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    Maui | BUSINESS ANALYTICS MBA, SECOND SEMESTER According to the New Syllabus of ‘Anna University, Chennai’ Dr. K. Soundararajan Ph.D, M.B.A., M.Com, M.Phil., PGDTEM., PGDCA., DMM., DCA. Professor & Head Annai Mathammal Sheela Engineering College Dr. Kadhirvel Ramasamy Ph.D., MBA Associate Professor Dhanalakshmi Srinivasan College of Engineering THAKUR PUBLICATION PVT. LTD., CHENNAI * Ahmedabad * Bhopal * Bhubaneswar * Bengaluru * Dehradun * Emakulam * Hyderabad * + Jaipur * Jalandhar * Kolkata * Lucknow * Nagpur * Patna * Pune + Raipur * Ranchi * Rohtak * Business Analytics = Dr. K.Soundararajan * Dr. Kadhirvel Ramasamy Thakur Publication Pvt, Ltd. HO: Abhishekpuram, 60 Feet Road, Jankipuram, Lucknow-226021 '9235318591/95/94/97/25/24/22/17/20, 895741 1424 Mob. 9543605656, 8144126950 0, 9543247241, 9543247130 www.tppl.org.in akurpublication@ gmail.com ~ papers from: www.questionpaper.org.in ISBN No. 978-93-5480-447-2 First Edition 2018 Second Edition 2022 ipuram Extension, Near AKTU, Lucknow-226031 1@ gmail.com Mobile No. 9235318506/07 “Dedicated 10 ‘my Father Mr. A.Kandhasamy, my Mother Mrs. S.Ranjitham & my Wife Mrs. M. Mythili and imy Son Mr. S. Sanjith, Mr. S. Sanjey” -Dr. KSoundararajan “Dedicated 10 Almighty” -Dr. Kadhirvel Ramasamy Preface We (et very happy in bringing this book “Business Analyte’ for the stadens of MBA, Second Semester, [ANNA Ualversity, Cheanal. ‘This took resus from a long-standing classroom notes for the postgraduate counes offering, Business analytics. We have taken lots of effort to make the subject more interesting by arranging the modules logically, Many examples have been included to illustrate, clarify and supplement the methods. We ae sure that students ‘using this book wil beable to acquire knowledge in analytical concepts very quickly. The language wed has been very simple ‘We hope both the students and tachers will be able 1 use this book effectively. Constructive suggestions for improvement of the text willbe gratefully appreciated Please email usat, thakurpublication@ malcom Website, woew.pphorgin Acknowledgement 1 would ike to express my special thanks to my Famlly and Friends for giving thei valuable support and encouragement for pu lege and Colleagues for providing me opportunity everyone who collaborated in producing this work. -Dr. KSoundararajan Is my privilege and pleasut i publishing the book entitled " Business Analytics” a unique contribution to the sphere of Management. 1 wish to express my deepest prattude tomy late Mother Mrs. Manoranjitham. Mt & my late Father M. Ramasamy and my soul mate JSheela and my Daughter K.Yashwinl for thir ‘uncoadional love ad suppor. 1 Would ike wo express my sincere thanks 1 our Respected secretary Sir, Dhanalakshmi Srinivasan College of Enginecring, Coimbatore provided the opportunity to werk under this reputed institutions to do service for the stidents eommaniy ‘My gratitude and heartfelt thanks to our beloved Principal and Dean-Academics of Dhanalakshmi Srinivasan Coltege of Engineering, Coimbatore for their valuable guidance and support and encouragement in publishing this book 1 wish my deepest and sincere thanks our Dean-MBA for her valuble support and encouragement. expres my ‘sor and Family Fiend Dr. M. Sree Sakthivelan & my Friend, Dr. A. Syedahmed, ‘School of Business, Bangalore fo their continuous encouragement and suppor. my sincere thanks to Colleagues, Friends and well wishes for their valuable support ik who are all going wo read this book over the course of the year ahead. -Dr. Kadhirvel Ramasamy Syllabus BA4206: Business Analytics troduction to Business Analytics (BA) 9 Business Analytics - Terminologies, Process, Importance, Relationship with Organisational Decision Making, BA for Competitive Advantage. aging Resources for Business Analytics 9 Managing BA Personnel, Data and Technology. Organisational Structures Aligning BA. Managing Information Policy, Data Quality and Change in BA. Unit II: Descriptive Analytics ’ Introduction to Descriptive analy ‘and Exploring Data - Descriptive Statistics Sampling and Estimation - Probability for Descriptive Analytics - Analysis of Descriptive ‘Analytics ‘Unit IV: Predictive Analytics 9 Introduction to Predictive Analytics - Logic and Data Driven Models - Predictive Analysis Modeling ‘nd Procedure - Data Mining for Predictive Analytics. Ar Predictive Analytics Unit V: Prescriptive Analytics 9 Introduction to Prescriptive Analytics - Prescriptive Modelling - Non Linear Optimisation - Demonstrating Business Performance Improvement. Business Decision 25 Unit 2: Managing Resources for Business Analytics Business Analytics 3 | 214, Key Responsibilities of « Business ‘Analytics Persoael a Contents of Business Analytics Types | Patong tr by Business Analyst Managing Business Analytics Significance of Secondary Data Limitatnsof Secondary Data Primary Data Versus Secondary Data ‘Align Resources to Support Business Analytics within an Organisation |. Grganisaion Servctures Aligning Business Analytics = Organisation Stuctures Teams Fa Messuring Business Analytics Contribution ‘Managing Change in BA, Exercise Unit 3: Descriptive Analytics 3332. Ineruarile Range 100 Ms santas 3333. Quantle Deviation 100 3.752. Propenies of Binomial Distribution 152 Descriptive Analytics a 356. Types of Estimation 3753. Applications of Binomial 152 333A, Mean Deviation Mean Absolute 103 lication Introduction 3 Heme Dore 357. Point Estimation Disuibat Functions of Deseripive Analytics 574455 Semansypeviaion ($.D) 35.7.1. Properties of Point Estimation 3754. Fiuing «Binomial Disuibution © 182 eae « ae one | 35221 Potetimason st opaton Mean 137 36. PoinenDisbton 3 Sia. Techniques for Deseripive 58 femal ae &) 37.6.1, Definition and Prt 158 Saat coment ake | 3573, Point Estimation of Population 137 i 345. ved in Descriptive 58> eas 9 Proportion (=) 138 3341. Skewness Point jon of Population 138 1. Applications of Piston Di 155 3.16, Advantages of Descriptive Analytics 3342. Kunosis Variance (o*) 37.65. iting a Poisson Distribution ss 317. Disadvanuages of Descriptive 34. Sampling Interval Estimation 34.1, temodution Confidence Interval 342. Characteristics of a Good Sample 3.18, Examples of Deseriptive Analytics 3.19. Descriptive vx. Predicive vs Design Preseripive Analytics. 343. Sampling Process 9 39 o Confidence Interval for Population 0 32, Vieualising and Exploring Data 63.4.4. Advantages of Sampling 6 ot 61 ot a n ‘Mean (Seal Sample) Confidence Interval for Population 140 ‘Mean (Large Sample) 35.4, Confidence Interval for Population 140 ‘Mean (6 Knows 3.585. Confidence Interval for Population 141 ‘Mean (@ Unknown) 36. Basle Concepts of Probability 142 321, Data Visualisation 4345. Disadvantages of Sampling 322. Functions of Data Visualisation 346. Sampling Methods 323, Chansand Graphs 3.46.1. Probability Sampling Methods 32.1, Steps to Creating Chars 3.46.2, Non-Probabiity Sampling Methods 3232. Typesof Chans 3.463. Probability Versus Non-Probabilty 524. Data Queries: Using Soning and Sampling Methods 36.1. Iawodvetion 142 Fits 342, SealngandNowSanplagEnon 128 | 342. agement 238 AmiyuetDectpine ais 167 saat, Same 2 34t4. Santer Emo ts | 363, SonleSpe tes 38. Bere ie 3202) rine M3422. onan tf San see = 325. Smug Da 13473, Medoteneacetezme zt | Ses. Rettawot manny var Unit Predictive Analytics asi, fea 1k Seine Duero eee er eee preset mm 3.252. Relative Frequency 75 3.4.8.1. Properties of Sampling Distibution 128 3.652. Multiplication Theoreni of 146 4:11. Introduction W73 3253. Histograms nm 3.4.8.2. Sampling Distribution of Mean(X) 128 Probability, 412. 4 3.254, Percentages 9 3483. 29 a Probability Distribution for 1474.13. im 3as3, Qui © Bot ana na ns 3236, Pots " Inn Sap en am ww = Se Sona mane ime ot Sample 129 | 3a we Sh " 3a Decne tin % a te 332 Mesos of ena Fen ~ te 3251 Ghewsmion weitere ie 3.3.2. . Measures of Central Tendency Independent Sample Proportion 3.1.23. Continuous Random Variables 148 ia pen = 1241, SupletenedPutse Dens 70 349, DeemmimetSampingsie 130 | aan gape ‘° ee 7 = E222 Muligictne ened 18 3328 ese % 3225, Pobiy 491213. Onmeump pean im 3324, Relalon ween Mean. Medlin and 97 4492 wi) 332 fy ee he 425. DataDaven Predicive Models 182 Mode = i! Aplications of ‘ity 150 4.2.5.1, Retail Pricing Markdowns Model 183 325, Ceoption ot Man, Metin ant 96 3S, Esai Bed aaa sy cintten a0 282 Maes ace tt ee 93352. Problems of Estimation ne | 375. Binomial Disuibuion Ii aoe oho | oo St 33a, Eoin snd Ente is St Bimmit tn 26, Otero = 384 GhancenaeyofEaimaor 138 4262. Time Series Model 4263, Neural Networks 4264. Regression Analysis 4265, Classification Model 427. Advantages of Using Predictive Models 428, Limiutions of Predictive Analytics ==" Models 43. Data Mining for Predictive Analytics 43.1. Meaning and Definition 432. Needof Data Mining 433. Components of Data Mining 434, Data Mining Methodologies 435, Dat Mining Techniques 436, Data Mining Process 437. Advantages of Data Mining 438, Disadvantages of Data Mining 439, Appliatons of Data Mining 4310, Challenges of Data Mining 44, Analysis of Predictive Analytics, 45, Exercise Unit 5: Prescriptive Analytics Prescriptive Analytics erodvetion Prescriptive Analytics Techniques Applications of Prescriptive SAA. Benefits of Presritive Analytics <0. 