Business Analytics

WHAT TO EXPECT…
• I am a student
• I am one of you – just few days older
• Will share my experience – failures and success
• Not theoretical, not from book…
• Real life examples from everyday life
• Interactive session (this is not 1-way lecture)

• BE RESPONSIBLE FOR YOUR OWN SATISFACTION

ALWAYS BUSY?
MAKE SURE YOU GET RIGHT GUIDANCE
 ANALYTICS @ MS / JIO / NICE

• Microsoft Application Crash Reporting

• Microsoft’s 1st Six Sigma for Outlook
• Quick Flags Feature
• “Just Enough Steps” … Initiative  Ribbon
• Search Intent prediction using Machine Learning
• Hyper Targeted Advertising
• @Jio User Experience Analytics (e.g. call drops)
• @NICE Customer Journey Analytics – Optimize
• @NICE Predictive Analytics – “Next Best Action”
 9 OUT OF 10 DENTISTS RECOMMENDS…

• What does this mean to you?

• Sensodyne toothpaste
• Crest
• Colgate
• Aquafresh
 8

HOW ARE DECISIONS MADE?

• Hippo: Highest Individual Paid Person’s Opinion
• …because I use it that way
• I think so… / I am sure about it
• The customer will never do that
• User don’t know what they want / User wants this
• Customer always want things cheap/free
• We have # of registered users (Hotmail Example)
 DATA

• Values of qualitative or quantitative variables

• Bits and Bytes
• Typically the results of measurements
• Structured and Unstructured
• Can be visualized using graphs or images
• Lowest level of abstraction from which information
and then knowledge are derived
• Useless, unless we can put a $ around it
 10

DATA - EVERYWHERE
• Every activity or in-activity generates data
• Experimentation with different product,
promotion, pricing plans
• Transaction in stores/eCommerce/online
• Social, Interaction with app/site, Location
• Data tells a lot about somebody
• Understand User “Intent”
• Understanding journey from Data to Action
INTERNET IN 60 SEC
 WHAT IS ANALYTICS?

• Analytics is the scientific process of

deriving insights from data in order to make
business decisions
 BUSINESS ANALYTICS

• Business analytics (BA) 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,
statistical methods quantitative analysis, explanatory and
predictive modeling and fact-based management to drive
decision making
(from wikipedia)
HOURLY USERS & PLT
DISTRIBUTIO14 N
15
KANO MODEL
 WHAT % GOOD - IS GOOD ENOUGH
99% Good (3.8 Sigma)
200,000 wrong drug prescriptions
per year
5,000 incorrect surgical operations
per week
>15,000 newborn babies
accidentally dropped per year
2 short or long landings at major
airports per day
20,000 mail lost per hour
Unsafe drinking water for almost
15 minutes each day
No electricity for almost 7 hours
each month
99.99966% Good (Six Sigma)
680 wrong prescriptions per year
88 incorrect operations per week
5 newborn babies dropped per
year
Less than 1 short or long landing
every 8 years
7 mail lost per hour
1 unsafe minute every 7 months
1 hour without electricity every 34
years
 17

KNOW YOUR TERMS

• Business Intelligence
• Business Analysis
• Business Analyst
• Business Analytics
• Statistics
• Data Warehousing
• Data Mining
• Data Collection
• Analytics Software
• Big Data
• Six Sigma
 BIG DATA

• Big data is a term for data sets that are so large or complex that
traditional data processing applications are inadequate to deal
with them.
• Challenges include analysis, capture, data curation, search,
sharing, storage, transfer, visualization, querying and updating
• 5 Vs
• Variety
• Velocity
• Volume
• Variability
• Veracity
 19

WHERE DO YOU WANT TO GO?

