BA AND ITS

APPLICATIONS
COLLECTING DATA IS THE FIRST STEP TOWARDS ANALYZING IT. IN ORDER TO UNDERSTAND AND
SOLVE BUSINESS PROBLEMS, DATA SCIENTISTS MUST HAVE A STRONG GRASP OF THE
CHARACTERISTICS OF THE DATA IN QUESTION.
1.VALUE OF DATA: EG UBER,NETFLIX,AMAZONE
2. DATA COLLECTION PRELIMINARIES
2.1 PRIMARY VERSUS SECONDARY DICHOTOMY
3. DATA COLLECTION METHODS
(1) DATA GENERATION THROUGH A DESIGNED EXPERIMENT AND
(2) COLLECTING DATA THAT ALREADY EXISTS.
5.DATA TYPE FOUR DATA TYPES AND PRIMARY SCALES:-NOMINAL,
ORDINAL, INTERVAL, AND RATIO.
DATA CONTINUED ..
5.2 COMMON ANALYSIS TYPES WITH THE FOUR
PRIMARY SCALES
• 5.2 Common Analysis Types with the Four Primary Scales
6.PROBLEM FORMULATION PRELIMINARIES
DATA…
6.2 Problem Clarity and Research Type
1. exploratory research wherein the problem is at best ambiguous
2. descriptive research wherein the problem’s identity is somewhat clear
3.causal research wherein the problem is clearly defined
7 Challenges in Data Collection
1. Volume
2. Variety
3. Velocity
8 Data Collation, Validation, and Presentation
4. No common identifier:
5. Missing data, data entry error
6. Different levels of granularity
7. Change in data type over the period or across the sample
8. Validation and reliability
DATA COLLECTION IN THE RETAILING INDUSTRY: AN ILLUSTRATIVE
EXAMPLE
APPLICATIONS OF ANALYTICS IN VARIOUS FUNCTIONAL
AREAS – FINANCE, MARKETING, HUMAN RESOURCES, AND
OPERATIONS.
 FINANCE

• The finance industry has a long history with business analytics. Everything from the stock market to the risk
analysis of large companies uses business analytics.
• A great example is the investment bank, Barclays. They utilize business analytics to:
• Work through complex issues to find a pragmatic route that helps the firm reach its goals.
• Interpreting, scoping, and analyzing data at each step of a business approach before practical execution.
• Classify various cases from legal to compliance.
• Support the designing and management phase of plans and resources that deliver various portfolio goals.
• Identifying and mitigating assumptions, dependencies, and risks.
• As with Barclays, most other financial firms also use business analytics in various ways that help support their business
growth. This makes business analysis a high-in-demand role in financial firms across the globe.
FRAUD AND RISK DETECTION

• Detecting fraud may have been the first application of data analytics. They applied
data analytics because they already had a large amount of customer data at their
disposal.
• Data analysis was used to examine recent spending patterns and customer
profiles to determine the likelihood of default. It eventually resulted in a reduction
in fraud and risk.
CREDIT

• Credit firms have long depended on business analytics to help them make better decisions
on giving out loans.
• For instance, HDFC Bank uses credit analysis in their everyday business:
• Analyzing customer credit history.
• Using predictive modeling to judge default probability.
• Analyze purchase habits to detect fraudulent transactions.
• This is not just for HDFC Bank, but rather all credit firms have similar usage of business
analytics.
 KEY TYPES OF FINANCIAL ANALYTICS

• Examining financial and other relevant information, financial analytics offers various views of companies' past, present and
future performance. The following are key types of analytics that can help companies of different sizes:
• Predictive sales analytics may include the use of correlation analysis or past trends to forecast corporate sales.
• Client profitability analytics helps differentiate between clients who make money for a company and those who don't.
• Product profitability analytics entails assessing each product individually, rather than establishing profitability overall at
a company.
• Cash-flow analytics employs real-time indicators, including the working capital ratio and cash conversion cycle, and may
include tools such as regression analysis to predict cash flow.
• Value-driven analytics assesses a business' value drivers, or the key "levers" the organization needs to pull to achieve
its goals.
• Shareholder value analytics, which is used to tally the value of a company by examining the returns it provides to
shareholders, is used concurrently with profit and revenue analytics.
 MARKETING

• A successful marketing strategy simply cannot work without proper market research conducted before it. Today’s market data isn’t as
simple as it used to be since most consumers and businesses have had to make the switch to digital.
• E-commerce firms such as Amazon have always had to rely on digital data for their market research and are therefore heavily
invested in business analytics for their marketing department. Here’s how Amazon uses business analytics for marketing:
• Analyzing the purchase patterns of customers, their wish lists, searches, and even social media interactions to generate a customer
profile.
• Using the customer profile to make highly optimized recommendations that are designed to trigger impulsive purchases.
• Presenting users with related items to their cart before checkout to encourage more purchases in each order.
• Targeted marketing on various websites and social media platforms.
• Other marketing firms also use similar methods to help them expand profits and grow their business. Therefore, business analytics
plays an important role in the marketing sector from start to finish of their strategy.
 WEB SEARCH OR INTERNET WEB RESULTS