188 188 189, 189 189 191 wt 5.15. Challenges with Prescriptive Analytics 52. Prescriptive Modeling 52.1. Introduction 522, ‘Types of Prescriptive Modeling 523. Non-Linear Optimisation ‘523.1, Applicability of Optimisation to the ‘Business Problem 5232. Pros of Optimisation in Prescriptive ‘Analytics 5233. Cons of Optimisation in Prescriptive Analyties 52.4, HeuristicyRule-base Technique 524.1, Pros of OptinisstionRules-based in reseipive Analytics 5242. Cons of Heurisice/Rles-based in Prescriptive Analytics 525. Simulation 53. Prescriptive Analytics Analysis 53.1, Introduction 5332, Selecting and Developing an ‘Optimisation Sipping Model 533, Summary of BA Procedure for the Manufacturer 534, Demonstrating Business Performance Improvement 54. Exercise Case Studies Model Paper 209 210 aun 2s ais as 2s 216 216 27 218 ndasion eBusiness Asis (BA) (Ui 1) a Unit 1 || Introduction to Business Analytics (BA) 1A) isthe practice of iterative, methodical exploration of an organisation’ dai, with an ical analysis. Business analytics is used by companies committed to data-driven at through statistical and operations analysis techniques, and the communication ofthese formation of predictive ts to customers, business ‘methods and evidence-based data for business modeling and decision ies the ure of Big Data. making, providing analytics makes ould mean using eter advanced analytics techniques, aries across several datapoints. This can be helpful in targeted marketing campaigns. 1.1.2, Evolution of Business Analyt Business ana ‘management science ‘decision making m stn sen Senet i Ain AUC 8 connie stated developing and companies became mor ine mange cee ‘Aste commis sed ei opr sys an into PC soe. Fare 1 stows Settee ot Besos Ana b jon campaign of 2012 between ing the social media to both put Business lateigence (BI) systems. Organisations ~ a small number of important indicators of the ‘he executives. 1s sed for preitve analysis, which analytics is also used for prescriptive an For example, business analytics is used to det aod present set of information pas and prese ‘can provide a minimum visibility ito the losses, nd some Following ae the typical business problems where bu ‘occuring. Algorithms have been developed to characterise ve sophisticated software that has characterized customer typical if the transaction is larger than normal or from a Store Wat you do such as buying dps ata home nsrnce companies ae ale fo buld predic mse of on thet customers to be of a well as a comparison of For example, profuct manufacturers may find the det imerest Tis could include the demographics ofthe co these consumers vis avis the demographics of their competi 2) Reputation Management: Another means by which ghout the organisation and and abuse, and then use the ing together data from tools inthe fraud, nalyice method Descripive analytics canbe ose to create Key “ ees pede what might happen. Wl ese echnigucs may Work whee there sifient oeeuence eens on whch tosh prediction, for scaled Hack swan events ~ very Tow probaly of increasingly being used in edvcat Schools have a eal of dala about their students including past and nce system to allow teachers and administers to more dents to succeed, More sophisticated analytics can be Spplied tothe stodent's aw the student. ‘Massive Open Online Courses (MOOCS) ate stating fearing experience forthe students. Trends within the answers to the parcular eause, thereby providing more ‘Testing analytics are aeady implemented in many schools and universities, although they have not reached thei fll potential. Statistical software analyses student responses to detect instances of cheat fimilar to the analytics wsed to detect fraud, abuse, waste, and non-compliance with rep “tnd standards ng of overall enterpris profit, increase market share and revenue as well 5 provide beter retums to 2) Make easy and beter understanding of presented primary and secondary data. 1 again influences the Tntinal efficiency of various departments. 4 Signitian information is derived from the available data which can be produced tothe decision maker in any format as required. 1.1.5. Components of Business Analytics ‘between searching for valuable business of valuable ore. Both processes require aly probing it to find exacly where the nretion to Btn Asis (0A) (Un 1) Component of Bains Analiea Fenn Fereiing Opimaaion ‘Data mining create models by uncovering previously unknown trends and pattems in vas amounts of dat. For example, detect insurance claims fraud, Retail Market basket analysis. ‘There are various statistical techniques through which data |) Classification (when user knows on which variables to 1) Regression |i) Custring (when user doesnot know on which factors to classify data) |v) Associations de Sequencing Models tomer database, an analyst might discover that everyone who buy product 4 also buys products B and C, but six months later Text mining operates with less eructured Information, Documents rely have a Suong internal infrastruc, and when thy do, Hs frequey focused on document format ater than document content. ve modeling. tems and relationships from text collections 1d sentiments of Customers on social media. sites like Twitter, Face book, ter script ec. which are used fo improve the Product or Customer service or understand sed (analyse & forecast processes that take place over the period of time ‘seasonal enrey demand wsing itor trends, pdt how many ieee cones are required considering demand. 7 7 * tive Analytics I is used to create, manage and deploy predictive scoring models. For example, ‘chum & retention, Credit Scoring predicting flue in shop lor machinery, tlon: Optimization is the use of simulations techniques to identity scenarios which wil produce ‘est esas. For example, Sle pce optimization, ning optinal Inver fer mation fuga & avoid stock outs. 7 aed md failinen Visualization: Data visualisation regs to technologies that support visualisation and sometimes interpretation and information at" several points long the data processing “chain isual Analysis: Today, enterprise data analysis can be done by non-technical users who glean valoable from business data. VigQL is a visual database query language that powers slr Several ter conpaies rove ol for vssal tages eg. ances, ‘analysis can be done interactively. san ta 1) Dashboards 0 be extremely cxtcemely important for busy tact, Tht inna yc (9) 1990 were loaded with chars, raphe and tables, These evolved to mangement cocpit prosec on and scorecards. * ilies . MBA Secod Semester Buses Ashes) AUC fows a user to interact with a compu rent viral reality environments are pi revor through special of stereoscopic displays, but exsony information, such a8 sound through speakers technology which al 680 This allows the leories of techniques | 11.6.1. ° Descriptive An = opiisaton methods to oian tir prescriptive ress. When the optmision sncerainty Ye under silent economic aspen) i i eed in tat peseripive analyte indie a best ‘4 prescriptive model is a best decisi . 7 ‘of revenue management isa prescriptive analytics. Aine s use past I that recommends the best pricing strategy across all Might for | Other examples of prescriptive | operations, and price markdown model Portfolio models use historical investment retum data to det expected retum whl ‘minimising plan and dis 1 Secon Semen Baie Arlt) AUC ise stort rea ice marlon Siren oes whem goods have wo sold {ESS thar ie the bes desison set 0 andthe timing of | ualization of business information. A more technical definition sation models, rans ling data with the goal of discovering making. rr fees pe ea reine Abe a are ate BSc ni ee ci es sate of the data. It is the fist of three stages in the ation in data analytics. Descriptive Analytics is followed by predictive at of the data Predictive analytics applies statistical analysis to ies provides a specific action plan to improve 2 ‘many software applications to ston dasa pny a Cae eee 2 [ Derpe Saas q as ison comet and coninet Tier Repenion y v vest de teas “Time Series Analysis and Forecasting ¥ designed to extract business data from all data sources First part ofa business's data pipeline. Also called: ving meaning from data sets by using graphical and thes non ata visualizations include line series chars, pe chart, and ecades have moved data visualization forward rapidly with the high level of om ud or on-prem) that stores data in a persistent state, typically to be Sn ta ata ety te eee ee eer er ent em erage tent ie nee |, alysis: A. study of whether the data thst company bi pany bas can meet the business expectations thatthe sible data gaps or missing data might exist yties: 1 associates data