BCA V SEM NEP SYLLABUS

Data analytics
Introduction
 Data: Data is a set of values of qualitative or quantitative
variables. It is information in raw or unorganized form. It
may be a fact, f igure, characters, symbols etc. Data can be
numbers, like the record of daily weather, or daily sales.
Data can be alphanumeric, such as the names of
employees and customers.
 Information- Meaningful or organized data is information,
comes from analyzing data.
Data base: A database is a modeled collection of data that is
accessible in many ways. A data model can be designed to
integrate the operational data of the organization. The data
model abstracts the key entities involved in an action and their
relationships. Most databases today follow the relational data
model and its variants.
Take the example of a sales organization. A data model for
managing customer orders will involve data about customers,
orders, products, and their interrelationships. The relationship
between the customers and orders would be such that one
customer can place many orders, but one order will be placed
by one and only one customer. It is called a one-to-many
relationship. The relationship between orders and products is
a little more complex. One order may contain many products.
And one product may be contained in many different orders.
Data Warehouse:
A data warehouse is an organized store of data from all
over the organization, specially designed to help make
management decisions.
Data can be extracted from operational database to
answer a particular set of queries. This data, combined
with other data, can be rolled up to a consistent
granularity and uploaded to a separate data store called
the data warehouse. Therefore, the data warehouse is a
simpler version of the operational data base, with the
purpose of addressing reporting and decision-making
needs only.
Data Mining :
Data Mining is the art and science of discovering useful
innovative patterns from data. There is a wide variety of
patterns that can be found in the data.
Evolution of Data Analytics
Why Data Analytics?
Organizations today handle and store billions of rows of
data, possibly with millions of combinations. Data
Analytics has been hailed as the ‘Game Changer’,
because businesses could transform the raw data into
something actionable, which improved their profits. One
of the first applications of analytics were found in the
field of marketing, sales and customer relationship
management.
Once the firms had analyzed the data, they found
plethora of information ranging from insights into the
customer’s needs to consumer behavior to
understanding the demand for products/ services.
Evolution of Analytics:
1. Analytics era 1.0:
The first era is also known as the era of ‘Business
Intelligence’. Analytics 1.0 was a time of real progress in
gaining an objective, deep understanding of important
business phenomena and giving managers the fact-based
comprehension to go beyond intuition when making
decisions.
For the first time, data about production processes, sales,
customer interactions, and more were recorded,
aggregated, and analyzed. Data sets were small enough in
volume and static enough in velocity to be segregated in
warehouses for analysis.
However, readying a data set for inclusion in a warehouse
was difficult. Analysts spent much of their time preparing
data for analysis.
Analytics era 2.0 : Also known as the era of ‘Big Data’.
The analytics 1.0 era lasted until the mid- 2000’s and as
analytics entered the 2.0 phase, the need for powerful
new tools and the opportunity to profit by providing them
quickly became apparent. Companies rushed to build
new capabilities and acquire new customers.
Example: LinkedIn, created numerous data products,
including People You May Know, Jobs You May Be
Interested In, Groups You May Like, Companies You May
Want to Follow, Network Updates, and Skills and
Expertise and to do so, it built a strong infrastructure and
hired smart, productive data scientists.
Innovative technologies of many kinds had to be created,
acquired, and mastered in this era.
Big data could not fit or be analyzed fast enough on a single
server, so it was processed with Hadoop, an open source
software framework for fast batch data processing across
parallel servers.
To deal with relatively unstructured data, companies turned to
a new class of databases known as NoSQL.
Much information was stored and analyzed in public or private
cloud-computing environments.
Machine-learning methods (semi-automated model
development and testing) were used to rapidly generate
models from the fast-moving data.
The competencies/ skills thus required for Analytics 2.0 were
quite different from those needed for 1.0.
The next-generation quantitative analysts were called data
scientists, and they possessed both computational and
analytical skills.
Analytics era 3.0:
Like the first two eras of analytics, this one brings new
challenges and opportunities, both for the companies
that want to compete on analytics and for the vendors
that supply the data and tools with which to do so.
High-performing companies will embed analytics directly
into decision and operational processes, and take
advantage of machine-learning and other technologies
to generate insights in the millions per second rather
than an “insight a week or month.”
Data architectures (i.e., Hadoop) will augment the
traditional approaches removing scale barriers. Analytics
truly becomes the competitive differentiator for
enterprises who capitalize on the possibilities of this new
era (International institute for analytics, 2015).
The pictorial representation of the evolution of Data
Analytics:
The pictorial representation of the evolution of Data Analytics
shows that the concept of Data Analytics started in the early
1980s.
In 1980’s the Data Analytics is used in such a way that only
reporting is used to happen.
That means what is happening with the data being obtained.
After this type of Data Analytic modeling, the Data Analytic is
being moved into the second phase that is with early 1990’s
more of Analysis (Analytics) came into existence.
In this period, it focuses on “why did it happen” to the data.
Then in 2000 onwards, the Monitoring of data happens. The
dashboards and the scoreboards are being used for the same.
With this type of analysis, a clear idea of what’s happening to
the data is being understood.
Then after 2010 onwards, the Prediction with the data
and the data inputs being implemented with.
That means, what will happen with the data is the
main question being asked in the period after 2010.
The different methods of statistics, data mining and
the optimization is being used in this period.
Now we are in the era with the more detailed data
analytics and that is of nature Prescriptive.
In this period we are training our machines to be
smarter and focusing on the computations to happen
with less time and less efforts.
So we can conclude that we are in the period with
more of AI.
Overview of Data Analytics:

Definition of Data Analytics:

Data Analytics is the process of exploring and
analyzing large datasets to find hidden patterns,
unseen trends, discover Correlations and valuable
insights.
Data is collected and organized, then analysis is
performed, and insights are generated as follows:
Data = a collection of facts.
Analytics = organizing and examining data.
Insights = discovering patterns in data.
Data insights that:
Optimize processes to improve performance.
Uncover new markets, products or services to add new
sources of revenue.
Better balance risk vs. reward to reduce loss.
Deepen the understanding of customers to increase
loyalty and lifetime value.
Campaign Optimization Example
A marketing team can collect data of different email
campaigns and use data analytics to gain insights on
which one resonates best with their customers. The
marketing dashboard below provides an in-depth view of
the conversion funnel for email campaigns.
The data insight in this case is that the “Bend the Trend”
campaign has the highest enrollment rate, which is the
primary key performance indicator for this team.
Why Data Analytics?
Competitive advantage.
Removes inefficiency in the system/organization.
Provides ability to make better decisions.
Ex: Problems faced by Flip kart
Forecast demand for each SKU.
SKU forecasting predicts the demand for specific
products in a company's inventory. The process analyzes
data, such as past sales and consumer trends, to help
businesses predict future product demand and keep
optimum amounts of stock on hand without overpaying
for storage space.
Predict customer cancellations and returns.
Predict customer contacts at the customer service.
Predict what a customer is likely to purchase in future?
How to optimize the delivery system?
Primary Focus Areas for Analytics
TYPES OF DATA ANALYTICS
Analytics can be classified into four levels which help the
organizations to become mature in terms of analytical
proficiency.

