Big Data & Business Analytics

Business Analytics
• “A process of transforming data into actions through
analysis and insights in the context of organizational
decision making and problem solving”
• “The use of data, information technology, statistical
analysis, quantitative methods and mathematical or
computer based models to help managers gain
improved insights about their business operations
and make better fact based decisions “
 Some Applications
• Banks- to predict and prevent credit fraud
• Manufacturers – production planning,
purchasing & inventory management
• Retailers- recommend products , optimize
marketing promotions
• Airlines & hotels- to set prices dynamically
• Sports – game strategy, optimal ticket pricing
 Business analytics

Data
Business Mining
Intelligence (BI) Statistics

Visualisati
What if on
Simulation
& Risk

Modeling &
Optimization
 Impact of applying business analytics

• Reduced costs
• Better risk management
• Faster decisions
• Better productivity
• Enhanced bottom line performance
– Profitability
– Customer satisfaction
 Challenges
• Understanding of how to use analytics
• Competing business priorities
• Insufficient analytical skills
• Difficulty in getting good data
• Application of analytics
• Understanding the benefits vs perceived costs
CASELET- GROCERY STORE
Optimizing prices/shelf
Store layout
management
Data driven decision making flow diagram
 Stage 1 Stage 2
Identify problems/ Identify sources of data
Improvement required for problem
Opportunities identified in stage 1

Stage 3
Stage 6 Pre process the data for
Deploy missing/incorrect data
solution/decision and generate new
variables if necessary

Stage 5 Stage 4
Develop the models and Split the data into
select the models for training and validation
deployment based on data
performance criteria
Components of business analytics

Data Science

Business
Context Technology
Business context
 Technology

Data Data Data

capture Storage Preparation Data Data share
Analysis
 Data Science
• Consists of statistical & operations research
techniques , machine learning etc
 Big data
• Term used for large volume of data