BUSINESS ANALYTICS

• Business analytics (BA) is the practice of

iterative, methodological exploration of an
organization’s data with emphasis on
statistical analysis. Business analytics is used
by companies committed to data-driven
decision making.
 HISTORY OF BUSINESS ANALYITCS
• 5000 BC: Grog used two sticks and four rocks to graph the
upward trend in sales of his new invention, the wheel.
• 1969: Woodstock ends in financial disaster after organizers
rely on spreadsheets to estimate attendance.
• 1976: Analysts predictions that this will be the bicentennial
of the United States are fulfilled. World gains sudden
interest in the power of predictive analytics.
• 1976 to Present: SAS is formed and begins to give
businesses The Power to Know.
TYPES OF BUSINESS ANALYITCS
• Decisive analytics: supports human decisions
with visual analytics the user models to reflect
reasoning.
• Descriptive Analytics: Gain insight from historical
data with reporting, scorecards, clustering etc.
• Predictive analytics: (predictive modelling using
statistical and machine learning techniques)
• Prescriptive analytics: recommend decisions
using optimization, simulation etc.
 ADVANTAGES OF BUSINESS ANALYITCS

• Eliminate guesswork
• Get faster answer to your question
• Get insight into customer behavior
• Identify cross selling and up selling
opportunities
• Get key business metrics reports when and
where you need them
 USERS OF BUSINESS ANALYITCS

• Students
• Business man
• Accountants
• Organization
• Companies
• Group of industries
• Small firm
• Auditors
 MAIN SOFTWARE USED FOR BUSINESS
ANALYITCS
• SPSS- SPSS Statistics is a software package used for
statistical analysis. Long produced by SPSS Inc., it
was acquired by IBM in 2009. The current versions
(2014) are officially named IBM SPSS Statistics.
• MS-EXCEL- Microsoft Excel is a spreadsheet
application developed by Microsoft for Microsoft
Windows and Mac OS. It features calculation,
graphing tools, pivot tables, and a macro
programming language called Visual Basic for
Applications.
 Data Analytics
• Data Analytics (DA) is the process of examining
data sets in order to draw conclusion about
the information it contains.
Examples
1. Business analytics
2. Risk analytics
3. Fraud analytics
4. Health analytics
5. Web analytics
 Data Analytics
Utilizes data mining
techniques
Identifies inexplicable or
novel relationships/trends
Seeks to visualize the data
to allow the observation
of relationships/trends
Statistical Analysis
Utilizes statistical and/or
mathematical techniques
Used based on theoretical
foundation
Seeks to identify a
significant level to address
hypotheses
Types of analytics
1. Descriptive Analytics (“What has happened?”)
(Data aggregation, summary, data mining)
2. Predictive Analytics (“What might happen?”)
(Regression, LSE,MLE)
3. Prescriptive Analytics (“What should we do?”)
(Optimization, Recommendation)
 Analytics Life Cycle
1. Problem Identification
2. Hypothesis formulation
3. Data Collection
4. Data Exploration/preparation
5. Model Building
6. Model Validation and Evaluation
1. Problem Identification
• The problem is a situation which is judged to be corrected or solved
• Problem can be identified through
1. Comparative/benchmarking studies
2. Performance Reporting
3. Asking some basic questions
a) Who are affected by the problem?
b) What will happen if problem is not solved?
c) When and where does the problem occur?
d) Why is the problem occurring
e) How are the people currently handling the problem?
2. Hypothesis formulation
1. Frame the questions which need to be answered.
2. Develop a comprehensive list of all possible issues related to the problem.
3. Reduce the list by eliminating duplicates and combining overlapping
issues.
4. Using consensus building get down to a major issue list.

3. Data Collection
Data collection techniques are
1. Using data that is already collected by others
2. Systematically selecting and watching characteristics of people, objects,
and events.
3. Oral questioning respondents either individually or as a group
4. Collecting data based on answers provided by the respondents in written
format.
4. Data Exploration
1. Importing data
2. Variable Identification
3. Data Cleaning
4. Summarizing data
5. Selecting subset of data

5. Model Building
• Building a Model is a very iterative process because
there is no such thing as final and perfect solution.
• Many of the machine learning and statistical techniques
are available in traditional technology platform
6. Model validation and Evaluation
• Like model building the process of validating
model is also a iterative process.
There are so many ways …
• Confusion Matrix.
• Confidence Interval.
• ROC curve
• Chi Square.
• Root Mean Square Error
• Gain and Lift Chart.
What is Big Data Analytics
What is Big Data Analytics is’nt
What Big Data involves
 Top Challenges Facing Big Data
• Scale
• Security
• Schema
• Continuous Availability
• Consistency
• Partition Tolerant
• Data Quality
 Various approaches to analysis of data
• Reactive – BI: It allows the businesses to make faster & better
decisions by providing the right information to the right person
at the right time in the right format. It is about analysis of
historical data then displaying the reports.
• Reactive – BDA: Analysis is done on huge datasets but approach
is still reactive as it is still based on static data.
• Proactive – Analytics: It support future decision making by the
use of data mining, predictive modeling, text mining & statistical
analysis.
• Proactive – BDA: Examining through terabytes, petabytes,
exabytes of information to filter out the relevant data to analyze.
 How to meet the challenges
• Cheap & abundant storage
• Faster processors for quicker processing of big data
• Affordable open-source, distributed big data
platforms such as Hadoop
• Parallel processing , clustering , virtualization, large
grid environments, high connectivity, higher
throughputs
• Cloud computing & other flexible resource allocation
arrangements