1. Descriptive Analytics
2. Diagnostic Analytics
3. Predictive Analytics
4. Prescriptive Analytics
1. Descriptive Analytics
Descriptive Analytics : This is the simplest form of analytics, It
summarizes an organization's existing data to understand what
has happened in the past or is happening currently. It
emphasizes "what is going on in the business”.
Descriptive analytics mines historical data to understand the
relationship between past events and the present conditions of
the organization.
It is one of the most widely used analytical tools favored by
marketing, finance, sales, and operations teams, as it efficiently
looks into past data and provides an analysis of the changes by
comparing patterns and trends.
Descriptive analytics answers the question, “What happened? In
the past”.
It summarizes current business status in the way of
narrative and innovative visualization.
Data visualization is a natural fit for communicating
descriptive analysis because charts, graphs, and maps
can show trends in data—as well as dips and spikes—in
a clear, easily understandable way.
It highlights past trends that lead to valuable insights for
business, but we do not emphasize here "why these
trends happened".
We use Descriptive Analytics when we want to
summarize the story of an organization's performance
(mostly in the form of Dashboards).
It provides us with a comprehensive view by joining
different things together to highlight hidden trends and
insights.
Information extracted from descriptive analytics helps leadership to take
actions to make things better, and now with the help of Big Data
technologies, management sees the real–time progress of various vital
business metrics. Management sees a complete picture by benchmarking
company performance against the past few years and key competitors.
Below are a few examples of knowledge extracted from descriptive
analytics :
More cars come for servicing during monsoon due to water problems so
garage should think about hiring part–time mechanics during monsoon to
cater to the temporary demand.
Men convert credit card transactions into EMI more than women; banks
should target men for EMI promotion as they are more likely to opt for the
promotional campaign.
Internet routers show lots of information packets drop during 4–6 PM due
to high congestion, support team to provide extra bandwidth during this
time slot for seamless customer experience.
 The health department observes a recurring hike
in malaria disease in a particular locality every
year during the rainy season; they find water
bodies are open in that area which is causing
mosquito breeding.
For example, in an online learning
course with a discussion board,
descriptive analytics could
determine how many students
participated in the discussion, or
how many times a particular
student posted in the discussion
forum.
Essential Tools used in Descriptive Analytics :
Statistical Summary : It provides statistical descriptions
for a given business metric, e.g. Mean, Median, Standard
Deviation, Percentile, Interquartile range, etc.
Z–Score : Z Score tells us how far (in terms of standard
deviation) is a particular value of x from its mean.
Coefficient of Variance : It is a ratio where we divide
standard deviation with mean.
Interquartile Range : It is an important measure to gauge
the variation in the dataset.
2. Diagnostic Analytics
Diagnostic analytics addresses the next logical question,
“Why did this happen?”
Diagnostic analytics provides "Why did it happen in my
business".
It is a bit advanced where analysts examine data in order
to find reasons for business problems or opportunities.
Ex: In a time series data of sales, diagnostic analytics
would help you understand why the sales have decreased
or increased for a specific year or so.
Eg: Reduction in production because of drop in quality.
Below are a few examples :
A company found that employees are not completing
learning certifications, analyst diagnosed that most of
the employees are stuck at programming assignments,
where programming interface was not supportive/
flexible, and there was no way to get hints/ help to
proceed further.
There was a low hotel check–in feedback score; analysts
diagnosed that front office executive enters customer
details which are not required fields during check–in
itself. Typing speed and system navigation is also very
slow which is resulting in a longer check– in time.
The product return rate was very high during last month,
and it found that out of total return items more than 60%
of products were supplied by two vendors only, where
the vendor provided the wrong specification about
products.
Essential tools used in Descriptive Analytics :