 20

SOME POINTS ON MEASUREMENTS

• If you don’t know where you are going, any road
will take you there
• If you cannot measure, you cannot improve
• Anything can be measured
• Whenever you put on light, you see minute details
of dust, etc.
• If you don’t measure, your customer and
competitors are measuring
 21

BUSINESS PROCESS
• A business process is a collection of related,
structured activities or tasks that produce a specific
output (service or product) and serve a particular
goal for a particular customer(s)
 22

INPUT  PROCESS  OUTPUT

 23

SIPOC
• Suppliers
• Inputs
• Process
• Outputs
• Customers
 SIPOC

• For Making Tea

• Online Book Purchase e2e cycle
25
 BUSINESS
ANALYTICS
Business
•
•
Revenue, Profit, Cost, Growth
Market Share / Mind Share
• Sustainable Business Model
₹esult$ • Employee & Social Responsibility

Adoption & • User Satisfaction, Feedback

• Social Advocacy, Referrals, Pride

Satisfaction • Attract & Retain New Users

• Repeat User, Time spent, ARPU

• Intuitive UX, It Just Works

Quality of • Reliability, Performance, Stability

Service • Anytime, Anywhere, Any Device

• Customer Service & Support

• Innovation, Real Solutions

Product • Customer Delight – Ah-ha, Kano
• SoLoMo & SMAC
Features • Interoperability/Compatibility
IN DEPTH BUSINESS
ANALYTIC27 S
 UNDERSTAND USER BEHAVIOR - REAL-TIME
LEARNING ENGINE
ANALYTICS
+X218 +-
+ X1 31 1X6 -+
2678 92 + X1
+-+- City/DMA
1631 +X139
+ Positive Lift
Marginal 1710 Bizographi
cs
+X181
Zip Code 3

x-
Web
41 Site/Page Browsing
Impact +- 381 +- Behavior
Occupati
on X1771 X10 +
Interests
721 + X-
1179
Lifestyle
1
Negative Lift +- Recency Purchase ++-
Optimizer Intent
8129 18191
1 +X14 +- 3
7 2X83
Online
Site Purchases
Actions

-X2132 Social X18 +- +-

+-
23 X12 X1047
Start with loose
Advertiser targets Search
+17
X87
Sites Search 125 Site Category
Train the model for + Age/Gen Keywords 87
short time der
11--
Search
Categories
Scale the campaign! +- Ethnicity
 Offline Purchases URL
+- 394 - 62
+ X1 Referral + X1 Income
Performance Ads Optimization: Optimize on
How it works: Audience targets will be refined as signals get scored 11MM+ features
every 15 Minutes With Real-Time User & Campaign Data across all in Real Time
channels

Read the mind & Heart of the

Brand Ads Optimization:
How it works: Brands ads will find the right targets based on brand
lift surveys run in-campaign consumer and predict next action
 Results: Data Driven Decisions
ANALYTIC
Optimization. Personalization,
Recommendation & Adverti$ing
Reports: Standard & Custom & Alerts
Monitoring & Feedback loop

Service Quality
Server, NW, BW

User
App/Site

Content
Device

back & Social

Experimentation & Scalable Infrastructure in Cloud Common
data-logging framework (SDK) across all platforms
Standard definition for Metrics & KPIs
Confidential
 SOLOMO ANALYTICS

Social Local Mobile

Reach Localized App Analytics
Sentiments Conversions Behavioral

Engagement Ad Analytics User Attrition

Advocacy Geo Spatial Service Quality

Brand Affinity Actions User Insights

BUSINESS ANALYTICS
 32

CURRENT BUSINESS LANDSCAPE

• Users have choice
• Cost of switching is zero or negligible
• Services are going global
• Everybody should be able to get anything,
Anytime, Anywhere and on Any device
• Need to have Online and offline story
 COMPETING ON ANALYTICS

• More of • Less of
• Features • Time
• Comfort • Money
• Service • Steps
• Faster • Effort
• Quality • Issues
• Personalization • Follow-ups
• UX
Users have choice…
 FINANCIAL CRIME

Loss of assets

Regulatory scrutiny

Reputational damage
MONEY-LAUNDERING
Financial Fraud
37
 5 STAGES OF ANALYTICS COMPETING

Analytically • Multiple definitions of data, poor-quality data, the

Impaired organization is flying blind and is often reactive

Localized • Data collection & analytic efforts are function-specific &

Analytics opportunistic, not used for better decision-making

Analytical • Executive level commitment for analytics. Adhoc tools are used,
Aspirations systems are built, but no standardization