• The web search engines like Yahoo, Bing, Duckduckgo, and Google use a set of data to give you when you
search a data. Whenever you hit on the search button, the search engines use algorithms of data analytics to
deliver the best-searched results within a limited time frame. The set of data that appears whenever we search
for any information is obtained through data analytics.
• The searched data is considered as a keyword and all the related pieces of information are presented in a sorted
manner that one can easily understand. For example, when you search for a product on amazon it keeps
showing on your social media profiles or to provide you with the details of the product to convince you by that
product.
 CRM

• Customer relationship management is another field of concern for modern businesses. To facilitate this, firms such
as Apple utilize advanced CRM analytics to benefit their growth strategy. Here’s what Apple does right:
• Using analytics to know their customers.
• Anticipating various customer needs via predictive modeling.
• Optimize the customer experience in their stores.
• Fine-tune their branding to match their target audience.
• Apple’s use of CRM analytics has influenced firms across the world to hire analysts for optimizing their CRM
strategy as well.
 UTILIZING MARKETING ANALYTICS: EASYJET

• For its 20th anniversary, EasyJet turned to its data to bring customers’ travels to life. The email campaign used
customers’ travel history and data to create personalized stories with dynamic copy, images, and links.
• The campaign showed people where and when they first traveled with the airline, including interesting facts
about their travel behavior. The stories also featured predictions about where each of these customers is likely
to go next.
• The result?
• EasyJet’s open rates from this campaign were over 100% more than that of their average newsletter, with 25% higher
click-through rates.
 HOW NETFLIX USES MARKETING ANALYTICS TO KEEP THE
CONTENT ENGAGING

• No marketing analytics list can be complete without mentioning Netflix. The streaming service platform
uses data processing software as well as traditional business intelligence tools along with open-source
solutions for collecting and storing massive chunks of information.
• This helps the brand zero-in on what content to promote to specific viewers. As a result, the platform
enjoys a high engagement rate with original content Netflix renews 93 percent of its original series.
• This directly contributes to revenue as it helps drive up viewership for shows and keeps the customers
engaged. Apps suffer greatly from people signing up and not using the app -not Netflix.
 AREAS OF MARKETING ANALYTICS
• Customer Segmentation Analysis
• Scheduling Analysis
• Workflow Analysis
• Customer Lifetime Value Analysis
• Customer Intent Analysis
TOOLS
•Google Analytics • Top Performers Analysis
•HubSpot
•Sprout Social
• Resource Allocation And Prioritization
•SEMRush Analysis
•MailChimp
•Datorama • Marketing Channel Analysis
 HUMAN RESOURCES

• While HR is meant to be the most human of all business divisions, it can also benefit from marketing.
• For instance, Google has been using business analytics to completely revolutionize the HR industry. Here’s what they are
doing:
• Project Oxygen analyzes internal team data and determines the characteristics of great managers, the best ways to boost retention
and productivity, and optimize leadership.
• Google’s PiLab also works on effective approaches for boosting employee satisfaction. Moreover, they work on analyzing
various aspects of the office environment including employee health and caloric intake.
• Google also utilizes predictive modeling and analytics to help optimize its people management problems and
opportunities. This allows them to effective workforce planning in a rapidly evolving business environment.
• Google is certainly leading the way in business analytics-powered HR systems. So far, this has helped them improve
workplace satisfaction and boost employee retention as well. If you specialize in business analytics and HR, this field will
have immense opportunities for you in the future.
HR METRICS

• Staff demographics
• Staff turnover
• Absenteeism
• Time taken to recruit staff
• Cost of recruitment
• Revenue generated per employee
• Organizational performance
• Employee engagement
• External labor market
• Effectiveness of technology
 HP PREDICTING AND PREVENTING EMPLOYEE
TURNOVER
• In 2008, Hewlett Packard discovered that its employees were leaving the company at an alarming rate. At first,
the company thought that the problem was due to poor management or employee dissatisfaction. But after
conducting research, HP realized that either of these factors didn’t cause the pain. Instead, the issue was that
HP had no way of predicting when employees would leave the company.
• To solve this problem, HP developed a predictive analytics program called “Project Insight. ” Project Insight
uses a combination of statistical modeling and text mining techniques to predict future outcomes including
telling which employees will quit within the next six months. HP then sends out emails to warn employees who
are most likely to leave based on this data analysis.
• This program has helped HP significantly decrease employee turnover rates. For example, between 2009 and
2011, the number of employees quitting per month decreased from 20% to less than 10%.
 GOOGLE’S PREDICTION ENGINE TO PREDICT
FUTURE OUTCOMES
• Google is known for hiring top talent. The search engine giant employs thousands of new employees every
year, but only about 30% of them stay with the company for longer than two years. It means that Google loses
millions of dollars each year because it doesn’t know which candidates will succeed until too late.
• To address this problem, Google created a predictive analytics program called Google Prediction Engine. It
analyzes job history, education, skills, and personality traits to determine how successful the applicants will
become at Google. This information is vital to other HR leaders as well.
• Based on this information, the system generates predictions about whether an applicant will become a great
employee. If the forecast is favorable, Google then offers the candidate a position. However, if the prediction
is pessimistic, Google does not provide the person with a job.
• This program has been very effective at reducing the number of unsuccessful applications. In fact, since 2007,
Google has hired over 100,000 new employees using the Google Prediction Engine
 OPERATIONS

