Types of Analytics

Presented by:
Dr Shahbaz Khan
Assistant Professor
Institute of Business Management
 Components of Analytics

Predicting future
Data synthesis and events
Visualization
Descriptive Predictive
Analytics Analytics

Prescriptive
Analytics
Optimization and decision
making
Descriptive Predictive Prescriptive
Analytics Analytics Analytics

What Happened ? What Will Happen ? What Action to Take ?

 • Most shoppers turn towards right when
they enter the a retail store.

Descriptive • Conversion rate of women shoppers is

higher than male shoppers among
Analytics electronic gadgets purchasers (Radio
Shack).
Applications
• Strawberry pop-tarts sell 7 times more
during hurricane compared to regular
period (Wal Mart).

• Women car buyers prefer women sales

person.
 Descriptive Analytics
90% of organizations today use descriptive analytics
which is the most basic form of analytics.

The simplest way to define descriptive analytics is that it

answers the question “What has happened?”

The main objective of descriptive analytics is to find out

the reasons behind precious success or failure in the past.

BFBC0011: Fundamentals of
Business Analytics
 Here are some common applications of
Descriptive Analytics:
• Summarizing past events such as
regional sales, customer attrition, or
Applications of
success of marketing campaigns.
Descriptive Analytics
• Tabulation of social metrics such as
Facebook likes, Tweets, or followers.
• Reporting of general trends like hot
travel destinations or news trends.

BFBC0011: Fundamentals of Business Analytics

 Example of Descriptive
Analytics
• One of the primary objectives of descriptive
analytics is innovative ways of data
summarization.
• Descriptive analytics is used for understanding
the trends in past data which can be useful for
generating insights.
• Figure shows visualization of relationship
break-ups reported in Facebook.

BFBC0011: Fundamentals of
Business Analytics
 Example of Descriptive
Analytics

BFBC0011: Fundamentals of
Business Analytics
 Example of Descriptive
Analytics
• It is clear from Figure that spike in breakups
occurred during spring break and in December
before Christmas.
• There could be many reasons for increase in
breakups during December (we hope it is not a
New Year resolution that they would like to
change the partner).

BFBC0011: Fundamentals of
Business Analytics
 Example of Descriptive
Analytics
• Many believe that since December is a holiday
season, couples get a lot of time to talk to each
other, probably that is where the problem starts.
• However, descriptive analytics is not about
why a pattern exists, but about what the pattern
means for a business.

BFBC0011: Fundamentals of
Business Analytics
 Example of Descriptive
Analytics
• The fact that there is a significant increase in
breakups during December we can deduce the
following insights (or possibilities):
– There will be more traffic to online dating sites
during December/January.
– There will be greater demand for relationship
counsellors and lawyers.
– There will be greater demand for housing and the
housing prices are likely to increase in
December/January.
BFBC0011: Fundamentals of
Business Analytics
 Example of Descriptive
Analytics
– There will be greater demand for household items.
– People would like to forget the past, so they might
change the brand of beer they drink.

BFBC0011: Fundamentals of
Business Analytics
 Thank You!

BFBC0011: Fundamentals of
Business Analytics