Introduction to

Business Analytics –
Session 1

Business Analytics - 1
Susheela Girisaballa
 Learning Objectives

Recap Concepts Cases/Tools/Material Activity

Introduction to --
Business Analytics Course Handout
Deeksharambh –
Orientation Sessions (BA)
Introduction to the
course Evolution of BA

Types of charts /
graphs

Probability concepts
Decision Making
 About the Course:
❖Syllabus & Course Handout
❖Evaluation Components
❖Activities in the classroom
❖Expectations from the students
Course Description / Summary
Semester : I
Course : Business Analytics -1
Course Code : SLRM 501
Credit :3
Class : 2024
Instructor : Prof. Susheela Girisaballa
Introduction to Business Analytics
BA-1
SESSION : 1
SUSHEELA GIRISABALLA
 SITUATION

If the marketing manager of Pepsi has to predict the sales for upcoming quarter.
How would he decide? How should he decide the budget?
What is Business Analytics?

Scientific process of transforming data into insight for

making better decisions.

It is extensive use of data, statistical and quantitative

analysis, explanatory and predictive models with fact
based management to drive decisions and actions
–Davenport & Harris
Further

Analytics is the use of

data
information technology
statistical techniques
quantitative methods
mathematical models

to make improved insight about business functions and make

fact-based decision
Business Analytics - Introduction
Evolution of BA
• FW Taylor – Time Study
• Development of Research – Operations Research & Management Science
• Technological Advances – Communication Technology, Business
Intelligence, Cloud Computation & Storage
• Decision Support System

Framework of BA
• Classification – Scope of BA

Decision Making & BA

• Types of Decisions
• Decision Making Process
 SITUATION – Try it yourself

If the Human Resource Manager of Pepsi has to identify the parameters required
to recruit a finance consultant. How would he decide?
Classification of Business Analytics
Business Analytics Spectrum – Where are
we?
Example – when to reduce the price of seasonal products ?

CLASSIFICATION TYPE COMPLEXITY OF DECISION

▪ Descriptive Analytics – Reports, Query, data ▪ Studies the Historical data – No. of units sold,
visualization, Descriptive statistics, Alerts etc., price of each unit.

▪ Predictive Analytics – Forecasting, Data ▪ Predict sales based on price

mining, simulation, Statistical Analysis etc

▪ Prescriptive Analytics – Optimization,

simulation, Decision analysis, Machine ▪ Optimization – Identify the best price at which
Learning sales will be maximized
Decision Making – Types
Decision Making – Steps in Decision Making

1. Identify the problem

2. Determine the criteria to evaluate alternative courses of action
3. Determine the set of alternative courses of action
4. Evaluate the alternatives
5. Choose an alternative
Exploring Data – Sessions 2,3 &4

Business Analytics - 1
Susheela Girisaballa
 Learning Objectives

Recap Concepts Cases/Tools Activity

Excel Tool Class Quiz

Introduction to Data
Introduction to
Business Analytics (BA)

Evolution of BA Sources of Data

Framework of BA

Types of Data
Discrete Continuous
Variable type(1)

Qualitative Quantitative
• Age
•Gender
•Intelligence level
• Marks
•Honesty • Heights
•Personality type • Sales/ profits
22
Identify the type of data .

•Imagine you’re looking down on a city from a helicopter

at 5,000 feet. From here, you count all of the vehicles on
a particular road, and conclude that 60% of vehicles are
cars, 30% are trucks, and the rest are motorbikes. You
then landed on the ground and interviewed some
motorbike riders about their thoughts on truck drivers, and
kept the notes or recording of those interviews.
 Based on variable type (2)
Discrete
Continuous

• Person's height: could be

• Number of students in a class. any value.
• Results of rolling 2 dice at a time. • Time to finish a race
• Number of miles stones on the way to • A dog's weight
Mysore from Bangalore. • The length of a leaf.
• Number of days in a month in Bangalore
when the average daily temperature
exceeded 28 degrees
 Based on Data type (2)
Discrete
Continuous

• Counted. • Measured.
• can only take particular • are not restricted to defined
values. separate values, but can
occupy any value over a
continuous range.
Identify the data type

Time taken to wash your hands to

fight against COVID-19.
 Based on data collection (1_source)
Primary
• You want to start a small retail store in Secondary
the city outskirts of Bangalore, so you
want to know whether people out there • What is current GDP growth
use more online or offline method of rate?
shopping?
• Data collected by a student for his/her • Population of India Vs
own thesis/ project work China.
Source of data collection
•Primary Secondary

Research project. ... Secondary

Collected by the investigator data: Data collected by
himself/ herself for a specific someone else for some other
purpose. purpose (but being utilized by the
investigator for another purpose).
Think of two more sources of primary data.

Two more sources of secondary data.

