DATA ANAYTICS FOR BUSINESS

DECISIONS

Unit 5

MBA/BBA/B.com /BCA/UGC Net

By
Dr. Anand Vyas
 Application of Business in Analysis Retail Analytics
• Retail analytics is the process of providing analytical data on inventory levels, supply chain movement, consumer demand,
sales, etc. that are crucial for making marketing, and procurement decisions. The analytics on demand and supply data can
be used for maintaining procurement level and also for taking marketing decisions. Retail analytics gives us detailed
customer insights along with insights into the business and processes of the organisation with scope and need for
improvement.

• Descriptive Analytics
Simply put, descriptive analytics uses data to describe “what” is happening in your business. But it doesn’t do much to answer
the “why” unless combined with other types of data analytics that can show patterns and correlations.

• Diagnostic Analytics
The simplest form of “advanced” analytics diagnostic analytics helps retailers use data to answer the “why” of specific business
problems.
• Taking the same raw data used in descriptive analytics, diagnostic analytics uses statistical analysis, algorithms, and
sometimes, machine learning, to drill deeper into the data and find correlations between data points.

• Predictive Analytics
If descriptive analytics shows you the “what” of what’s happening in your business, and diagnostic analytics tells you the “why”
predictive analytics tells you “what’s next
Data analytics is being used to disrupt retail today.

• In-Store Experience Tracking

• Understanding Customer Behaviors
• Better Promotions
• Operational and Supply Chain Improvements
 Marketing Analytics
• Marketing analytics is the practice of measuring,
managing and analyzing marketing performance to
maximize its effectiveness and optimize return on
investment (ROI). Understanding marketing analytics
allows marketers to be more efficient at their jobs
and minimize wasted web marketing dollars.
 Characteristics of Marketing Analytics
• Ensure high-quality data
• Get real-time insights
• Choose the right analytics visualization
• Perfect your dashboard
• Use a tool featuring machine learning and AI to predict
and prescribe
Application of Business Analysis in Financial Analytics

• Business analytics are a boon for the financial sector. Various

divisions like investment banking, financial planning, portfolio
management, budgeting, and forecasting can benefit greatly by
implementing business analytics. The business analysts use
data mining tools and statistics on the available financial data to
observe the trends of similar products in case of a new product
or observe the existing product to determine future actions.
 Types of financial analysis include the following:

• Horizontal analysis refers to the side-by-side comparison of an organization’s financial performance for
consecutive reporting periods. The aim is to determine major shifts in the data. Later, this information could
be applied to a more detailed analysis of financial results.
• Vertical analysis pertains to the proportional analysis of a financial statement. Each line item on a financial
statement is listed as a percentage of another item for example, every line item on an income statement is
provided as a percentage of gross sales, while every line item on a balance sheet is given as a percentage of
total assets.
• Short-term analysis provides a detailed review of working capital, involving the calculation of turnover rates
for accounts receivable, inventory and accounts payable. Any differences from the long-term average
turnover rate should be studied further because working capital is a significant user of cash.
• Multi-company comparison entails tallying and comparing major financial ratios of two organizations, usually
in the same industry sector. The aim is to determine the companies’ relative financial strengths and
weaknesses.
• Industry comparison contrasts the results of a specific business and the average results of an entire industry.
The purpose is to determine any unusual results in comparison to the industry average.
Application of Business Analysis in Healthcare Analytics

• The health care industry produces large amounts of data on a daily basis. Most of
these data used to be hard copies but, now organizations are gathering data
electronically.

• Electronic Health Records (EHR): Clinical records with patient details.

• Laboratory Information Management system (LIMS): Contains lab results
• Monitoring and diagnostic instruments: Data from instruments like MRI.
• Pharmacy: Medication details of the patient
• Instruments and human tracking system: Data contains location information of
instruments and people.
• Insurance claim and billing: Contains insurance claims and billing details
• Hospital Resources: Employee list and hospital supply chain details.
 Application of Business Analysis in Supply Chain
Analytics
• Supply chain analytics refers to the processes organizations use to gain
insight and extract value from the large amounts of data associated with
the procurement, processing and distribution of goods. Supply chain
analytics is an essential element of supply chain management (SCM).
Challenges of Supply Chain Industry
• Supply chain and logistics process transparency.
• Managing Demand Volatility
• Tackling cost fluctuations in Supply Chain
Advantages (Benefits)
• Better understand risks, Better understand risks and Prepare for the
future