Business analytics as management tool Y Essentials of business analytics: When it comes to commercial businesses, Business Analytics (BA) is predominantly utilized for various purposes, including: Analyzing data from diverse sources, which can encompass a wide range of platforms such as cloud applications, marketing automation tools, and customer relationship management software, is one of the key applications of Business Analytics. By utilizing advanced analytics and statistical techniques, Business Analytics (BA) helps identify patterns within datasets. These patterns enable the prediction of future trends and provide valuable insights into consumer behavior and their associated activities. v Types of analytics: Business analysis employs four main approaches, implemented sequentially in increasing complexity. e Descriptive analytics: Thi r i lyzing historical data and key performance indicators to identif te ends. By utilizing techniques like data aggregation and dati r Ovi listic understanding of past and present events. Diagnostic anal a fF ex on analyzing past performance t tify, the 0 uel peific trends. It involves techniques su ill . dal , ining, and correlation to uncover the under! of . Once the'likelihood and reasons for an event are determined, algorithms are employed for classification and regression. « Predictive analyti is it in ist ane¢l techniques derived from machine tove: te ane late future Outcomes. It relies on applying statistics to make predictions based on the findings of descriptive analytics. These predictions help construct models that assess the likelihood of specific outcomes. « Prescriptive analytics: This method utilizes past performance data to provide recommendations on how similar situations should be handled in the future. It not only predicts outcomes but also offers suggestions on specific actions that should be taken to achieve the best possible outcome. Deep learning and advanced neural networks are commonly employed to achieve this objective. v Elements of business analytics: The components of business analytics encompass the following aspects: e Data mining: Data mining involves exploring large datasets to discover patterns and connections that, upon analysis, can help address challenges encountered inbusiness settings. Data mining is the practice of extracting valuable insights from datasets, and it is a core component of the broader field of data science. Both terms refer to the utilization of advanced analytics techniques to analyze data. Effective data mining can provide valuable support in the organization and control of various aspects of corporate activities and plans. The procedure of data mining can be divided into four fundamental stages, which are as outlined below: Data collection: The data can be stored in various source systems, a data warehouse, or a data lake, with the latter being a more common storage option in big data environments. A data lake is a repository that typically contains a mix of structured and unstructur itallAd ‘ternal data sources can also be leveraged for analysis. Data preparation: In this pI asi isks is undertaken to prepare the data for the mining process. It starts with exploring, profiling, and pre-processing the data, followed by it rectify error: idress quality-related issues. The data mini ce tf pared, a data scientist will choose the appropriate data mining technique and proceéd to apply one or more algorithms for mining the data. In machine learning applications, these algorithms often require /traini ol itasets to identify the desired information b ii fz e The interpretati lys / it i from data mining are integrated into analytical models, which are subsequently used to inform decision- making and various aspects of business operations. The data scientist or another member of the data science team is responsible for communicating and explaining these findings to business executives and users. v Types of data mining techniques: Data mining using association rules: During the data mining process, association rules, represented as if-then statements, are employed to identify connections between various data elements. Two criteria, support and confidence, are used to assess these relationships. Support measures the frequency at which the related elements appear in the dataset, while confidence indicates the accuracy of the if- then statements based on the number of occurrences. Classification: By employing this approach, the elements within the datasets are segregated into different categories that have been defined as part of the data mining process. rc| * Clustering: Within the scope of data mining applications, data elements that share specific characteristics are organized into clusters. e Regression: Another approach in uncovering hidden relationships within datasets involves predicting data values using a set of variables. Regression techniques can be employed, along with decision trees and other classification methods, to perform these calculations and analyses. * Sequence and path analysis: Data can also be examined for patterns in which a set of events or values precedes subsequent ones. Such patterns can be utilized to forecast future events. * Neural networks: A computer system consisting of a network of programs, known as a neural network, can by imi perations of the human brain, Data mining software and to« hy ri ndors, including Alteryx, AWS, Databricks, Dataiku, DataRol 101 IBM, Knime, Microsoft, Oracle, RapidMiner, SAP, SAS Institute, and Tibco Software, that provide data mining solutions. Some of these vendors, ‘AS Institute and are, offer additional options. Data minin, in eral free and open-source technologies like lel ‘al itt ikit4earn, and Weka. Additionally, certain software mi ffer i it eSas well. Benefits of data mining: Enhanced marketing and sales efficiency leading to higher productivity, Enhanc sustéimet quality, amiined supply chain management, Improved produ management capabilities, Cost reduction. Industry examples of data mining: Retail, banking and financial services, insurance, manufacturing, entertainment industry, healthcare sector. Text Mining: Text mining, also referred to as text data mining, involves transforming unstructured text into a structured format with the aim of discovering meaningful patterns and gaining new insights. * Structed data: The data has been organized into a structured tabular format, comprising rows and columns. This formatting simplifies storage and management for analysis and machine learning algorithms. Structured data includes inputs such as names, addresses, and phone numbers, among other types of information. « Unstructed data: This data does not conform to a specific standardized data format. It encompasses text from diverse sources like social media or product reviews, as well as rich media formats such as video and audio files.