DATA

ANALYTICS

GROUP – 3:

Athira R Pillai [CB.BU.P2MBA20032]

Soumya Sathyan [CB.BU.P2MBA20127]

Sasidhar R A [CB.BU.P2MBA20115]

P K Monish Nair [CB.BU.P2MBA20091]

INTRODUCTION TO BUSINESS ANALYTICS 1

 ANALYTICS
 [1]Data analytics is the science of analysing raw data
in order to make conclusions about that information.

 Most processes of data analytics have been

automated into mechanical processes
and algorithms that work over raw data for human
consumption.

2
INTRODUCTION TO BUSINESS ANALYTICS
 COMPETING ON ANALYTICS
(AMAZON)

01
 Amazon has dominated
and transformed their
organizations into
armies of killer apps.
02 03
 Business analytics  The proper use of data
differentiated them analytics tools delivered
from similar firms. them success.

INTRODUCTION TO BUSINESS ANALYTICS 3

Marriott International has established Marriott has expanded its
optimal price for guest rooms . quantitative expertise to areas
such as conference facilities and
catering.

ANATOMY OF
ANALYTICS
A revenue model which computes
actual revenues as a percentage of COMPETITOR Increase in Marriott’s revenue-
management analytics from 83%
the optimal rates that could have to 91%
been charged.

INTRODUCTION TO BUSINESS ANALYTICS 4

Key Attributes among Analytics Competitors
Widespread use of Senior Executive An Enterprise
modelling and optimization Advocates Approach

Companies use predictive modelling to identify A company needs leadership from Raising the visibility of analytical and
the most profitable customers plus those with executives at the very top who have a databased decision making within the
the greatest profit potential. passion for the quantitative approach. company.

INTRODUCTION TO BUSINESS ANALYTICS 5 5

 SOURCES OF STRENGTH

Analytics Competitors are not just data processing factory.

They also channel their energies towards :-

 Finding right focus

 Building the right culture
 Hiring right people

INTRODUCTION TO BUSINESS ANALYTICS 6

 RIGHT FOCUS:

 Analytics competitors encourage fact based decisions but they

must also choose where to direct resource intensive efforts.

 Good proficient analysts don’t just realize their benefits but

also help customers and vendors realize theirs.

INTRODUCTION TO BUSINESS ANALYTICS 7

 RIGHT CULTURE

Culture Analytics
Soft concept Hard discipline

 Employees are urged to base their decisions on hard facts.

 Human resource organizations within analytics competitors are rigorous

about applying metrics to compensations.

 Senior executives also set a consistent example with their own behavior
exhibiting confidence in facts and analysis.

 Generally some tension arises between innovative impulses and the

requirement of evidence.

INTRODUCTION TO BUSINESS ANALYTICS 8

 RIGHT PEOPLE

 Analytical firms hire analytical people.

 They compete on talent – they pursue the best

Good analysts must have :-

 The ability to express complex ideas in simple terms
 Good relationship skills to interact with decision makers

INTRODUCTION TO BUSINESS ANALYTICS 9

 RIGHT TECHNOLOGY

Competing on analysis means competing on technology.

a) Data strategy
 Companies spend millions to acquire data from conceivable source.
 To make use of information, companies have to present it in the standard format, integrate
it and store it in a data warehouse.

b) Business intelligence Software

Business intelligence : wide array of processes and software used to collect and analyze data.

These tools allow employees to extract, transform and load data for analysis.

c) Computing hardware
There arises a need to upgrade the hardware due to the huge volumes of data involved.

INTRODUCTION TO BUSINESS ANALYTICS 10

 THE LONG ROAD AHEAD

 Most of the companies identified as an aggressive analytics

competitors attribute their success to rightful exploitation of data.

 Companies embarking on the .journey now will take several years to

find their balance.

INTRODUCTION TO BUSINESS ANALYTICS 11

 “In the new era, big data will
power consumer products and
services. ”

Thomas H Davenport

Q U O T E

INTRODUCTION TO BUSINESS ANALYTICS 12

 EVOLUTION OF ANALYTICS
 The field of business analytics was born in the mid-1950s.

ANALYTICS 1.0 ANALYTICS 2.0 ANALYTICS 3.0

The Era Of - The Era Of Big The Era Of Data-
“Business Data. Enriched
Intelligence.” Offerings.
.

INTRODUCTION TO BUSINESS ANALYTICS 13

DATA The Era Of Business Intelligence:
ANALYTICS  Data source were relatively small and structured.
1.0  The first time, data about production processes, sales
customer interactions were recorded.

 This was the era of the enterprise data warehouse.

 Addressed only what had happened in the past and offered

no explanations or predictions.

INTRODUCTION TO BUSINESS ANALYTICS 14

The Era Of Big Data:
DATA
 Data sources were complex , large and unstructured.
ANALYTICS
 The need for powerful new tools became more clear. 2.0
 “ Data Scientists” emerged.

 Online firm created data based products and services.

 Hadoop, used for fast batch data processing across

parallel servers.

INTRODUCTION TO BUSINESS ANALYTICS 15

 DATA
ANALYTICS
 Unstructured data bases required “NoSQL”. 2.0
 “In Memory “ and “ In Data base” analytics employed. (Continued)
 Visual analytics techniques were used.

