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36.1: Data analytics

Definition: Data analytics is the science of analyzing raw statistical data to make
conclusions about that information to inform business decision-making

The purpose of data analytics is to analyze data to identify trends, correlations, and
insights that can be used to help make informed business decisions.
- Plays an important role in helping businesses optimize their performance.
- Make better business decisions
- Analyze consumer trends, levels of consumer satisfaction
- This can lead to new and improved products and services.

Data for data analytics is collected by an MIS (Management information system)

- Definition: MIS, the computerized databases and procedures that managers use to
collect data to measure the effectiveness of their organizations departments,
teams, specific projects or even individual employees

- MIS: Key of systems ( almost always IT) and reporting processes that gather data
from a range of sources.
- Data is sorted and organized in a way that produces a meaning.
- Accessible and Usable format
- Data from MIS, subject to analyzing and data analytics, and FIGURE OUT a
meaning <3.

36.2 Database
Definition: database, a store of information that is organized for easy access and
management and updating.
- You are being watched.
- IT Databases are vast stores of organized information from which data can be
sorted, collated, and easily shareable.
- Databases: help small business owner and managers of large businesses, to
organize and track their customers, stock and employees.
- Ex. up-to date, stock tracking f each item used or sold, operations database
for accurate scheduling of production to meet demand.
36.3 Cybersecurity and cybercrime
Definition: Cybercrime is…

Definition: Cybersecurity is..

The internet has assisted in the birth of development of crime using computers or aimed
at computers.

> In 2020, $145 Billion on systems designed to reduce the risk of cybercrime attacks =-
these systems are known as cybersecurity.

> The cost of cybercrimes was more than 1 trillion in 2020.

Five main forms of Cybercrime:

- Phishing scams: presenting as a trustworthy source, but being a disguised criminal
who is requesting personal information and/or installing malware, customers get
tricked.
- Website spoofing: creating an exact copy of a legitimate website to lead customers
to phishing scams.
- Ransomware: o form of malicious software designed to block access to a computer
system, where you need to pay money to get it back.
- Malware: Software that is specifically designed to disrupt damage or gain
unauthorized access to a computer system
- IOT Hacking: gaining illegal access to the devices through the wifi.

● Most cybercrime are carried out in order for cybercriminals to generate profit,
and/or disable computer systems, and/or spread illegal information, images or
other materials.

Possible Financial impacts of Businesses:

- Loss of sales
- The cost of cybersecurity
- Payment of ransom
- Reputation damage
36.4: Critical infrastructures

> The systems networks and assets that are essential for the security of the organization
(or governmental), a risk of large scale failure if there is a breach of cyber security (the IT
system is a part of a company's critical infrastructure)

Definition: Artificial neural networks are programming computers to behave like

interconnected brain cells.

● ANNs are created to recognize handwriting, facial recognition, they are 99%
accurate when identifying these things.
● Businesses use ANN’s for their marketing strategy because they can process a lot
of information at once.
○ Examples : personal details, shopping patterns, and responses to special
offers and promotions.

(missing some stuff here we will add them later)

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Virtual Reality

● What is VR? Virtual reality (VR) is a simulated experience that can be similar to or
completely different from the real world. It typically involves a user wearing a VR
headset to immerse themselves in a computer-generated environment.
● Components of VR: A typical VR setup includes a VR headset (like Oculus Rift or
HTC Vive), sensors or cameras to track movement, and handheld controllers for
interaction.
● Applications: VR is used in a wide range of fields, including gaming, healthcare,
education, architecture, automotive design, and therapy. VR is prominently used in
pilot training simulating situations in the air.
○ The primary goal of VR is to create an immersive and interactive
environment that can be used for various purposes, such as entertainment,
education, training, and simulation.

