Manoj Kumar

BI & Analytics
(ELI5 edition)

BI (Business Intelligence) and Analytics are two important

concepts for modern businesses, but they have different goals
and methods.

https://www.linkedin.com/in/mk-analytics
 Manoj Kumar

What is BI?
BI stands for Business Intelligence.

BI tools help collect and organize data from

different sources.

With BI, you can analyse data to find answers to

your questions and show the data in charts,
graphs, and tables that are easy to understand.

BI helps you monitor and measure your

performance, improve efficiency, and manage your
business

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

What is Analytics?

Analytics stands for business analytics.

Analytics tools help you use data to find patterns,

trends, and insights.

With analytics, you can forecast outcomes, identify

opportunities, and solve problems.

Analytics helps you increase your effectiveness,

test ideas, and grow your business.

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

BI and Analytics in practise

Imagine you are the manager of a pizza restaurant and you use
BI tools to:

Collect data from different sources, such as your point-of-

sale system, your menu, your inventory, and your customer
feedback.
Organize data in a way that makes sense, such as by day,
week, month, menu item, location, and customer.
Analyse data to find answers to your questions, such as
what are your best-selling menu items, what are your
busiest hours, what are your most loyal customers, and
what are your most common complaints.
Show data in charts, graphs, and tables that are easy to
understand, such as bar charts for sales, pie charts for
menu items, line charts for trends, and scatter plots for
relationships.

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

With the help of BI, you can see that:

Pizza Margherita and Pizza Pepperoni are your

best-selling menu items, and that you should
keep them on your menu.
Friday and Saturday are your busiest days, and
that you should staff up accordingly.
Slow service and cold food are your most
common complaints, and that you should train
your staff and improve your kitchen processes
accordingly.

With this information, you can make better

decisions and improve your business, such as:

Offer more vegetarian options, since Pizza

Margherita is so popular.
Raise your prices on Friday and Saturday, since
they are so busy.
Hire more servers and install a faster oven, to
solve the slow service and cold food problems

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

Analytics
Now imagine that you have been using BI for a while, and
that you have a lot of data about your business. You want to
use this data to predict what will happen in the future and
why it will happen. You use analytics tools to:

Use data to find patterns, trends, and insights,

such as which menu items are correlated with
which customer segments, and which days
and hours are correlated with which sales and
margins.
Use data to forecast outcomes, identify opportunities,
and solve problems, such as what your sales will be next
week, what your profits will be next month, and what
your customer satisfaction will be next quarter.
Use data to test your ideas and experiments, such as
what would happen if you raised your prices, offered
more vegetarian options, or installed a faster oven.
Use data to make smarter and faster decisions, such as
how much to order from your suppliers, how much to
charge for your menu items, and how much to pay your
staff

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

With the help of analytics, you can see that:

Offering more vegetarian options will increase
your sales by 5%, since Pizza Margherita is so
popular.
Raising your prices on Friday and Saturday will
not affect your sales or profits, since they are so
busy.
Sending birthday cards or coupons to Mary and
John will increase their loyalty and referrals by
10%, since they are your most loyal customers.
Hiring more servers and installing a faster oven
will increase your customer satisfaction by 15%,
since they will solve the slow service and cold
food problems.

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

Example of BI and Analytics are

used in different industries

American Express uses BI and Analytics to develop

payment services, detect fraud, and segment
customers.
Chipotle Mexican Grill uses BI and Analytics to
optimize its menu, pricing, and supply chain and
monitor customer feedback.
Coca-Cola uuses BI and Analytics to track inventory,
distribution, and sales, and understand consumer
trends.
Delta Airlines uses BI and Analytics to improve its
flight operations and reduce costs and risks.
Ellie Mae uses BI and Analytics to streamline its
mortgage lending process and enhance its compliance
and security.

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

BI and Analytics Tools

Purpose and Function: BI tools help collect, organize,

and analyse data to understand the current state of
your business. Analytics tools help predict the future
using data.
Features and Capabilities: BI tools create dashboards,
reports, and visualizations. Analytics tools use data
mining, modeling, and machine learning.
Requirements and Challenges: BI tools need a reliable
data source, clear business question, and user-friendly
interface. Analytics tools need a large data set,
complex business problem, and skilled data analyst.
Popular Examples: Some popular BI tools are
Microsoft Power BI, QlikView, and Tableau.

https://www.linkedin.com/in/mk-analytics/
 Manoj Kumar

Looking for Real-

World Experience in
Data Analytics/BI?
DM me on LinkedIn to know more
Or
Use 'Book a 1:1 call' link in my profile
bio

https://www.linkedin.com/in/mk-analytics