Business Analytics

Analytics
Analytics is the science of analysis
whereby statistics, data mining,
computer technology, etc. is used in
doing analysis
Analysis
Analysis is the process of breaking down
a complex object into its simpler forms
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Obtain “good” data

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Analyze
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Turn into a human readable story

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• Analytics is a field which combines following into one -
1. Data,
2. Information technology,
3. Statistical analysis,
4. Quantitative methods and
5. Computer-based models

• This all are combined to provide decision makers all the possible
scenarios to make a well thought and researched decision.

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 W H A T IS A N A L Y TICS?

 It’s the science of wisely acquiring meaningful results from given data using various methods
and technologies.
 Aims at discovering pattern of variation from the given data.
 It helps to understand the future from past data and the uncertainty related to business.
 It’s a sophisticated process that uses statistics, mathematics and economics models to
predict the future and prescribe strategies.
How analytics works

Gather Organize Analyze

Data Data Data
 Evolution of Business Analytics
• Business Intelligence – Market behaviour and commercial context
What is required for a business to be intelligent? =K+U and M+Context
Why business need to be intelligent
Foresight
Solve complex problems
To make decisions
Intelligence =Decisions=people
• How to make Good Decisions – information –
Business data- Answer the questions and make
decisions through insights in to the data
•Database=store data (1960s)
•Business Applications+database = Easy of data entry(1970)
 •Data+ Access=Dataware housing(1980)
•Data access+ Data Management = Consume data
•BI tools emerged – Analyse the data
• 80% of data of the business is unstructured which is not captured by BI
• BI= right time+ Right Data + Right Person
• It need to be people centric
• Better Insight=Better Decisions.
• Business Analytics = Business Intelligence+ statistical Analysis
• Business Analytics = Business Intelligence+ statistical Analysis+
Quantitative model
• Business Analytics = Business Intelligence+ statistical Analysis+
Quantitative model+ computer technologies – Effective Decisions
Meaning of Business Analytics
• A combination of data analytics, business intelligence and
computer programming. It is the science of analysing data to find out
patterns that will be helpful in developing strategies”
 A N A L Y T ICS STAGES

How many Why has the Which students

Which students
students drop-out rate should I target
are most likely
dropped out increased in to keep from
to drop out?
last year? the last one dropping out?
year?

Descriptiv Diagnosti Predictiv Prescriptiv

e c e e

Informatio Decision
n
Insights
Overlapping Skills

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 Significance of Business Analytics
• To make data-driven decisions
• Converts available data into valuable information.
• Eliminate guesswork
• Get faster answer to questions
• Get insight into customer behavior
• Get key business metrics reports

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• It impacts functioning of the whole organization. And
hence, can-
– Improve profitability of the business
– Increase market share and revenue and
– Provide better return to a shareholder
– Reduce overall cost
– Sustain in competition
– Monitor KPIs (Key Performance Indicators) and
– React to changing trends in real time

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• Technology infrastructure and tools must be able to handle the data
and Business Analytics processes.
• Organizations should be prepared for the changes that Business
Analytics bring to current business and technology operations.

Dr. Amitabh Mishra 10

 Scope of Business Analytics

• Business analytics has a wide range of

application and usages-
– Descriptive analysis

– Predictive analysis

– Prescriptive analysis

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 Descriptive Analysis

• This branch of Business Analytics analyses and finds

answer to the question-
“What has happened in the past?”.

• Descriptive analysis/ statistics performs the function of “describing” or

summarizing raw data to make it easily understandable and
interpretable by humans.

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 Predictive Analytics
• This branch of Business Analytics, uses forecasting
techniques and statistical models to find out-
What is going to happen in future?
• Predictive analysis helps us in predicting the future course of events and
taking necessary measures for the same.

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• Predictive analysis employ-
– Predictive modelling and Machine learning techniques.

• Predictive modeling uses statistics to predict outcomes.

• Machine learning(ML) statistical is the scientific

study of algorithms and models that computer systems use to

perform a specific task without using explicit instructions, relying on patterns and

inference instead. Machine learning algorithms build a mathematical model based on

sample data, known in order to make predictions or decisions without being

explicitly programmed to perform the task.

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 Prescriptive Analytics
• This branch of Analytics, makes use of optimization and simulation
algorithms to find answer to the question-
“What should we do?”.
• Prescriptive Analysis is used to give advices on possible outcomes.
• This is a relatively new field of analytics that allows users to recommend several
different possible solutions to the problem and to guide them about the best possible
course of action.

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 USERS OF BUSINESS ANALYITCS
1. Students
2. Business man
3. Accountants and Auditors
4. of industries/
Organization/Companies/Group Small firm

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 MAIN SOFTWARE USED FOR BUSINESS
ANALYITCS

1. MS-EXCEL

2. SPSS

3. R

4. SAS

5. E-views

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