NMIMS

FUNDAMENTALS OF BIG DATA

APPLICABLE FOR JUNE 2022 EXAMS

1. The emerging technological development of big data is recognized as one of the

mostimportant areas of future information technology and is evolving at a rapid speed,
driven inpart by social media and the Internet of Things (IoT) phenomenon. The
technologicaldevelopments in big data infrastructure, analytics, and services allow firms
to transformthemselves into data-driven organizations. IDC (2015) forecasted that the big
datatechnologyand services market will grow at a compound annual growth rate of 23.1%
overthe 2014—2019 period, with annual spending reaching $48.6 billion in 2019.
Whilestructured data is an essential part of big data, more and more data are created in
unstructuredvideo and image forms, which traditional data management technologies are
inadequate toprocess. A large portion of data worldwide have been generated by billions
of IoT devicessuch as smart home appliances, wearable devices, and environmental
sensors.To meet the ever-increasing storage and processing needs of big data, several
new big dataplatforms are emerging, including NoSQL databases as an alternative to
traditional relationaldatabases and Hadoop as an open-source framework for inexpensive
distributed clusters ofcommodity hardware. *
Source:-*https://e-tarjome.com/storage/panel/fileuploads/2019-
0227/1551256718_E10700-e-tarjome.pdf
a) Mention 2 examples where business uses big data from the sources mentioned above
andwhat kind of infrastructure is needed in the organization to store and maintain big
data?
b) How are cloud platforms responsible for growth of big data and how do companies
leveragecloud technologies to build analytics solutions?

Answer:
a) As the name suggests, big data is a term that describes the large volume of data, that
data may be structured or unstructured. That data inundates a business on routine basis
and used by organization for various purposes. Data may not be important but how
companies are using that data, is really matters. Big data can be analyzed for insights that
lead to better decisions and strategic business moves. As mentioned in the question that
healthcare industry is inundated with massive volumes of data generated each minute. With
the adoption of electronic health, mobile health and wearable technologies, this is poised to
increase dramatically over the next few years so yes; this huge data will definitely be called
as big data. Big Data is generated at a very large scale and it is being used by many
multinational companies to process and analyse in order to uncover insights and improve
the business of many organisations.

IoT and big data:

IoT and Big Data are two independent technologies that are inseparable from each other, to
enable well-known technological advances. While the IoT would largely collect data from
physical objects through different sensors, Big Data would allow faster and more efficient
storage and processing of this data.The interaction between IoT and Big Data is not one-
way. IoT could also bring a lot to Big Data. The more important IoT are in your daily life and
that of your city, the more developers will be demanding greater capacity in terms of big
data and the more this business will grow.

Social media and big data:

Without any exaggeration, marketing analytics depends on big data in terms of future
predictions of customers’ behavior. That’s why many enterprises invest in big data solution
tools to monitor customers’ experience in social media real-timely.The overflow of posts,
comments, likes and dislikes, followings and followers that appear from social media
sources, like top 3 leaders - Facebook, YouTube, Instagram, vividly demonstrates the
deployment of these big data strategies.
Infrastructure needed to maintain big data in organization:

To manage big data in an organization, infrastructure must be robust, scalable and ductile
and fail-safe for unplanned situations. Another driving force behind the successful
implementation of BigData is the software – both analytics and infrastructure.The data once
gathered from your sources is stored in the sophisticated but accessible systems and
traditional data warehouse, a distributed/cloud-based storage system, a data lake, and in
the company serversor even a simple computer’s hard disk depending on the magnitude
ofthe data received. For not so larger amounts of data, one can considerusing their
clustered networks storage as the data-storing option, given its well designed and has
failsafe measures to withstand those unpredictable storage issues. However, for larger data
inflows, wherea group of interconnected networks won’t suffice alone; it is better to
consider the cloud-based data caches or professionally managed datacentres.

b) Modern organisations are rich with data. Owing to large-scale computerisation efforts,
almost all processes, activities, and interactions within the organisation are available in
accessible databases. This rich data environment has spawned a variety of software
applications that rely on the principles of decision support systems (DSS) and enable
organisations to change their competitive strategy. These applications rely on fast
computing architectures, a large collection of historical data, access to data being produced
currently in the organisation, and computing software that enables complex models to be
used for analysis. This approach to using data analysis is widely known asanalytics.

