Business Analytics 101

BAFBANA
WEEK 1

Outline
o Understanding Analytics
o Applications of Analytics
o Business Intelligence vs. Business Analytics
o How Analytics Work?
o Trends in Business Analytics
o Challenges From Outside
o Challenges Within
o Case Study

Understanding Analytics
o Analytics has been defined as the extensive
use of the following, to derive decisions
and actions.

Data,

statistical and quantitative analysis,

explanatory and predictive models, and

fact-based management

o Analytics is all about providing business

users with better insights, particularly from
operational data stored in transactional
systems.

Understanding Analytics
o Evolution of Business Analytics
Operations Research
Management Science
Business Intelligence
Decision Support Systems
Personal Computer Software

1-4

Understanding Analytics
o Business Analytics Applications

1-5

Applications of Analytics
Hotel Companies decide how their
room rates will vary through time so
they dont loose money on empty
rooms.
Banks and Finance Companies weigh
up credit risks to determine lending
policies.
Supermarket plan their stocks so that
products are on the shelves when
needed.

Applications of Analytics
Airlines ensure that staff and aircraft
are where they are needed, when
they are needed.
Healthcare providers keep waiting
times down at the same time
providing excellent service

BI vs. BA
o Degree how the following are processed for
consumption:
Historical data
Predictive insights
Optimization of constraints
o BI is the ability to take information
resources and convert them into knowledge
that is helpful in decision making.
o BA focuses on using data to net new
insights

Business
Intelligence
(BI)
Gather data to find

information primarily
through:
Asking questions,
Reporting, and
Online Analytical
Processes (OLAP)
Answering questions, such
as:
What happened?
How many?
How often?
Where?

Business
Analytics (BA)
Takes advantage of:
Statistical and
Quantitative data for
explanatory and
predictive modeling.
Strives to answer Why, and
forward-looking questions
such as:
What if these trends
continue?
What will happen next?
What is the best that can
happen?

Source: https://rapidminer.com/summarizing-differences-business-intelligenceadvanced-analytics/

How Analytics Works?

What Analytics can do? Group

Activity

Governme
nt

School

What are the data that can be

used?
How can these data be able to
help each sector to be able to
perform better?

Trends and
Challenges

Trends in Business Analytics

Individual Assignment for Next week:
o Watch, listen, and study the video on the
next slide.
Or you may get the video on this link: https://
drive.google.com/file/d/0B08I_t7QArHxc2hHUUVQcTM2ZU0/view?usp=sharing

o List down the trends (8) and challenges (4)

mentioned in the video.
o Explain each of the trends and challenges,
and cite one example for each.

Trends in Business Analytics

Trends and Challenges in BA

TRENDS

CHALLENGES

Source: https://www.youtube.com/watch?

CHALLENGES FROM
OUTSIDE

o Environment
o Competition
o Customers

CHALLENGES FROM
WITHIN

o Inside the
organization
o Evolving Business
Analytics
o Less Subject Matter
Experts
o External Factors
o Internal Factors

Printable copy of
this is available at
the Google Drive

References
o http://www.jenunderwood.com/2014/12/08/busines
s-analytics-101/
o http://www.businessanalytics.com/differencebetween-business-analytics-and-businessintelligence/
o https://rapidminer.com/summarizing-differencesbusiness-intelligence-advanced-analytics/
o http://www.lancaster.ac.uk/lums/managementscience/undergraduate/what/
o https://www.youtube.com/watch?v=nfMnILQVZXo

Slides still for

considerations

How Analytics Works?

o Routinely collect data about operations and
interactions with customers and service users.

Supermarkets track the sales of each product

to know when to increase supplies, when to
offer promotions and when to offer shelf space
to new products.
Airlines carefully track the seats sold on each
flight, adjusting ticket prices to ensure that
they make money whilst filling their planes.
Hospitals track the treatments they provide to
patients and aim to minimize hospital stays
whilst providing excellent healthcare.

Analogy: Ordering a Drink at

Starbucks

??
Hot

col
d

Analogy: Ordering a Drink at

Starbucks

=??

Analogy: Ordering a Drink at

Starbucks
REPORTIN
DATA
G

=
BUSINESS
INTELLIGENCE

Analogy: Ordering a Drink at

Starbucks
Optimizati
Reportin
DATA
on
g

BUSINESS
ANALYTICS

Analogy: Conclusion
o BI gives consumers what they asked for.
o Analytics is giving the consumer
information that is derived from seemingly
unrelated sources (add-ons, schedule) that
puts BI in an unexpected derived context
the value of which is greater than BI by
itself.