Correlation Analysis : It is a statistical measure that

indicates the strength of the relationship between two
variables.
5 Why Analysis : It is a very structured approach where
we try to dig into a problem and peel it layer by layer to
reach the root cause of the problem.
Cause and Effect Analysis : Here, we identify all
possible reasons for one problem then we pick up all
the reasons as a problem one by one and try to find
other causes for that problem.
3. Predictive Analytics
Predictive analytics is used to make predictions about
future trends or events and answers the question, “What
might happen in the future?”.
Predictive analytics is the heart of business analytics, it
aims to help the organization by predicting probabilities
of occurrence of a future event or future values of any
essential business metrics.
Once organizations have a stable setup for descriptive
analytics, Predictive analytics combines this historical
data with advanced business protocols (policy and rules)
to forecast future values of business events.
 Predictive analytics allows organizations to become
forward–looking, providing an appetite to consume
calculated risk by anticipating customer behavior and
business outcomes.
Ex: sales in the next month/ quarter, employee attrition,
and product return rate, etc.
Below are a few examples :
Netflix predicts the next movie customers want to watch,
more than 80% of customers select their next movie
from their recommendation list. In this way, Netflix earns
more rental income from regular customers by
suggesting them the next film or programs.
Airline companies predict competitive airfares to
extraordinary and ordinary days also they indicate how
much airfare should be increased as per the increased
customer's traffic on their websites.
IRCTC predict the probability to confirm the seat which
provides assurance to the customer about their seat
confirmation, it helps to attract more customers to their
portal.
Taxi services predict the demand during different time
slots and change their tariff accordingly.
Important Tools used in Predictive Analytics :
Regression Analysis : It establishes the mathematical relationship
between input variables and output variables, which means if we can
calculate the future value of output for any given input, e.g. sales
forecast for next month.
Logistic Regression : It is a classification predictive analytics technique
that can predict the output class for any given set of inputs. E.g. by
providing customer demographics logistic regression can indicate
whether the customer will default bank loan in the future or not.
Decision Tree : Most of the time, we use a decision tree as a
classification technique; it tells us the output probability of the output
variable for various permutations of our input variables. Although it can
be used for continuous output variables also
Clustering Techniques : These techniques segregate our customers
into a few logical segments so that we can create tailored offers for
a different type of customers as per their needs and interests.
Random Forest : It is another very famous business analytics
technique that uses a collaborative approach to solve the problem
by generating a large number of predictive models. Their accuracy is
generally better
4. Prescriptive Analytics
Finally, prescriptive analytics answers the question, “What
should we do next?”
Prescriptive analytics solves the complex business problem
as it is the most advanced form of analytics, where we have
to choose the most optimal way to increase important
business metrics.
perspective analytics can be applied once we have sound
business knowledge from descriptive and predictive analytics.
Descriptive and predictive analytics suggest to us various ways to
improve business performance while prescriptive analytics tells
us the pros and cons of all alternatives and try to provide the
optimal outputs by keeping minimum risk in execution.
Prescriptive analytics is not limited to predict "what will happen"
and "when will it happen" but it also tries to reveal "why it will
happen" and "what would be the impact on the business"
Below are Examples of Prescriptive Analytics :
In 2019, there was a prediction of the cyclone on
coastal areas of Gujarat (by predicting changing
airspeed, varying wind direction, and mathematical
relationship between low pressure in the ocean with
changes in cyclone intensity) therefore Government
and disaster management team had taken proactive
actions in shifting citizens from coastal areas to save
places, and they stopped fishermen from going to sea
and arrange comfortable camps. While in a similar
situation in 1999 we lost approx. 10,000 lives due to
cyclone.
Banks use prescriptive analytics to identify investment
options for their customers to maximize their returns
and minimize risk. They balance customer's portfolio
by having an optimized ratio of equity, debt, and other
types of funds.
At the time of launching a new service or a product into the
market, organizations have to keep various factors into the
mind like the cost of the product, features of the product,
geographies in which they will launch first, customer
segments whom they want to attract, marketing channels
for product promotion, etc. By getting analytical results
from descriptive and predictive analytics, analysts apply
prescriptive analytics to decide the right mix of all these
factors to make a product launch successful.
In agriculture crop yield depends on various factors like
rainfall, soil type, demand in the market, etc. Analysts apply
prescriptive analytics and suggest the best kind of crop in
different regions as per the rainfall and demand forecast in
that season.
Important Tools used in Prescriptive Analytics :
Linear Programming : In linear programming, we optimize
the objective functions like revenue, market share, customer
feedback ratings by also keeping constraints in the model
like budget, no. of people deployed, etc. as linear functions.
Analytical Hierarchy Process : We apply these techniques in
scenarios where we have to identify the best solution among
various available options, and there is the list of criteria's to
select the solution, e.g. select best cloud service providers
among top 5 organizations by keeping multiple factors into
consideration like budget, customer service, flexibility to
upgrade, backup services, maintenance cost, etc.
Combinational Optimization : It involves identifying optimal
solutions from a considerable number of finite solutions, e.g.
the travelling salesman problem, vehicle routing problem,
etc.
Overview
Example:
THE APPLICATIONS OF DATA ANALYTICS

 The major industries that are implementing

advanced analytical technologies include –
 Business analytics
 Retail
 Healthcare
 Media and Entertainment
 Banking
 Transportation
Healthcare :
Health care industries analyse patient data to provide lifesaving diagnoses
and treatment options. They also deal with healthcare plans, insurance
information to derive key insights.
Retail:
Retailers use data analytics to understand their customer needs and buying
habits to predict trends, recommend new products and boost their business.
Manufacturing:
Using data analytics, manufacturing sectors can discover new cost saving
and revenue opportunities. They can solve complex supply chain issues,
labour constraints and equipment breakdowns.
Banking:
Banking institutions gather and access large volumes of data to derive
analytical insights and make sound financial decisions. They find out
probable loan defaulters, customer churn out rate and detect frauds in
transactions.
Logistics :
Logistics Companies use data analytics to develop new business models,
optimize routes, improve productivity and order processing Capabilities as
well as performance management.
Business Intelligence (BI): Data analytics helps organizations make data-
driven decisions by analyzing historical and current data. It involves creating
reports, dashboards, and visualizations to monitor key performance
indicators (KPIs) and gain insights into business operations.
Marketing Analytics: Marketers use data analytics to understand customer
behavior, segment customers, and optimize marketing campaigns. This
includes analyzing website traffic, social media engagement, email
marketing performance, and more.
Financial Analytics: In finance, data analytics is used for risk assessment,
fraud detection, portfolio management, and algorithmic trading. It helps
financial institutions make informed decisions and manage their
investments effectively.
Healthcare Analytics: Data analytics can improve patient care by analyzing
electronic health records (EHRs), predicting disease outbreaks, identifying
trends in patient outcomes, and optimizing hospital operations.
Supply Chain Management: Analytics is used to optimize supply chain
processes, reduce costs, and improve efficiency. This includes demand
forecasting, inventory optimization, and route optimization for logistics.

Customer Relationship Management (CRM): Businesses use data

analytics to enhance customer experiences. It involves analyzing
customer data to personalize interactions, predict customer needs, and
improve customer retention.

Human Resources (HR) Analytics: HR departments use data analytics

to make data-driven decisions about recruitment, employee retention,
performance management, and workforce planning.

E-commerce and Retail: Retailers analyze customer data to optimize

pricing, inventory management, and product recommendations. They
also use analytics for fraud detection and loss prevention.
Energy and Utilities: Energy companies use data analytics to
optimize energy distribution, predict equipment failures, and
improve energy efficiency.

Manufacturing and Quality Control: Analytics is used to monitor

manufacturing processes, identify defects, and improve
product quality. Predictive maintenance is also common in this
industry.

Sports Analytics: Sports teams and organizations use analytics

to make decisions about player performance, game strategies,
and fan engagement. This includes player statistics analysis,
injury prediction, and game simulations.

Transportation and Logistics: Data analytics plays a crucial role

in optimizing routes, managing transportation fleets, and
reducing fuel consumption in the transportation industry.
Environmental Analysis: Data analytics can help monitor and
analyze environmental data, such as air and water quality, climate
change, and wildlife conservation efforts.

Government and Public Policy: Government agencies use data

analytics to make informed policy decisions, detect fraud and waste,
and optimize public services.

Education: Educational institutions use analytics to track student

performance, personalize learning experiences, and improve
educational outcomes.

