Topic

DATE :05-06-2024
Name : Aishwarya Taral
 Introduction to Data Analytics
 What is analytics: -

Analytics is the process of discovering, interpreting, and communicating significant patterns

in data. Quite simply, analytics helps us see insights and meaningful data that we might not
otherwise detect. Business analytics focuses on using insights derived from data to make
more informed decisions that will help organizations increase sales, reduce costs, and make
other business improvements.

 Top 10 analytical tools: -

Here are ten popular analytical tools used across various industries:

1. Microsoft power BI: - Microsoft Power BI is an interactive data visualization software

product developed by Microsoft with a primary focus on business intelligence. It is part of the
Microsoft Power Platform. Power BI is a collection of software services, apps, and connectors
that work together to turn various sources of data into static and interactive data visualization.
Data may be input by reading directly from a database, webpage, PDF, or structured files such as
spreadsheets, CSV, XML, JSON, XLSX, and SharePoint.

2. Google Analytics: - Google Analytics is a web analytics service that provides numerous
analytical tools useful for insights in website performance and marketing campaigns. Google
Analytics is a web analytics service that provides statistics and basic analytical tools for search
engine optimization and marketing purposes. The service is part of the Google Marketing
Platform and is available for free to anyone with a Google account, regardless of whether they
are working with enterprises or small businesses.

3. Statistical Analysis System: - SAS “Statistical Analysis System” is a statistical software

suite developed by SAS institute for data management, advanced analytics, multivariate analysis,
business intelligence, criminal investigation, and predictive analytics. SAS analytical software is
built upon artificial intelligence and utilizes machine learning, deep learning and generative AI to
manage and model data. The software is widely used in industries such as finance, insurance,
health care and education.

4. Apache Spark: - Apache Spark is a fast large-scale data processing engine and executes
applications in Hadoop clusters 100 times faster in memory and 10 times faster on disk. Spark is
built on data science and its concept makes data science effortless. Spark is also popular for data
pipelines and machine learning models development.

5. IBM SPSS Statistics: - SPSS Statistics supports the entire analytical process. It helps people
validate assumptions faster, guiding them is using the right statistical capability at the right time.
It also gives analysts flexible access to powerful analytical techniques, whatever their level of

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 expertise. Finally, it helps organizations make the most of their analytical resources by scaling
from the simplest to the most widespread initiative.

6. MATLAB: - MATLAB, short for “MATRIX Laboratory.” Is a high-level programming

language and interactive environment developed by MathWorks, renowned for its powerful
features in numerical computation, visualization, and programming. It offers extensive tools for
data visualization, allowing users to create detailed plots, graphs, and other visual representations
effortlessly. MATLAB serves as a vital tool in both academia and industry for research,
development, and analysis.

7. Qlik Sense: - Qlik Sense is a data analytics and business intelligence platform. It provides
tools for data visualization, discovery, and sharing, allowing users to create interactive reports
and dashboards. It supports self-service data preparation, drag-and-drop analytics, and
integration with various data sources. Qlik Sense is designed for scalability, supporting both
individual and enterprise-wide implementations.

8. Tableau: - Tableau is a data visualization software used for creating interactive and shareable
dashboards. It enables users to connect to various data sources, visualize data in different formats
such as charts, graphs, and maps, and create interactive dashboards for data exploration and
analysis. It is widely used in industries such as business intelligence, finance, healthcare, and
education for analysing and communication data insights effectively.

9. R language: - R is the leading analytical tool in the industry and is widely used for statistics
and data modelling. It can easily manipulate data and present it in different ways. R also provides
tools to automatically install all packages as per uses requirements, which can also be well
assembled with big data.

10. Microsoft Excel: - Excel is a basic, popular and widely used analytical tool in almost all
industries. Excel becomes important when there is a requirement for analytics on the client’s
internal data. It analyses the complex task that summarizes the data with a preview of pivot
tables that helps in filtering the data as per client requirement.