INTRODUCTION TO BUSINESS ANALYTICS 16

DATA The Era Of Data-Enriched Offerings:
ANALYTICS
 Analytics were integral to run business.
3.0
 Every firm in every industry participated.

 Rapid and agile insight delivery

INTRODUCTION TO BUSINESS ANALYTICS 17

 A. Multiple types of data, often combined:

Ten Integrate data from internal and external sources and in

structured and unstructured formats to yield new insights.
Requirements Example - Schneider National
for
Capitalizing B. A new set of data management options:

on  In the 1.0 era, firms used data warehouses as the basis for
analysis.
Analytics 3.0
 In the 2.0 era, they focused on Hadoop clusters and NoSQL
databases.

 New processes need to be developed by which data and

analysis move across staging, evaluation, exploration, and
production applications.

INTRODUCTION TO BUSINESS ANALYTICS 18

 C. Faster technologies and methods of analysis:

 Big data technologies from the 2.0 period are considerably

faster than previous generations of technology.
Ten
 The challenge in the 3.0 era is to adapt operational, product
Requirements development , and decision processes.
for D. Embedded analytics:
Capitalizing  Analytics 3.0 are often embedded into operational and
on decision processes, dramatically increasing their speed and
impact.
Analytics 3.0
(Continued) Example:
Procter & Gamble is integrating analytics in day-today management decision.

INTRODUCTION TO BUSINESS ANALYTICS 19

 E. Data discovery:

 Data discovery environments make it possible to determine the

Ten essential features of a data set without a lot of preparation
Requirements
F. Cross-disciplinary data teams:
for
 Companies employ data hackers , who excel at extracting and
Capitalizing structuring information, to work with analysts, who excel at
on modelling it.

Analytics 3.0 G. Chief analytics officers:

(Continued)  The chief analytics officer (CAO) (senior management oversight) is
responsible for data analysis within an organization.

Example –
AIG, University of Pittsburgh Medical Center, Bank of America etc.

INTRODUCTION TO BUSINESS ANALYTICS 20

 H. Prescriptive analytics

 There have always been three types of analytics

Ten
 Descriptive – Which reports on the past.
Requirements
for  Predictive - Which uses models based on past data to predict
the future.
Capitalizing
 Prescriptive - Which uses models to specify optimal
on behaviors and actions.
Analytics 3.0  Provide a high level of operational benefits but require high-
(Continued) quality planning and execution in return.
Example – UPS which uses ORION (On road Integrated Optimization
& Navigation)

INTRODUCTION TO BUSINESS ANALYTICS 21

 I. Analytics on an industrial scale:
 Analytics 3.0 provides an opportunity to boost the
Ten industrial strength.

Requirements  Creating models through machine learning can let an

for organization become much more granular and precise in
its predictions.
Capitalizing J. New ways of deciding and managing
on  Managers need to become comfortable with data-driven
Analytics 3.0 experimentation.

(Continued)  Managers should establish guidelines for when early

warnings can be a remainder for taking decisions and action.

Example –
Ron Johnson’s tenure as CEO of J.C. Penney had involved limited
experiments rather than wholesale changes, most of which turned
out badly.
INTRODUCTION TO BUSINESS ANALYTICS 22
CHANGE OF ANALYTICS IN THE LAST 10 YEARS:

 The popularity of internet  Open source tools, such as

and invention of new Spark for streaming data and R
technologies made the last for statistics are now widely
decade the era of big data. used in the businesses.

 Data scientists have invented new tools to structure the unstructured big data and
make them ready for statistical analysis.

 These are scripting languages like Hive, Python and Pig.

INTRODUCTION TO BUSINESS ANALYTICS 23

CUSTOMER RELATIONSHIP MANAGEMENT:

 The CRM systems that manage the company’s interactions and relationships with both
current and potential customers, and to optimize pricing the companies use supply chain
systems.
 To integrate these “microservices” approach is used which involves small bits of code or
an API call being embedded into a system to deliver useful analytical results.
 Nowadays analysing the data near its source has gained popularity due to the constraints
of telecommunication in remote areas which limits the centralization of data.

INTRODUCTION TO BUSINESS ANALYTICS 24

USAGE OF OLD TECH AND STATUS OF CURRENT TECH:

 Even though new technologies has introduced, the companies still use the old analytical
tools such as spread sheets, visual analytics etc.
 Data lakes stores all kinds of data in structured or semi- structured or in unstructured
format.
 Data warehouse is a storage depository that stores data that are extracted and
transformed in appropriate files.
 The current analytical technologies are more powerful and less expensive than the
previous available technologies even though they are complicated.
 Thus it requires higher levels of expertise to work with and an increase in other
nontechnical factors like analytical leadership, culture, and strategy.

INTRODUCTION TO BUSINESS ANALYTICS 25

  [2] Data analysis is important in business to understand problems facing an
organisation, and to explore data in meaningful ways. Data in itself is merely
CONCLUSION facts and figures. Data analysis organises, interprets, structures and presents
the data into useful information that provides context for the data.

[1] https://www.investopedia.com/terms/d/data-analytics.asp

REFERENCES [2] https://www.getsmarter.com/blog/career-advice/data-analysis-important-

business/#:~:text=Data%20analysis%20is%20important%20in,provides
%20context%20for%20the%20data.

INTRODUCTION TO BUSINESS ANALYTICS 26

THAN
K
YOU
INTRODUCTION TO BUSINESS ANALYTICS 27