Analytical • Broader analytics capabilities are built as corporate priority,

Companies automated analytical plan in place

Analytical • Enterprise wide automated and integrated analytics, used for

Competitors business advantage
 TYPES OF ANALYTICS

• Operational - Assist in “business as usual” situations. Basic

corporate metrics are reported and visualized.
• Reporting of the “here and now” metrics
• Tactical - Longer term and focuses on analytics to assist management in
tackling problems. Includes predictive models based on past historical
performance.
• Event driven Analytics
• Monitoring / Web analytics
• Comparative analytic
• Ad Hoc Analytics
• Strategic - Play a vital role in helping a company make dramatic
decisions affecting the strategic direction of the organization
• Predictive analytics
• Prescriptive analytics
BUSINESS ANALYTICS MATURITY

Prescriptive Analytics
(What should we do)

Predictive Analytics
(What will happen)
Descriptive
Analytics
(What has
happened)
 PAST, PRESENT & FUTURE THRU DATA

Past Present Future

What Happened What is happening now What will happen
Information

Reporting Alerts Extrapolation

How and Why did it happen What’s the next best action What’s the best worst can
ActionInsights

happen
Modeling & Analytics
Recommendations Prediction
What could have been done
to prevent it Is this happening as How are we going to
expected handle it
Root Cause Analysis
Verification & Validation Prescriptive
 POTENTIAL AND LIMITATIONS

• Potential
• Understand the business e2e
• Focus on “Business” output
• Analytics – Descriptive, Predictive, Prescriptive
• Understand problems & opportunities in time
• Aid in Decision Making
• Limitation
• Cannot replace human decision making
• Emotions
• Stock Markets
 BUSINESS ANALYTICS - EXAMPLES

• Forecasting
• Estimating Sales, Crowd, Predicting server loads or server
downtime
• Risk and probability
• Choosing the best customers for targeting mailings, assigning
probabilities to diagnoses or other outcomes
• Determining products likely to be sold together
• Finding Sequences
• Analyzing customer selection in shopping cart, predicting likely events
• Grouping
• Separating customers or events into clusters of related items, analyzing
and predicting affinities
 46

E-COMMERCE
• Experimentation (A/B Testing)
• Recommendations Engine
• Site / App Layout
• Marketing Emails, Timings & click-thrus
• Time of day / day of week
• Major product releases, Specials
• Shipping Analytics – supply chain/timing/etc.
• Coupon / Offers
• Pricing experiment
 INSURANCE

• Identify the Risk factors

• Decide premium based on the risk factor
• Based on driving pattern insurance is
decided
• Metrics – Profit / Losses per policy
 BANKING

• Customer analytics, segmentation, attrition analysis

• Customer and Products Profitability analysis
• Marketing analytics, success of campaigns
• Fraud analytics, prevention & detection
• Anti Money Laundering
• Risk analytics, credit risk analysis
 TELECOM

• Understand network quality issues / call drops

• Analyze Network traffic in real-time and optimize routing
• Customer usage insights to develop new pricing packages
• Providing recommendations on plans based on usage
• Analyze media consumption patterns – procurement
 HEALTHCARE

• Find out effects of medicine over a period of time

• Risk of missing dose
• Drugs side effects
• Clinical trials
• Cause-and-effect models
 GETTING STARTED…

• What is purpose of Business

• Understand the business
• What success looks like
• Identify KPIs
• Input Metrics
• Process Metrics
• Output Metrics
• Analytics Expectations
• Potential…
BUSINESS ANALYTICS
TRADITIONAL
ADVERTISING
EVOLVED ADVERTISING WITH
ANALYTICS

Hey! I know you want

this, we have made this
just for you
(and buy now…)
 E-COMMERCE SITE / MOBILE APP - ANALYTICS
User Demographics
• Age
• Gender
• Status
• Family
• City /Country
• Transactions
• Features used
• Pages visited
• Time on site (focus)
• Ads served / clicked
• Click-backs
• Errors
• Failed transactions
Visits
• Unique visits
• Repeat user
• Time of day/day of week
• Average Minutes
• Machine/devices config
• OS/Browser/Device
• Bandwidth
• Screen resolution
• Business
• Purpose / Intent
• Conversions
• Competitions
• Server / Network
• Server utilization
• Bandwidth consumption
 ASSIGNMENT

• Pick any business

• Capture what all analytics can be done
• 4-5 metrics in each bucket
• Product Feature
• Quality
• Adoption and Satisfaction
• Business Metrics
• For each metrics
• Title of the metrics
• Definition
• how you will measure, frequency
• How you will present
• How this metrics will potentially help