Analytics:

An overview
ISB PGP-PRO
“In God we trust, all others must
bring data.”

- W.EDWARDS DEMING
What is Analytics?

Analytics is an umbrella term which However, the focus of Analytics is understanding these data
encompasses discovery, interpretation, and patterns to make informed decisions, making it centric to
communication of meaningful patterns in data. todays business decision making processes everywhere.

With the Advent of Technology, data has become the new oil and access to cutting-edge analytics
gives a competitive edge to businesses.
https://www.datapine.com/blog/data-driven-decision-making-in-businesses/
 Different Types of Analytics- Based on the kinds of questions answered

• Retrospective data analysis to understand Market Behaviors. • Futuristic Analysis based on given data.
• Data Visualization and Story Telling are key Components. • Requires Advanced Statistics and Modelling to correctly make
• Examples:- Performance Tracking, KPI Measurements, Causality estimates.
Analysis • Examples:- Forecasting, What-if Analysis, Decision trees.
All types of Analytics usually form a cycle to complete a decision making process
https://www.raconteur.net/sponsored/analytics-with-a-bias-for-action
Diagnostic Analytics
Diagnostic Analytics looks to find out answers in data as to why a certain phenomenon
would/has occurred.

These kinds of Analytics would heavily rely on :-

1. Locating and Segregating demographics to find higher correlations

◦ Finding out areas or demographics with higher correlation to said phenomenon can help us narrow
down on root causes

2. Design and execute experiments to understand causality

◦ Experiments such as A/B testing are useful tools to determine causality.
◦ Such experiments are widely used in business areas as well such as Marketing.
 Causality Analysis in Drug Testing

Patient tests +ve

with disease Patient tests +ve
with disease

Use Placebo Drugs Use the Trial Drug

Test health stats

Test health stats
Iterate the
process

Iterate the
process

Measure recovery or
survivability Measure recovery or
survivability

• Only a single attributing factor is changed between the two samples – in this case the administration of the drug
• To verify that changed factor is causing the phenomenon , the difference in results must be statistically significant
• On Achieving statistically significant results, the experiment is usually repeated with a bigger samples or by changing
demographics.
• Success of A/B testing is hugely dependent on the trial design and sample selection.