° Semi-structed data: While there is some organization, this data lacks the required level of structure to meet the requirements of a relational database. Semi- structured data includes files written in XML, JSON, and HTML formats, among others. v Text mining techniques: Text mining is a procedure that entails extracting information from unstructured textual data by employing a sequence of activities encompassed within the process. * The Retrieval of information: Information retrieval, referred to as IR, encompasses the process of finding and delivering relevant data or documents based on a predefined set of queries or phrases. IR systems utilize algorithms to track user computational linguistics that. actions and identify data thatis relevan actions. !: | wocessing (NLP) is a branch of gies from diverse fields such as computer science, artificial intelligence, li ics, and data science. Its goal is to empower computers with the capability to understand and interpret both spoken and written fort if e The Extraction formation: Dur pr arching through numerous documents, int i ctiol ) elevant data components. Furthermore, the focus is on extracting structured information from unstructured text and storing informationgrel t itiespattrilputes, and relationships in a database, v Data Aggregation: Dal oI i re ering raw data and presenting it in a condensed format, aiming to facilitate statistical analysis. « Time Aggregation: Each individual data point corresponds to a specific resource within a given time frame. * Natural language proces ¢ Spatial Aggregation: Each individual data point represents a set of resources throughout a predefined duration. v Time intervals for data collection and aggregations: * Time frame for reports: The content discusses the timeframe in which data is collected before being distributed. It highlights an example of a resource summary table that includes data gathered for a particular network device within a day. The reporting period may consist of both raw data points and aggregated data points. * Granularity: Granularity refers to the specific timeframe in which data points for a particular resource or group of resources are collected for the purpose of -aggregation. Voting time period: The duration during which resources are sampled for data at a defined frequency is known as the voting time or polling period. The aggregated outcome is calculated as the average of all the data points obtained, incorporating the individual data points collected for each resource during the initial polling period and the subsequent polling session v Forecasting: Forecasting is the practice of making predictions about future events, considering both past occurrences and present circumstances. It involves analyzing historical data and current trends to anticipate future outcomes. ¥ Forecasting methods: Qualitative research approach: known as the judgment mett Ctive results as it relies on the personal judgments of ex s“Or fore ; Since the forecasting process is not based on mathematical models but rather on the expertise, intuition, and experience of tiieiin Jal ereliS a COn: le chance of errors in the forecasts. Quantitative iat qi f Prediction relies on a mathematical approach, providing it with characteristics of consistency and objectivity. approach to forecasting, also v Features of forecdstin ARN AN Involves future nt of ititat liction is grounded in mathematical techniques, imparting it with attributes of reliability and impartiality. Covers recent and historical occurrences: Forecasts are built upon a combination of opinions, intuition, educated estimations, as well as factual data and relevant numbers. Data visualization: Data visualization refers to the act of presenting data in visually appealing formats, including charts, graphs, infographics, and even these elements collectively reflect the company's past performance and expectations for the future. Uses various techniques for forecasting: Most companies, particularly during the planning and budgeting phases, employ quantitative methods extensively.v The process of forecasting: Establishing a foundation for future projections: The initial stage of the process involves establishing the groundwork for analyzing the company’s status and identifying its current position in the market. This step serves as the starting point for the overall process. Formulating projections for the companys ongoing business activities: The initial phase of the forecasting process entails conducting an inquiry, while the subsequent phase involves estimating future industry conditions, analyzing the company's performance, and making projections based on these analyses. Making adjustments to thy ‘ecast: es reviewing past forecasts and comparing them to t tual ot xperienced by the company. Discrepancies between h t projections are examined and analyzed, taking into accol Fa tributed to these differences. Taking a look back at the steps: At every phase, a review is conducted, followed by adjustments e ition v Types of data visu: \ Tables: A table is a structured grid comprising rows and columns, providing a means to com} Vvarious..varig S. Tables al senting a substantial amount of inf in i . ver, they can also be overwhelming rs int ifying broader patterns or trends. Pie charts and stacked bar charts: Both of these types of graphs are divided into segments, each representing a distinct component of the whole. They provide a simple way to organize data and