Role of cloud in the growth of big data:

One of the vital issues that organisations face with the storage andmanagement of Big Data
is the huge amount of investment to get the required hardware setup and software
packages. Some of these resources may be over utilised or underutilised with varying
requirements overtime. We can overcome these challenges by providing a setof computing
resources that can be shared through cloud computing.These shared resources comprise
applications, storage solutions, computational units, networking solutions, development and
deployment platforms, business processes, etc. The cloud computing environment saves
costs related to infrastructure in an organisation by providing a framework that can be
optimised and expanded horizontally. In order to operate in the real world; cloud
implementation requires common standardised process and their automation.

Big data involves manipulating petabytes (and perhaps soon, exabytes and zettabytes) of
data, and the cloud’s scalable environment makes it possible to deploy data-intensive
applications that power business analytics. The cloud also simplifies connectivity and
collaboration within an organization, which gives more employees access to relevant
analytics and streamlines data sharing.While it’s easy for IT leaders to recognize the
advantages of putting big data in the cloud, it may not be as simple to get C-suite executives
and other primary stakeholders on board. But there’s a business case to be made for the big
data + cloud pairing because it gives executives a better view of the business and boosts
data-driven decision making.

The shift to big data in the cloud isn’t surprising considering the many benefits that the
powerful combination of big data analytics and cloud computing can bring. Here is the key
advantages.Large volumes of both structured and unstructured data requires increased
processing power, storage, and more. The cloud provides not only readily-available
infrastructure, but also the ability to scale this infrastructure really quickly so you can
manage large spikes in traffic or usage.Mining big data in the cloud has made the analytics
process less costly.

2. There are plenty of cashless payment options that have grown in last 3 years — like
UPI,NetBanking, Open banking apps, USSD, AEPS etc. The driving force in the evolution
ofthe payment system has been the need to give users the ease of doing it as it directly
affectsthe purchase pattern of a customer.It is because of this reason that Mobile wallets
like MobiKwik, PayTM, Oxigen, AmazonPay, Google Pay have become the forerunners of
the digital payment industry. While thesewallets are penetrating into very small
businesses and non-tier-1 cities initially with theircash-backs, they have innovated and
provided easy user experience that needs minimumlearning by a user. For example,
payment via scanning a QR Code or simply enteringmerchant’s mobile number is easy.
Sending money to a friend to clear debts is just a click-or-two away. To add on to this,
apart from simplifying payments, the value-added serviceslike bill payments, ticket
booking provided by these wallets have made them the preferredpayment option of the
savvy Indian consumer.The future of digital payments lies in providing further simplified
and secure user experience,while increasing its adoption by leading socio-economic
changes at the grass root level. Mobilewallets are good, but still need taking out the
smartphone followed by some action by the user, which is no better than taking out the
credit card for payment. Next simplification lies in secureidentification and payments (by
face detection, voice, sound) which can further disrupt andexponentially grow the digital
payments wave.

a) How does the mobile analytics play a role in the growth of digital payments? Mention 2
keybusiness metrics which can be tracked to check the status of digital payment
evolution.
b) State and explain the possible (descriptive/predictive/prescriptive) analytics solutions
whichcan be used to enhance the reach of digital payments within 2 and 3-tier cities.

Answer:

a)

Analytics in Digital payments industry:

These days we find variety of digital payment options which make our life simple, earlier we
used to visit bank or money transfer agents to transfer the funds, online payments were
limited to NEFT, RTGS, IMPS etc. but the scenario has completely changed in last few years
when digital wallets entered in payments industry. Now we have plenty of options and
money can be transferred with single click, apart from that, other facilities are also there
like bill payments, ticket booking etc. As per the recent survey, there are millions of
transactions performed daily using these digital payment options. This data can be analyzed
and used to garner insights and measure business performance.
There are various companies engaged in payment businesses and they should use analytics
to increase the revenue. They should capture as-is costs and compare with bank and
industry benchmarks to help drive your cost management program and optimize costs by
enhancing straight through processing to minimize manual intervention for repairs and
investigations, enabling the realization of ‘right first time.’

There are various analytical solutions which can help in growing digital payment industry
such as Profitwell, Databox, Bluesnap, Payfirma etc. These types of solutions can help the
companies of payment industry in big way. With the help of these solutions, companies will
have clear idea about the data of people using digital payment options and on which
aspects they need to work on. When used effectively, payment analytics can help businesses
gain insights into revenue, costs, and payment trends; make more informed business
decisions; and even prevent fraudulent activity.

