CBA OM-BA Business Analytics

Module1: Introduction to Business Analytics

Facilitator:
Engr. Jovenal M. Arnaiz, MMBM, PME
Learning Outcomes

By the end of this unit you will be able to:

Describe the role of Business Analytics in the organization

1.Describe the concepts of Business Analytics.
2.Describe the value of Business Analytics in any organization.
3.Describe the main motivation of evolution of Business Analytics in the
organization.
Plato once wrote that…

“Necessity is mother of all inventions”

That Lead Us To These…

▪ Technology is available to help us collect data.

- Bar codes, scanners, satellites, cameras, etc.
▪ Technology is available to help us store data.
- Databases, data warehouses, repositories…
▪ Everyone starving for knowledge (competitive edge, research, etc.) in
search for knowledge
Plato once wrote that…

▪ Hence, we are swamped with data that continuously pours on

us.
- We do not know what to do with this data.
- We need to interpret this data in search for new knowledge.
What is Analytics?

• Different stakeholders, different perspective

• Common quotes
- Dashboard
- Forecast reports
- Business intelligence
- Software tools
- Info Cubes
- Nothing but Data…
Analytics

• There are lot of misconceptions and hypes, depending upon

whom you speak to …

-IT Team
-Line of Business
-Top management or CXOs
Data-Information

INFORMATION
Data-Information What has
happened
…?

Data
INFORMATION
Data-Information What has
happened
…?

HOW it
happens,
so that
they can
proactively
Data act on it?
INFORMATION
Data-Information What has HOW it
happened happens,
…? so that
they can
proactively
act on it?

Data
INFORMATION

Knowledge
Information

• In reality most of the organization has moved to a stage where all the data is
process and they have information at there disposal.
• The available data is been processed by the Information Systems deployed in
the organization
• When the data is processed, organized, structured or presented in a given
context it is termed as information.
• Quite often, information is always the description.

What has happened…?

Knowledge
 Knowledge

▪ The Business/Customers as they have been working with IT systems

for sometime, has developed enough competency to process the DATA
into INFORMATION.

▪ What is lacking is the KNOWLEDGE from this information as in HOW

it happens, so that they can proactively act on it.

▪ One of the good theory is the DIKW (Data Information Knowledge

Wisdom) pyramid by researcher Chaim Zins.
 DIKW Pyramid

Wisdom
One of the good theory is
the DIKW (Data
Information Knowledge
Knowledge
Wisdom) pyramid by
researcher Chaim Zins.
Information

Data

Source: Chaim Zins Theory of DIKW

DIKW
DIKW
Business Analytics

▪ Use of Analysis
▪ Use of Data
▪ And systematic reasoning to make decisions
Definition of Business Analytics

Business Analytics is a practice of iterative, methodical exploration of an

organization data with emphasis on analysis.

BA is used to gain insights that inform business decisions and can be used to
automate and optimize business process.

Data driven organization treat data as a corporate asset and leverage it for
competitive advantage.
Importance of Business Analytics

Many approaches for analytics are fair from latest Optimization techniques
to Root Cause Analysis.

Analytics will leverage already made IT investments in ERP and Planning

systems.

The greatest job is to gather data, clean it and see to it that it is complete
and accurate.

After that can make reports on history and analyze what happened before
and why it happened.
Analytics

Analytics is the systematic use of data and related business insights

developed through applied analytical disciplines (e.g. statistical, contextual,
quantitative, predictive, cognitive, other [including emerging] models) to drive
fact-based decision making for planning, management, measurement and
learning.

Analytics may be descriptive, predictive or prescriptive.

Definition of Business Analytics

Most common approach is Statistical Analysis in which data is used to make

inferences about population from a sample

Variations of Statistical Analysis can be used for variety of decisions from

knowing whether something has happened in past was results of your
intervention or to predict something to happen in the future.