Internet of Things (IoT)

- Broad system of physical objects including softwares, electronics and sensors that
connect with the internet (example: smart devices)
- Collect, store and transfer huge amounts of data
 - IoT in the Healthcare industry → wearable devices to record health data and help
figure out the best treatment
- IoT in the car manufacturing industry → data collected from the car sensors to
suggest when it needs servicing
- Purpose of IoT is for data to self-report in faster times in order to improve
efficiency
- Removes the need for human intervention in the collection and interpretation of
data
- Important for businesses to abide by the law for personal data in the
collection/storage/transferring processes

The benefits, risks and ethical implications of advanced computer technologies and
technological innovation on business decision-making and stakeholders
● Management Information Systems (MIS) - refers to the study of advanced
computer technologies and their impact on organizations, people and the
relationship between them.
● Benefits
○ Enables businesses to have better coordination, control
○ Better analysis and visualization of data and information relevant to
operations
○ Enables managers to make better informed decisions
■ Flexible, speedy data access in order to achieve goals and objectives
of the organization
● Risks
○ Hardware and software failure, cybercrime and data privacy
○ Monitoring of employees who have access to certain data and information
can cause conflict between employers and employees
○ Employees want to maintain their privacy while employers want to ensure
no data is misused
● Implications
○ Staff monitoring policies can be implemented
○ Installing software on work computers and mobile devices that block access
to specific websites

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Artificial Intelligence (AI)

It is the research into machines which can simulate human thought processes and has
been undertaken since the first electrical computers

Examples of AI
● Siri or alexa
● Self driving cars
● Robot financial advisers
● Conversational robots in customer service
● Manufacturing robots that use AI
● Recruitment and job selection AI
● AI assessment by a bank of loan risks to business

Impact of AI on a business
● Saves time and money - it automatically does routine processes and tasks
○ Ex: recording of financial transactions
○ Ex: Analyzing market research
● Increase of productivity and efficiency of operations
○ Ex:AI controlled manufacturing processes
● Avoids data analysis mistakes
● Use the insight that they gain from analyzing large amounts of the customer
spending data to predict customer preferences → therefore offering them a better
personalized experience
● Creates new contacts to increase customer base
● Increase revenue by identifying the maximizing sale opportunities
● Offer intelligent advice and support
○ Ex: chatbots customer service

AI and the future

● Better at data analysis than a human brain is
● Can analyze massive sets of data and can give recommendations about how to
respond to the data analysis
● Managers can use AI to help assess if someone's actions will have a positive or
negative impact
○ Improves decision making
● Some people certain AI controlled technology will undertake all business jobs even
senior managements
● Jobs replaced by machines but human decision making will still be required
● More jobs in programming and support for AI focused businesses

Big Data:
Big Data: Extremely large sets of data that may be analysed by computers to establish
trends, patterns and associations which can help to inform business decisions

Where does all the data flowing into a business come from?

● Details of transactions between the business

● IOT (Internet of Things) Devices
● Social Media
● Feedback from cost and profit centers
● Feedback from AI controlled machines
● Feedback from customers

Benefits of big data for business:

● Recruiting the right employee: Recruiting agencies now look at CV and Linkedin
profiles for keywords which match their job description. Recruitment is no longer
based on how a person looks, and how they act in interviews.
● Increasing Sales: The digital footprints customers create when browsing online or
posting on social media helps businesses a great deal about shopping preferences.
This allows the business to adapt products exactly to its customers wants and
needs.
● Increasing productivity and efficiency: Quicker data analysis will increase personal
productivity of the specialists employed. In addition, the business can gain more
information about its own operations, productivity of each team, and feedback on
customers. This will allow them to spot areas which need to be more productive
and effective.
● Reducing costs: Big data helps make forecasts about future material and
commodity cost movements could encourage a business to source cheaper
materials. Rapid analysis of operations data about quality control levels should
lead to rapid action to cut wage rates.

