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UNIT I
BUSINESS ANALYTICS


1. INTRODUCTION TO BUSINESS ANALYTICS

Business analytics is the combination of skills, technologies, applications and processes used
by organizations to gain insight into their business based on data and statistics to drive
business planning. Business analytics is used to evaluate organization-wide operations, and
can be implemented in any department from sales to product development to customer
service.
Business analytics refers to the skills, technologies, applications and practices for continuous
iterative exploration and investigation of past business performance to gain insight and drive
business planning. Business analytics focuses on developing new insights and understanding
of business performance based on data and statistical methods. In contrast, business
intelligence traditionally focuses on using a consistent set of metrics to both measure past
performance and guide business planning, which is also based on data and statistical
methods.
Business analytics makes extensive use of data, statistical and quantitative analysis,
explanatory and predictive modeling, and fact-based management to drive decision making.
It is therefore closely related to management science. Analytics may be used as input for
human decisions or may drive fully automated decisions. Business intelligence is querying,
reporting, OLAP, and "alerts."
In other words, querying, reporting, OLAP, and alert tools can answer questions such as what
happened, how many, how often, where the problem is, and what actions are needed.
Business analytics can answer questions like why is this happening, what if these trends
continue, what will happen next (that is, predict), what is the best that can happen (that is,
optimize).


1.1 MAJOR COMPONENTS OF BUSINESS ANALYTICS


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Data Mining Create models by uncovering previously unknown trends and patterns in vast
amounts of data e.g. detect insurance claims frauds, Retail Market basket analysis.

There are various statistical techniques through which data mining is achieved.
o Classification ( when we know on which variables to classify the data e.g. age,
demographics)
o Regression
o Clustering ( when we dont know on which factors to classify data)
o Associations & Sequencing Models

Text Mining - Discover and extract meaningful patterns and relationships from text
collections e.g. understand sentiments of Customers on social media sites like Twitter, Face
book, Blogs, Call center scripts etc. which are used to improve the Product or Customer
service or understand how competitors are doing.

Forecasting Analyze & forecast processes that takes place over the period of time e.g.
predict seasonal energy demand using historical trends, Predict how many ice creams cones
are required considering demand

Predictive Analytics - Create, manage and deploy predictive scoring models e.g. Customer
churn & retention, Credit Scoring, predicting failure in shop floor machinery

Optimization Use of simulations techniques to identify scenarios which will produce best
results e.g. Sale price optimization, identifying optimal Inventory for maximum fulfillment &
avoid stock outs

Visualization - Enhanced exploratory data analysis & output of modeling results with highly
interactive statistical graphics

1.2 DATA WAREHOUSE
A data warehouse is a relational database that is designed for query and analysis rather than
for transaction processing. It usually contains historical data derived from transaction data,
but it can include data from other sources. It separates analysis workload from transaction
workload and enables an organization to consolidate data from several sources.
In addition to a relational database, a data warehouse environment includes an extraction,
transportation, transformation, and loading (ETL) solution, an online analytical processing
(OLAP) engine, client analysis tools, and other applications that manage the process of
gathering data and delivering it to business users.
A common way of introducing data warehousing is to refer to the characteristics of a data
warehouse as set forth by William Inmon:
Subject Oriented
Data warehouses are designed to help you analyze data. For example, to learn more about
your company's sales data, you can build a warehouse that concentrates on sales. Using this
warehouse, you can answer questions like "Who was our best customer for this item last
year?" This ability to define a data warehouse by subject matter, sales in this case, makes the
data warehouse subject oriented.
Integrated
Integration is closely related to subject orientation. Data warehouses must put data from
disparate sources into a consistent format. They must resolve such problems as naming
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conflicts and inconsistencies among units of measure. When they achieve this, they are said
to be integrated.
Non-volatile
Non-volatile means that, once entered into the warehouse, data should not change. This is
logical because the purpose of a warehouse is to enable you to analyze what has occurred.
Time Variant
In order to discover trends in business, analysts need large amounts of data. This is very
much in contrast to online transaction processing (OLTP) systems, where performance
requirements demand that historical data be moved to an archive. A data warehouse's focus
on change over time is what is meant by the term time variant.