with a location. Iisa typeof data visualization that i often used ‘onto digital maps. The data is represented at data poins or data sumonnes of the act of informing an organisation using data. Business information dash boarding, specifically high-level reporting that formation about what the primary data is about (e.. of what its resolution is, when the photo was taken, performance that observ 21) Malipolr Analyt: A dstibuted big dts made! where daa is called, sored. and anysed in deen areas ofthe company instead of being cently octed tnd aap » an Sean Smee as Ai A 2 es Pie Aoa a 2 Gren ae othe asthe sod stn ede Anais Be rr re ee nce te data has been cleaned, he analy 25) Frseripig Anat: resins A ed spscson nda eas reserpve rales, data sing eater plo io enty posible ei ee stgain te pone of re sm ie aa and pose sal ved by dese sa | 20 Prt Table 1 sma nfoan exacted fom Ie, tae dase. Ms ise dve mening Tee sia analysis to pret fare behavior. explains si pe prevon of increased sophistication in Sed’ by desenptive analytics and . followed by lly check all posible slices of data and summarise the dat using appropriate visualisation and (ach as mean standard deviation, range, mode and median) that will help provide base ready looking for general paterns and actionable pivots allow meric valve reece poses pth wal aber faved asst cr me wl susie ow many er alg ih St rans sinks be pects ort 25) Statsteal Analysis: 1 isthe gener aplication of math and statistics o data His : eee 4m addition, different groups are compared using time sees forcast, pre : nical modeling toa nese and forecast hat nto fe ising. Otitis tis sage at he ata 26) Time-Seris Forecasting: I aplics wats ‘ieee Une eis — , lame: They ar often used to esrb age ast used in data anys. 27 Yar ee oun of das at fe ds into smal Velo escribes how uly the aa sets ‘ane Vay deers how many types of data ar sed fo analy. is methods such a5 coretation analysis and ie target variable. The analyst will also an be made, Fen assumptions and these are tested using hypothesis ied and died and diferent comparisons are made while ‘naltics is about being proactive in decision making. At redictve techniques tht include decision trees, neural e ssl uncvetialghs and pos Wak igh relationships and ‘hidden evidences’ of the most influential variables. - 1.1.8, Process of Business Analytics ‘Business analysis 7-step process: ‘The analyst ‘ually several predictive modes are sun and te best performing model selected based adel sceuncy and outcomes, il then compare the predictive values with the actual values and compute the predictive eros age the analyst will apply the predicive model 8 set by managers to. determine the vest the optimal solution and model based snagement targets and his intuitive recognition of the model coefficients tat are oor jn's strategie goa. SP Make a Delon and Measure the Outcome: The asst wil then mike decisions and uke action we on the dived sighs fom the model andthe oresnistonal goal An appopine etal ohne ee ‘this action has been taken; the outcome of the action is then measured. = ~ SRERD, UPdate the System with the Results ofthe Decision: Finally the result of th decision and action and the new insights derived from te tnodel are recorded and updated inte the databace, Information such as, ‘contol group?” and evolving database + how did the treatment group compar? withthe was the retum on investment?” are uploaded into the database. The result is an >ntinuovsly updated as soon as new insights and knowledge ae derived, ‘Outcome Optimise Fi 1.1.9. Importance/Advantages of Business Analytics Ve Fotos arte pm teen ae d 1 es Cet Ege rh ayo ae Sea ea aes oc par as © improvements to their website performance. This ‘Prompting products that customers hive added fo thee shopping ca. Th ustomer experience, and eventually, loyalty, data" must be answered, a [MBA Second Semester Basins Ay) AUC TnpoeacAdvanage of Boson an ‘Ear Coon Expect Reduce npn Tet ely Pde Mate be Mow of Your lvesent ‘Bove rac Managemen ‘eceenie Tcuph Uncen being manufactured, afacturlng Costs: One company at has ovate ‘cuee mafic eo Gr nly, ts tech gat ive analysis, Intel was able to determine 1B the dat. collected. from all of that ‘store cin was able to reduce hence marketers must know how to get the best return such as AB and C pauses the curent operations, which lads lyst help the organisation to make an informed Potential risks and avoid any occurence of loss, tect a malfunction in the existing system. and thas felp ‘Through Uncertainty: Look atthe current business scenario, Owing tothe lockdown across 3s une ‘Almost nobody has an idea when things wll red to resume its operations. At such time, data inoduce crisis management solution, optinise ofits competitors, An strategies, USPS, te By how their business is tools like R and Weka are also g ig popularity. Besides these, companies develop in-house for specitic purposes. Here is a list of eight most popular analytic tools used in the “Toa ot Baines Anji at reporting and dash boarding tol. For most business projects, even if one ferent software ed up using Excel forthe reporting an handle tables million rows making it a powerful yet tool. 2) SAS: Its the most commonly used software in the Indian analy yes market despite ts monopolistic pin SAS starch wise ranging capac fom as mampenet ahead eae * Jerre MBA Second Semen Buses Arlyn) AUC tool by SPSS Inc., an IBM fe GUI and its point and-lick provides © hos of predictive analytes and data mining tools for businesses, The ar is easy to use and Team. ofthe few companies thats many add-on toolboxes that extend MATLAB to specifi areas of funtionality, such as statistics formate, et, MATLAB is nota fee software. However, there are clones ‘open source tool and i widely used bythe aad ft represeata hurdle. However, there ae maay GUIs available that can ston Rand enhance its 12, Application Areas of Business Analytics ‘pplication of business analytics ae as follows ‘pli Neo ties Hamaa Resour belp use this data to determine the prod ‘uends on the performance of @ pat Inaction o Basins Asics (DA) (U1) J “ 2 process of sion process is an approach taken by = MBA Seed Semester (Bases Any) AUC Crpiasion Deo Mating Proce? Fy Pepe of Dacquibiams Onan wal ae ar al fora ene? paces oem oppo ‘Soares Ads Fos ipa 1 Eng (1970. pp. AB Figure 1.3 Comparison of business analytics and organisation decision-making processes Figure 12s focused ‘Then in Step 2 of the ODMP, an exploration ofthe problem to detemine its size, impact and otber factors is underaken to diagnose what the problem is. Likewise, the business analytics, descriptive analytic analysis, ‘explores factor that might prove uscfl in solving problems an offering opportunities. The decision-making foundation that has served ODMP for many decades p 1 logic serves. both processes and supports organisation build exceptional and tly personalised customer experience. ‘sustainable compete advantage this makes sense: Smarter organizations that act on their insights tend to be more successful. (Organisations that beer understand ther customers" preferences and design their products to suit will easily Uferenite themselves inthe market Insurers that have beter awareness ofthe cost of risk will carry lower exposure than those that donot. age’ and ‘competitive advantage’ can be wed synonymousy. Iisa superiority of a competitive area, With the help of tis supremacy, the fms are able to find a favounble «an be developed in any ofthe Functions or areas that frm deal ia. Therefore his implies that ‘ways trough which the frm can acquire the competitive edge. prota A Second Semester uses Anta) ALC 3 Garton [ge al Roses pin a Ra prin cing acon Eilency | scuvies ove ms Oe ot Tomer pce ivamape bined on elfiiens) D Serie Make customer tansacions eater or more Erfecveness | pleasrble than wit other firms. Tis Ineo the service characteris of he Fi le lowering the ine takes to et series {othe ewsomer, cing. Cte vue 3) Innovation ly new or noubly bener | Odin and vaidie customer Wear and sugesios oo new padacs or enbsncemens ineurent proce. ‘breakthrough product offerings Moritor customer reactions and suggest ©) Product Provide customers witha varie of produc, Differentiation | services, of featres that compettar se not rlofeing or are unable oer 13.1. Short Answer Type Questions » 2 a a 2 8 ” » ‘What you mean by business analytes? Whats dita mining? Explain descriptive analysis, ‘Wha is big data? ‘What do you mean by gap analysis? Wat SAS? ‘What ie MATLAB? What do you mean by KPI? 13.2. Long Answer Type Questions Discuss the need and scope of business nalts. Explain the components of busines analytics. Describe he pes of busines nalts. Discuss the termiaoogies of busines nals Esplin he proces of business analytics. » 2» » a 2 o Manpig Revues Baines Anat (Ui?) Unit 2 || Managing Resources for Business Analytics ange in the organisation by comprehending business problems and providing ale to its stakeholders. They are involved in every tiny aspect ofthe business, ness analysts play a role in every s document the business proces in an organisation and evaluates function optimally and what I tions. This may include improving processes, changing For example, a business analyst may work with both the client, who has @ particular requirement i their business, and the de dinate between these two panies to make sure the solutions created by ' requirements, and that they are adapting solutions as these needs change, They technical project manager and collaborate with stakeholders to design and impewsent he service or product and ensure ‘Organisations employ business analysis forthe following reasons 1) "To understand the strecture and the dynamics of the organisation in which a system is tobe deployed. 