their clear agreement to it in some
way.

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Most websites use a method called browse wrap. Browse wrap is where
a link to the privacy policy is provided, but the user is expected to find it
themselves by browsing through the website. In most cases a browse
wrap agreement would not be legally binding on the customer, as they
have not had reasonable notice of the terms nor shown their agreement.
Public Relations
Public relations are an area where corporate ethics are essential.
Maintaining a good public appearance helps build consumer confidence
in your company and results in an increase in revenue. Using business
analytics to make business decisions without ethics can have disastrous
effects on your company's public relations efforts. For example,
choosing to open a manufacturing facility very close to a residential
neighborhood may be financially prudent, but the public outcry that
would come from such a move can permanently hurt revenue.

Competitive Analysis
Business analytics give you a statistical platform for comparing your
organization to the competition. When you compare your company to
others in your industry, keep an eye on the methods by which
competitors treat their clients and vendors. A company that has had
success marketing to specific target audience in the past may have been
offering products that were unsafe or at profit margins that were
artificially inflated. Include the ethical decisions made by your
competition in with your statistical analysis to develop a more
comprehensive picture.

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Unethical Accounting
Publicly-traded companies may engage in unethical accounting to
appear more profitable than they actually are. In other cases, an
accountant or bookkeeper may change records to skim off the top.

Abuse of Leadership Authority

Abuse of power often manifests as harassment or discrimination.
However, those in a leadership role can also use their authority to
pressure employees to skip over some aspects of proper procedure to
save time (potentially putting the employee at risk), punish workers who
are unable to meet unreasonable goals, or ask for inappropriate favors.

In addition, abuse of authority can extend beyond the workforce.

Managers can use their position to change reports, give themselves
credit for the work of a subordinate, misuse expenses, and accept gifts
from suppliers or clients.

Privacy
Employees have recently found that the distinction between work life
and personal life has become less clear. This is mainly due to the
advances in technology.
For one thing, employers may punish for posts on social media,
particularly if they complain about work conditions or the company as a
whole. Employers may even fire workers who post controversial
statements that go against company values.

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Another ethical issue surrounds the use of devices belonging to the
company. Employers can now monitor all worker activity on laptops and
cell phones. Whereas this is supposed to check that employees are
sticking to work-related activities during the business day, some
employers take it further, tracking keystrokes and reading emails. The
question is where to draw the line between monitoring and spying.

Staff Retention
Business analytics produce information relevant to staff salaries,
production metrics and employment benefits. It is the responsibility of
the employer to provide a safe, productive and nurturing work
environment to employees. Decisions made about employee
development, workplace safety and staff compensation should not be
done strictly by the numbers. Using an ethical decision-making process
when analyzing personnel utilization will improve your return on
investment in the form of employee retention and an improved employee
skill set.

Product Development
Ethics are an important part of product development. Your client base
expects a certain level of quality from your products. That is one of the
elements of your product offering that helps you to capture and retain
client revenue. Business analytics may show that certain design changes
and materials substitutions can be made to lower your production cost
while improving profit margins. To remain loyal to your client base, you
need to use a code of ethics to determine how your manufacturing
processes will change and if those changes will affect customer
retention.

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Case Study
McDonald’s Optimizes Food Delivery Performance With
Data Analytics
Overview: As food delivery surges, McDonald’s improves operations
ahead of the curve
McDonald’s, the leading global foodservice retailer, partnered with Wavicle Data
Solutions to optimize the performance of its third-party food delivery providers in
40 markets across five continents. McDonald’s needed to measure and track the
performance of its growing third-party food delivery function and its effect on the
business to ensure: sufficient inventory for popular menu items, adequate staffing,
on-time deliveries, and ongoing customer satisfaction. Without these assurances,
the company was concerned about losing control of revenue and consumer brand
loyalty. An intelligence solution was critical for financial success in a highly
competitive market.

Solution: Disparate data transforms into valuable visualized metrics

They implemented Wavicle data solutions software, which implemented a data
model and process to load source data from multiple third-party food delivery
partners into a single Amazon Red shift cloud data warehouse, transforming
disparate data into valuable operational intelligence.
On-demand customizable reports gave McDonald’s management insight into sales,
delivery, customer feedback, and fees, with the ability to “slice and dice” these
metrics by restaurant location, food delivery partner, date range, and time of day.
With access to visualized metrics, they could continuously measure and improve
food delivery operations.

