Why Business Analytics

Data

We create 2.5
quintillion data
everyday

Data comes from

different sources
and formats

This enormous
amount of data is
known as “Big
Data”
What is Data…

⚫ Data means information,

more specifically facts,
figures, measurements
and amounts that we
gather for reporting,
analysis , reference &
planning.
Data vs. Information

⚫ What does the number 28081995 means

A. Birthday
B. Bank account number
C. An OTP
D. Registration Number
Without processing or information data is
meaningless..
Characteristics of Data..
Purpose of Business Analytics

⚫ Data may be Structured/ Semi

Structured/ Unstructured Data
⚫ Turning data into insightful
information..
What Amazon does…

Optimize business operations by analyzing customer’s behavior

Next generation products
Stages of Data Analytics
Analysis..
Types of Data Analytics
Predictive Analytics
Prescriptive Analysis
Diagnostic Analysis
Tools used in Data Analytics
Designing Data Models

⚫ Model: A simplified description of a

system or process to assist calculations
and predictions.
⚫ Examples:
Types of Data

Quantitative and Qualitative

data
⚫ Qualitative – it describes
things, i.e., it is descriptive
information.
⚫ Quantitative – numerical
information, i.e., numbers,
statistics, measurements, etc.
Quantitative data

⚫ Quantitative data can be expressed as a

number or can be quantified. Simply put, it
can be measured by numerical variables.
⚫ Quantitative data are easily amenable to
statistical manipulation and can be
represented by a wide variety of
statistical types of graphs and charts such as
line, bar graph, area, and etc.
Qualitative data
⚫ Qualitative data can’t be expressed as a number and
can’t be measured. Qualitative data consist of words,
pictures, and symbols, not numbers.
⚫ Qualitative data is also called categorical data because
the information can be sorted by category.
⚫ Qualitative data can answer questions such as “how this
has happened” or and “why this has happened”.
⚫ Examples of qualitative data:
Colors e.g. the color of the sea
Your favorite holiday destination such as Maldives,
Goa etc.
Cont’d..
Examples..
⚫ Qualitative Nominal Data: Hair Color, Area code,
Vegetable, Astral Sign. (May be numeric or Non-Numeric)
Numeric- PAN no. Street no. address, (no arithmetic
possibilities)
Non-Numeric- Marital status, Political party, Courses covered
⚫ Qualitative Ordinal Data:
Numeric- Grade, Ranking and Prize
Non-Numeric- Grade in Particular course A,B, C
Car Segment Mid Size, Compact SUV, Big Size SUV
Income group- Low , Middle , High
Arithmetic possibilities :

⚫ What about Percentage and numbers?

⚫ Will you be able to calculate
mean/average from Nominal data?
Ordinal data

⚫ Example: Rank and

preference
⚫ Is the Interval same
between the ranks?
Quantitative data

⚫ Quantitative: Distance covered, Heart

beat, No. of Car brand own by people,
No. of Customers, Weight and Size etc.
⚫ Interval/Ratio data
⚫ It can be Discrete or Continuous
⚫ Interval data is like ordinal except we can say the
intervals between each value are equally split.
Quantitative data (Interval data)

Example:
Ratio data

Example
Graphs and Charts
Cont’d..
Representation of data in charts and graphs

⚫ Nominal : Pie or Bar

Chart
⚫ Ordinal : Bar or
Column Chart (No Pie
chart)
⚫ Interval/Ratio: Bar
Chart , Histogram
The Chocolate likeness survey
⚫ How old are you
⚫ Male/Female
⚫ Spending on Groceries
⚫ Spending on Chocolates
⚫ Type-Dark, Milk White
⚫ Satisfaction level
⚫ Individual Packets or Box
Application: a Survey
Types of Data: ???

⚫ How old are you :

⚫ Male/Female
⚫ Spending on Groceries
⚫ Spending on Chocolates
⚫ Type-Dark, Milk White
⚫ Satisfaction level
⚫ Individual Packets or Box
Types of Data
⚫ How old are you : Ratio
⚫ Male/Female: Nominal
⚫ Spending on Groceries: Ratio
⚫ Spending on Chocolates: Ratio
⚫ Type-Dark, Milk White : :
Nominal
⚫ Satisfaction level : Ordinal
⚫ Individual Packets or Box: Ratio
Fooling with data..
⚫ When encountering a graph, it’s always
important to check what scales the graph is
using.
⚫ A common tactic to alter public opinion is to
choose scales that exaggerate an effect.
⚫ A regularly cited example of this is a Fox News
graph displayed during the proposed
expiration of the Bush Tax Cuts in 2012:
Fox News Graph
Cont’d

⚫ The Fox News graph makes it appear as

if the tax rate will increase dramatically
once the tax cuts expire. But the graph
only shows values between 34% and
42%. If the graph were to use a scale
that begins at 0%, this is what the same
information would look like:
The actual scenario..
Examples..
Cont’d.
Cont’d.
Cont’d.
Colgate advertisement in the UK

⚫ The advertisement claimed that “80% of

dentists recommend Colgate”.
Big Data

⚫ Big data is a field that treats ways to analyze,

systematically extract information from, or otherwise
deal with data sets that are too large or complex to
be dealt with by traditional data-processing
application software.