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Exercise No.: 2 BLOG CREATION AND PAGE ANALYTICS
Date:

Aim:
To create a blog and generate the page analytics report in www.blogger.com

Data Set/Requirement:
Create a blog to review a product category (Ex. Mobile phones)

Procedure:
1. Logon to www.blogger.com using a Google account
2. Select the New Blog in the Dashboard (Figure 1.1)
3. Enter a Title ,Address and Template for the Blog (Figure 1.2)
4. Click on the Create post icon near to the Blog in the Dash Board
5. Start Creating 10 relevant posts in the Blog.
6. After creating the posts, return to the Dashboard
7. Click on the Blog
8. On the Left hand side pane, Click on the Stats Option
9. Record the observation of Traffic Sources, Audience Post wise Reach (Figure 1.5)

Test your knowledge
Create the blog for discussing Marketing concepts related to FMCG products.


Figure 1.1 Creating New Blog in www.blogger.com

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Figure 1.2 Blog option


Figure 1.3 Blogger Dashboard

Figure 1.4 New post
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Figure 1.5 Posting a blog


Figure 1.5 Page statistics report
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Figure 1.6 Blog front end view


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1.4 WEB ANALYTICS
Web analytics is the measurement, collection, analysis and reporting of web data for purposes
of understanding and optimizing web usage.

Web analytics is not just a tool for measuring
web traffic but can be used as a tool for business and market research, and to assess and
improve the effectiveness of a web site. Web analytics applications can also help companies
measure the results of traditional print or broadcast advertising campaigns. It helps one to
estimate how traffic to a website changes after the launch of a new advertising campaign.
Web analytics provides information about the number of visitors to a website and the number
of page views. It helps gauge traffic and popularity trends which is useful for market
research.
There are two categories of web analytics; off-site and on-site web analytics.
Off-site web analytics refers to web measurement and analysis regardless of whether you
own or maintain a website. It includes the measurement of a website's potential audience
(opportunity), share of voice (visibility), and buzz (comments) that is happening on the
Internet as a whole.
On-site web analytics measure a visitor's behavior once on your website. This includes its
drivers and conversions; for example, the degree to which different landing pages are
associated with online purchases. On-site web analytics measures the performance of your
website in a commercial context. This data is typically compared against key performance
indicators for performance, and used to improve a web site or marketing campaign's audience
response.Google Analytics is the most widely used on-site web analytics service; although
new tools are emerging that provide additional layers of information, including heat maps and
session replay.


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Exercise No.: 3 BLOG PROMOTION AND MONITORING
Date:

Aim:
To promote the blog using different tools

Data Set/Requirement:
Promote the blog using the following tools
Short URL
Social Media (Facebook, Twitter)

Procedure:
1. Create the blog using www.blogger.com
2. Register/Login to www.bitly.com
3. Paste the original blog url in the appropriate box (ex: http://srmcars.blogspot.in/)
4. Get the shorten URL
5. Get the customized URL from the pop-up box
6. Login to your social media
7. Share / paste the shorten URL
8. Record the observation of Traffic Sources, Audience Post wise Reach in blogger
dashboard


Test your knowledge
Create short URL and promote the blog which you created in the last exercise in
Social media.












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Exercise No.: 4 WEB ANALYTICS
Date:

Aim:
To perform web analytics for the created blog/website

Data Set/Requirement:
Using Google Analytics (www.google.com/analytics) monitor or analyse the blog.

Procedure
1. Register / login to (www.google.com/analytics) using Google Account
2. Click the Admin from the menu
3. Choose Create new account from the Account drop box
4. Fill the website (blog) details
5. Click the Get Tracking ID
6. The pop-up window will show the Agreement, Click I Accept
7. Copy the Tracking code (Ex.: UA-52349054-1)
8. Login to www.blogger.com
9. Choose your blog detail
10. Select Settings -> Other from the left panel
11. Go to Google Analytics section
12. Paste the Tracking code
13. Press Save Settings
14. Again go to www.google.com/analytics
15. Click Reporting on the menu
16. Choose Real-Time in the left box
17. Generate different kinds of reports of the Audience like Demograpics, Interests, Geo,
Behaviour, Technology



Figure 1.7 Google Analytics Admin panel

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Figure 1.8 Account Creation


Figure 1.9 Tracking code

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Figure 1.10 Integrate Google Analytics with Blogger