Outcome: Serving up the right food delivery analytics

This solution provides McDonald’s operators with key analytics at a macro-level,
giving them the ability to dive into details, resolve specific issues, and optimize
food delivery performance. Since implementation, McDonald’s has increased total
food delivery orders, which now exceed more than 10 percent of sales in locations
that offer delivery. Additionally, the average dollar value per transaction is
significantly higher for food delivery vs. non-food delivery. They now attribute
food delivery as a key driver of global growth.
This solution combines existing corporate data such as point of sale (POS) with
third-party food delivery data to track, measure, and visualize key metrics:

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Sales metrics by channel (in-store, drive-thru, and food delivery)
 Total sales: in dollars, number of orders, percent by channel
 Average check size: in dollars, number of items by channel
 Refunded items, based on customer complaints: in dollars, number of orders
by channel
 Uptime by restaurant location: hours per day each location accepted food
delivery orders

Food Delivery metrics

 Average route time (length of time for driver to arrive at restaurant)
 Average restaurant wait time (length of time driver waits at restaurant to
receive order)
 Average fulfillment time (length of time for driver to deliver to customer
after leaving restaurant)

Customer analytics
 Total sales in dollars, number of orders (new customers vs. existing food
delivery provider customers)
 Market basket analysis to understand what items are selling the most via
food delivery, vs. differences from in-store purchase behavior
 Customer satisfaction scores and feedback by food delivery order (delivered
via food delivery apps)

Fees metrics
 Fees paid by restaurants to food delivery providers
 Fees paid by customers to food delivery providers

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Q1. Perform the need assessment for the given business
problem and suggest what kind of business reporting will
help McDonald’s. (What parameters should be there in the
reports)
Ans: If the company is struggling to achieve their organizational objectives it can
be difficult to determine exactly what aspect of the company is holding it back.
This is where key performance indicators (KPLs) can help when applied
effectively. They are key objectives that a company can use to measure its
accomplishment towards organizational objectives. Think of KPIs as a compass
directing the company to take the right path toward achieving its objectives. Key
performance indicators are used at all levels of an organization to evaluate their
success and can be high-level KPLs. High-level KPIs evaluate the overall
performance of the company, while low-levels KPIs will focus on the processes in
individual departments from the call center to the warehouse.

Here, are a just a few examples of measurable KPIs:

 Percentage of product defects

 Profit
 Cost of goods sold
 Customer satisfaction and retention
 Employee satisfaction

Need assessment for the business problem and suggestion (Rapid delivery
data and analytics):

McDonald’s recent growth on third party (especially Door Dash) is exceptionally

strong. Not only has McDonald’s grown to be a brand on Door Dash (up almost
200% relativity in share since is the largest delivery platform. These compounds
the impact of growing share has done since ending as exclusivity with Uber Eats.

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Data visualization:

We craft a business-focused vision for dashboards and reports and deliver

the vision with speed and flexibility.
Data science and Analytics:

Our data scientists help industry leaders build, train and operationalize
machine learning and Al models to drive better business outcomes.
Cloud Engineering:

Lift -and-shift or multi-cloud? Wavicle can formulate the right cloud

migration strategy and execute it.

Data management:

Utilize Wavicle’s data management solutions to ingest, integrate, and

analyze growing volumes of data.

Q2. Design a framework for given business problem along

with the business analytics.
Ans: Together with its supplier the company’s model is based on a three-legged
stool: supplier, franchisees and McDonald’s. Each let must thrive for the business
to be profitable. The key activities McDonald’s engages in the marketing and
selling food and beverages.

Business Model:

The power of our franchisees, suppliers and employees working together toward a
common goal is what makes McDonald’s the world’s leading quick-services
restaurant brand.

 Franchisees bring the spirit of entrepreneurship and commitment to

communities.
 Suppliers are dedicated to highest levels of quality and safety.

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  The company facilities learning and sharing across McDonald more than
36000 restaurants.

A Collection of Small Businesses:

While a global brand, the vast majority of McDonald’s restaurants – more than
80% worldwide and nearly 90% in the U.S. , - are owned and operated by
approximately 5000 independent , small-and mis-sized businessmen and women.

Freedom within a Framework:

We play special attention to how our customer is like – and how they are different
too. For that reason, markets and countries have latitude when it comes to menu,
marketing, community involvement and local business management. See
McDonald’s around the world.

Growth Strategy:

In March of 2017, they introduced our velocity growth plan, named as such
because they’re moving fast – and in a clearly defined direction.