 Analytics Architecture: -

Analytics architecture refers to the overall design and structure of an analytical system or
environment, which includes the hardware, software, data, and processes used to collect, store,
analyze, and visualize data. It encompasses various technologies, tools, and processes that support
the end-to-end analytics workflow.

Important Elements of analytics Architecture:

Systems and infrastructure that facilitate data gathering, storing, and analysis are referred to as
analytics architecture. An analytics architecture normally includes the following essential elements:

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 Data collection: The process of obtaining data from a variety of sources, including sensors, gadgets,
social media, websites, and more, is referred to as data collection.

Transformation: When the data is already collected then it should be cleaned and transformed
before storing.

Data storage: This refers to the systems and technologies used to store and manage data, such as
databases, data lakes, and data warehouses.

Analytics: This refers to the tools and techniques used to analyze and interpret data, such as
statistical analysis, machine learning, and visualization.

Together, these components work together to enable organizations to collect, store, and analyze data
in order to make informed decisions and drive business outcomes.

Advantages of Analytics Architecture

There are several advantages to using an analytical architecture in data-driven decision-

Making:

1. Improved accuracy: By using advanced analytical techniques and tools, it is possible to uncover
insights and patterns in the data that may not be apparent through traditional methods of analysis.

2. Enhanced decision-making: By providing a more complete and accurate view of the data, an
analytical architecture can help decision-makers to make more informed decisions.

3. Increased efficiency: By automating certain aspects of the analysis process, an analytical

architecture can help to reduce the time and effort required to generate insights from the data.

4. Improved scalability: An analytical architecture can be designed to handle large volumes of data
and scale as the volume of data increases, enabling organization to make data-driven decisions at a
larger scale.

5. Enhanced collaboration: An analytical architecture can facilitate collaboration and communication

between different teams and stakeholders, helping to ensure that everyone has access to the same
data and insights.

 Reference Architecture: -

A reference architecture is a document or set of documents that provides recommended structures

and integrations of IT products and services to form a solution. The reference architecture embodies
accepted industry best practices, typically suggesting the optimal delivery method for specific
technologies. A reference architecture offers IT best practices in an easy-to-understand format that
guides the implementation of complex technology solutions.

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  Analytics Business Use cases

1: Fraud Detection

Businesses can use big data analytics to detect fraud more quickly—
because fraudulent activities are becoming increasingly prevalent, it's
critical that businesses take proactive steps toward preventing them.
Businesses that want to implement big data analytics for fraud
detection need a robust data management system capable of
collecting, storing, and analyzing large volumes of information.
They must also apply advanced analytics tools such as machine-
learning algorithms and predictive modelling to analyse data to
identify potential fraud cases.

2.Personalization

One of the main applications of real time analytics is analyzing

user behaviour to offer customized experiences. A buyer, for
instance, might be curious about a product they just bought.
This customer's likelihood of returning to your store can
increase if you give them a tailored experience.
This method uses real time analytics to present users with a
suitable offer based on their past interactions and behaviour. A
simple example is displaying relevant products to an e-commerce customer based on the items they
have already viewed. Given that the customer is engaged with the website, this analysis should occur
immediately.

3.Finance

The banking industry frequently has trouble catching payment

fraud and money laundering. In addition to having a negative
financial impact, it harms the bank's reputation. Banks can
utilize Markov modelling and machine learning techniques to
protect themselves from fraud by using real-time analytics.
Systems with random changes are modelled using Markov
models. They calculate the probability of various states and
their change speed. They are employed in fraud detection to
identify unusual transaction cycles because of their capacity
for pattern recognition and prediction. In this approach, banks can try to spot sophisticated fraud
schemes where skilled criminals split up large transactions into numerous smaller ones to facilitate
money laundering.

