DATA SCIENCE- SESSION 1

Understanding Data Driven Decision Making

Jang Bahadur Singh

VIEWPOINT: IMPORTANCE OF DATA
THE UBIQUITY OF DATA
• Extensive investments in IT have improved
the ability to collect data throughout the
enterprise.
• Virtually every aspect of the business is now
open to data collection: operations,
manufacturing, supply-chain management,
customer behavior, marketing campaign,
and so on.
• This broad availability of data has led to
increasing interest in methods for extracting
useful information and knowledge from
data—the realm of data analytics.

Data-Analytic Thinking - Do we think this is true? Or Do we know?

 WHAT IS DATA SCIENCE
The science of using data to build models that lead to better decisions
that add value to individuals, companies and institutions.

Data • Inform tactical decisions

• Inform strategic decisions
• Help to confirm or disconfirm
+ hunch
Analytics Tools
• R • Help to spot patterns
• Python Models • Lead us to new questions
• Orange
• Weka
TYPE OF ANALYTICS WITHIN DATA SCIENCE

Descriptive Analytics • Standard reporting

• Customer segmentation, sentiments
(What happened?)

Predictive Analytics
Data (What will happen?)
•
•
Customer churn, direct marketing
Credit scoring, fraud detection

Prescriptive Analytics
(Why did something happen?,What should I do?)
HOW DOES ANALYTICS INFORM BUSINESS DECISIONS
▪ What has happened?
▪ What will happen?
▪ Why did it happen?
▪ What intervention should be
taken to achieve most desirable
outcome?
▪ Marketing
▪ Sales report of various locations
▪ Promotion targeting
▪ Cross-selling
▪ Customer churn
▪ Supply Chain
▪ How much inventory to keep
▪ Where to place distribution centers and
warehouse
▪ Human Resources
▪ Which employees to hire
▪ Which one are leaving
▪ Why employees are leaving
▪ What training would benefit an employee
most
DATA SCIENCE TOOLS THAT YOU CAN USE…
Orange
GUI
Weka
FOSS
R
CLI
Python
BA Tools
SAS
GUI
IBM - SPSS
Proprietary
MATLAB
CLI
STATA
THE PROCESS OF DATA DRIVEN DECISION MAKING
THE PROCESS OF DATA DRIVEN DECISION
MAKING
Data based
decision
making
Process PROBLEM DATA DATA EXPLORATORY MODELING/ INSIGHT TO
DEFINITION COLLECTION PREPROCESSING DATA ANALYSIS ACTION
ANALYSIS
LET’S DELVE INTO THE DATA DRIVEN DECISION
MAKING PROCESS WITH THE CASE
EOS.