PRIMA, JESHA MAE A.

BSBA MM-2A2
SAT(10:30AM-1:30PM)

1. Comprehensively explain the advantages and disadvantages of

analytics.

ADVANTAGES OF BUSINESS ANALYTICS

 Allows you to keep tabs on the status of your mission’s
progress
Analytical processes may be improved by using
quantitative values and data to acquire a better understanding of
what to anticipate from staff. The more knowledgeable your staff
are, the more they can focus on improving their weak areas and
become more productive as a consequence.

 Improves productivity
If you’re looking for a means to get a handle on a lot of data
quickly, then business analytics is the tool for the job. In order to
foster a culture of teamwork and efficiency, analytics provides
employees with the opportunity to share their ideas and
participate in the decision-making process.

 Helps you stay on top of the latest developments

Customers are susceptible to being persuaded by better
deals to alter their original intentions. Using analytics, you may
acquire a better understanding of your target audience’s
mentality. You’ll be able to respond to your consumers’ changing
wants because of this.
 DISADVANTAGES OF BUSINESS ANALYSIS
 Uncertainty and a lack of support for each other
According to business domains, analysts are typically
structured in most organisations. This means that the results of
the study are not easily communicated to the business users for
whom they are of the most value. Unfortunately, this is the case.
 Inability to Commit
They can be quite expensive and have a slow return on
investment because of the ease of implementation of readymade
solutions provided by analysts. These analytics models are
designed to become better over time, but it is a complicated
concept that needs a lot of time and effort to get it right. A lack of
interest in the models by the business users leads to a loss of
faith in the models, which causes them to fail.

 Transactional data of poor quality

Due to a lack of data, complicated data sources, or
inadequate construction, the business analysts’ proposed
solutions fail to be implemented.

2. Explain the 3 types of analytics and provide 2 examples each. 

1. Descriptive analytics
is the analysis of historical data using two key methods – data
aggregation and data mining - which are used to uncover trends and
patterns. Descriptive analytics is not used to draw inferences or make
predictions about the future from its findings; rather it is concerned with
representing what has happened in the past. Descriptive analytics are
often displayed using visual data representations like line, bar and pie
charts and, although they give useful insights on its own, often act as a
foundation for future analysis. Because descriptive analytics uses fairly
simple analysis techniques, any findings should be easy for the wider
business audience to understand.
Example:
- Summarising past events such as sales and operations data or
marketing campaigns
- Social media usage and engagement data such as Instagram or
Facebook likes

2. Predictive analytics
is a more advanced method of data analysis that uses
probabilities to make assessments of what could happen in the future.
Like descriptive analytics, prescriptive analytics uses data mining –
however it also uses statistical modelling and machine learning
techniques to identify the likelihood of future outcomes based on
historical data. To make predictions, machine learning algorithms take
existing data and attempt to fill in the missing data with the best
possible guesses.  These predictions can then be used to solve
problems and identify opportunities for growth. For example,
organizations are using predictive analytics to prevent fraud by looking
for patterns in criminal behaviour, optimizing their marketing campaigns
by spotting opportunities for cross selling and reducing risk by using
past behaviors to predict which customers are most likely to default on
payments.

Example:
- E-commerce – predicting customer preferences and recommending
products to customers based on past purchases and search history

- Sales – predicting the likelihood that customers will purchase another

product or leave the store
3.  Prescriptive analytics
shows companies which option is the best.
The field of prescriptive analytics borrows heavily from mathematics and
computer science, using a variety of statistical methods.
Although closely related to both descriptive and predictive analytics,
prescriptive analytics emphasises actionable insights instead of data
monitoring. This is achieved through gathering data from a range of
descriptive and predictive sources and applying them to the decision-
making process. Algorithms then create and re-create possible decision
patterns that could affect an organisation in different ways. 

Example:
- Manufacturing – improving equipment management, maintenance,
price modelling, production and storage
- Healthcare – improving patient care and healthcare administration by
evaluating things such as rates of readmission and the cost-
effectiveness of procedures