Social Media and Sentiment Analysis: Social media platforms use

data analytics to understand user sentiment, trends, and
engagement. Businesses use this information for brand monitoring
and reputation management.
Retail :
The retail sector most likely sees the maximum application of
cutting-edge data analytics techniques.
With the industry steadily shifting to a digital ecosystem, an
increasing number of retailers are using data analytics to
understand consumer behavioral patterns, which helps the
designing of customized services that enhance the buying
experience.
Healthcare :
 Data analytics is playing a vital role in helping healthcare
professionals find medical breakthroughs, deliver hyper-
personalized treatment, and improve the patient’s quality of life.
 The medical industry relies on data analytics not to increase
profits, but rather to improve the standard of healthcare by
proactively identifying diseases and reducing risk factors.
Media and Entertainment:
Media and Entertainment An early adopter of data
analytics technologies, the digital entertainment and
media industry implements analytical tools and
techniques for predicting viewer interests, personalizing
content delivery, optimizing media streams, targeting
advertisements, and gaining useful insights from audience
reviews.
Banking:
Banking After retail, the banking sector makes the most
active use of data analytics. Analytical modeling allows
banks to track down credit card misuse, detect fraudulent
activities, and eliminate system loopholes.
Besides empowering banks to create personalized
products, other data analytics applications in the financial
sector include risk management, performance monitoring,
and improved compliance reporting.
Transportation:
Transportation Over the past few years, data analytics
has been crucial for reforms in the transport industry.
Using a variety of historical trends, technical data, and
real-time information, data analytics helps the transport
industry effectively manage assets, predict traffic
congestion, and focus on everyday occurrences while
minimizing operating costs.
Steps involved In Data analytics
1. understand the problem
understand the business problem. Define the
organizational goals and plan for a lucrative solution.
2. Data collection:
Gather the right data from various sources and other
information based on your priorities.
Data analytics begins with the collection of data from
various sources, including databases, websites, sensors,
and more. Data can be structured (e.g., databases,
spreadsheets) or unstructured (e.g., text, images, social
media posts).
3. Data Cleaning:
Clean the data to remove unwanted, redundant and
missing values and make it ready for analysis.
4. Data exploration and analysis:
use data visualization and business intelligence tools,
data mining techniques and predictive modeling to
analyses data.
5. Interpret the Results:
Interpret the results to find out hidden patterns, future
trends, and gain insights.
Importance of Data Analytics life cycle
Data analytics life cycle defines the roadmap of how the data is
generated, collected, processed, used, and analyzed to achieve
business goals.
It offers a systematic way to manage data for converting it into
information that can be used to fulfill organization and project
goals.
The process provides the direction and methods to extract
information from the data and proceed in the right direction to
accomplish business goals.
Based on the newly received insights, they can decide whether to
proceed with their existing Research or scrap it and redo the
Complete analysis.
The data Analytics life cycle guides them throughout this process.
Importance of Data Analytics life cycle
Data Analytics Lifecycle :
The Data analytic lifecycle is designed for Big Data problems and data
science projects.
Phase 1: Discovery –
The data science team learn and investigate the problem.
Develop context and understanding.
Come to know about data sources needed and available for the
project.
The team formulates initial hypothesis that can be later tested with
data.
Phase 2: Data Preparation –
Steps to explore, preprocess, and condition data prior to modeling
and analysis.
It requires the presence of an analytic sandbox, the team execute,
load, and transform, to get data into the sandbox.
Data preparation tasks are likely to be performed multiple times and
not in predefined order.
Several tools commonly used for this phase are – Hadoop, Alpine
Phase 3: Model Planning –Team explores data to learn about
relationships between variables and subsequently, selects key
variables and the most suitable models.
In this phase, data science team develop data sets for training,
testing, and production purposes.
Team builds and executes models based on the work done in the
model planning phase.
Several tools commonly used for this phase are – Matlab, STASTICA.
Phase 4: Model Building –Team develops datasets for testing, training,
and production purposes.
Team also considers whether its existing tools will suffice for
running the models or if they need more robust environment for
executing models.
Free or open-source tools – Rand PL/R, Octave, WEKA.
Commercial tools – Matlab , STASTICA.
Phase 5: Communication Results –
After executing model team need to compare outcomes of
modeling to criteria established for success and failure.
Team considers how best to articulate findings and outcomes to
various team members and stakeholders, taking into account
warning, assumptions.
Team should identify key findings, quantify business value, and
develop narrative to summarize and convey findings to
stakeholders.
Phase 6: Operationalize –
The team communicates benefits of project more broadly and sets
up pilot project to deploy work in controlled way before broadening
the work to full enterprise of users.
This approach enables team to learn about performance and
related constraints of the model in production environment on
small scale , and make adjustments before full deployment.
The team delivers final reports, briefings, codes.
Free or open source tools – Octave, WEKA, SQL, MADlib.
WHAT IS DATA ANALYTICS IN BUSINESS?
Data analytics is the practice of examining data to
answer questions, identify trends, and extract insights.
When data analytics is used in business, it’s often called
business analytics.