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 4.Predictive Maintenance

In many industries, containing costs is as valuable a

strategy and increasing revenue. And for companies
with a major investment in infrastructure and
equipment, the ability to manage that capital outlay is
critical. By analyzing metrics and data related to the
lifecycle maintenance of technical equipment,
companies can predict both timelines for probable
maintenance events and upcoming capital expenditure
requirements, allowing them to streamline their
maintenance costs and avoid critical downtime

5.Customer Segmentation

Customer segmentation is a vital business analytics

application that helps companies group their customers based
on shared characteristics such as demographics, buying
behaviour, and preferences. By analyzing customer data,
businesses can tailor their marketing strategies, product
offerings, and customer service to target specific segments
effectively, increasing customer satisfaction and overall
profitability.

 Example found in the industries

Forecasting Orders and Recipes at Blue Apron

For meal kit delivery service Blue Apron, understanding customer behaviour and preferences is
vitally important to its success. Each week, the company presents subscribers with a fixed menu of
meals available for purchase and employs predictive analytics to forecast demand, with the aim of
using data to avoid product spoilage and fulfil orders.

To arrive at these predictions, Blue Apron uses algorithms that take several variables into account,
which typically fall into three categories: customer-related features, recipe-related features, and
seasonality features. Customer-related features describe historical data that depicts a given user’s
order frequency, while recipe-related features focus on a subscriber’s past recipe preferences,
allowing the company to infer which upcoming meals they’re likely to order. In the case of
seasonality features, purchasing patterns are examined to determine when order rates may be higher
or lower, depending on the time of year.

Through regression analysis—a statistical method used to examine the relationship between
variables—Blue Apron’s engineering team has successfully measured the precision of its forecasting
models. The team reports that, overall, the root-mean-square error—the difference between predicted
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 and observed values—of their projection of future orders is consistently less than six percent,
indicating a high level of forecasting accuracy.

By employing predictive analytics to better understand customers, Blue Apron has improved its user
experience, identified how subscriber tastes change over time, and recognized how shifting
preferences are impacted by recipe offerings.

Machine Learning vs Artificial Intelligence Landscape: -

Machine learning and artificial intelligence are two closely related fields that are revolutionizing
the way we interact with technology. Machine learning refers to the process of teaching computers to
learn from data, without being explicitly programmed to do so. This involves using algorithms and
statistical models to find patterns in data, and then using these patterns to make predictions or
decisions.

Artificial intelligence, on the other hand, is a broader field that encompasses machine learning as
well as other approaches to building intelligent systems. Artificial intelligence is concerned with
creating machines that can perform tasks that would normally require human intelligence, such as
recognizing speech, understanding natural language, and making decisions based on complex data.

The goal of both machine learning and artificial intelligence is to create machines that can learn and
adapt to new situations, without the need for explicit programming. By enabling computers to learn
from data and make decisions based on that data, we can create systems that are more accurate, more
efficient, and more effective at performing a wide range of tasks.

Artificial Intelligence Machine Learning

AI manages more comprehensive Machine Learning (ML) manages to

issues of automating a syste influence users’ machines to gain from the
m. This computerization external environment.

AI manages the making of machines,

ML operates by using user input or a client-
frameworks, and different gadgets by
requested query to determine whether or not
enabling them to think and do errands
it is already stored in the knowledge base
as all people generally do.

Objective is to maximize the chance of

Objective is to maximize accuracy.
success.

Artificial intelligence uses logic and

Machine learning uses statistical models.
decision tree.

AI is concerned with knowledge ML is concerned with knowledge

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 Artificial Intelligence Machine Learning

dissemination and conscious Machine

accumulation.
actions.

Focuses on providing the means for

Focuses on giving machines cognitive
algorithms and system to learn from the
and intellectual capabilities similar to
experience with data and use that experience
thone of humans.
to improve overtime.

AI encompasses a collection of
ML can be done through supervised,
intelligence concepts, including
unsupervised or reinforcement learning
elements of perception, planning and
approaches.
prediction.

