Business Intelligence

and Data Mining

  Biz Analytics—Hot Topic
 BIG Data—What is It?
 Biz Analytics—Where did They Come From?
 Biz Analytics—What are They Like Now?
 Biz Analytics: Core Principles
Agenda  Types of Biz Analytics
 Data Quality Analytics
 Descriptive Analytics
 Diagnostic Analytics
 Prescriptive Analytics
 Predictive Analytics
 Semantic Analytics 2
Business Analytics
Online analytical processing (OLAP) is multidimensional data analysis that is initiated by a
business user and consists of complex reporting mechanisms, analyses, and data visualization
—Codd et. al. (1993), Providing OLAP (On-line Analytical Processing) to User-Analysts: An IT
Mandate

3
 QUIZ:

in Common?
and Business
What do Beer

Analytics Have

http://www.informationbuilders.es/intl/co.uk/presentations/four_types_of_analytics.pdf
 [1]
Why Are
Business

a HOT Topic?
Analytics Such

http://blueharbors.com/demand-analytics-software-continue-2017/
Why Are

https://oneragingbull.wordpress.com/
Business
Analytics Such
a HOT Topic?
[2]

6
 [3]
Why Are
Business

a HOT Topic?
Analytics Such

http://www.slideshare.net/smongeau1/acfe-presentation-on-fraud
 VIABILITY
VERACITY

http://med.cornell.libguides.com/HINF5008
BIG DATA:
What is It? [1]

8
 Data at
Scale
Data in
Motion

http://www.patrickcheesman.com/how-big-data-can-
transform-your-understanding-of-your-customers/
BIG DATA: Data

What is It? [2] Usefulness

Data in
Many
Forms

Data
Uncertainty

9
  Sherlock Homes and the Etymology of the ‘Big Data’ Case

http://www.mblast.com/marketing-return-on-investment/big-data-social-lead-discovery/
 “Data. Data. Data. I cannot make bricks without clay!”
 1989, Erik Larson, author of “The Devil in the White City” and “In The Garden
of Beasts,” wrote a piece for Harper’s Magazine, which was reprinted in The
Washington Post:
 Conclusion: “The keepers of big data say they do it for the consumer’s benefit.
But data have a way of being used for purposes other than originally intended.”
BIG DATA:  “The term Big Data, which spans computer science and
Where Did It statistics/econometrics, probably originated in the lunch-table conversations
at Silicon Graphics in the mid-1990s, in which John Mashey figured
Come From? prominently.”
 —Diebold, F. X., Cheng, X., Diebold, S., Foster, D., Halperin, M., Lohr, S., ... &
[1] Shin, M. (2012). A Personal Perspective on the Origin (s) and Development of
“Big Data”: The Phenomenon, the Term, and the Discipline. (Working Paper).
Retrieved from:
 http://www.ssc.upenn.edu/~fdiebold/papers/paper112/Diebold_Big_Data.pdf

 See: Press, G. (May 9, 2013). A Very Short History Of Big Data. Forbes.
 http://www.forbes.com/sites/gilpress/2013/05/09/a-very-short-history-of-big-data/

10
Business

http://www.healthcareimc.com/node/727
Analytics:
Where Did It
Come From?
[2]

11
 T

http://www.slideshare.net/smongeau1/acfe-presentation-on-fraud
IGH
S
ORE
F

Business
Analytics: IN
SIG
H T

What’s It Like
Now? HT
SIG
N D
HI

12
  Analyze, Discover, Haggle, and Decide (ADHD) upon an appropriate action,
based on information that is:
Business  Relevant
Analytics -  Actionable

Core  Timely

Principles:  Graph all metrics.

ADHD-RAT  Interact with information at the speed of business.
G IV E F  Visualize data to highlight information patterns.
 Exercise gut feelings and intuition through simulation
Exercise 4:  Forecast by enhancing visual patterns.

5 min. Surma (2011), Case Study 2.1, (p. 27-32), Alpha Chain Stores:
demonstrated business requirements analysis
and proposed solution approach
13
What are the
6 Types of
Business
Analytics? [1]

14
 Types of
Business
Analytics? [2]
What are the 6

15

http://sctr7.com/2014/07/09/twelve-emerging-trends-in-data-analytics-part-1-of-4/
 [1]
Data
Quality
Business
Analytics

16

http://digitalmarketingstrategy.ucd.ie/data-analysis-marketing-making-data-relevant/
 http://www.slideshare.net/jamet123/from-business-intelligence-to-predictive-analytics
Decision Management Solutions - From Business Intelligence to Predictive Analytics
Descriptive
Business http://whybinoexcuses.com/2015/03/09/moving-from-
descriptive-to-predictive-analytics-with-big-data/

Analytics
[1]

http://www.collings.co.za/2011/07/message-over-media.html
17

Descriptive analytics:
 looks at data and analyzes past
events for insight as to how to
approach the future.
Descriptive  looks at past performance and
Business understands that performance
by mining historical data to
Analytics [2] look for the reasons behind
past success or failure.
 Almost all management
reporting such as sales,
marketing, operations, and
finance, uses this type of post-
mortem analysis.
http://www.rosebt.com/blog/descriptive-diagnostic-predictive-prescriptive-analytics
Descriptive models/tools:
 quantify relationships in data in a
way that is often used to classify
customers or prospects into groups
related to products and services.
 can be used, for example, to
categorize customers by their
product preferences and life stage.
 can be utilized to develop further
models that can simulate large
number of individualized agents and
make predictions.
 For example, descriptive analytics
examines historical electricity usage
data to help plan power needs and
allow electric companies to set
18
optimal prices.”
 http://www.clickz.com/clickz/column/2323767/getting-started-with-real-time-analytics
https://www.andertoons.com/business/cartoon/4619/i-think-i-speak-
for-all-of-us-when-i-say-what-in-gods-name-are-you-talking-about