You can use tools, frameworks, and software to analyze

data, such as Microsoft Excel and Power BI, Google
Charts, Data Wrapper, Infogram, Tableau, and Zoho
Analytics.
These can help you examine data from different angles
and create visualizations that illuminate the story you’re
trying to tell.
WHO NEEDS DATA ANALYTICS?
Any business professional who makes decisions needs
foundational data analytics knowledge.
Professionals who can benefit from data analytics skills include:
Marketers, who utilize customer data, industry trends, and
performance data from past campaigns to plan marketing
strategies
Product managers, who analyze market, industry, and user data
to improve their companies’ products
Finance professionals, who use historical performance data
and industry trends to forecast their companies’ financial
trajectories
Human resources and diversity, equity, and inclusion
professionals, who gain insights into employees’ opinions,
motivations, and behaviors and pair it with industry trend data
to make meaningful changes within their organizations.
Importance Of Data Analytics
Data is an unorganized and raw collection of facts
that has massive importance for a company.
In the modern world, every company wants to collect
and analyze data to know their past mistakes.
It might help them to build a better future.
Sometimes these companies find it challenging to
use analytics tools.
The demand for data analysts and their related roles
comes into the picture. You might understand that
industries require data analytics skills.
Data Analytics always helps companies to get an insight into how
to develop the business.
There are several types of tools you will require to interpret the data.
Companies use data analytics tools to understand customer
behavior and increase productivity.
It might help them to store information about the latest trends in
the market.
The company uses tools related to business intelligence and data
management to identify the changing functions.
The main three things will give good insight, immediate action, and
information system. A good insight will help you to understand the
business context.
The information will help to access the organization’s storage and
information system.
You will be able to take immediate action based on valuable
information.
The companies are trends to focus on experiments with analytical
languages and tools to develop new ideas.
Benefits of Data Analytics :
Improved Decision Making :
When big data joins forces with artificial intelligence,
machine learning, and data mining, companies are
better equipped to make accurate predictions.
For example, predictive analytics can suggest what
could happen in response to changes to the business,
and prescriptive analytics can indicate how the
company should react to these changes.
Additionally, enterprises can use data analytics tools to
determine the success of changes and visualize the
results, so decision-makers know whether to roll the
changes out across the business.
Increased Efficiency and Productivity :
Data analytics enables organizations to increase
efficiency and productivity by automating and
streamlining processes, maximizing resource allocation,
and minimizing manual labor.
Additionally, data analytics assists businesses in
identifying areas where productivity can be increased,
such as waste reduction, better inventory control, and
supply chain optimization.
More effective marketing :
By using data analytics, companies can pinpoint
precisely what customers are looking for.
Data enables businesses to do in-depth analyses of
client trends, which companies can then utilize to
develop successful, focused, and targeted marketing.
Enhanced Customer Experience :
By giving organizations useful insights into customer
behavior, preferences, and needs, data analytics enables
businesses to identify areas where they can improve
their customer experience–such as lowering wait times,
enhancing customer service, or streamlining user
interfaces.
Improved Risk Management :
Data analytics can, for instance, assist companies in
identifying potential fraud, online threats, or operational
risks. Businesses can also take preventative action to
mitigate potential risks by monitoring data in real-time. By
utilizing data analytics to enhance risk management, they
can lessen the possibility of monetary losses, reputational
damage, and other negative outcomes.
Competitive Advantage :
Analyzing data from various sources allows businesses to
understand market trends, consumer behavior, and
competitor activities. Businesses can use this information
to improve their strategies, spot new opportunities, and
set themselves apart from the competition.
Data analytics can, for instance, aid companies in
identifying underserved market segments, anticipating
client needs, and enhancing product offerings. Simply put,
businesses can increase their market share, spur revenue
growth, and fortify their brand by utilizing data analytics to
gain a competitive advantage.
Data analytics is a potent tool that can assist companies
in enhancing their operations and achieving better
business results.
Importance Of Business Analytics:
Business analytics is a methodology or tool to make a
sound commercial decision. Hence it impacts functioning
of the whole organization. Therefore, business analytics
can help improve profitability of the business, increase
market share and revenue and provide better return to a
shareholder.
Business analytics combines available data with various
well thought models to improve business decisions.
Converts available data into valuable information.
This information can be presented in any required format,
comfortable to the decision maker.
For starters, business analytics is the tool your
company needs to make accurate decisions.
Essentially, the four main ways business analytics is importan
t:
Improves performance by giving your business a clear
picture of what is and isn’t working.
Provides faster and more accurate decisions .
Minimizes risks as it helps a business make the right
choices regarding consumer behaviour, trends, and
performance.
Inspires change and innovation by answering questions
about the consumer.
Benefits of Business Analytics
Apart from having applications in various arenas, following are
the benefits of Business Analytics and its impact on business –
Accurately transferring information
Consequent improvement in efficiency
Help portray Future Challenges
Make Strategic decisions
As a perfect blend of data science and analytics
Reduction in Costs
Improved Decisions
Share information with a larger audience
Ease in Sharing information with stakeholders
Business analytics:
Business analytics is a set of statistical and operations
research techniques, artificial intelligence, information
technology and management strategies used for framing a
business problem, collecting data, and analyzing the data to
create value to organizations.
Business Analytics can be broken into 3 components:
1. Business Context
2. Technology
3. Data Science
Business Context :
Business analytics projects start with the business context
and ability of the organization to ask the right questions.
Another good example of business context driving
analytics is the ‘did you forget feature’ used by the Indian
online grocery store bigbasket.com (Abraham et al., 2016).
Many customers have the tendency to forget items they
intended to buy. The customers may buy the forgotten
items from a nearby store where they live, resulting in
reduction in basket size in the future for online grocery
stores such as bigbasket.com.
Alternatively, the customer may place another order for
forgotten items, but this time, the size of the basket is
likely to be small and results in unnecessary logistics cost.
Thus, the ability to predict the items that a customer may
have forgotten to order can have a significant impact on
the profits of online grocers such as bigbasket.com.
Another problem that online grocery customers face while ordering
the items is the time taken to place an order. Unlike customers of
Amazon or Flipkart, online grocery customers order several items
each time; the number of items in an order may cross 100. Searching
for all the items that a customer would like to order is a time-
consuming exercise, especially when they order using smart phones.
Thus, big basket created a ‘smart basket’ which is a basket consisting
of items that a customer is likely to buy (recommended basket)
reducing the time required to place the order.
The above examples( ‘did you forget’ and smart basket feature at
bigbasket.com) manifest the importance of business context in
business analytics, that is, the ability to ask the right questions is an
important success criteria for analytics projects.
Technology:
To find out whether a customer has forgotten to place an order for an item, we
need data. In both the cases, the point of sale data has to be captured
consisting of past purchases made by the customer. Information Technology (IT)
is used for data capture, data storage, data preparation, data analysis, and data
share. Today most data are unstructured data; data that is not in the form of a
matrix (rows and columns) is called unstructured data. Images, texts, voice,
video, click stream are few examples of unstructured data. To analyse data, one
may need to use software such as R, Python, SAS, SPSS, Tableau, etc. for
example, in the case of Target, technology can be used to personalize coupons
that can be sent to individual customers.
Data Science :
Data Science is the most important component of analytics, it consists of
statistical and operations research techniques, machine learning and deep
learning algorithms.
There are several techniques available for solving classification problems such
as logistic regression, classification trees, random forest, adaptive boosting,
neural networks, and so on. The objective of the data science component is to
identify the technique that is best based on a measure of accuracy.
Applications of Analytics in Business
1. Customer Segmentation
• Customer segmentation is a vital business analytics application that helps companies group their
customers based on shared characteristics such as demographics, buying behavior, and preferences.
• By analyzing customer data, businesses can tailor their marketing strategies, product offerings, and
customer service to target specific segments effectively, increasing customer satisfaction and overall
profitability.
2. Predictive Analytics
Predictive analytics leverages historical and real-time data to forecast future trends and events. This
application is used extensively in industries like f inance, healthcare, and e-commerce for tasks such as
predicting stock prices, patient outcomes, and product demand. It enables proactive decision-making, risk
mitigation, and optimization of business operations.
3. Supply Chain Optimization
Businesses utilize analytics to optimize their supply chains by analyzing data related to inventory levels,
supplier performance, transportation logistics, and demand forecasting. By identifying inef ficiencies and
bottlenecks in the supply chain, companies can reduce costs, improve product availability, and enhance
overall operational efficiency.
 4. Fraud Detection
• Fraud detection analytics employs advanced algorithms and machine learning models to
identify and prevent fraudulent activities, such as credit card fraud, insurance fraud, and
cyberattacks. By analyzing transactional data patterns and anomalies, organizations can
minimize financial losses and maintain the trust of their customers.
5. Market Basket Analysis
• Market basket analysis involves examining customer purchase history to discover patterns in
product co-purchases. Retailers use this application to optimize product placement, cross-
selling, and promotional strategies. By understanding which products are frequently bought
together, businesses can increase sales and enhance the customer shopping experience.
6. Churn Analysis
• Churn analysis focuses on identifying and reducing customer churn, which is the rate at which
customers stop using a company's products or services. By analyzing customer behavior and
feedback, businesses can implement retention strategies to retain valuable customers and
reduce revenue loss.
 7. A/B Testing
• A/B testing is a fundamental analytics application for optimizing digital marketing campaigns
and website performance. It involves conducting controlled experiments by randomly assigning
users to different versions of a webpage or marketing content. By comparing the performance
of these versions, companies can make data-driven decisions to improve conversion rates and
user engagement.