compare the proportions of different constituent parts, Line graphs and area charts: These visual representations illustrate the changes in one or more quantities over time by plotting a series of data points in a specific sequence. Area charts connect these data points with line segments, stacking variables on top of each other and using colors to distinguish between them. On the other hand, line graphs depict these changes using lines to connect the data points. Histograms: A histogram is a type of bar chart that represents the distribution of numbers, where the bars are contiguous and indicate the quantity of data within specific ranges. Unlike other bar charts, histograms do not have any gaps or spaces between the bars.Scatter plots: These visual representations are valuable in revealing the relationship between two variables, and they are commonly utilized in the analysis of regression data. Heat maps: These useful visual representations enable the visualization of behavioral data based on location. This could involve pinpointing spots on a map or even representing data associated with specific webpages. Tree maps: Tree maps display hierarchical data in the form of nested shapes, typically rectangles, and they are gaining popularity. Tree maps are effective for comparing the proportions of various categories by representing them with differently sized areas. v Big data analysis: Big date i jh mploying advanced analytical techniques to process and analyze vz in jata sets. These data sets can be structured, semi-structured, struc’ , from various origins, and can range in size from terabytes to zettabytes. v Uses of big data analftics: Manufacturing: ufacturers: art rit proaches to leverage the abundance? of they generat is improve operational efficiency, streamline business processes, and discover valuable insights that drive profitabili wt The implementation of preciieti i ien¢y of operations, and the optimizationof produ Retail: The retail industry is highly competitive, and companies continuously strive to differentiate themselves from rivals. Big data plays a prominent role in every aspect of the retail process, encompassing product projections, demand forecasting, in-store optimization, and inventory management. Retailers are exploring new avenues of innovation by harnessing the power of big data. The development of products, enhancing the customer experience, maximizing customer lifetime value, improving the in-store shopping experience, and leveraging pricing analytics for optimization purposes. Healthcare: Healthcare organizations are leveraging big data for multiple objectives, such as enhancing profitability and aiding in the prevention of patient fatalities. Within the healthcare industry, hospitals, companies, and researchers accumulate massive amounts of patient data. Genomic research, improving patient experience and outcomes, detecting claimsfraud, and analyzing healthcare billing data. Oil and Gas: In recent years, the oil and gas industry has embraced the use of big data to explore innovative approaches. Leveraging this data has empowered companies in the sector to undertake a multitude of value-adding tasks, including monitoring well activity, creating Earth models to identify new oil sources, and much more. e Anticipatory maintenance of equipment, exploration and identification of oil reserves, and optimization of oil production. Telecommunications: The increasing popularity of smartphones and other mobile devices has opened up significant growth opportunities for telecommunications companies. However, effectively handling the growing volume of data and meeting the demands of customers for i ti i eS pose several challenges for these enterprises. @ Maximizing network capa Te ‘churn in the telecommunications industry, and introducing new product offerings. Financial services: ‘Ss pt s inthe i ices sector are fully leveraging the imme pe ti i « Addressing fri INC tering innovation, combating money laundering, and utilizing analytics for financial regulatory and compliance purposes. al mastery over their dat te ly’ ers businesses to gain ag ff /e| locking new possibilities. Achieving cost saving: IT -Making, and facilitating the development and marketing of new products and services. Importance of bi How big data analytics work does: The term “big data analytics" encompasses the activities of gathering, processing, cleansing, and analyzing large datasets to help businesses effectively utilize their big data in operations. Gathering data, data processing, data cleansing, and data analysis. Big data analytics tools and techniques: * Hadoop: Hadoop is a system that is freely available and is used for storing and analyzing extensive datasets on clusters of affordable hardware, ensuring efficient performance. * NoSQL databases: NoSQL databases are data management systems that operate without fixed schemas, offering great suitability for handling large volumes of unstructured raw data.* MapReduce: MapReduce, a crucial element of Hadoop's framework, serves dual roles in the process. Firstly, it performs mapping by distributing data to different nodes in the cluster through various filters. Then, it proceeds to the reducing phase, which involves aggregating and summarizing the outcomes from each node to generate a response to a query. * Yet another resource negotiator: YARN, an abbreviation for “Yet another Resource Negotiator," is another component within the second-generation Hadoop system. * Spark: Spark is a cluster computing framework that is open-source and allows programming of entire clusters through implicit data parallelism and fault tolerance mechanisms. * Tableau: Tableau is a compreher fics platform that facilitates the entire process of preparin' ‘ing, ing, and sharing insights derived from vast datasets. v¥ Challenges of big ‘ it ity TBA bic serving data quality, safeguarding data url ar st le id platforms are key considerations in thi of | ti v Web and mobile analytics: Mobile analytics gather various types of data, including page views, visits, , ountries, ecific det mobile devices like device model, manufa r, Se n lui ‘apabiliti provider, and user language. This