 Types of Artificial Intelligence

There are 7 types of Artificial Intelligence divided on the basis of Capabilities and functionalities of
AI.
Based on Capabilities of AI -Type 1
1. Narrow AI
2. General AI
3. Super AI
Based on the Functionality of AI- Type 2
1. Reactive Machines
2. Limited Theory
3. Theory of Mind
4. Self-awareness

Types of Artificial Intelligence

Types of Machine Learning

There are several types of machine learning, each with special characteristics and applications. Some
of the main types of machine learning algorithms are as follows:
1. Supervised Machine Learning
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 2. Unsupervised Machine Learning
3. Semi-Supervised Machine Learning
4. Reinforcement Learning

 AI & ML Business Use Cases

1. Document processing.
Most organizations are drowning in documents. Whether it’s paper checks, electronic invoices,
or bar code scans, companies often spend a lot of time processing documents. Intelligent
document processing (IDP) allows companies to pull data from documents at scale without
significant manual labor. This saves organizations massive amounts of time and effort—and
money. Plus, it reduces the potential for human error inherent in typing documents manually.

2. Financial fraud monitoring.

One of the most widespread AI/ML concepts involves anomaly detection within data sets. When
you train AI on a data set, the AI can develop a baseline of behaviors. Whenever something far
outside the norm—an anomaly—occurs, the system can flag this anomaly for further analysis.
Financial institutions use anomaly detection, during the crucial Know Your Customer
(KYC) process to flag transactions for fraud or identity theft. For example, if someone’s credit
card shows a large purchase made in a different country at the same time as a purchase in their
hometown, the company could lock the card and run the purchase by the cardholder.

3. Credit and loan risk approval.

Institutions in the finance sector can make extensive use of AI/ML capabilities to better
understand creditworthiness and money lending risks. AI can analyze multiple data points like
credit histories, credit utilization, and financial statements to understand whether it’s a safe bet to
shell out credit to a potential borrower for a credit card, mortgage, or business loan. Plus, over
time, AI can analyze data to spot potential patterns among default risks that human analysts
might not see otherwise. This not only reduces risk but also makes processing applications far
more efficient for loan officers and underwriters.

4. Medical imaging and diagnostics.

One exciting area where we’ll see more use of AI/ML is the healthcare sector. For example,
medical imaging professionals like radiographers and ultra sonographers will use more artificial
intelligence to note potential issues in patients’ medical scans. Using machines to find potential
issues and having a technician interpret the findings can be more accurate than relying on the

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 erring human eye. Additionally, physicians will use patient input for symptoms that allow AI to
diagnose diseases and even potentially recommend treatments.

5. Customer service.
One of the most interesting AI/ML use cases comes in the form of customer service. Chatbots
can use natural language processing (NLP) to respond to customer requests and kick off other
workflows on the backend to help solve a customer’s issues. For example, the chatbot might
process low-level refunds or craft email responses for human service agents to review. This saves
service reps significant time in their day-to-day operations and improves the customer
experience, allowing companies to improve long-term customer satisfaction.

6. Energy prediction.
AI and machine learning can analyze historical data like energy usage, weather patterns, and
other variables to better forecast demand. This helps utility operators predict energy usage and
increase supply when demand grows without overloading the system (or helps them prepare for
outages).
Plus, this new technology plays a major role in sustainability efforts, as AI can help optimize
energy efficiency, usage, and distribution patterns and prevent waste. This also helps reduce
costs for both utilities and industrial and residential customers.

7. Supply chain management.

It’s hard to predict demand based on historical data alone—modern supply chain leaders need to
use more sophisticated forecasting methods for supply chain management.AI/ML capabilities let
supply chain professionals better predict demand with real-time data across multiple data points
to prevent shortfalls. They can also use AI to help with tasks like pricing, predicting weather
patterns and routes for ships and transports, and building more responsive supply chain networks
with their vendors and partners.