8. Employee Performance Analytics

• Employee performance analytics helps organizations evaluate the productivity and engagement
of their workforce. By analyzing data on key performance indicators (KPIs), attendance, and
employee feedback, companies can make informed decisions about talent management,
training, and workforce optimization.
9. Quality Control and Process Improvement
• In manufacturing and production industries, analytics is employed to monitor product quality,
detect defects, and optimize production processes. By analyzing data from sensors and
production lines, businesses can reduce defects, improve efficiency, and minimize waste.

10. Sentiment Analysis

• Sentiment analysis, also known as opinion mining, uses natural language processing and
machine learning techniques to assess public sentiment and opinions from sources like social
media, customer reviews, and surveys. Companies can gain insights into how their brand is
perceived and use this information to shape marketing strategies and product development.
Text analytics
Text Analytics is the process of converting unstructured
text data into meaningful data for analysis, to measure
customer opinions, product reviews, feedback, to provide
search facility, sentimental analysis and entity modeling to
support fact based decision making.
Text analytics is the quantitative data that you can obtain
by analyzing patterns in multiple samples of text. It is
presented in charts, tables, or graphs.
Text analytics helps you determine if there’s a particular
trend or pattern from the results of analyzing thousands of
pieces of feedback. Meanwhile, you can use text analysis
to determine whether a customer’s feedback is positive or
negative
Text Analytics determines key words, topics, category,
semantics, tags from the millions of text data available
in an organization in different files and formats.
The term Text Analytics is roughly synonymous with text
mining.
Text analytics software solutions provide tools, servers,
analytic algorithm based applications, data mining and
extraction tools for converting unstructured data in to
meaningful data for analysis.
The outputs, which are extracted entities, facts,
relationships are generally stored in a relational, XML,
and other data warehousing applications for analysis by
other tools such as business intelligence tools or big
data analytics or predictive analytics tools.
Text analytics in business :
Every business strives to provide the best to their customers.
To achieve this, they are depending on text analytics to
study and understand patterns, drifts in behavior through
the positive and negative feedback provided, buying trends,
opinions of consumers, blogs etc.
And modify the approachability to satisfy needs which can
make a greater impact on business.
By implementing text-based analytics, a business can bridge
the gap to unlock the very needs and demands of the
customers.
Text analytics focuses on quantitative insights that give the
essence of ‘why’ a particular problem arises and ‘what’ the
reasons are and upon understanding, ‘how’ can a business
overcome it in the most effective way.
Various tools like HANA, Python, R, Microsoft excel etc can
be used to achieve important tasks of Text analytics as
discussed below.
Important Tasks in Text Analytics:
Information Extraction: It involves extracting the relevant information
from large volumes of textual data. It centres on extracting attributes
and entities. This information can be used for further analysis.
Information Retrieval: Information Retrieval (IR) alludes to extricating
relevant and related examples dependent on a particular arrangement
of words or expressions. In this content mining strategy, IR frameworks
utilize various calculations to track and screen client practices and find
applicable information as needs are. Google and Yahoo web indexes
are the two most famous IR frameworks.
Clustering: It looks to recognize characteristic constructions in text
based data and sort them into relevant subgroups or 'bunches' for
additional examination. A critical test in the grouping interaction is to
frame significant groups from the unlabelled text-based information
without having any earlier data on them.
Summarization: This content mining strategy helps to
create a summary of a large volume of text in a way that
the meaning and intent of the original document is
preserved.
Categorization: This technique is used to classify text
(review, paragraph, document) into a relevant category.
The text could be the reviews provided by different users
for a product and the reviews could be classified as
positive or negative. Similarly, a mail can be classified
into a spam or non spam email.
What’s the difference between text mining
and text analytics?
Text mining and text analytics are often used interchangeably.
The term text mining is generally used to derive qualitative
insights from unstructured text, while text analytics provides
quantitative results.
For example, text mining can be used to identify if customers
are satisf ied with a product by analyzing their reviews and
surveys. Text analytics is used for deeper insights, like
identifying a pattern or trend from the unstructured text. For
example, text analytics can be used to understand a negative
spike in the customer experience or popularity of a product.
The results of text analytics can then be used with data
visualization techniques for easier understanding and prompt
decision making.
 Benefits of text analytics
There are a ran ge of ways that text an alytics can help busin esses,
organizations, and event social movements:
• Help businesses to understand customer trends, product performance, and
service quality. This results in quick decision making, enhancing business
intelligence, increased productivity, and cost savings.
• Helps researchers to explore a great deal of pre-existing literature in a short
time, extracting what is relevant to their study. This helps in quicker scientif ic
breakthroughs.
• Assists in understanding general trends and opinions in the society, that
enable governments and political bodies in decision making.
• Text analytic techniques help search engines and information retrieval
systems to improve their performan ce, thereby providin g fast user
experiences.
• Ref in e user content recommendation systems by categorizing related
content.
Text analytics techniques and use cases
There are several techniques related to analyzing the unstructured text.
Each of these techniques is used for different use case scenarios.
1. Sentiment analysis:
Sentiment analysis is used to identify the emotions conveyed by the unstructured
text. The input text includes product reviews, customer interactions, social media
posts, forum discussions, or blogs. There are different types of sentiment analysis.
Polarity analysis is used to identify if the text expresses positive or negative
sentiment. The categorization technique is used for a more f ine-grained analysis of
emotions - confused, disappointed, or angry.
• Use cases of sentiment analysis:

