Analytics

Analytics is the systematic computational analysis of data or statistics. It is used for the
discovery, interpretation, and communication
of meaningful patterns in data. It also entails applying data patterns toward effective decision-
making. Analytics is a field of computer science that uses math, statistics, and machine learning
to find meaningful patterns in data. Analytics – or data analytics – involves sifting through
massive data sets to discover, interpret, and share new insights and knowledge.
 
What is business analytics?
 
Very simply put, business analytics is analytics applied to business data. It focuses on the
business implications of data – and the decisions and actions that should be taken as a result.
The importance of business analytics
Today, the use of business analytics software is often the deciding factor distinguishing industry
winners from losers. Leading companies use analytics to monitor and optimize every aspect of
their operations – from marketing to supply chain – in real time. They rely on analytics to help
them make fast, data-driven decisions, grow revenue, establish new business models, provide
five-star customer experiences, empower employees, gain a competitive edge, and so much
more. Companies without analytics – or without good analytics – are left to make decisions and
do business based on gut instinct and experience alone.

 Leading organizations in every industry are wielding data and analytics as competitive

weapons. 

The top business benefits of analytics are:

 Improved efficiency and productivity

 Faster, more effective decision-making
 Better financial performance
 Identification and creation of new revenue streams
 Improved customer acquisition and retention

What is data analytics?

Data analytics converts raw data into actionable insights. It includes a range of tools,
technologies, and processes used to find trends and solve problems by using data. Data analytics
can shape business processes, improve decision-making, and foster business growth.
Why is data analytics important?
Data analytics helps companies gain more visibility and a deeper understanding of their
processes and services. It gives them detailed insights into the customer experience and customer
problems. By shifting the paradigm beyond data to connect insights with action, companies can
create personalized customer experiences, build related digital products, optimize operations, and
increase employee productivity.
What is big data analytics?
Big data describes large sets of diverse data—structured, unstructured, and semi-structured—that
are continuously generated at high speed and in high volumes. Big data is typically measured in
terabytes or petabytes. One petabyte is equal to 1,000,000 gigabytes. To put this in perspective,
consider that a single HD movie contains around 4 gigabytes of data. One petabyte is the
equivalent of 250,000 films. Large datasets measure anywhere from hundreds to thousands to
millions of petabytes.
Big data analytics is the process of finding patterns, trends, and relationships in massive datasets.
These complex analytics require specific tools and technologies, computational power, and data
storage that support the scale.

9 Big Data Examples & Use Cases

The technology known as Big Data is one of the most impactful innovations of the digital age.
Patterns and correlations hidden in massive collections of data, revealed by powerful analytics,
are informing planning and decision making across nearly every industry. In fact, within just the
last decade, Big Data usage has grown to the point where it touches nearly every aspect of our
lifestyles, shopping habits, and routine consumer choices.

Here are some examples of Big Data applications that affect people every day.

1. Transportation
2. Advertising and Marketing
3. Banking and Financial Services
4. Government
5. Media and Entertainment
6. Meteorology
7. Healthcare
8. Cybersecurity
9. Education

1. Transportation
Big Data powers the GPS smartphone applications most of us depend on to get from place to
place in the least amount of time. GPS data sources include satellite images and government
agencies.

Airplanes generate enormous volumes of data, on the order of 1,000 gigabytes for transatlantic
flights. Aviation analytics systems ingest all of this to analyze fuel efficiency, passenger and
cargo weights, and weather conditions, with a view toward optimizing safety and energy
consumption.

Big Data simplifies and streamlines transportation through:

 Congestion management and traffic control

Thanks to Big Data analytics, Google Maps can now tell you the least traffic-prone route
to any destination.
 Route planning
Different itineraries can be compared in terms of user needs, fuel consumption, and other
factors to plan for maximize efficiency.
 Traffic safety
Real-time processing and predictive analytics are used to pinpoint accident-prone areas.

 Advertising and Marketing

Ads have always been targeted towards specific consumer segments. In the past, marketers have
employed TV and radio preferences, survey responses, and focus groups to try to ascertain
people’s likely responses to campaigns. At best, these methods amounted to educated guesswork.

Today, advertisers buy or gather huge quantities of data to identify what consumers actually
click on, search for, and “like.” Marketing campaigns are also monitored for effectiveness using
click-through rates, views, and other precise metrics.
For example, Amazon accumulates massive data stories on the purchases, delivery methods, and
payment preferences of its millions of customers. The company then sells ad placements that can
be highly targeted to very specific segments and subgroups.