2) ‘Towaderstandcurent problems inthe target organisation and identity improvement potentials 3) To ensure thatthe customer, end user, and developers have a common understanding of the target cxgansation 1a he inl phase ofa pro the role of a Business analy (CT team) and Project manage nthe requirements are being interpreted by the solution and design teams, review the solutions documents, work closely with the solutions designers sure hat requirement re cleat Ina spiel large-size IT organisation, expecially in a development environmest, you can find On-site as well as having the above-mentioned role. You can fad a "Business Analyst" who acts as a ley person who hs to link both the eas. 2.1.2, Skills Required For Business Analytics Personnel ing ensure thatthe right solution is delivered by be realized throvgh people technology and Amiyien ave | Sl sts that are important fora BA include: Ra Rega Fo Dinas Tana Feonne Key Responsibilities of a Business Analytics Personnel the responsibility set ofa business analyst would equie him fo fll different duties i different | = DmASeotsemenr Bate Amapsen AUC | : Pare Business Analy ‘Analyze, organise and document requirements Manage requirements by creating Usecases, RTM, BRD, SRS, et. Assess proposed solutions. =e annot be tasked with he performance ofthe entirely of mes (oT, in designing the user experience ofthe soltion, 3) Executing Phase: This phase marks the development of the solution as per ing are the responsibil include: plain requirements to the Tidevelopment team, (Carty doubs, concerns regarding the proposed solution ta be developed, the requirements gathered. this phase, the project is measured and controlled for any Plans. This phase runs simultaneously to the execution phate, following are the lsiness System. nange requests and vesty thei implementation as per the project's ‘asin System Analyt 5). Closing Phase: This phase marks te elosure ofthe project. Following are the responsibil Preseating the completed pro lien and pain their acceptance wil nce: ‘echnical design of a software system but may not do actual coding true business analyst role this person necds to havea fairly deep and sometimes Tarhy ‘road understanding of technology ‘Business Requirements Analyst: The ulimate goal of any project sto create a unique product, service or and inthis endeavour lot of requirement has to be gathered. Thereafter, these requirements have fo ‘Procitsed, documented and checked for thei feasibility for the business and the, person forall his work called the "Business Requirements Analyst 2. 1.5. ‘Types of Business Analytics Personnel Following arc the types of business analysts 7) Reporting Business Analyst: As Reponing Business Analyst, fllowing ae the msi tasks to: “Type Bese Anas 1) Define the repoing business requirement in line wih invoice precesing purchasesopay Core Pervanec del. ‘tient requirements, propose the most adequate olution in line with core model reporting ‘and in coordination with SAP business analy, ig procedures and plas, and organize et i standard epons in SAP Business objets nfo view environment, available for end users Define, develop and execute operational KP reporting dat. ‘Das Bnew Amat ain Sym Analy ‘¥) Support intra cients onthe righ use ofthe too, including documentation and unining sessions for Busnes Reqemens Amal end were, a ea 4) Business Intelligence Analyst: The advent of Data Science and Artifical Intelligence has created another ‘Bsc nian As ‘ype of Business Analyst. 2.1.6. Tools used by Business Analyst ‘Organisations need to track thr performance to see whether certain strate beneficial Here’ ing used and impr “Toon by Balnes Anal Male Repamete —" MS Vi Sar ton and analysis. Requirements are defi tation tools are supported by Modem Requcements. Here are some key features: 1) Online document authoring in pre-defined templates. MBA Second Semeur Buss Ansys AUC Costin to remind vem hata ode oa set frequents wl never be pret abcutely complete jst enough ean be enouph. Tell them that people (and their stakeholders) are not looking perfection but are locking forthe best work that canbe done within the given ine fame. ee © Spe ni ases Au a 25 i me gy shen Baby Eros at ar: gs ee Sears ite ag ees ct nee oe Sere lgies: Business the Common (and not so common) Business Analysis Methodologies: son, with BAs baving to tay on top of a numberof different ayes toolkit needs tobe jam-packed, as fon primary data or are diectly calelated from the primary dala, In other words, secondary data can be called as processed primary data. Based on the purpose ofthe research ‘study, researchers ehoose the primary or secondary data to find relevant solutone, The methods for collecting primary and Secondary data are different. Managing Resource for Besos Asics (U2) » 2.2.2. Categorising Data Depending upon the sources being utilised, any stasical data can be divided into two categorie, which are as follows: ‘Caegering Date inary Sours of a Seon Somer Just ke secondary data, researchers should also take additional care while collecting primary data such that itis accurate, real, and unbiased, For collecting primary data researchers need to take many decisions regardog Proper selection of relevant sources, sampling techniques, research tons ee 22.3.1, Sources of Primary Data Collection ‘Some imporant methods ae as follows 1) Survey: Tis technique is one ofthe most common and widel Survey can be conducted wsing varios ‘The selection of survey method relies upon various fac sizeof sample alloted me, allocated budget ee 2) Interview: Interview isthe exchange of ideas wh ly used techniques fr collecting primary data, methods such s using mals, telephones, internet face-to-face ete ors such asthe nature of population to be studied, hich takes place beeen two oF more people with the spondent. In this method, the iterviewer organises a meeting issue related tothe esearch objective, and asks some questions ‘The responses of the inierviewee are recorded and compiled to get a beter insight into the reach problem. Interview ean be conducted through various methods sich as personal interview, telephone mal interview, panel iaterview, et 3), Questonnaire: In order to collect the relevant information from the respondents by asking questions, i is Purpose of geting information from the With the respondent regarding an object o | MBA Second Semener(Busines Ana) AUC | Aunapng Resources for Bese Ates (Une2) Py 5) Experimentation: An important metho to collect primary dat collection of primary data is cost-effective. Many times unnecessary time Tmiged and analysed between variables. Experiment secondary data and te information proves to be useless. But in pri forts on potential sources of ta which provide rl information in optim 6) Sole Ownership of Informat Atthough, primary data considered to be reliable source of information, but, {ask o collect the primary dats asthe sources of information may not be in the ch primary sources are in huge quantity. This large curacy ofthe information. The processing and analysis ofthe Sometimes, participants do not cooperate in dsta collection by showing, by giving wrong information, These factors act as hurdles in primary date responses, iol collected by some other researches, institutions, or agencies ata. The researchers collect secondary ata ether fom an internal lished sources like epors and jounals, The purposes of data may Hence, few portions ofthis dats may secondary data needs to be processed ‘modified sper ed for current research problem. It should be kept in mind that, applying in research, asthe contexts of ata may have changed and research due to followin reasons: sectors othe GDP are published by the goverament or some trade ted originally by the researcher and itis current and accurate itis analysing the curreat market position of a particular hed data may provide the required information or ariety of Technig : vaio 2) Variety of Techniques: Primary data canbe collected through and techaiquesavalable to record and analyse primary data such as suds, et Itallows the researches to explore effectively in aa Seco Sener ues Amie) AUC | nang ee ea iy Hania Data Researchers cn 85 et regarding storage