Business Analytics – it is iterative and it is the STEPS IN BUSINESS ANALYTICS

methodological exploration of the organizations data with

1. Define the business goals and/or objectives.
respect or with the use of statistical analysis/ quantitative
2. Identify or select your statistical
tools.
tool/methodology.
Iterative – series of mathematical equations. 3. Acquisition of data from one or more source.
4. Store data with a database.
 Analysis uses mathematical equations and in
5. Initial Analysis
higher analytics, one must form their own
 Analytical tools serves from spreadsheets with
models.
statistical functions to complex data mining and
Business Intelligence – making use technology in the predictive modeling.
collection and analysis of data for business decision-  Development of predictive models involves data
making process. networks – typically in a database using the
scenes to optimize the reel decisions and
BUSINESS INTELLIGENCE VS. BUSINESS ANALYTICS business process.
Intelligence Analytics BUSINESS ANAYTICS APPLICATIONS
Questions Being Asked Varieties of Business Analytics tools:
What happened? Why did it happened? 1. Data Visualization Tools
2. Business Intelligence Reposting Software
When did it happened? Will it happen again?
3. Self-service Analytics Platforms (Tableau, Qlik)
What will happen if we 4. Statistical Analytics Tool
Who? change X?
5. Big Data Platforms
What does the data tells FIVE SPECIFIC TYPES OF ANALYTICS
How many?
us that we fail to ask?
1. Fundamentals of Business Analytics – Concept
Structural In-depth
and Theory
Items Included 2. Data Analytics – data mining
Statistical/Quantitative 3. Descriptive Analytics – tracts the key
Reporting – includes key Analysis – making use of performance indicators (KPI’s) to describe the
performance indicator the statistical data in enterprise per se, and its business operations
analysis. 4. Predictive Analytics – trend data to assure the
Automation Monitoring Data Mining – exploring livelihood of future outcome.
and Alerting - thresholds big data 5. Prescriptive analytics – uses past performances
Predictive Modeling – to generate recommendations about how to
designed formulas in handle similar situations in the future.
Dashboards
order to arrive at the
interpretation of the data BENEFITS OF BUSINESS ANALYTICS
Scorecards Multiple-varying analysis  Enable data-drive decision that has the potential
OLAP to increase profit and improve efficiency
 With predictive analysis, allow business to plan
Ad-hoc Query for the future in ways that were previously
 Helps company make informal business decisions
 By modeling the outcomes and understanding
the past guess work is minimized