Velocity makes the most of our competitive advantage, from them unmatched
global scales to our iconic brand to our tremendous presence in local markets
around the world.

The Key Pillars of our Growth Strategy are to:

Retain:

Retaining the customers they have, fortifying and extending their areas of strength
with focuses on breakfast and family occasions.

Regain:

Regaining the customers they had lost by improving the taste and quality of our
food, enhancing convenience and offering strong value.

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Convert:

Converting causal customers to more committed customers with coffee and snacks.

The purchase & improve selection of our website is designed to be a living reports
see how we’re doing year on and understand the impact we’re having. We provide
the updates on range of areas across:

 Food quality & sourcing

 Job , Inclusion & Empowerment
 Our planet
 Community connection
 Supporting the stakeholders development gaols
 Reporting on our impact
 Reporting boundaries
 Reporting scope
 Development licence & affiliate

The next step would then be to add the following to each of this scenario:
 An assessment of McDonald’s ability to handle the resulting
solutions.
 Value driver implications.
 Probabilities (including join probabilities!)
 But it goes beyond the scope of this case study to conduct a full
scenario analysis.
KPI partners completed a thought health check of McDonald’s exiting business
intelligence environment that had been customized for their finance department. A
strategies road map was customers to help guide McDonald’s along a path towards
achieving their goals:

 A customized strategy for 24×7 business intelligence at McDonald’s

 Optimized performance of modern analytics
 Scalability
 Efficient strategy for data integration and extract-transform-lead (ETL)
 Proof-of-concept solution for global financial analytics.

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Q3. How does this system help McDonald’s in decision
making?
Ans: Information System used in McDonald’s:
 An information system (IS) collect, process, stores, analyses, and
disseminates information for a specific purpose.
 An information system includes input (data, instructions) and output (report,
calculations).
 It process the inputs and produces outputs that are sent to users or to other
systems via electronic networks and a feedback mechanism that control the
operation.
Types of Information System:

There are basically five types of information systems

1. Transaction processing system

2. Office information system
3. Decision support system
4. Management information system
5. Expert system

Types of Information Systems that are used in McDonalds are:

 Transaction processing systems

 Management information system
 Decision support system
 Made for you systems
 Hyperactive bob system
 Point of sale systems
 Touch interface operating system

McDonald’s help to Decision Making System:

Decision support system (DSS) in McDonald’s:

Decision support system (DSS) Decision support system is used to model data and
make quality decision Decision Support Systems are usually computer applications
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with a human component. McDonald's management mainly uses DSS to analyze
the market and come up with solutions to problem. They can shift through large
amounts of data and pick between the many choices and support the non-routine
decision. They also use DSS in order to gain competitive advantage over other fast
food franchises by analyzing large amount of data and seeing what is the best
course of action they are on top.

How Management Information Systems is Implemented in McDonalds?

MIS systems are used to periodic reports such as a daily list of employees and they
work, or a monthly report of expenses. McDonald’s uses MIS to provide
profitability and information to help managers and staff to plan its future direction.

Transaction Processing Systems

 Transaction – happens when two people make an exchange.

 Collecting data about it called transaction processing.
 So transaction processing is collecting, storing, modifying and retrieving the
transaction of an organisation.

How Transaction Processing Systems is Implementing in McDonald’s?

McDonald’s everyday sells a huge amount of hamburgers. McDonald’s should

order raw material from its supplier. Each time McDonald’s place an order with its
supplier, transaction processing system records the relevant information such as a
supplier ‘name, address, the quality of items purchased and finally the invoice
amount.’

MYS- “Made for you” system:

 MYS has implemented in order to raise productivity and ensure customer

satisfaction.
 Serves as a communication portal between the counter and kitchen staff.
 When an order is placed, the cashier inputs it into the system and
automatically it goes to the computer screen in kitchen.

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  The elements of the sandwich are displayed for the kitchen staff to start
working on.

Conclusion:
The extensive research of McDonalds Corporation has been pursued. The company
being the major player in the fast food industry has a competitive edge over the
others within the industry. It has created great popularity amongst its customers
especially amongst the kids who are McDonalds key target customers. The
company does face a threat of expanding in the mature market and taking over by
the competitors which has been highlighted. It has several key strategies which if
maintained will continue to stay as the leader in the fast food industry. The key
points being its quick and fast service, quality food, easily accessible and fair
pricing of the food items. The Health factor towards which the trend is moving is
to be considered by the organization which will be added advantage to its growth
and expansion.

Bibliography
19
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