Diagnostic
Business
Analytics [1]

19
  Diagnostic analytics:
 used for discovery or to
determine why
something happened.
 For example, for a social
 Ask specific questions:
 “Where should we
look?”
(Discovery/Alerts)
 “Why did it happen?”

http://www.ingrammicroadvisor.com/data-center/four-
types-of-big-data-analytics-and-examples-of-their-use
media marketing (Query/Drill down)
campaign, you can use
Diagnostic diagnostic analytics to
Business assess the number of
posts, mentions,
Analytics [2] followers, fans, page
views, reviews, pins, etc.
 Thousands of online
mentions that can be
distilled into a single view
to see what worked in
your past campaigns and
what didn’t. 20
 http://www.equest.com/category/cartoons/cartoons-2013/

http://www.informationbuilders.es/intl/co.uk/presentations/four_types_of_analytics.pdf
Predictive
Business
Analytics [1]

http://www.opsrules.com/supply-chain-optimization-blog/topic/analytics

21
  Predictive Analytics:
 must be executable at a decision point
 action/events likely to happen

http://www.rosebt.com/blog/descriptive-diagnostic-predictive-prescriptive-analytics
 Identify past patterns to predict the future
 turns data into valuable, actionable information.
 uses data to determine the probable future outcome of an event
or a likelihood of a situation occurring.
Predictive  encompasses a variety of statistical techniques from modeling,
Business machine learning, data mining and game theory that analyze
current and historical facts to make predictions about future
Analytics [2] events.
 For example, some companies use predictive analytics for the
entire sales process, analyzing lead source, number of
communications, types of communications, social media,
documents, CRM data, etc.
 Ask specific questions:
 “What will happen next” (Predictive Modeling)
22
 “What is the pattern?” (Statistical Modeling)
 http://www.kdnuggets.com/2014/12/cartoon-
unexpected-data-science-
recommendations.html

Prescriptive
Business
Analytics [1]

http://www.allanalytics.com/author.asp?
section_id=1859&doc_id=277140

23
  Prescriptive Analytics:
 automatically synthesizes big data, mathematical sciences,
business rules, and machine learning to make predictions
and then suggests decision options to take advantage of the
predictions.
 goes beyond predicting future outcomes by also suggesting
actions to benefit from the predictions and showing the
decision maker the implications of each decision option.
Prescriptive  suggests decision options on how to take advantage of a
Business future opportunity or mitigate a future risk and illustrate the
implication of each decision option.
Analytics [2]  provides a laser-like focus to answer specific questions.
 In practice, prescriptive analytics can continually and
automatically process new data to improve prediction
accuracy and provide better decision options.
 Ask specific questions:
 “What is the best action?” (Optimization)
 “What if we try this?” (Random Testing) 24
 https://s-media-cache-
ak0.pinimg.com/736x/1f/dc/bb/1fdcbb
4964fe7b7824d09e3e4aa0a6b7.jpg

Semantic
Business
Analytics [1]

https://metaeconomics.wordpress.com/

25
 https://fbhalper.wordpress.com/2007/11/29/whats-a-semantic-model-and-why-should-we-care/
 Semantic Analytics:
 a semantic knowledge model is a way to abstract disparate data and information,
from linked, unstructured and structured data.
 knowledge modeling is about describing what data means and where it fits.
 we more easily understand and abstract knowledge. Consequently it helps us to
understand how different pieces of information relate to each other.
 Uses links between IP Address nodes to build patterns, relationships, and
meaning through the application of an Ontology concepts (controlled
Semantic vocabulary) and Taxonomy of terms (BT, NT, RT, SN)
Business  For example, portfolio modeling in the financial services sector:
 Cannot simply analyze past performance
Analytics [2]  Must take into account external indicators, political events or unrest, currency issues
—impact company stock price.
 Need an underlying infrastructure that caters for dynamic changes to interrelated
knowledge relevant to the portfolio.

 Ask specific questions:

 “Why is this possible?”
 “What does this mean?” (Random Testing)
http://sparklingspur.com/all-about-apple-
iphone-4s-features-full-specification-and-price/

26
 Business
Semantic

Analytics [3]

27

http://daselab.cs.wright.edu/pub/2013-02-Siemens-BIGDATA.pdf
 Business
Semantic

Analytics [4]

28

http://daselab.cs.wright.edu/pub/2013-02-Siemens-BIGDATA.pdf
 Business
Semantic

Analytics [4]

29

http://daselab.cs.wright.edu/pub/2013-02-Siemens-BIGDATA.pdf
 http://lod-cloud.net/state/
Semantic
Business
Analytics [5]

30
  Data Quality: a perception or an
assessment of the fitness of data to serve
its purpose within a given context.
Characteristics/Metrics of data quality
include:
Data Quality  Accessibility
Business  Accuracy
Analytics [2]  Appropriate presentation
 Completeness
 Consistency across data sources
 Update status
 Relevance
 Reliability
31
 Techniques
Data Quality

32

https://tdwi.org/articles/2012/05/01/feature-ten-goals-for-next-generation-data-quality.aspx
 http://www.informationbuilders.es/intl/co.uk/presentations/four_types_of_analytics.pdf
Pause?

https://onthegocio.wordpress.com/2
013/05/06/big-data-offers-no-value/
http://blogs.position2.com/web-3-0-the-new-interactive-world 33
Section 3
Recap

34