FUNDAMENTALS OF BUSINESS ANALYTICS 1

 Present meaningful, clear data to support
decision making and convince stakeholder.
BUSINESS INTELLIGENCE
 Various technologies and tool
 To collect and to analyze business data
ARTIFICIAL INTELLIGENCE
 Explores the use of computer system to mimic
various human intelligence, such as problem
solving, learning and judgement.
GOALS OF BUSINESS INTELLIGENCE
 Aims to streamline the process of collecting,
reporting, and analyzing data.
“Intelligence doesn’t tell you what to do, but it tells
you what was and what is.”
– Michael F. Gorman, Operation Management and
Science, University of Payton, Ohio
 Business Intelligence can turn reams of noisy data
into coherent pictures, but they are not designed
to provide clear prescriptions for how that data
shows he used for decision making.
GOALS OF ARTIFICIAL INTELLIGENCE
 Modelling Human Intelligence
 Key to answer questions:
o Can machines learn and adapt?
o Can machines develop reliable intuition?
 It can provide human operations like
prescriptions and can act on those prescriptions
automatically
BUSINESS INTELLIGENCE – USE
 Microscope
o Organize
o Analyze
o Visualize data
 Emails, chatbots, and social media
 Data visualization tools, data warehouse tools,
and reporting software
ARTIFICIAL INTELLIGENCE – USE
Sales
1st Qtr 2nd Qtr 3rd Qtr
BUSINESS ANALYTICS IN PRACTICE
 Financial Analytics
 Human Resource (HR) Analytics
 Marketing Analytics
 Healthcare Analytics
 Supply-Chain Analytics
 Analytics for Government and Nonprofits
 Sports Analytics
 Web Analytics
Capital Budgeting - Capital budgeting is a method of
analyzing and comparing substantial future investments
and expenditures to determine which ones are most
worthwhile. In other words, it’s a process that company
management uses to identify what capital projects will
create the biggest return compared with the funds
invested in the project. Each project is ranked by its
potential future return, so the company management can
choose which one to invest in first.
Inflation Rate – loss of value of purchasing the materials.
Legal barometer.
Business Risk (Risk Factor) – is any exposure a company or
organization has to factor(s) that will lower its profits or
lead it to fail. Business risk comes from different sources
including consumer taste and demand, the overall
economy, and government regulation. The higher the risk,
the higher the returns.
Financial Analytics - is a field that gives different views of
a company's financial data. It helps to gain in depth
knowledge and take action against it to improve the
performance of your business.
FUNDAMENTALS OF BUSINESS ANALYTICS 2
 ROLES OF A FINANCIAL ANALYST
 Observe the growth rate of the company.
 Make sure that the expenses of the organization
is within the reasonable range of the inflation
rate.
 Identifies possible areas to put investment
 Determines cost of operations by establishing
standard costs; collecting operational data.
 Identifies financial status by comparing and
analyzing actual results with plans and forecasts.
 Guides cost analysis process by establishing and
enforcing policies and procedures; providing
trends and forecasts; explaining processes and
techniques; recommending actions.
 Improves financial status by analyzing results;
monitoring variances; identifying trends;
recommending actions to management.
 Reconciles transactions by comparing and
correcting data.
 Maintains database by entering, verifying, and
backing up data.
 Recommends actions by analyzing and
interpreting data and making comparative
analyses; studying proposed changes in methods
and materials.
 Increases productivity by developing automated
accounting applications; coordinating
information requirements.
 Protects operations by keeping financial
information confidential.
 Maintains technical knowledge by attending
educational workshops; reviewing publications.
 Contributes to team effort by accomplishing
related results as needed.
Human Resource Analytics – is defined as the area in the
field of analytics that deals with people analysis and
applying analytical process to the human capital within
the organization to improve employee performance and
improving employee retention.
ROLES OF A HUMAN ANALYST
 See to it that the goals and objective of the
company must be checked.
 Hiring and termination of workers
(recommendatory)
o Hiring the highest qualified people
o Terminating employees within the
guidance of the law.
 Represent the workers to the eyes of the upper
management.
 Represent the Management in the eyes of the
workers
 Identifying and assisting in solving HR related
issues ensuring these adhere to the organizations
policies and objectives.
 Reviewing employee and candidate data and
inputting this into relevant HR databases
 Potentially supervising with training and
providing coverage and feedback of staff
performance
 Assisting the HR team in the progression and
moderation of operating policies, guidelines, and
systems to encourage best practice within the
company
 Providing advice and support to numerous
departments in the organization regarding HR
policies, processes, and best practice
 Communicating with customers where necessary
and helping with trouble shooting and any client
business needs
Marketing Analytics – It studies the consumer behavior.
Marketing analytics is the practice of measuring and
analyzing marketing performance to maximize efficiency
and improve return on investment. Understanding
marketing analytics allows marketers to be more efficient
at their jobs and minimize wasted web marketing dollars.
ROLES OF A MARKETING ANALYST
 Designing market surveys.
 Conduct competitive research and analyze
benchmarking data
 Preparing detailed reports on consumer
behavior, competitors' activities, outcomes, and
sales.
 Determining future trends.
 Communicating with customers, competitors and
suppliers.
 Developing strategies to improve market reach.
 Monitor budget distribution and performance of
paid ad campaigns
FUNDAMENTALS OF BUSINESS ANALYTICS 3
  Work closely with sales and marketing teams to
identify opportunities for new client acquisition
Sports Analytics – makes use of the 3 branches of analytics
namely descriptive, predictive and prescriptive. The use
of data and advanced statistics to measure performance
and make informed decisions, in other to gain a
competitive sports advantage. Sports analytics, when
properly applied, can yield tremendous competitive
advantages to a team or an individual.
 We need sports analytics to come up with the
best competitive team with the least cost.
Healthcare Analytics – is a method of systematic data
analysis that allows healthcare professionals to find
opportunities for improvement in health system
management, patient engagement, spending, and
diagnosis.
ROLES OF A HEALTHCARE ANALYST
Analytics for Government and Nonprofit – governments
can leverage big data analytics to unlock the information,
improve transparency, efficiency and accountability in
public management.
Web Analytics – is used to facilitate the analysis of
information/data and to give a better picture what you
are looking for.
- It is also the process of analyzing the behavior of
visitors to a Web site. The use of Web analytics is
said to enable a business to attract more visitors,
retain or attract new customers for goods or
services, or to increase the dollar volume each
customer spends.
 The entire context of business analytics is
about decision making. Decision is a matter
of choice.

 Monitoring patients 3 LEVELS OF MANAGERS OR DECISION MAKERS

 Stocking medicines and all necessary materials.
1. Strategic Managers – upper level managers. They
 Improve facilities and services
supervise the entire operations, formulate the
 Develop and implement effective record-keeping rules, policies and regulations, and impose the
procedures. objectives of the institution.
 Prepare accurate reports on the latest trends in 2. Tactical Managers – are managers who plan. They
customer service, billing, and cost evaluation. are the middle-level managers. They formulate
 Research and evaluate data from different the plan for the objectives of the organization
sources to identify discrepancies and patterns. which are imposed by the upper level managers.
 Present and explain status reports to 3. Operational Managers – are the lower
management. management. They see to it that the plans from
 Recommend ways to improve healthcare quality the upper management are correctly and
and minimize costs. properly implemented.
 Work with management and other internal
departments to implement and assess  Decision is the main root of everything.
developments.
 Perform regular site visits to evaluate operations
and costs of health care platforms.
 Prepare and organize policy guidelines, public
hearing testimonies, presentations, and
petitions.

Supply-Chain Analytics - is the application of mathematics,

statistics, predictive modeling and machine-learning
techniques to find meaningful patterns and knowledge in
order, shipment and transactional and sensor data.

FUNDAMENTALS OF BUSINESS ANALYTICS 4