• Measure customer response to a product or a service

• Understand audience trends towards a brand

• Understand new trends in consumer space

• Prioritize customer service issues based on the severity

• Track how customer sentiment evolves over time

2. Topic modelling
This technique is used to find the major themes or topics in a massive volume of text or
a set of documents. Topic modeling identif ies the keywords used in text to identify the
subject of the article.
Use cases of topic modeling:
• Large law f irms use topic modeling to examine hundreds of documents during large
litigations.
• Online media uses topic modeling to pick up trending topics across the web.
• Researchers use topic modeling for exploratory literature review.
• Businesses can determine which of their products are successful.
• Topic modeling helps anthropologists to determine the emergent issues and trends in a
society based on the content people share on the web.
3. Named entity recognition (NER)

NER is a text analytics technique used for identifying named entities like people,
places, organizations, and events in unstructured text. NER extracts nouns from
the text and determines the values of these nouns.
Use cases of named entity recognition:
• NER is use d to cla ssify ne w s conte nt ba se d on pe ople , pla ce s, a nd
organizations featured in them.
• Search and recommendation engines use NER for information retrieval.
• For large chain companies, NER is used to sort customer service requests and
assign them to a specific city, or outlet.
• Hospitals can use NER to automate the analysis of lab reports.
4. Event extraction

This is a text analytics technique that is an advancement over the named entity
extraction. Event extraction recognizes events mentioned in text content, for example,
mergers, acquisitions, political moves, or important meetings. Event extraction requires
an advanced understanding of the semantics of text content. Advanced algorithms
strive to recognize not only events but the venue, participants, date, and time wherever
applicable. Event extraction is a benef icial technique that has multiple uses across
fields.
Use cases of event extraction:
• Link analysis: This is a technique to understand “who met whom and when” through
event extraction from communication over social media. This is used by law
enforcement agencies to predict possible threats to national security.
4. Event extraction

• Geospatial analysis: When events are extracted along with their

locations, the insights can be used to overlay them on a map.
This is helpful in the geospatial analysis of the events.
• Business risk monitoring: Large organizations deal with multiple
partner companies and suppliers. Event extraction techniques
allow businesses to monitor the web to f ind out if any of their
partners, like suppliers or vendors, are dealing with adverse
events like lawsuits or bankruptcy.
 Steps involved with text analytics

Text analytics is a sophisticated technique that involves several pre-steps to gather and cleanse
the unstructured text. There are different ways in which text analytics can be performed. This is
an example of a model workflow.

1. Data gathering - Text data is often scattered around the internal databases of an
organization, including in customer chats, emails, product reviews, service tickets and Net
Promoter Score surveys. Users also generate external data in the form of blog posts, news,
reviews, social media posts and web forum discussions. While the internal data is readily
available for analytics, the external data needs to be gathered.

2. Preparation of data - Once the unstructured text data is available, it needs to go through
several preparatory steps before machine learning algorithms can analyze it. In most of the text
analytics software, this step happens automatically. Text preparation includes several
techniques using natural language processing as follows:
a. Tokenization: In this step, the text analysis algorithms break the continuous string

of text data into tokens or smaller units that make up entire words or phrases.

For instance, character tokens could be each individual letter in this word: F-I-S-H.

Or, you can break up by subword tokens: Fish-ing. Tokens represent the basis of all

natural language processing.

This step also discards all the unwanted contents of the text, including white

spaces.

b. Par t-of-speech-tagging: In this step, each token in the data is assigned a

grammatical category like noun, verb, adjective, and adverb.

c. Parsing: Parsing is the process of understanding the syntactical structure of the text.
Dependency parsing and constituency parsing are two popular techniques used to derive
syntactical structure.

d. Lemmatization and stemming: These are two processes used in data preparation to remove the
suffixes and affixes associated with the tokens and retain its dictionary form or lemma.

e. Stopword removal: This is the phase when all the tokens that have frequent occurrence but bear
no value in the text analytics. This includes words such as ‘and’, ‘the’ and ‘a’.
3.Text Analytics
Text analytics - After the preparation of unstructured text data, text analytics techniques
can now be performed to derive insights. There are several techniques used for text
a na ly tics. Prominent a mong them a re text cla ssif ic a tion a nd text extra ction.

Text classif ication: This technique is also known as text categorization or

tagging. In this step, certain tags are assigned to the text based on its meaning.
For example, while analyzing customer reviews, tags like “positive” or “negative”
are assigned. Text classif ication often is done using rule-based systems or
machine learning-based systems. In rule-based systems, humans def ine the
association between language pattern and a tag.
“Good” may indicate positive review; “bad” may idenitfy a negative review.
Machine learning systems use past examples or training data
to assign tags to a new set of data. The training data and its
volume are crucial, as larger sets of data helps the machine
learning algorithms to give accurate tagging results. The main
algorithms used in text classif ic ation are Support Vector
Machines (SVM), Naive Bayes family of algorithms (NB), and
d e e p l e a r n i n g a l g o r i t h m s .
Text extraction: This is the process of extracting recognizable
and structured information from the unstructured input text.
This information includes keywords, names of people, places
and events. One of the simple methods for text extraction is
regular expressions. However, this is a complicated method to
maintain when the complexity of input data increases.
Conditional Random Fields (CRF) is a statistical method used
in text extraction. CRF is a sophisticated but effective way of
extracting vital information from the unstructured text.
What happens after text analytics?

