LESSON 01

Overview of Data Analytics for

Business
Management vs. Business
 Management: Man-Age-Ment

 Business: Busy; Busignes

1-2
Purpose-Driven Business
 …to accomplish goals
• …to create value
• …to achieve competitive advantage
• …to achieve superior financial performance
• …to survive ≈ to keep doing business
• …to grow

2-3
Competitive Advantage
 Effectiveness Advantage
• Providing more relative value than its competitors at a comparable cost
• Higher quality / Differentiation

 Efficiency Advantage
• Providing value comparable to that of its competitors but at a lower cost
• Cost-saving

 Both

1-4
Competitive Advantage

1-5
Growth

1-6
Decision Making
 Managers’ responsibility:
• To make strategic, tactical, or operational decisions.
 Strategic decisions:
• Involve higher-level issues concerned with the overall
direction of the organization.
• Define the organization’s overall goals and aspirations for
the future.

2-7
Decision Making
 Tactical decisions:
• Concern how the organization should achieve the goals
and objectives set by its strategy.
• Are usually the responsibility of midlevel management.
 Operational decisions:
• Affect how the firm is run from day to day.
• Are the domain of operations managers, who are the
closest to the customer.

2-8
Decision Making
 Decision making can be defined as the following
process:
1. Identify and define the problem.
2. Determine the criteria that will be used to evaluate
alternative solutions.
3. Determine the set of alternative solutions.
4. Evaluate the alternatives.
5. Choose an alternative.

2-9
Decision Making
 Common approaches to making decisions include:
• Tradition.
• Intuition.
• Rules of thumb.
• Using the relevant data available.

2-10
The modern business marketplace is a data-driven
environment. The role of data is to empower business
leaders to make decisions based on facts, trends and
statistical numbers. But with so much information out there,
business leaders must be able to sift through the noise, and
get the right information, so that they can make the best
decisions about strategy and growth.

(The Role of Data in Business,

https://smallbusiness.chron.com, Leonard, Kimberlee,
October 25, 2018)
Managers Need Information

Decision
Data Analysis Information Action
Strategy

Finding Opportunities
Research

(Changes / Differences)

2-12
Mini-Quiz Questions
Competitive advantage can be achieved by creating higher
value at a higher cost than rivals.

(A) True

(B) False
Thank You

One Shot!