Limitations of big data for a business:

● Questionable data quality: From maybe unreliable consumer surveys or social

media platforms - this will make resulting analysis of data potentially risky for a
business.
● Huge amounts of data have to be kept securely, especially if it includes personal
customer data. The data is at risk of being attacked by cybercriminals.
● Data centers are costly to purchase, provide and manage.
● High salaries demanded by experts in big data field and those who know how to
manage and design the needed configurations
○ Collecting and analyzing data is costly but if undertaken correctly the
 benefits exceed the costs

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AO3 question
Customer Loyalty Programmes

Definition:
- Retention strategy
- Incentivizes customers to continue to purchase the same products and brands of
the business
- This is done to minimize the chances of customers going to competitors for the
same product
- A marketing approach designed to improve customer relationships and to ensure
both parties feel that they are getting something beneficial from this.
How it works:
- Customers provide their ongoing support by making repeat purchases or hiking
with a brand on a recurring basis.
- E.g., a reward point system that incentivizes the customer to keep buying, if the
end goal is something like special discounts or gifts.
- Businesses switched to using subscription models to collect recurring payments
from customers; this is caused by winning customers' loyalty
- In the case that it works, the marketing aspect of the product happens to the
customers through referrals.
- Loyal customers must feel that they are getting value for money for their longevity
with the brand and discipline.

Examples: Netflix or inthinking business management

Cons
- Costly, especially if you lose customers and need to find new ones, due to the lack
of a loyalty program.
- If not created and orchestrated sufficiently it is very easy for it to falter or for
customers to switch to the competitors.
- Difficult to maintain loyalty
- Inconstancy profitability
- Has a specific demographic that it can work at.
- Risk to have discounts since if loyal customers don't come back they lose money,
and vice versa.
 - Many competitors in the field so the company is competing with many different
loyalty techniques
Pros
- Without a customer loyalty program, customers might choose to switch to the
competition permanently since there is nothing tying them back to the business.
- It creates this sort of connection between businesses and customers that might
lead to a never-ending stream of revenue (feels special and valued, gives
customers motivation to return.)

How to make a free loyalty program to work :

- a large amount of data is needed to make sure that the rewards reflect the
customers' needs (collect, process, and store the data )
- That the cost of operating the promise does not outweigh the benefits
- Gathering feedback from customers

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Definitions:
Data Mining: the process of extracting raw data from large amounts of different data
sets and summarizing this using intelligent methods into useful information in a coherent
structure for further uses.

Consumer Profiling: to examine consumer purchasing patterns and making connections of

the data to consumer demographics in order to make better decisions.

Market Basket Analysis: retailers use data mining to gain a better understanding of
consumer purchasing patterns.

Customer Loyalty Schemes: business such as supermarkets is mined data to retain

customers by developing appropriate reward programs.

Notes:

- relies on computers- important for operations since it gives customer data

- used to create algorithms and existe a range of statistical techniques for data
collection
- analysis is used to identify patterns, trends and relationships
- covers the topics of: big data, analytics, artificial intelligence, machine learning and
database system

Data mining can create (advantages):

 ● competitive advantage- business knows more about its customers
● effective marketing strategies can be developed
● increased revenue, decreased cost
● improved consumer relations

Limitations:

Consumers have a issues with their data being collected because:

1. they don’t know that it is being collected- privacy concerns

2. can be used for unethical or illegal purposes
3. can be used for commercial advantage

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The use of Data mining to inform decision making (AO3)

Definition: the process of analyzing a large batch of information to establish trends and
patterns which could be useful for business decision making

Data mining is the management process of using data for

- Predictive analysis
- Forecasting purposes

Use of management information to find trends, patterns and correlations from large data
sets and using findings to make predictions about future situations.

Data mining can be useful to

● Solve business problems that were too time consuming to do manually

● Apply trends they find into to make predictions in the future and prepare them to
take decisions to influence business outcomes

Uses of data mining

- Promotion
- Banking and finance
- Decision making

Limitations

● Privacy issues- concerns about personal privacy

● Security issues- data that business gathers and stores about its employees
Past relationships and trends may not apply in the future and it's always a risk no matter
how effective the mining techniques were. Consumer trends may be affected by outer
external factors such as economic recession.

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