collecti f i , specific information," is analyzed in relatic YY Ick etrics in website audience engagement and the effectiveness of mobile marketing campaigns. e Platforms: The platforms available for mobile development include HTML/JavaScript, WordPress Mobile Pack, PHP, NET, Java, Python, ColdFusion, and Ruby on Rails, node.js/Connect, and TypePad Pro. v Problems with tracking: ¢ Visitor identification: Identifying visitors in mobile web analytics is a crucial yet challenging aspect from a technological standpoint. This difficulty arises mainly because JavaScript and HTTP cookies, which are commonly used for identification, are less reliable on mobile devices, « Javascript page tagging: When a web page is displayed in a browser, a server that is unrelated to the page receives alerts through JavaScript-based page tagging. This method assumes that the user's browser supports and enables JavaScript,although it is possible for neither of these conditions to be met. HTTP cookies: Most smartphones now have support for HTTP cookies. By default, iPhones and Android phones accept browser cookies from websites visited by the user. However, users of mobile devices have the option to disable cookies, similar to desktop browsers. Image tags: The caching mechanisms of mobile devices can impact the usage of images for page labeling. In certain situations, images may still be cached on handsets even if anti-caching headers have been generated by the remote server. IP address: When browsing the web on a desktop machine, the user's identification and location are usually determined based on the network address of the client machine. Ho when na mobile device, the client IP address is associated with the int t lachine owned by the network operator. ¥ Collecting mobile web analytics data: Collecting data for mobile web analytics necessitates a separate analytics. strate: 01 to .collecti for traditional web Packet sniffing: pk h, all h | data capture or passive network capture, entails placing a t? etwet le USerS and the web server to capture the entire conversation between the client and f Image tags or /be: s: I fe EY IS images for mobile web analytics by ensuri jat lied it 301 ntly unique. The level of information that tt re ‘al is determined by the architecture provided by the provider. Link Redirection: Link redirection is a valuable technique for monitoring the behavior of mobile visitors. It is the sole method that can accurately track clicks originating from marketing activities such as advertising, search, and other promotional efforts. HTTP header analysis: This tool provides valuable information about essential aspects of the mobile phone and browser. When used in conjunction with a device database like WURFL, it enables detailed analysis and understanding of mobile devices. IP address analysis: The operator database utilizes the Internet Protocol (IP) addresses of the operators’ internet gateway devices to determine the countries of origin for the operators. However, it is important to note that IP addresses alone| may not be enough to identify all mobile network providers or countries, as some mobile network operators share their networks with virtual network operators. * GAP gateway traffic logs: As mobile traffic passes through these servers, the logs of WAP gateways contain a vast amount of information that can be extracted and analyzed to obtain valuable insights. Companies like OPENWAVE offer software solutions that can parse these logs and provide the necessary information. ¥ Comparing web vs mobile analytics: The increasing number of customers using their mobile devices for various activities such as gaming, app usage, and shopping has led to a significant growth in data generation. Companies in the eCommerce and online gaming sectors have recognizé i id lready leveraging consumer data analysis to gain insights an re thei on investment (ROI). These businesses understand the im their operations as it provides valuable and actionable data ion Ine notable difference between web analytics and mobile analytics is the concept of "sessionisation." This aspect stands out as the mgst signific: Paring the ssionisation occurs when a session ID is, eater tt re ISI user visiting a website or mobile application. v Importance of business analytics: « Enhances perf by goffer rehensi standing of what is effective and what is aot within y izati « Facilitates fastel re Act ision- « Minimizes the risk of unfavorable outcomes by guiding the company towards optimal choices based on consumer behavior, trends, and performance. « Stimulates innovation and creativity by providing insights into customer concerns and addressing them. v Benefits of business analytics: One of the key benefits is the ability to anticipate and prepare for unexpected situations within your company. Business analytics (BA) allows organizations to model and analyze sales, earnings, and other important indicators, enabling them to project future trends. This capability empowers businesses to proactively identify and anticipate changes that may occur on an annual, seasonal, or any other time scale, enabling them to effectively plan and prepare for the future. v Challenges of business analytics: Business analytics require the engagement of IT, which means having the appropriate technological infrastructure and tools in place to manage the data. Executive ownership is also required for business analytics. Forbusiness analytics to bi ui , the business and information — technology teams need to ¢6llabor anisation is at it, it is important that appropriate tools for mana ri in e so that the predictive models can be deployed and an agile strategy can be used. Certain organizations, particularly MSMEs (Micro, Small, and Medium Enterprises), may encounter challenges in recruiting qualified) in \e ee ind for personnel with jata anal I i ions may also face limitations i business analyti Business analytics skills: To excel as a business analyst, individuals should possess a in data storage specific range offSki outli sToythrive a: ‘iNess analyst, it is essential to have the f sl inkin« Ir -salving abilities, effective communication, in iver al nt fail.