Example found in the industries

What is ML/AI?
The terms ML/AI many times are used altogether in common slang. So we’ll also be using these
terms together in this article. Although both are interrelated but are a bit different from each
other. And there’s also a term related to both and that is – deep learning. The infographic below
tries to explain all three terms in a brief.

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 So, the three terms are interrelated to each other as follows: DL<ML<AI; Deep learning is a
subset of Machine Learning which in turn is a subset of Artificial Intelligence. And the essence
of the idea behind this tech is to make machines smarter by providing them data so that they can
identify some patterns and take decisions on their own.

 ML/AI use cases in Manufacturing Industries

Now, let’s quickly at some 10 use cases of ML/AI inside manufacturing industries to better
understand the potential of this technology.

1. Predictive maintenance (PdM)

Predictive Maintenance is a modern maintenance method where you monitor your rotating
equipment with the help of sensors that measure parameters like vibration, temperature, magnetic
flux, etc. Then the health condition of your assets is analyzed or displayed on your cloud
platform that can be accessed from anywhere around the world through the internet.
How AI/ML tech helps here is that it can help in predetermining the permissible or healthy limits
of the machine parameters.

2. Digital Twins
Digital Twins are a virtual or digital model of a machine or a process that is created using
computing power and a variety of sensors installed on a piece of machinery to study that
object. Note that this is a little bit different or we can say advanced from simulation. Simulations
can study only one process but digital twins can perform more than one simulation. And not only
this, you can’t provide real-time data in simulation while this is possible in the case of digital
twins.

3. AI/ML in Logistics and SCM

The AI/ML use in the field of logistics and SCM involves creating self-learning smart robots that
can ease difficult tasks like moving heavy items or lifting objects to avoid workplace injuries,
and solving the problem of overstocking or understocking of goods.

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 4. Smart Manufacturing
Smart manufacturing involves smart robots, which are AI-powered robots that don’t need to be
programmed each time to perform required tasks. They also are less susceptible to error, unlike
humans, as per a report from McKinsey that states collaborative and context-aware robots
can improve productivity by up to 20% in labor-intensive settings. So self-learning robots can be
made to perform important manufacturing activities like welding, painting, drilling, die castings,
etc.

5. AI in product design
AI/ML tech is now advanced enough to create new designs for a product. A generative design
software created with ML capabilities, where engineers just need to provide input parameters like
raw material, size & weight, manufacturing methods, budget, etc, can create a variety of designs
of a product to choose from.

 Business Process Frameworks (SCOR Model): -

SCOR model definition

The supply chain operations reference (SCOR) model is designed to evaluate supply chain
for effectiveness and efficiency of sales and operational planning (S&OP). SCM is complex,
and S&OP implementation can be difficult, but the SCOR model is intended to help
standardize the process and create a measurable way to track results. It works across
industries using common definitions that apply to any supply chain process. Using the
SCOR model, businesses can judge how advanced or mature a supply chain process is and
how well it aligns with business goals.

SCORs six primary process: -

As a framework, SCOR focuses on all customer interactions from the moment an order is
placed until the invoice is paid. That includes all material and services needed to complete
transactions, including supplies, parts, software, and equipment. Market interactions are also
considered a part of the model because they help establish demand.
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 The SCOR model is based on six management processes:

Plan: Planning processes include determining resources, requirements, and the chain of
communication for a process to ensure it aligns with business goals. This includes developing
best practices for supply chain efficiency while considering compliance, transportation, assets,
inventory, and other required elements of SCM.

Source: Source processes involve obtaining goods and services to meet planned or actual
market demand. This includes purchasing, receipt, assay, and the supply of incoming material
and supplier agreements.

Make: This includes processes that take finished products and make them market-ready to
meet planned or actual demand. It defines when orders need to be made to order, made to
stock, or engineered to order and includes production management and bill of materials, as well
as all necessary equipment and facilities.