Based on data collection (2_amount of data)

Sample

Census
• A data set is selected
•All the members of the from the large
population are enumerated population, which
On. represents the entire
group.
What could be other differences between
census and sample???
Based on 3_presentation
Grouped Data
Ungrouped Data

• Data is raw • Data that has been

• Not sorted into categories, organized into groups
classified, or otherwise from the raw data.
grouped.
• An ungrouped set of data is
basically a list of numbers.
 Following is the data of weight of 16 newborn babies.
Identify the raw data

Weight range (kgs) No of babies 3 3 4 4.2

2.3 2.9 3.5 4

≤2.5 3

3.1 2.75 2.95 3.6

2.5-3.5 10
2.6 2.5 2.9 2.1

≥4 3
2.6 3.5 3.3 3.4
Identify the grouped data

Colour of dress
Colour of dress
❑ Red ❑ Red-8
❑ Red ❑ Yellow-5
❑ Green
❑ Green-2
❑ Red
❑ Yellow ❑ Blue-12
❑ White ❑ Black 10
❑ Black
❑ Red
Based on content
Simple
❑ Qualify data exactly into
two groups.
❑ One group has data items
that exhibit the quality, the
other group doesn’t.
Manifold
❑ Classify data according to more than
one characteristic of an attribute.
❑ This means, when we classify data into
two groups according to an attribute,
the two groups are further divided into
two according to another attribute
❑ There can be many levels of
classification. couples with more than
just two classes.
 Based on content

Simple Manifold

Classify a class based on

gender only. Classify a group based on
gender and of the male
Classify a group of and female candidates
employees based on their how many are
food habits. vegetarian and how
many are
non-vegetarian.
Time to revise

Identify the data type

▪Number of students religiously listening to today's session.

▪Today's session attendees are divided into groups based on
gender, undergraduate domain (B.Sc. / B.Tech. / BBA / BA /
B.COM) and prior experience, such that each group has at
least one engineer, one experienced, and equal ratio of male
vs. female.
▪Average speed of fast bowlers in IPL.
▪You do a poll to know which online platform( Netflix or Amazon
prime) is more popular in your peer group.
Answer the following
• Closing Price of Reliance stock – Categorical or Numerical
• B.Sc, B.Tech, B.Com – Categorical or Numerical
• Mercedes, BMW, Audi – Categorical or Numerical
• Perception of audience about a movie – Liking or Disliking
Sources of Data
• Company Annual Reports -
• Accounts Audit Reports
• P & L accounts
• Economic Trends
• Primary Market Research
• Operations / Production Performance
• Human Resource Metrics
Terminology
Quantitative Data

Qualitative Data

Cross Sectional Data

Longitudinal Data

Time Series Data

Scales of Measurement

Qualitative Quantitative

Nominal Interval

Ordinal Ratio
Types of Scales
Types Nominal Ordinal Interval Ratio
Classification Yes Yes Yes Yes
Order No Yes Yes Yes
Distance No No Yes Yes
Origin No No No Yes
Numerical Counting Rank Order Arithmetic Arithmetic
Operation Operations with Operations with
order and Actual Quantities
magnitude
Descriptive Frequency, Median Mean, Standard Coefficient of
Statistics Percentage, Range Deviation, Variation
Mode Variance
Examples Aadhar card Olympic Medals , Rating of -3,-2,-1, Income is Rupees
ranks of 1,2,3,4,5 0, 1,2,3
Try out few more
• Give at least three examples of each scale.
Quiz
• Number of degrees held by an individual
• Weight of a package
• Blue color car
• Military rank
• Mobile numbers
• Label such as B.Tech, B.Sc, B.com
• Favourite food rating
• Yes / No
• Top 5 Nationalized banks in India
• Service ratings of Amazon
• PAN Card Number
• Miss India Pageant
• Temperature of -5 degrees
 Quiz
• Number of degrees held by an individual - Ordinal
• Weight of a package - Ratio
• Blue color car - Nominal
• Military rank - Ordinal
• Mobile numbers - Nominal
• Label such as B.Tech, B.Sc, B.com - Nominal
• Favourite food Rating - Ordinal / Interval
• Yes / No - Nominal
• Top 5 Nationalized banks in India - Ordinal
• Service ratings of Amazon - Ordinal
• PAN Card Number - Nominal
• Miss India Pageant - Ordinal
• Temperature of -5 degrees - Interval
 Identify the scale
• Dinner was arranged post sales review meeting for an MNC.
• Following are the details of the members who attended the meeting.
• A T-shirt was given as a sovereign.
• Members were asked to rate the restaurant. -2, -1, 0, 1, 2.
• 1and 2 being satisfactory, 0 is neutral and -1 and -2 as unsatisfactory.
• Identify the measurement scales used here.
Serial No. Total Bill Gender Week day Time Size of T-shirt Ratings Given

1 932 F Friday Dinner Medium -1

2 1344 M Friday Dinner Large 0

3 1150 M Friday Dinner X-Large 1

4 1680 M Friday Dinner Large 2

5 1056 F Friday Dinner Small 0

6 1298 M Friday Dinner Medium -1

Identify the scales
• Case: New York city Department Excel Spreadsheet
THANK YOU!!!