cost, transport Sh These financial data are periodially formation in such kind of sources, yeaty, half yearly, bie spy of a particular research or journal can issue, Researchers can take a huge ‘updating the informatio) partments may be use) ‘anspor, agriculture, et. Manne Reeres fr Business Anyi (Uit2) related to various problems in research. Researchers are required 10 rovided by these data trough various approaches, sources, and meth information, as this data i already recorded and processed by need to identify the relevant section of this data which is of lable and hence easily accesible. Secondary data are helpful Primary data. Majority of secondary data is available which Alternatives: Secondary data is a source which provides ted by other researchers for other pu search work. The secondary data [MBA Secod Semester Basics Anan) AUC 2s using inappropriate estionable due to many Faso 2) Accuracy: The accuracy f secondary data is questionable a weg ori ass cation etd earcer Bares, joppropiate sampling testalgu, Sa uy nvbe sect every ie ; "Thee can a igang ap between he secondary daa and pentru ee hat many mes eon dtm conan cast formation whch emt pple reac patton dng such na ca bea skate efecvenss of esearch work 4) Nom Disclosure of Research Findings: I is rot always cay 10 have acess to all he Gndigs of Pru euch Some expenses teearch nsatins may wot allow is disclosure 5) Ditticulty in Tracing-Out Sources: Sometimes researchers of individuals are not able to idetty the appropriate sources of secondary data, Due to this limitation, the validity of secondary data remains ‘outst 22.5. Primary Data Versus Secondary Data Bask of Diterence fy Meaning Secondary Daa By Cost [Sources iv ely colleced om respondent ) Methods [The methods used for primary dau callecioniclude|The methods used fr secondary data collection quesonnalfes, bservalions and surveys. |ineude studying and analysing tepor, jours 5) aiaby jibe reli lomparatively les re filers problem estan (or Scienaie [Te selecon of secondary daa is mana ‘Method selected according tothe Content of th Source fnd the cute research ope, [ty Preauion [Ato of precaution fr taken ln te selection o secondary data [Secondary data are already proceed data ta feeds tbe analysed and studied 10 use ia esearch dy. |The secondary daa wot completely accurate lu was developed for some oer purpose [sy Fermor Data 15) Recoracy 2.2.6. Data Issues Regardless ofthe source of data, it has tobe put into a structure that makes it usable by BA personnel, Let's focus on a couple of data issues that are erical to the usability of any database or datafile, Those issues are ata quality and data privacy. 1) Data Quality can be defined as data that serves the purpose for which itis collected. It means different things for differen applications, but there are some commonalities of high-quality data. These quales usually include accurately representing reality, measuring what itis supposed to measure, being timeless, and having completeness. When data is of high quality, it helps ensure competitiveness, ids custome! an comp es effor onthe pat of data managers to cleanse data of erroneous information mers by accessing addresses res can damage brad image, and customers can become ia and computing analytics requires the use of computers and information A large part of what BA personne Jo ign information technology developing innovative integrated software systems with busines operations by analysing and ‘managing web-based services and customer Sp ions. Their duties include providing internal TT suppor and port. They ae als required to regulary report to management. are responsible for overseeing the implementation of technical business projects 5 Analysts work with stakeholders and technical team members fo map, rocesses and pro adersod or ahr minundentod. Techlonypiys 8 las not, however, bie al the pap in sinss That woe Ves igs the vale between bie and technology. tinions of what a business sralyt really i and so does the Iteration of the functions sisted isnt Business anal a ago ige and confines important formal education, : na 23.2, ‘Types of Business Anal Firms need aa Information Technology busines operations re thal supports personnel in the conduct oftheir daily lemental needs for business analytics operations The used for input, p and output activites in an input. output, and storage weld devices, rogramuned insirtions that control and coordinate the computer ‘They ince system-wide sofware ke ERP and smullet 3k computers. inluding mobile ‘They include the computers Se, dla, based on Intemet the firm), and extranet (private intranets extended MBA Second Semester Basie Analyes) AUC 4) Data Management Technology: Softwate governs the organisation of data on physical storage media. I. wr dala warehouses, data marts, and online analytical echnologies. ta management technology sofware that permits firms efficient. In addition, other DBMS systems can handle unstructured data For example, objectoriented DBMS systems are able to store and retrieve unstructured data ke drawings, images, photographs, and voice data These types of technology are necessary to handle the load of big data that most firms cure eollec. DBMS inclodes capabilites and tots for orgoi of the more imporant copabliles are its encyclopedia, and data manipulation language. DBMS has a data definition capability to specify the structure of content ina database, This create database tables and characteristics used in elds to identify content. These ‘characteristics are critical success factors for search efforts a the database grows. “These characteristics are documented i the data dictionary (an avtomated or manual ile that stores the size, descriptions, forma, and other proper seeded o characterise data). The database ene) is a table of contents lising 2 firm's current data inventory and the data fle that can be built or purchased “The typical content ofthe database encyclopet BA we the data manipulation language t databases for specific information. Language (SQL, which allows wsers to find specific data through @ a database, maging, and accessing data in databases. Four efinion language, data diclonary. database 810 presened in Table 2.1, Of paricular importance for included in DMBS. These tols are used t0 search ‘An example is Structure session of queries and respons ‘Table 2.1: Database Encyclopedia Content Magne Resource fr Bases, For example, employee be viewed in tems of te ag, se, geographic location, and 30 om OLAP would allow identi i cer mate aa numberof e ata mining include those in Table 22 formation Obtalnable with Data Mining Technelogy Description Example [An ad ia a newspaper is seine wid} frsteraer entty casters wo are Whey vo vee iorecustmer service thin Hove ho nea [casering ent link between «person who Bays few house and subsequently wil toy 2 ne ‘Database Content Him Description ar wit 90 days poe eee aaa i == Sea by Sees ts pee s Se aaa STI Taner arene aia E as sey te on a a equire increased use of text mining tools in the future, ” mane = - funn itn etn nm en We we aetrerea a ooneero cout — es een ete a Ge oo ‘arous words and phrases to lea what consumers ar intrested in and wha hey ae buying, Insite pe wt peti deed ater tee en eo ca SS es So aaa ed re tid ta tenn Data warehouses are databases hat store cutent and historical data of potential makers. What a data warehouse does is make data available to anyone who needs ‘warehouse, the daa is prohibited from being altered, Data warehouses also provide a st of query tools, analytical tools, and graphical reporting facies. Some firms use intranet portals to make data warehouse information widely available throughout a frm, ‘muliple dimensions. “These include Microsoft Excel spreads |) Microsoft Excel spreadsheet s pplication, SAS applications, and SPSS applications. hae add-in applications specifically used for BA analysis, ‘use of Excel into azeas of BA. Analysis ToolPak is an Excel aS. ‘optimisation tools einer programming) used inthe i) SAS Analyte Pro oftware provides a desktop sats toolset allowing wir to eee, | sale and peeent information in visual forma, I permits were cee dae es Source and transform i into mearingtl sale infoon resend in vials er aloe ane ser to ain quik understuning of etal iss within te dats is goed ie ney cen MBA Second Sener (Buses Analy) AUC Manag Rescarces for Busines Anis (Unit?) - PSS stare fers wer. widen of eal nin main a: Tee a ‘managers making the strategie planning 5, and lower-level managers making s. Within the hierarchy, other organisational sructures exist to support the | development and existence of groupings of resources lite those needed for BA, 2.3.3. Skills of a Technical Business Anal is conten isthe process that seeks to create an outcome and usually involves managing several related projects withthe intention of improving organisational performance. A program can aso be large peo 2) A project to deliver outcomes and can be defined as having temporary rather