Module 1 - Introduction To Business Analytics (Autosaved)

Introduction to Business
Analytics
Asst Prof. Antonette C. Torreda
UST-AMV College of Accountancy
Introduction to Analytics
• Agenda:
• Discussion
• Video/PPT presentation
• Quick Assessment (Question and Answer type to be submitted in the BB)
• Analysis vs. Analytics (video presentation)
• https://www.udemy.com/course/introduction-to-business-analytics/
Contents:
•Introduction to Analytics
•Tools
•Data
•Models
•Problem Solving with analytics
Business analytics by James Evans

Business Analytics (James Evans, 2017)
Business Analytics – is a process of
transforming data into actions through
analysis and insights in the context of
organizational decision making and problem
solving.
Purpose of Business Analytics in Business
https://www.istockphoto.com/photos/big-data?phrase=big%20data&sort=mostpopular
https://www.infoworld.com/article/3235182/dremio-simpler- https://medium.com/@mrgarg.rajat/training-on-large-datasets-that-dont-fit-in-memory-in-keras-60a974785d71
and-faster-data-analytics.html
https://www.udemy.com/course/introduction-to-business-analytics/ https://www.fiverr.com/atif0081/create-excel-spreadsheet-with-formula-or-
graphs-for-reports
Some common types of decisions that can be
enhanced by using analytics includes:
•Pricing
•Customer segmentation
•Merchandising
•Location
•Social Media
Business Analytics by James Evans
Tell whether the following is descriptive, predictive, or
prescriptive analytics:
Illustration 1:
In 2015 Oracle acquired Datalogix, a company that analyzes consumer
purchasing behavior to help its customers design the most effective digital
marketing campaigns. It helps to see the possible occurrences or events
related to market conditions. The acquisition of Datalogix strengthened the
tools Oracle provides as part of its data cloud offerings.
Dr Pepper is one of its happy customers. When Dr Pepper wanted to
increase sales, it turned to Datalogix for help in designing a successful
Facebook advertising campaign. Through the use of analytics particularly
making forecast, analyzing payoffs of different scenarios, and using decision
tree analysis to see the best alternatives, Datalogix was able to see
possibilities in different situations. (www.datalogix.com)
Illustration 2:
When Dr Pepper wanted to increase sales, it turned to Datalogix
for help in designing a successful Facebook advertising campaign.
Through the use of analytics, Datalogix showed that by targeting
Facebook users who purchased carbonated beverages and those who
purchased Dr Pepper products in particular, Dr Pepper was able to
increase its sales by 1.5 percent. And for every $1 spent on advertising,
Dr Pepper saw a $3 increase in revenue. (www.datalogix.com)
Illustration 3:
Google Analytics provides a wide range of metrics for companies that
want to better understand how their websites operate. This allows
companies to see, for example, loading time for their pages in different
browsers and on different devices; how much time a viewer spends on the
page; and the number of visits per hour, day, or week.
In addition, companies can see performance measures such as
bounce rate or click-through rate. Bounce rate shows the percentage of
viewers who leave the site after viewing only the homepage. Click-through
rate is the percentage of viewers who click on the ad when they view it on a
webpage. Both of these metrics are important for evaluating the
effectiveness of a web design.
Illustration 4:
Hotel rooms and airplane seats are perishable, just like apples and
lettuce. When a room or seat is not booked, the company has lost the ability
to earn revenue for that night or flight. Setting the right price for the right
customer on the right day is complicated. Hotels and airlines feed large data
sets into mathematical algorithms that choose the optimal pricing scheme to
maximize the revenue for that room or seat.
This practice is called revenue management. When large data sets are
analyzed along with system constraints, companies can quickly simulate
many different outcomes related to a wide variety of decisions. This allows
the decision makers to choose a set of actions that will result in the best
outcome for the company and its customers.
Illustration 5:
A large firm pays over 12,000 invoices to suppliers every month. The
firm has learned that some invoices are being paid incorrectly, but it doesn’t
know how widespread the problem is. The auditors lack the resources to
check all the invoices, so they decide to take a sample to estimate the
proportion of incorrectly paid invoices. How large should the sample be for
the auditors to be confident that the estimate is close enough to the true
proportion?
MODELING AND MODELS
• Models are representations of real objects or
situations and can be presented in various
forms.
• The purpose, or value, of any model is that it
enables us to make inferences about the real
situation by studying and analyzing the model.
Business Analytics by Albright and Winston
Mathematical Statement of the Par, Inc., Problem
References:
• Albright C. and Winston W. (2015) Business Analytics: Data Analysis
and Decision Making. Cengage Learning.
• Evans J., (2017). Business Analytics. Pearson Education
• excel_tutorial.xlsm

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Introduction to Business

Business analytics by James Evans

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