• Data analytics can be applied to help in improving Transportation Systems and the intelligence around them.
The predictive method of the analysis helps find transport problems like Traffic or network congestion. It helps
synchronize the vast amount of data and uses them to build and design plans and strategies to plan alternative
routes and reduce congestion and traffic, which in turn reduces the number of accidents and mishappenings.
• Data Analytics can also help to optimize the buyer’s experience in the travels by recording the information from
social media. It also helps travel companies fix their packages and boost the personalized travel experience as
per the data collected. For Example During the Wedding season or the Holiday season, the transport facilities
are prepared to accommodate the heavy number of passengers travelling from one place to another using
prediction tools and techniques.
 LOGISTICS AND DELIVERY

• There are different logistic companies like DHL, FedEx, etc that use data analytics to manage their overall
operations. Using the applications of data analytics, they can figure out the best shipping routes, and
approximate delivery times, and also can track the real-time status of goods that are dispatched using GPS
trackers. Data Analytics has made online shopping easier and more demandable.
• When a shipment is dispatched from its origin, till it reaches its buyers, every position is tracked which leads
to the minimizing of the loss of the goods.
• Operational Analytics is used by Mobility Service Providers like Uber to offer flawless trip experiences for
its consumers, from selecting the most convenient passenger pickup spots to projecting the shortest routes.
 MANUFACTURING

• The manufacturing industry is another surprising benefactor of business analytics.

• Tata Steel utilizes business analytics to help its business grow:
• Tracking the manufacturing process and optimizing steps.
• Optimize logistics.
• Mitigating risks and eliminating delays.
• Seeing the success they have had with business analytics, Tata Steel has also started hiring more business analytics
professionals for their manufacturing process.
 AUTOMATION

• Many companies leverage operational analytics to send product usage information to the product team,
high-intent leads and transactions to the sales team, and cart abandonment or cross-sell opportunities to
the marketing team. Using operational analytics helps keep teams up-to-date on conversations and
issues which further helps teams collaborate more effectively.
• Operational Analytics is used by online merchants to evaluate which goods are the most popular in their
stores and modify inventories appropriately. They also get access to real-time data on customer searches
and hot trends.
 OPERATIONAL ANALYTICS IN SUPPLY CHAIN
MANAGEMENT

• For businesses which are not digitally integrated, if the Supplier is not able to deliver the goods agreed on a
particular day would entail administrative efforts from all involved including Supplier, Planner, staff in charge
of goods receipt, ERP system, etc. The reason for this additional manual work is the lack of proper analysis of
the consumption, stock, and Supply situation.
• Implementation of operational analytics in Supply Chain provides employees with well-structured dashboards
containing critical information which they can analyse and quickly agree with the Supplier on a supplemental
delivery.
 PREVENTIVE MAINTENANCE IN MANUFACTURING

• Manufacturing companies use operational analytics to activate preventive maintenance of machines, machine
parts, etc. to identify potential problems before they occur. With this data, the manufacturer can be alerted that
service is required.
 INTERNATIONAL BUSINESS HOUSES USING
ANALYTICS
• Royal Dutch Shell, a prominent energy company and the world’s fourth-largest company by revenue in
2015, has started using analytics to create ‘data-driven oilfields’ to reduce the costs of drilling for oil – the
largest expenses for an oil company.
• A prominent US agricultural company, John Deere, has started offering many data-based services to their
farmers to help them make better-informed decisions and enhance their agricultural progress.
• Companies and buyers of these crops also employ business analytics to optimise their warehousing, storage,
and transportation of raw materials.
 NISSAN MOTOR

• Automaker giant Nissan uses Google analytics e-commerce tracking to amass detailed information about product
preferences such as car category, model, and color.
• By assessing this information, the company’s Global Marketing Strategy division understands which vehicles are in
demand, thus they can make decisions tailored for each local market.
• The auto company has a host of localized websites aimed at assisting consumers to determine which Nissan product
is best for them.
• Nissan has also deployed the Hortonworks Data Platform (HDP) to power its data lake. The company developed its
data lake infrastructure using Apache Hadoop powered HDP to gather all data from across the business, including
driving data and quality data.
 STARBUCKS

• Selecting the right location is critical to winning in retail. Using location-based analytics powered by Atlas, a
mapping and business intelligence tool developed by Esri, the company can select the most strategic location
to open up its new stores. The tool enables Starbucks to evaluate massive amounts of data including variables
such as population, income levels, traffic, competitor presence, and proximity to other Starbucks locations
before recommending a new store location. Using these data, the company can also predict revenues, profits,
and other aspects of economic performance associated with that location.
REFERENCES

• https://wits.worldbank.org/trade-visualization.aspx
• http://wits.worldbank.org/visualization/detailed-country-analysis-visualization.html