than permanent social ‘ystems within or aross organisations to accomplish pantcular and cleary defined tasks, usualy vader ‘ume conszunts. Projects are often composed of teams 3) A team consists of a group of people with skils to achieve a common purpose. Teams are especially appropriate for conducting complex tasks that have many interdependent subasks, and teams with a business hierarchy is presented in Figure 2.1. hierarchy, the organisation's senior managers establish a BA programme iniatve to randate he «eatin of & BA grouping within the firm as a strategic goal. A BA programme docs not always have an ead, imi, Middle-level managers reorganise or break down the strategie BA program goals ino doable BA Project intatves tobe undertaken ina fixed period of time. Some fins have only one project structure, have multiple BA proj end-time date in which to judge the succes ish a BA grouping) and others, depending on the organisation 38 the creation of multiple BA groupings. Projects usually have an Ines of the project. ‘The projects in some cases ae further reorganised into smaller assignments, called BA team ini herationalise the broader strategy of the BA program. BA teams may have a long-standing time li the main source of analytics for an entire organisation) or have a fined period (e.g, to me specifi product quality problem and then end), & =e To ang shen ae ar acta acc =. ‘Project Panning Group eC) i Management = — cr = iness Analytics (BA) within tegrated throughout a firm. Figures Hlerachal Reatonsips Programe, Prot and Team Planing “ ———————————— ‘A Second Sener (Benes Ansys) AUC “ fms align planting and decision-making ve that recognises the need to use and develop some today recognise this need. The question then becomes hie its sralepc, atc, and operations objectives ion within the organisational strsture of firm i serve afm’ neds. ‘ofthe amount of resources a firm wants to invest. The ‘outcome of there hd to align its BA resources to serve strategic archy, separate BA re 22, y the VPs of an organisation and ised area, On the other han succes fi ‘rorsurtcing | VP oftafomaton Systems ‘vr Operas Maing BA Tafarnaion Systems BA scing. as both the director of information systems (which ‘management andthe lade of the BA grouping. Manan Resources Baines Asics (lt?) ” resources by project of allows the VPs some control by the project or product manager, T to the functional orgar Promote the eos department aces sugges for a sueesfl implementation of «BA programme. eos ee) [[eainee] [rtee Vea Opa I I T fst | [Motes lee lesion Fetes no. “i| fs to] Specie [caus tl ge | rt omens rest co} | seteieg lease Joris Frcs no 3] fSperates to) [Spain rests [omg 7] ene.2 | fase 2 et .2 Frees vo 5) [Srectne tm] [Span se amare") fren "| |r ener. ‘organisational stwetue that best aligns BA resources is one in which a in a suff stricture where access to and from the BA grouping of a firm, a illustrated in Figure 2.4 line management) relationship. This centralised BA organisation stcture liatons found in both the functional and the matrix styles of| mises information flow between and across functional areas in sory role tothe organisation. Bartlett centralised structure like the one in Figure 24, Imanagementleadesip om potential eens (eg come between the BA group working on customer seis od beter oun betwen BA anal personnel win he [aie igre 24 Centrale A Depart, Projecto Team ‘Organon Suctre ee Manag Resouce fr sine Anaya ni 2) s (Cac of Executive Sponsorship [inte Content Perception [Baer ot Patel Proxy Tenders in BA prea] nie BA elo] [tack of Leadership in BA Groupings [Cac of Seppor [Cock af Collaboration Across |Organistonal Groups (Lack of Sled and Human Resworces nail to Delegate Responsibility [Tack of integrated Processes “The organisational structure that a firm may 1, or the BA grouping can be separate, should be praised for performance ina team. While middle-level managers build ‘monitor their performance, senior managemeat should establish collaboration 1s to fall ta BA tcam. For firms that employ BA teams, the the team effort. Some ofthe roles BA team participants 25, They also represent issues that ean cause a BA programme to Tables: Tideor Function ale Descipion Descriptions [Anaytics Modeler [Develop and_maintin predicive and forecasting ‘ot enough to cane up wid valable information for decisionmaking and we evento pene beige | nes res iT eran mat be sare wir ecient, al roces|Devel force reusable processes Yo reduce Bl Irerone witin a fim for benef to come from it ts nly when analytics show Kea spade m Is lous at try a considered BA hse ress ae rol fanalties Analyst [Respond wo BA aque fom functional was win val bass, BA teams can be perceived to provide les alee ite fn eh [altars t Davee Te abiew deiner val ion Whe team [GA Team ead Jrovde leadership to BA team, foe statgis ad ond afoot team lacks te aii] "escrces to deliver needed answers and information. The greater the sunt of BA) facies proved bons performance, an cam flrs, the reser are the chances tha he eam wl be climate. nerface wits onaperen MBA Second Semester Baie Ansys) AUC [Fact ef Festeation “Tis aeaicos cme Fo oes om gonn. Wut De rl of BA and po rs mgt oot saint he og TBA came require sours al [Falco Provide Valor Tnabiliy to Prove Succes acquiring, stand : 1 governance must bein plac to guard and ensure dt Such information policy, data administration, and data, 0 to gua) andes Taaged forthe betterment ofthe entire orgeisation. These steps are alo important in the fi ‘management systems and their suppor of BA task. 242.2, Outsourcing Business Analytics ‘Outsourcing ean be defined BA isa staff function that is easier to outsource than othe 1) Less Expensive periodieally may be more expensive than occasionally hiring an outside consulting BA fir solve a problem, ccturs and scour fn ere he aeration ar term for many of the activites icles and processes for mans inesses. Its spe ‘compliance with government reg ocd sd coeson nd stage, veering abs : me and end user groups use data. + of data administration i data governance, which inl jad secu ly focused on promoting data privacy, data security, data Steg by which an organization chooses to ure to ‘an extemal source. Outsourcing business oper wa BA propane, rn BA peje and operate BA teams ing BA, Oasourciog ran inpoan BA management atviy in lansing an invesnent in any BA programme een asks sich ning a wa ana Fe sans mason neo ae he soanapsd Manaing Resouces fo uses Anais 2). Superior Analytics: The pol of. 3) More Staffing Flex is easier and less expensive than hiring fulltime BA sta. Outsourcing permite more flexibility to add and reduce BA services a needed, 4) New Knowledge: Experienced BA consultants tring a varity of knowledge and experience from having worked with many othe fms. That ype of experience may be of great competitive advantage. Disadvantages of Outsourcing BA also opportunities for new and unique information, which the outsourcing firm may aot share withthe client. ificult to communicate with the ‘more. The lack of management 3) Weakens Innovation: Hating ousource a client fins Internal exper, the remaining collaboration within the firm's personnel is redoced, and that redices the opportunity for innovation effort through shared collaboration 4) Risk of Information: Outsourcing staff are exposed to client proprietary information, incloding innovations in analytics. This information could be shared with other competing firms, placing the cleat firm at isk, '5) Worthless Analytics: Sometimes outsourcing pariners are less capable than internal analysts, wasting time and mooey Managing outsourcing of BA does not have to involve the entire department, Most firms outsource projects or ‘asks found to be oo costly to asin internally For example, firms outsource cloud computing services to outside vendors, and other Firms outsource software development or maintenance of legacy programmes to offshore firms in low-wage areas of the word to euteass, Outsourcing BA can also be used as a strategy to bring BA into an organisation. Initially, to learn how 0 tea BA programme, project, of tear, an outsource firm ean be hired firm can the learn from the outsourcing fi cient firm can form its own BA depart project, orteam, fn data assumed 0 be of high quality Data quay refers to aeuracy, and completeness of data. High-quality data is considered to correctly reflect the real world in which Poor-quality data caused by data entry eros, poorly maintained databases, out-of-date data, and ‘incomplete data usually leads to bad decisions and undermines BA within a firm, Organisatonally, the database management systems personnel are manageilly responsible for ensuing data gualty. Beeause of its importance and the posible leation of the BA departnent ‘information systems department (which usualy boss the DBI rogram should sek to ensure data quality efforts are undertaken. Weally, a properly designed database with organisation wide data standards and efforts taken