Business metrics to check the status of digital payment evolution:

Installation and uninstallation: We can find applications of all digital payment wallets and
other options under app store so that is the basic metric to assess the demand and
performance of the business. Every new install is an indication that your brand’s audience is
growing and engaged, whereas every uninstall could be a sign that your strategies aren’t
resonating. Companies need to track down all this, if the installations are increasing then
they are doing well but if uninstallations are increasing then it is clear the people are not
happy with your services and switching to other options.

Usage: Another effective business metric in this business will be usage of these applications.
As per latest data, there is increasing trend of using these apps and daily millions of people
are using them for various digital transactions. This data shows the huge success of these
platforms and encourage them to continuously perform better.

Net profit: This business metric indicates how efficient your company is at generating profit
compared to its revenue. Basically, this number tells you how big a sum of? Each rupee
earned translates into profits.The Net Profit Margin is a good way to predict long-term
business growth, and see whether your income exceeds the costs of running the business.

Growth: Companies should measure the performance using this metric and understand how
well they are performing in the market. No doubt, digital payment industry grown rapidly in
last few years and this trend would continue in coming years as well as people find it simple,
quick and convenient.

b)

Using analytics is quite advantageous for the companies these days. Firms that have large-
scale on-going transactions, such as e-commerce firms, want to monitor and analyse trends.
Software applications monitor the stream oftransaction data in real time, that is, soon after
the transaction data is created, and measure the data for trends. Such monitoring allows
firms to make pricing, load balancing and resource allocation decisions quickly.Today’s
world moves faster than ever before. The way people purchase consumer goods is changing.
The way businesses communicate is changing. The way companies reach clients is changing.
With so much change happening at such a rapid pace, it’s easy for even the largest, smartest
companies to get left behind.Business analytics can help companies avoid falling into that
trap. Using analytics allows businesses to create rolling forecasts of the business and of the
market.

Types of analytics:

Predictive analytics: In predictive analytics, the challenge is to usehistorical data effectively

to predict aspects of the future that are important for thebusiness.
Prescriptive analytics: The purpose of prescriptive analytics is to literally prescribe what
action to take to eliminate a future problem or take full advantage of a promising trend.
Diagnostic analytics: At this stage, historical data can be measured against other data to
answer the question of why something happened. Thanks to diagnostic analytics, there is a
possibility to drill down, to find out dependencies and to identify patterns.
Descriptive analytics: Descriptive analytics answers the question of what happened. For
instance, a healthcare provider will learn how many patients were hospitalized last month.

Role of analytics in enhancing reach of digital payments:

Post demonetization, and as digital payments started taking centre stage, it is becoming
easier for banks to collate data, structure it as per their strategic needs, and derive insights
to use for further planning. Technologies like IoT and AI have been supporting this new
wave of Data and analytics value addition.“Over the last few years, Indian FinTech firms
have been driving innovation and evolving at a rapid pace. The most important game
changer in this has been the increased data availability and emerging new age technologies
like machine learning and data analytics. Among the early adopters of this data-driven
innovation are firms that specialize in credit analytics using alternative data.”

Digital payment firms are seeing large scale use of data analytics not only to digitize cash
payments but also to scale to expand market and customers base. The use of analytics.
Many BFSI players are leveraging Data analytics to ensure an efficient pricing and services
offering which can be customised to service the targeted customers better. This leverage
continues to provide better customer monitoring and personalised services.The advantage
provided by analytics can go a long way in adding to customer experience.Digital payments
are enhanced with data led insights so analytics are playing important role in enhancing the
role of digital payments in various tier-2 and 3 cities.

3.a. Explain the difference between BI and BA as to how can they help optimize supply
chainofan e-commerce business venture? Illustrate the possible outcome achieved in each
case (BI vs.BA) and how they enable business objectives. You can make certain
assumptions but highlightthem clearly.
3.b. In the logistics and transportation business, how do you use analytics to maintain
demandsupplybalance ongoing? Explain the analytics methodologies used to optimize the
supplychain
Answer:

a) Business intelligence
Organisations need to focus their strategies on the targeted customers and their needs. For
this purpose, they need constant and reliable information about customers. This can be
done by using the concept ofBusiness Intelligence (BI).BI is a collection of tools and systems
that help an organisation inmaking and executing strategic plans. BI utilises computing
techniques for the discovery, identification and business data analysis, like products, sales
revenue, and earnings and costs.

