NAME: Shibabrata Maiti.

SECTION: A.
ROLL NO: OTP23A62
SUBMITTED TO- Dr. Abhijeet Lele.
Assignment No: 2

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Introduction: Business analytics refers to the use of statistical, quantitative, and computational
techniques to analyze business data and make informed decisions. It involves collecting,
processing, and interpreting large amounts of data to identify patterns, relationships, and
insights that can be used to improve business performance.
There are four main types of business analytics:
• Descriptive analytics.
• Diagnostic analytics.
• Predictive analytics.
• Prescriptive analytics.

1. Descriptive analytics: Descriptive analytics deals with the examination of past data to
understand what happened and what is currently happening in a business. It involves
collecting, summarizing, and presenting data in a way that can be easily understood. Its
primary goal is to provide insights into the business’s historical performance, and it is
often used to identify trends and patterns in the data.
Example: AJIO uses descriptive analytics to gain insights into customer behavior by
analyzing past purchase data. For example, the company uses this analysis to identify
which categories of products are popular among its customers, which promotions are
successful, and which customer segments are most profitable. Based on this analysis,
the company make informed decisions about inventory management, pricing, and
marketing strategies.

2. Diagnostic analytics: Diagnostic analytics is focused on determining the causes of past

events. It involves analyzing data to identify why something happened and how it can
be prevented from happening again. It can be used to identify the root cause of a
problem and provide recommendations for action.
Example: AJIO uses diagnostic analytics to identify the root cause of a product return
issue. By analyzing data from return requests and customer feedback, the company can
identify factors that are causing high return rates for certain products. Based on this
analysis, the company take corrective actions such as improving product descriptions,
providing better product images, or enhancing the customer support experience.

3. Predictive analytics: Predictive analytics uses statistical and machine learning

techniques to analyze historical data and make predictions about future events. It
involves identifying patterns and relationships in the data to create predictive models
that can be used to forecast future trends and outcomes. It can help businesses make
informed decisions and anticipate potential risks and opportunities.
Example: AJIO uses predictive analytics to forecast demand for products during
upcoming sales events. By analyzing past sales data and customer behavior, the
company build predictive models to identify which products are likely to be popular
during the sale. Based on this analysis, the company ensure sufficient inventory levels
for these products and develop targeted marketing campaigns to drive sales.
4. Prescriptive analytics: Prescriptive analytics involves using data, algorithms, and
business rules to identify the best course of action to take in a particular situation. It
considers the predicted outcomes of different decision options and recommends the

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 optimal decision based on specific constraints. It is often used in complex decision-
making scenarios and can help businesses optimize their processes and outcomes.
Example: AJIO uses prescriptive analytics to optimize its product recommendations to
customers. By analyzing customer data and product attributes, the company create a
decision model that recommends the most relevant products to each customer. Based
on this analysis, the company improve the customer shopping experience, increase
customer loyalty, and drive sales.
Conclusion: Descriptive analytics is focused on summarizing past data, diagnostic analytics is
focused on identifying the cause of past events, predictive analytics is focused on forecasting
future events, and prescriptive analytics is focused on recommending the best course of action
to achieve a specific outcome.