to avoid onsistet date elements should have high-qualiy data. Unfortunately, times are changing. and customers and supplier to enter data into databases directly via the Web. Asa tele, robles originate fom dat input such as misplled names, transposed number. of ing codes, MA Secon Senne Bios Ato) AUC | and correct faulty data and establish routines and procedures for editing data ih a structured survey ot ata data serubbing is undertaken eli {nthe audit and suggestions on how tocomect them ‘Data nspeton ems [Current Dats [completeness Tight ind Wat some job designs, wpcficalon, and devripions da lemplayees perf ced to have thelr ejecuves and goals changed to achieve mpl tir ee esves and gous changed to achieve Biter] applications and allocatic stablished by the BA leadership about where there sh ‘an als hep aoquire increases in data suppor staff hiring, and itl all BA depen, Pot seams isthe ned fons Sometimes that sppot itn det dally, and srs ending authority to get resources needed for BA work. va jalan, an me 25.1, Short Answer Type Questions ‘What do you men by basies analytics personel? ‘What you understand by T busines analyst? MBA Second Semener Busines Analyte) AUC | espe Anes U3) ° Unit 3 Descriptive Analytics es Descriptive analytics is commonly wed form of data an and then presen Descriptive analytics isthe most common and fundamental form of analytics that companies use. Every part of the business can use descriptn financial statements othe reports, dashboards and pesentaio ‘Most companies accumulate such as average teverue per customer — to get ‘Once companies identity reads, dey can use per into the causes and consequences. rep's products sells the most. ive analytics gathers information over long. periods, and that Pevods, For example, the corporate bean counter can irk sales or expenses by comparing the result of by percentages, and rendering the results on easy-to-read cans. Descriptive analytics gives professionals the tols to compare the 's essential to know how frequently a certain event oF is the prime purpose of measures of frequency to make like a cous or pet survey where 500 participants are asked about their favour IPL team. A list of $00 responses would be dificult vo consume and atcommodste, but the data can be made much more accessible by measuring how many times a certain IPL team was selected. ———— MDA Second Semen (Bases Anlts) AUC analysis, i's also important to find out the Central (or thee averages — mean, people is measured. In Measures of Postion: Descriptive analys ite response in relation to others. Me lavolves identifying the position of ike percentiles and quartiles become very utefl in Wl area of expertise segregation on te bs en come a Space and me prerequ ‘nab of meas by sbgr0up sed to show important differences across subgroup, which mosty results In inference and conclusions being made, When we notice a gap in earnings, for example, we naturally tend toextapolate reasons for those paters complying But this also enters the province of measuring impacts which requires the use of diferent techniques. Often, ‘andor variation causes difference in means, and statsical inference is required to determine whether ‘observed differences could happen merely due to chance. 4 to show the proponons of components with unique vales for ‘Proportions. or example, we might tabulate the proportion ofthe degree and also receives food or cash assistance, meaning a crosstab of i supposed to be made. ine row proportions, othe fractions in each education group who receive ng asistance level dip extraordinarily at higher education levels, dentify the Data Required: Next, the company rust find the data needed to generate ‘This task is a potential challenge since the relevant data may be scatered ac caser time because they will already have most or all the needed data In their systems daa Furthermore, some metrics may also need data from exteral sources, lke e-commerce websites, benchmarking databases, or socal media platforms. Extract and Prepare the Data: Extracting, combining, and preparing the relevant data for analysis is potentially time-consuming if the needed analysis data originates from multiple sources. However, his is & liminate inconsistencies indamenal mathematical operations io one of more ofthe Variables. For insane to monitor the average sales revenue oF the monthly revenue from ei ‘stablished or recently acquired customs ration must be presented 20 ‘Stakeholders usually appreciate seeing the repor in compelling visual forms, like bar chars, pe chans, or line graphs. Visible data is easier to grasp. Finance specialists on the ‘other hand, may want ie information presented through numbers and tables. 3.1.6. Advantages of Descriptive Analytics Following ae the advantages of descriptive salts: 1) gh degree of objectivity and nevisliy ofthe researchers re main advantages of Descriptive use descriptive analysis shows is considered to be more vas than other quantitative methods and provide a broader ‘phenomenon Itean use any numberof variables or even single number of variables re research, is considered asa better method fr collecting information that describes relationships its the world as ered useful because the margin for eroris very less as we are taking the Uends straight rom the data properties. 5) This typeof study gives th researcher the Mleiblty to use both quantitative and qualitative data in order to Aiscover the properties of he populatio, (6) For example, researchers can use both casestudies which are a qualitative an ‘ and comeation analysis to desert phesomena in is own way. Using the case ste o describing people event and nae enables the researcher 10 undertand the ‘havior sod" pstere of the conceried set to ie ‘maximum poten 7) Inthe cas eof the main types of Descriptive Analysis, the researcher tends fe number of samples unlike experimental saudies that generally thatit simply reports what has happened, without happen nex. senerally limited to relatively simple analyses that examine the relationships between two or three 3) Confidentiality and lack of truthfulness of the respniensis one of the min shorconings 0 ‘Descriptive analysis. i at Second Sees (asst Azan) AUC « MBA Seon 3.1.8. Examples of Descriptive Analytics Eaamples of deseptive analytes exist in every aspect ofthe including the following. iD Bunens Report of revenue and expenses, ath flow, accounts re tnd production. 2) Financial Metric an ober business KPs are exam cee De heaih and vale of business, such as invested capil 3) Socal Media Engagement: Descriptive analy ‘odin niaives such as growth ia followers, engagement rates and re “These include mevics that ‘current ratio and return on termine the retum on Socal ‘tsibutabe to specific social spices eg ate tele ~ epatin seetencme temo re a phen afi ete ey Pan scl atatateen ee eens ‘promoter score, " (tinea wean | . Ay ‘Tot of past data and offen a account for all possible oreo Figure: Line Graph Bar Chart and Pe Chat which users can crete a char sheet. They can even present and show iseparsely can also inser the chart on the data page ieell. In excel, every chat i ‘hart data, when user wants to update the dala valves, then linked chart gets -p are used to create a chart: 4) Predict sales volumes. Visualization spreadsheets are the major en Microsoft Excel offers dozens of mathematical, goal seeking), and other BI tools. Figure shows the chart, which is created using the above datasheet. [MBA Second Semester (Busines Ansys) AUC Step: One ler a ne Chat tp, stots Linen sel Line with Markers ‘Step 2) On the Insert tab, inthe Charts group, choose Bar, and select Clustered Bar. [MBA Second Semen Bese Anais) AUC ‘Wilf Population in 2017 | fs XY chart is also known values in different data serie Fy os} aa] a] ale MBA Second Semester Busines Anat) AUC 6) Area Chart: The area chart is gives the amount of change reltionship among the various pars are aso represented by te di over a particular time span. The ng the sum ofthe plotted values Descinve Anyi (i) Result: Below you can find the coesponding line chat to clearly se ths. wl ‘Step 3:Change te chan’ subtype to Stacked Area (the one next to Area). Result: = 3c various data series are compared by the radar chan. For joted along a separate ais the initial point ofthis axis i the an sot Sener ec Ar) AUC scet te adr a pe Step 2:Click set > Other Charts >Radar and = ‘you like, here we select Radar with Markers: [Now the radar chart is created with he axis labels. ple series ae as follows: ‘select the bubble type ove needs in esctipive Asics (Ui3) Step 4: Then select the relative this dialog Entries (Series) section: eEeeEEREE Step 6:Click OK. Now you can se the bubble chart are created with multiple series. lex bores in the Blt Series dialog, and then click OK to close 70 MBA Second Semester Busine Aa | bene Anpi Chart Stock cart in Excel lp preset your stock's daa in & mich simpler and easy to read i estes There ae # ype of sock chars at yu ca eet in Excel 324, | Data Queries: Using Sorting and Filtering : icrosoft Excel provides Song ad titres 2 puts nce This chart is also useful in arranging the data sequent , volume, a stock chart should have two value ates. One ais is forthe volume measuring clumas and the ‘other axis is forthe stock prices ‘Steps to create the stock char areas follows: ‘Step tz Select the data (igure 3.4). ‘Step2:Go to Insert Tab, Other Charts, and select |? 