Once the text analytics methods are used to process the unstructured data,
the output information can be fed to data visualization systems. The results
can then be visualized in the form of charts, plots, tables, infographics, or
dashboards. This visual data enables businesses to quickly spot trends in the
data and make decisions.
Web Analytics
What is web analytics?
Web analytics is the process of analyzing the behavior of visitors to a website. This
involves tracking, reviewing and reporting data to measure web activity, including the
use of a website and its components, such as webpages, images and videos.
Data collected through web analytics may include traffic sources, referring sites,
page views, paths taken and conversion rates. The compiled data often forms a part
of customer relationship management analytics (CRM analytics) to facilitate and
streamline better business decisions.
Web analytics enables a business to retain customers, attract more visitors and
increase the dollar volume each customer spends.
 Analytics can help in the following ways:
• Determine the likelihood that a given customer will repurchase a product after purchasing it in the past.
• Personalize the site to customers who visit it repeatedly.
• Monitor the amount of money individual customers or specific groups of customers spend.
• Observe the geographic regions from which the most and the least customers visit the site and purchase
specific products.
• Predict which products customers are most and least likely to buy in the future.
The objective of web analytics is to serve as a business metric for promoting specif ic products to the
customers who are most likely to buy them and to determine which products a specif ic customer is most
likely to purchase. This can help improve the ratio of revenue to marketing costs.
In addition to these features, web analytics may track the clickthrough and drilldown behavior of
customers within a website, determine the sites from which customers most often arrive, and
communicate with browsers to track and analyze online behavior. The results of web analytics are
provided in the form of tables, charts and graphs.
 Web analytics process

The web analytics process involves the following steps:

1. Setting goals. The f irst step in the web analytics process is for businesses to determine goals and the
end results they are trying to achieve. These goals can include increased sales, customer satisfaction
and brand awareness. Business goals can be both quantitative and qualitative.
2. Collecting data. The second step in web analytics is the collection and storage of data. Businesses can
collect data directly from a website or web analytics tool, such as Google Analytics. The data mainly
comes from Hypertext Transfer Protocol requests -- including data at the network and application
levels -- and can be combined with external data to interpret web usage. For example, a user's Internet
Protocol address is typically associated with many factors, including geographic location and
clickthrough rates.
3. Processing data. The next stage of the web analytics funnel involves businesses processing the
collected data into actionable information.
4. Identifying key performance indicators (KPIs). In web analytics, a KPI is a quantif ia ble measure to
monitor and analyze user behavior on a website. Examples include bounce rates, unique users, user
sessions and on-site search queries.
5. Developing a strategy. This stage involves implementing insights to formulate strategies that align
with an organization's goals. For example, search queries conducted on-site can help an organization
develop a content strategy based on what users are searching for on its website.
6. Experimenting and testing. Businesses need to experiment with different strategies in order to f in d
the one that yields the best results. For example, A/B testing is a simple strategy to help learn how an
audience responds to different content. The process involves creating two or more versions of content
and then displaying it to different audience segments to reveal which version of the content performs
better
What are the two main categories of web
analytics?
The two main categories of web analytics are off-site web analytics and on-site
web analytics.
Off-site web analytics
The term off-site web analytics refers to the practice of monitoring visitor
activity outside of an organization's website to measure potential audience.
Off-site web analytics provides an industrywide analysis that gives insight
into how a business is performing in comparison to competitors. It refers to
the type of analytics that focuses on data collected from across the web,
such as social media, search engines and forums.
On-site web analytics
On-site web analytics refers to a narrower focus that uses analytics to track
the activity of visitors to a specific site to see how the site is performing. The
data gathered is usually more relevant to a site's owner and can include
details on site engagement, such as what content is most popular. Two
technological approaches to on-site web analytics include log file analysis
and page tagging.
Log f ile analysis, also known as log management, is the process of analyzing
data gathered from log f il es to monitor, troubleshoot and report on the
performance of a website. Log f iles hold records of virtually every action taken
on a network server, such as a web server, email server, database server or f ile
server.

Page tagging is the process of adding snippets of code into a website's

HyperText Markup Language code using a tag management system to track
website visitors and their interactions across the website. These snippets of
code are called tags. When businesses add these tags to a website, they can
be used to track any number of metrics, such as the number of pages viewed,
the number of unique visitors and the number of specific products viewed.
Web analytics tools

Web analytics tools report important statistics on a website, such as where

visitors came from, how long they stayed, how they found the site and their
online activity while on the site. In addition to web analytics, these tools are
commonly used for product analytics, social media analytics and marketing
analytics.

Some examples of web analytics tools include the following:

• Google Analytics. Google Analytics is a web analytics platform that monitors

website traf fic, behaviors and conversions. The platform tracks page views,
unique visitors, bounce rates, referral Uniform Resource Locators, average
time on-site, page abandonment, new vs. returning visitors and demographic
data.
• Optimizely. Optimizely is a customer experience and A/B testing platform
that helps businesses test and optimize their online experiences and
marketing efforts, including conversion rate optimization.

• Kissmetrics. Kissmetrics is a customer analytics platform that gathers

website data and presents it in an easy-to-read format. The platform also
serves as a customer intelligence tool, as it enables businesses to dive
deeper into customer behavior and use this information to enhance their
website and marketing campaigns.

• Crazy Egg. Crazy Egg is a tool that tracks where customers click on a
page. This information can help organizations understand how visitors
interact with content and why they leave the site. The tool tracks visitors,
heatmaps and user session recordings.
 Skills for Business Analytics
Business analytics refers to the process of extracting insights
from data to make informed decisions regarding a business
question or challenge.
Here are five skills you can develop to improve your understanding
of business analytics.
1. Data Literacy
One of the fundamental skills to build before diving into business
analytics is data literacy. At its most basic, data literacy means
you’re familiar with the language of data, including different types,
sources, and analytical tools and techniques.
Being data literate also means you’re comfortable working with
data in various ways—from evaluating it to manipulating it and
gaining insights.
2. Data Collection
The first step in leveraging analytics to drive business decisions is
to collect a data sample from which conclusions can be drawn.
In some cases, a dataset already exists, and it’s up to the business
analyst to pull relevant information. For example, if you’re
interested in discovering a retail store’s most profitable products,
you might start by pulling historical sales data for transactions
that took place over a specific period.
3. Statistical Analysis
Several statistical methods can be helpful when it comes to
analysis, including:
Hypothesis testing , which is a statistical means of testing an
assumption.
Linear regression analysis, which can be used to evaluate the
relationship between two variables.
 Multiple regression analysis, which is used to evaluate the
relationship between three or more variables.
Through these forms of analysis, you can draw insights and
conclusions that answer your business question.
4. Communication
While insights derived from reliable data are key to making
informed business decisions, it’s likely that other stakeholders
need to be involved in the decision-making process. For this
reason, effectively communicating your findings is essential.
Without strong communication skills, the value of your analyses
can go unrealized.
5. Data Visualization
Data visualization goes hand in hand with strong communication,
as it allows you to present findings in an easily digestible format
for those who may not be as data literate as you are.