Business intelligence in supply chain:

Manufacturers need BI to improve their supply chain because BI can increase both visibility
and agility - two points that are crucial to success in the digital age. With visibility, you can
better understand your chain at the granular level, shining light on hidden problems that are
costing you in a big way. It can also help you optimise the performance of third-party
partners and negotiate better deals. From an agility perspective, an agile supply chain is one
that can adapt to a swiftly changing world without causing considerable harm to the bottom
line. BI provides insights in a variety of ways (that we cover below) that reduce task
uncertainties and allow for faster strategic decision-making.

If a business can cut through the months and years of customization and planning to achieve
a robust business intelligence foundation that provides rapid return on investment (ROI)
with low Total Cost of Ownership (TCO), it can get the best from its business intelligence and
be competitive and successful. The ideal solution provides tools and features that support
Business Intelligence for Supply Chain Management and are flexible enough to allow the
business to meet its own unique business requirements. For example, Amazon uses
business intelligence technology to personalize product recommendations and market
products, but it also uses its BI software tools for logistical business decisions. In fact, in-
depth data analysis is what enables Amazon’s massive supply chain to run smoothly.From
optimizing shipping routes to allocating inventory among warehouses, data and BI tools
influence practically every step of Amazon’s supply process. In another example, many
businesses can calculate their perfect order percentage in a BI solution, but few can exploit
supply chain analytics to drive their perfect order performance to the next level. That means
going beyond on time, shipped complete to the underlying factors that drive customer
behavior.

Business analytics in supply chain:

Companies these days are investigating much deeper into their data to get a brief
understanding and learn from past as well as current data. Business analytics can be very
much useful in supply chain management and offers various advantages for example;
Analytics will help define the future demand, thereby ensuring lesser storage costs or
scarcity of raw materials to fulfil the demand. Balance between supply and demand will
ensure that clients are satisfied and goodwill is maintained in the market for prompt
delivery of services with lesser lead time.Ease in tracking and material handling, movement
of inventory can be guaranteed by analytics. Finding areas of concern will be easier for
them.Ease in availability of data can ensure information available at their fingertips, which
makes ordering for materials quite smooth, thus, ensuring that material ordered are Just-in-
Time and other materials that can be held.

b)

Today’s world moves faster than ever before. The way people purchase consumer goods is
changing. The way businesses communicate is changing. The way companies reach clients is
changing. With so much change happening at such a rapid pace, it’s easy for even the
largest, smartest companies to get left behind.Business analytics can help companies avoid
falling into that trap. Using analytics allows businesses to create rolling forecasts of the
business and of the market.Adopting and implementing Business Analytics is not something
a logistics industry can do overnight. But, if the industry follows some best practices for
Business Analytics, they will get the levels of insight they seek and become more
competitive and successful.Stronger insights and more timely delivery of intelligence helps
to improve the decision-making process in stride, thus yielding a more comprehensively
consistent and preferable flow of processes over time.
Data analytics in supply chain management (SCM) is receiving a growing attention. This is
due to the fact that data analysis has a wide range of applications in SCM, including
customer behavior analysis, trend analysis, and demand prediction.With SCM efforts aiming
at satisfying customer demand while minimizing the total cost of supply, applying machine-
learning/data analytics algorithms could facilitate precise (data-driven) demand forecasts
and align supply chain activities with these predictions to improve efficiency and
satisfaction.

The era of big data and high computing analytics has enabled data processing at a large
scale that is efficient, fast, easy, and with reduced concerns about data storage and
collection due to cloud services. The emergence of new technologies in data storage and
analytics and the abundance of quality data have created new opportunities for data-driven
demand forecasting and planning. Demand forecast accuracy can be significantly improved
with data-mining algorithms and tools that can sift through data, analyze the results, and
learn about the relationships involved. This could lead to highly accurate demand
forecasting models that learn from data and are scalable for application in SCM.

Analytics methodologies used to optimize the supply chain:

Advanced demand forecasting: With real-time insights into inventory operations, you can
optimize budgets and forecast how much inventory to keep on hand, improve inventory
management with automated stock counts, and deliver inventory based on customer
preferences and location to reduce distribution costs.When you can create the optimal
balance between supply and demand, you can ensure prompt delivery of services and
products to customers with less lead time.

Predictive maintenance: With a predictive maintenance strategy, maintenance is performed

on equipment only when required. This helps you avoid unnecessary maintenance and the
costs of spare parts and supplies that are associated with it. It also reduces downtime due to
equipment undergoing maintenance and prevents unplanned maintenance that could cause
delays in production and bottlenecks in the supply chain.