Deliver: Any processes involved in delivering finished products and services to meet either
planned or actual demand fall under this heading, including order, transportation, and
distribution management.

Return: Return processes are involved with returning or receiving returned products, either
from customers or suppliers. This includes post-delivery customer support processes.

Enable: This includes processes associated with SCM such as business rules, facilities
performance, data resources, contracts, compliance, and risk management.

Functional Understanding - Supply Chain Management: –

Supply Chain Management (SCM) Defined

A supply chain is the entire process of distribution from acquiring the raw materials needed to
make products to delivering final goods to consumers. Companies with high-performing
supply chains recognize that it starts with a customer-centered mindset. All activities must be
managed with the end goal of creating and delivering value to the target consumer.

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 Supply chain management (SCM) is the process of managing all the members and activities
from the procurement and transformation of raw materials into finished goods through their
distribution to targeted consumers.

Functions of Supply Chain Management

Supply chain management has five major functions. These include purchasing, operations,
logistics, resource management, and information workflow Good supply chains perform these
functions in a way that meets the wants and needs of final consumers efficiently.

The Five Major Functions of Supply Chain Management

 Purchasing
Purchasing is the process of buying materials needed to
manufacture products. These materials are purchased from
suppliers, who must be able to deliver them in accordance
with the manufacturer’s timeline. Therefore, the
manufacturer’s companies and suppliers must communicate
and coordinate to ensure timely delivery of materials.

 Operations
Operations refer to the daily activities a company performs to
run its business. Before buying materials and starting
production, a company needs to predict how many products it
will sell. This prediction, called forecasting, helps the
company plan its inventory and production schedules.

 Logistics
Logistics refers to the process of planning,
implementing, and managing the efficient
movement and storage of goods, services, and
information from the point of origin to the
point of consumption. It involves tasks such
as transportation, warehousing, inventory
management, and order fulfillment to ensure
that products reach customers in a timely and
cost-effective manner.

 Resource Management

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 Resource management is the planning, organizing, and controlling of resources. Resources
include the labour, the raw materials, and the technology that are required to move products
from their raw material phase to finished goods available for consumption. Effective supply
chain management requires the right allocation of these resources to the right supply chain
activities to optimize the entire system.

 Information Workflow
Information workflow is a supply chain
management function that relates to what and how
information moves between members of the supply
chain. If information doesn’t flow effectively or
communication is poor, the entire process can
suffer as a result of disruptions, delays, and
mistakes.

 SD, FI-CO, MM (Procurement &

Inventory), HR, PP, QM etc.

1. SD (Sales and Distribution):

This module handles all transactions related to sales, including inquiries, quotations, sales
orders, and billing. It integrates with other modules like MM and FI to streamline the sales
process and manage customer relationships efficiently.

2. FI-CO (Financial Accounting and Controlling):

o FI (Financial Accounting): This module manages financial transactions and provides

the financial statements and external reporting. It includes functionalities like general
ledger, accounts payable, accounts receivable, and asset accounting.
o CO (Controlling): This module focuses on internal reporting and provides
information for management decision-making. It includes cost center accounting,
profit center accounting, internal orders, and activity-based costing.

3. MM (Materials Management):

This module manages procurement and inventory functions. It covers purchasing, goods
receiving, material storage, inventory management, and material planning.

4. HR (Human Resources):

This module manages employee-related processes, including recruitment, payroll, personnel

administration, time management, and personnel development.

5. PP (Production Planning):

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 This module helps in planning and managing manufacturing processes. It includes
production planning, material requirement planning, bill of materials, capacity planning, and
production orders.

6. QM (Quality Management):

This module helps in ensuring product quality and compliance with standards. It includes
quality planning, quality inspection, and quality control, integrating with procurement and
production processes to maintain quality standards.
These modules are designed to work together seamlessly, providing a comprehensive and
integrated solution to manage various business processes within an organization.

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