Figure 1.11 Live reporting of the blog


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Exercise No.: 5 ONLINE DATA COLLECTION
Date:

Aim:
To collect the survey data online

Data Set/Requirement:
Using Google forms (Google drive) collect the data online

Procedure
1. Register/login to www.drive.google.com
2. Click the Create button
3. Select Form from the drop down
4. Select the theme
5. Name the Form in the Title section
6. Create the question
7. Select the question type
a. Text
b. Paragraph text
c. Multiple Choice
d. Checkboxes
e. Choose from the list
f. Grid
g. Scale
h. Date
i. Time
8. Once finish the question click Done button
9. To add another question press Add item
10. Repeat the step 7
11. After finishing all the question entry, press View live form from the menu
12. The live form will open
13. To send the form to the users email, click Send form
14. To embed the form in blog, Click Embed button on the Send form pop up
window
15. Code will generated, copy the code and paste it into to the post.

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Figure 1.12 Create the Google Form


Figure 1.13 Theme selection

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Figure 1.14 Send form

1.6 SKILL SET OF A BUSINESS ANALYST

Communication Skills: By nature of the job, business analysts spend a great deal of time
interacting with users, clients, management and developers. A projects success depend upon
the business analyst clearly communicating details like project requirements, requested
changes and testing results. Articulate language skills and outstanding written communication
abilities are absolutely necessary to thrive in a business analyst career.

Technical Skills: In order to successfully identify business solutions, a business analyst
needs to know what information technology applications are being utilized, what new
possible outcomes can be achieved through current platforms and what the latest technology
offers. Gaining respect and creating a sense of confidence among IT and business end-users
requires a business analyst to speak with authority the dual languages of business and
technology.

Analytical Skills: A business analysts skill set must include outstanding analytical skills so
that a customers business needs are properly interpreted and translated into application
and operational requirements. A major aspect of the job is analyzing data, documents, user
input surveys and workflow to determine which course of action will correct the business
problem.

Problem Solving Skills: While the ability to create workable solutions to business problems
is not unique to business analysts, it is a necessary skill for performing the job successfully.
When these professionals are working to developing custom business solutions, nothing is
100% predictable so finding ways to quickly resolve problems and move toward a projects
successful completion is paramount in the business analysts role.

Decision-Making Skills: Another important business analyst skill is the ability to make
decisions. As a consultant to management and advisor to developers, the business analyst is
called upon for sound judgment in a wide variety of complex business matters, any number of
which could determine the viability of the business for years to come. Professionals who wish
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to pursue a business analyst career must be able to assess a situation, receive input from
stakeholders, and select a course of action and they must often do so without hesitation.



Managerial Skills: The business analysts primary role involves managing projects. Planning
the project scope, directing staff members, handling change requests, forecasting budgets and
keeping everyone on the project within allotted time constraints are just some of the
management skills a business analyst must possess. Supervising projects of all sizes, from
inception to implementation and usually concurrently takes a high degree of managerial
skill.
Negotiation and Persuasion Skills: A business analyst serves as a liaison between
developers and users, clients and companies, and management and IT. Finding the balance
between individual wants and business needs, and then interacting with a variety of
personality types toward a solution that works for the business, takes outstanding persuasion
skills. When competing for client projects, a business analysts negotiation skills come into
frequent use, with the goal of achieving a profitable outcome for the company and a working
solution for the client. Maintaining relationships within an organization and with external
partners is an important function of a business analyst.





























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Sources:

http://www.webopedia.com/TERM/B/business_analytics.html

http://www.sas.com/offices/europe/uk/technologies/analytics/datamining/
http://docs.oracle.com/cd/B10501_01/server.920/a96520/concept.htm
http://ghulamahmedbinsaeed.blogspot.in/2014/04/how-to-make-blog-and-make-money-
blogging.html
http://en.wikipedia.org/wiki/Web_analytics
http://smallbusiness.chron.com/companies-use-analytics-54630.html
http://en.wikipedia.org/wiki/URL_shortening
https://support.google.com/docs/answer/87809?hl=en
http://en.wikibooks.org/wiki/Business_Analysis_Guidebook/Communication_Skills