Slot: Wed 11:45 to 02:45

Q1: Identify the various business scenarios in which you can apply business
analytics

Real-World Business Analytics Examples. Growing sales. Developing marketing strategies.

Using predictive analytics. Improving financial efficiency. Increasing productivity through
streamlined processes.

 Growing sales:  In response to inconsistent sales, an online retailer implemented a sales
dashboard, hoping to stabilize and grow its sales. The sales dashboard made it clear that data
wasn’t driving sales. This prompted the retailer to reconfigure its sales strategy and shift its
target setting system in response to data. As a result, sales grew by 24 percent.

 Developing marketing strategies: A clothing retailer with early success started to see
customer purchases and sales level off. The retailer decided to install a retail dashboard
tailored to demographic information about current and target customers. With new access to
this information, the retailer located areas for improvement and identified where sales were
strongest. The retailer was then able to segment buyers by relevant factors and customize
marketing strategies to each group. By using internal data and interpreting various
implications, the retailer could better market to its customers and grow its customer base.

 Predictive analytics: A gym chain wanted to reduce customer attrition. The company
installed a predictive analytics model that identified customers likely to cancel their
memberships, and then, using historical data, predicted incentives to offer that could improve
customer retention. When at-risk customers arrived at a gym, the system alerted membership
staff so they could discuss incentives and stave off cancellations.

 Improving financial efficiency: A company in the bioscience field turned to business

analytics to determine why after recent growth, it was experiencing a low collection
percentage, excessive claims denials and a high balance of money owed to it. With the help
of software that allowed for intuitive online reporting, the company used account-based
metrics, a strategy that increases engagement with targeted accounts, to identify the cause of
the excessive claims denials. As a result of business analytics, the company managed to
resolve millions of dollars’ worth of denied claims.

 Increasing productivity through streamlined processes:  An online food

ordering company wanted new insights that could boost productivity and streamline
commercial operations. The company implemented a dashboard that gave real-time access to
its customers’ life cycles. This produced data that facilitated the streamlining of sales
activities and marketing campaigns, thereby achieving the goal of boosting productivity.

Q2: What type of decision making will you do in each scenario?

Types of Decision Making
Generally speaking, there are three ways in which you can make a decision:

Intuition:
This is used to describe when you have a ‘gut feeling’ about something.
This type of decision making is handy when you have to make a decision quickly, or you have a
considerable amount of experience that enables you to make a snap judgment of the situation.

Logic:
In comparison to intuition, logic requires the person to come to an informed choice based on all
the facts presented to them.
Before making a decision, that person will have been presented with large amounts of
information surrounding it, and it will be their job to decide which is the most suitable decision
based on all of the disadvantages and advantages of the options that they have available to them.
The ability to use logical reasoning is especially useful within certain types of employment, such
as the legal sector and consulting.

Cognitive Bias:
Inherent bias can both disrupt and distort the decision-making process. The most common
cognitive biases include confirmation, anchoring, the halo effect and over-confidence:

 Confirmation: is when a decision maker will seek out evidence that confirms their
previously held belief, while discounting any evidence in support of other conclusions.
 Anchoring: is over-reliance on a single piece of evidence or experience to reach certain
judgements.
 The halo effect: is an overall impression of a company, individual, brand or product
which has a direct impact on an individual’s feelings and thoughts.
 Over-confidence: occurs when someone overestimates how reliable their judgements are.