Statistical Analysis is powerful but very complex and at times employs

unsustainable assumptions about data and business environments.
Business Analytics

Many approaches for analytics are fair from latest Optimization techniques to Root
Cause Analysis

Most common approach is Statistical Analysis in which data is used to make

inferences about population from a sample

Variations of Statistical Analysis can be used for variety of decisions from knowing
whether something has happened in past was results of your intervention or to predict
something to happen in the future.
Statistical Analysis is powerful but very complex and at times employs un sustainable
assumptions about data and business environments
Analytics

▪ Analytics will leverage already made IT investments in ERP and Planning

systems.

▪ The greatest job is to gather data, clean it and see to it that it is complete
and accurate.

▪ After that can make reports on history and analyze what happened before
Evolution of Analytics

▪ Analytics has evolved over the years from a simple report to

sophisticated analytics with Real-Time Decision Making
Capability.
▪ Analytics has been constantly evolved due to the ever changing
nature of business and the demand of the business to get the
competitive advantage.
Present Situation in an organization

▪ Data is Rich and Information is

Poor
▪ Most organization have massive
amount of data at their disposal
▪ These data comes from host of
transactional oriented applications
such as business suite, ERP from
software vendor such as SAP,
Oracle, etc.,
▪ With such huge amount of data
available, what do the organization
do with this?
Present Situation-Case No. 1

Retail Grocery Chain

• Lot of information originating from the bar code reader at
POS stations.
• When asked what they do with this massive data?”
• The confess that they sold this data to Retail Syndication
Firm.
• Rather than doing analysis on data as they (and many
more firms) thought analytics is very is very expensive
and requires huge infrastructure which they don’t any
capability.
Present Situation-Case No. 2

Manufacturing Organization

• They said that they kept the data on the disk and put in
some tape somewhere within organization.

• And they don’t do anything on the data, as most of the

company initiative is focused on new software to capture
all possible data and not on analytics.

▪ Some firms used Problem Solving Analysis.

- QC Tools and Techniques
- Six Sigma Concept
-
Analytics

• Analytics would be so pervasive that almost every aspect to

business will use it for a competitive advantage as volume and
variety of data will continue to grow, its impossible to use
experience and gut feeling of a manager to take decisions
Benefits of Analytics

▪ Know what’s really working

▪ Leverage previous investments in IT and information to get more insight,
faster execution and more business values in many business processes.
▪ Cuts cost and improve efficiency
▪ Manage risks
▪ Anticipate changes in market conditions
▪ Have a basis for improving decisions over time
▪ Help manage and steer the business in turbulent times
Summary
“Business Analytics
is the

continuous Part of routine daily, monthly and quarterly processes-not

a sporadic or exception based exercise

iterative “Peel the onion”- answers some questions, generate more

questions- drive deeper and deeper into the data.

exploration and Explore the unknown, search for new patterns and new
findings and new metrics.
investigation of past Investigate exceptions and anomalies, research
business performance hypotheses
to gain insight and Gain broader and deeper insight and understanding into
past performance.
drive business planning” Stay focused on goal to improve business planning and
overall business performance.
Case Problem Exercise
▪ Let’s say that your team is commissioned to work as an analyst for an organization planning to
reduce the incidence of death due to the COVID-19 pandemic. We need to recommend five cities
that will be the most affected by COVID-19 to target to be given as a priority for vaccines. You will
also add some analysis to your research.

▪ For this one, we can use the latest data this month/weeks from the Department of Health, World
Health Organization, or Google Sites to answer the following questions:

▪ What are the top 5 cities in the Philippines based on population?

▪ Do these top 5 cities also have the top 5 barangays?
▪ What geographic commonalities do they all have?
▪ What demographic commonalities do they all have?
▪ Are the top five cities still experiencing an increase in active cases and deaths?
▪ Finally, let’s rank the cities in order of expected outcome to be back to Alert Level 2.
▪ What recommendation you can give to your organization or to the LGU or to your project sponsor in
case?
▪ If Cebu province belongs to this situation, what action you can recommend?
ETL-Extract, Transform, Load

▪ The process of ETL plays a key role in data integration

strategies. ETL allows businesses to gather data from multiple
sources and consolidate it into a single, centralized location.
ETL also makes it possible for different types of data to work
together.

Source: https://www.talend.com/resources/what-is-etl/
End of Module!