12) Cone, Cylinder and Pyramid Chart cone data markers are used. To lend ata markers are wed, To lend a dramat = markers are used. a to column, bar and 3D column chats, ( : eee aati ve any specifi tering ever. Step 2 ice Aofie a automat process 0 cannt recive any sei 2 Sins a dan aswon loss sts he rows andr olan. 5, sl 1 used by the Excel ‘ata in place of fied values or simple crt ck the Advanced command appears onthe Sort & Fler soups inthe Daa tb, dialog box. wan ae ay a list of location option. And cause it des not make any changes filtering criteria simultaneously. As orginal data ofthe table. For remo ck the (Chee) tocated on the Data tab. When there are A freaieny ition i summary able ht sows the mune of occurences ofeach value in ange Excel offers a few ' frequency distributions: — lysis ToolPak add-in +Shint+L 4) A PivorTable u can we Excel's FREQUENCY function to cet a fequencydstibaton summary tbl that few bese rach value in a range. FREQUENCY counts how often values occur in a set of Te Laue tne [Foran 1a he | Figure 37: Creatlnga frequency dstrtbutin fr the data lt ALES sponds to the numberof cells inthe bia n enter the fllowing aray formula it ‘The aay formula returns the count of values in the Data range that fall into each bin, To ereate a frequen wwous Series (Grouped Data): In case of continuous series, the following lating the median: rm then it has to be converted in re form, ‘ess than’ type cumulative frequencies. 1N te cass in which median falls called the median elas. Y). Median canbe calulted withthe ue of following forms MDA Seco! Sener ues Any) Au | | | | | 3323. Mode According to Zizek, “Mode isthe value occurring most fi Which ther items are distributed most densely”. items tend tobe mos heavily concentrated, It may be tegarded asthe most typical the value 2 Solution: Calculation of Mode Tacome ia | Number of Employees 1 Er Since the item 27 occurs the maximum numberof times, Le 3, hence the modal income is 27 same frequency or distribution of frequency is ‘of inspection. In his situation, a grouping table 2 of mode. Fist we prepare grouping table and tive items are writen in column 1 and highest frequency is marked. cies are grouped in twos by adding 1" and 2,3 and 4%, * and 6* and so on arked ng the first frequency in column Tand th 4 and $8, 6” and 7 and soon and highest frequencies are grouped in twos by ‘marked. jes table, an analy leting the grouping of freqvet F y appear as the bighest fequeny. The same tne in two eave) of co NG tnd 89 ona pel Je pepe 0 Fi ot Sell in ea sete method of grouping to desde Which aces | Analysis table is ries, determination ol to find the modal elas) by preparing grouping ttle Solution: Her the clas-nterval (65 ~ 70) has the maximum frequency, i. 20, therefore, modal last is (65~10). Now we can calculate te modal valve of using the formula, ‘ ‘Median = Mode + /3[Mean - Mode} sale te Mad een nd Mae of Dit a 26 epetny Sent: Cie Meo = 386d Mae 26 Matin Motes # Man Mote] =2264 2 86-32 1) Arithmetic Mean: If mode and median are 22 and 21 respectively, Moa sean Sete NE Ary | * nerve Ani 3) » ‘Ans: a) Median = mode + Zmean model mols bout measure of dispersion which shows the diference between the Bighest andthe tow ae Mathematically: R=L-§ made = 22, median =214 =2mean | mean = 2 mean = 642-22 2 on Coctitent of Range Relative measure of variation (coefficient of range) is used to compare the tries, Coefficient of range Is defined as: 2ygy ente22=33 3 Solution: Here, Largest value Dispersion is bated on values from 7 Range Deviation is calculated by measuring the di According to A.L. Bowley, “Dispersi 333.2, _Interquartile Range ins data sot Interquatle ranges the spre itean be defined by the range of mi santos tag { ei et 8 oes ge a TInterquartile Range = Qs— Qs Qa QD. 4 arse the points which vide he data in our eg as (QQ 0.2082 Wer, = vate oie tem (2)° o=vaneorteien (2) Yl mn em ainda beween Oa Bea sce cent ee nt ‘The difference between third quartile and first quartile (Q) - Qi) only inc w absolute ‘ste tar Tene age eso acne ear of ble aby iglesias ‘Example 22: Calculate Ioter-quanle range from the following data Hao [x0 [|= 10 ois | ot Fears [No.of Persons] a Solution: Camfative Frequeney cf Q=Size of (8 item -(2)- 16. 0+ 16420060 +16=76 | Inter. Quartile Range = Q) ~ Q-= 16~41.33 =3467 years 33.3.3. Quartile Deviation so known as oul because a large amount of values inthe data set to orerome he mito Inada seu esas spend ve he mie halo isms ef varaton mains This mebod he sy of otra range inte cence pao te eqn} dstoason escipive Asics Ui) co To caleulte hs value, al edt set sided int four pas. Evry pt fe dataset consis 25 of the ered value. Inthe valves highest ones tow square Ie Que Rags a rm Sates Fri Quiile Second Que Third Large Views) FUG To Ouwniety Valet) + ees) > ‘The ha ofthe itfeence between hid quail and fst quartile (Q)~Q) is known as “semintrquartile of quale deviation” . — Matematica, ‘Quartile Deviation, Q.D.= Bo Where, (Qs~ Q))=tmerquarle ange (Coefficient of Quartile Deviation s divided by the sum ofthe third and first quarts then itis jon’. In case of open-ended distribution (when the frequency ‘and no specific clas limits), it iS a very useful measure, is defined as follows Mathematically, coeficient of quartile de (Coefficient of Quantle Deviation Qp)= Where, cop @ @ = Coefficient of Quarile Deviation 1 Third quartile = Fist quanile “Methods of Calculation of Quartile Deviation 1) Computation of Quartile Deviation - Individual Series: Folowing are the formula for ealelstng Q, and monte [28 om ie mieten ‘ompute Quartile Deviation and Coefficient of Quartile Deviation fr the following dat: 21, 72, 100,106, 34, 100 2) Computation of Quartile Deviation- Diserete and Qin discrete Tamale Frequency z . = 3 1 1 2) Canptonet Qe Den Conn ang eo or in emanate atte Mee Lome ase 2 oom is Patong requency of class preceding to quartile class; the calculation of quartile deviation in Continuous series © Solution: Q=Size of 40-20 10. item = 42% tem whic is in las interval 60-70. andi = Ly Ly = 70-60 = 10, 12604 1.1=61.1 in comparison to range and quanile deviation because it includes al the comparison of the formation ofditferes jstibutions because it is based on 4) Compared to standard devistion, itis less affected bythe extreme values. soxsenenn ong ] . vos cx devin stew savciluaty try a eo he ape B00B9 "POP mam aa | oa Eb 8460 3) Inlaid 2) Thetpwracc pn ismanenaay Hop lake nm Coote MeanDeion ss HD) octet of mean deviation om mean = Msn Devon wien ie from median Me Deviation EDI _ ee oeticent of mean devin fom medina —_ 2) Computation of Mean Deviation - Discrete Series: In case of discrete series following steps are involved: Mean Devition (4D) | ') Fest, calculate the averages such as mean, mode or median Made | mh rl enc ae dv fhe He, rete pose an eae Ss : ! ‘The rest represented ‘Method of Calculation of Mean Deviation ; dilied wee call ‘i 1 Goninon Dean nia Sis Flowing es we etn ea Racca Coefficient of mean deviation fom mode = ied by thes respective frequency (f) and summated ignoring the postive (+) and negative (3g noted by dx. ‘4 ofthese deviations. Ii epezeted by Z| dt 1m obtained by the numberof items. Syma, onde |i] = deviation from mean (or median) ignoring | 2 signs. N= Number of items bashirlails. Geant Demanded OO] regen] Bea Ignoring sign 7 Ea 20 0 30. 30 a Fo a io a o 70 10, a0 fa 0 0 Pn Too 0 = 20240 5119 Toul eis 48048460 _, 34.200 Ex _ soo, = 82005700 ie Mean (&) = 300. 7 ‘Astmetie Mean ) = 5 Fata fan About Median Deviation rom | [SerialNa] x Deviation from |A.M. ignoring sign © | Median ignoring # six Jad lal 3) Computation of Mean Deviation - Continuous Series: In case of coatinuous series, following steps are 140 1 | 350 involved 920, 2 [7a 330) 4) Fiat calculate the mid valu ofthe class interval sre the median or arithmetic mest. Hand am Si by ea ene EF Example 28; Calculate Mean deviain from the mean for oli ME 70 170-80] stss ta thousand) Bilat71ot3 Solution: sm mean is zero. Whey tion becomes larger. Itis denoted by the small Greek ‘According to Yule and Kenndall, “The standard deviation i the squae‘rot ofthe arithmetic mean ofthe square of al the deviations, deviations being measured from the arithmetic mean ofthe observation, 5) Iisusedto calculate coefficient of variation. Disadvantages of Standard Deviation 1) More compl decides the weightage of the element if distance is less (from mean), then that e Methods of Calculation of Standard Deviation 1) Calculation of Standard Deviation

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