3. Banking and Financial Services

The financial industry puts Big Data and analytics to highly productive use, for:

 Fraud detection
Banks monitor credit cardholders’ purchasing patterns and other activity to flag atypical
movements and anomalies that may signal fraudulent transactions.
 Risk management
Big Data analytics enable banks to monitor and report on operational processes, KPIs,
and employee activities.
 Customer relationship optimization
Financial institutions analyze data from website usage and transactions to better
understand how to convert prospects to customers and incentivize greater use of various
financial products.
 Personalized marketing
Banks use Big Data to construct rich profiles of individual customer lifestyles,
preferences, and goals, which are then utilized for micro-targeted marketing initiatives.

4. Government
Government agencies collect voluminous quantities of data, but many, especially at the local
level, don’t employ modern data mining and analytics techniques to extract real value from it.

Examples of agencies that do include the IRS and the Social Security Administration, which use
data analysis to identify tax fraud and fraudulent disability claims. The FBI and SEC apply Big
Data strategies to monitor markets in their quest to detect criminal business activities. For years
now, the Federal Housing Authority has been using Big Data analytics to forecast mortgage
default and repayment rates.

The Centers for Disease Control tracks the spread of infectious illnesses using data from social
media, and the FDA deploys Big Data techniques across testing labs to investigate patterns of
foodborne illness. The U.S. Department of Agriculture supports agribusiness and ranching by
developing Big Data-driven technologies.

Military agencies, with expert assistance from a sizable ecosystem of defense contractors, make
sophisticated and extensive use of data-driven insights for domestic intelligence, foreign
surveillance, and cybersecurity.

5. Media and Entertainment

The entertainment industry harnesses Big Data to glean insights from customer reviews, predict
audience interests and preferences, optimize programming schedules, and target marketing
campaigns.

Two conspicuous examples are Amazon Prime, which uses Big Data analytics to recommend
programming for individual users, and Spotify, which does the same to offer personalized music
suggestions.
 6. Meteorology

Weather satellites and sensors all over the world collect large amounts of data for tracking
environmental conditions. Meteorologists use Big Data to:

 Study natural disaster patterns

 Prepare weather forecasts
 Understand the impact of global warming
 Predict the availability of drinking water in various world regions
 Provide early warning of impending crises such as hurricanes and tsunamis

7. Healthcare

Big Data is slowly but surely making a major impact on the huge healthcare industry. Wearable
devices and sensors collect patient data which is then fed in real-time to individuals’ electronic
health records. Providers and practice organizations are now using Big Data for a number of
purposes, including these:

 Prediction of epidemic outbreaks

 Early symptom detection to avoid preventable diseases
 Electronic health records
 Real-time alerting
 Enhancing patient engagement
 Prediction and prevention of serious medical conditions
  Strategic planning
 Research acceleration
 Telemedicine
 Enhanced analysis of medical images

8. Cybersecurity

While Big Data can expose businesses to a greater risk of cyberattacks, the same datastores can
be used to prevent and counteract online crime through the power of machine learning and
analytics. Historical data analysis can yield intelligence to create more effective threat controls.
And machine learning can warn businesses when deviations from normal patterns and sequences
occur, so that effective countermeasures can be taken against threats such as ransomware attacks,
malicious insider programs, and attempts at unauthorized access.

After a company has suffered an intrusion or data theft, post-attack analysis can uncover the
methods used, and machine learning can then be deployed to devise safeguards that will foil
similar attempts in the future.

9. Education

Administrators, faculty, and stakeholders are embracing Big Data to help improve their curricula,
attract the best talent, and optimize the student experience. Examples include:
  Customizing curricula
Big Data enables academic programs to be tailored to the needs of individual students,
often drawing on a combination of online learning, traditional on-site classes, and
independent study.
 Reducing dropout rates
Predictive analytics give educational institutions insights on student results, responses to
proposed programs of study, and input on how students fare in the job market after
graduation.
 Improving student outcomes
Analyzing students’ personal “data trails” can provide a better understanding of their
learning styles and behaviors, and be used to create an optimal learning environment.
 Targeted international recruiting
Big Data analysis helps institutions more accurately predict applicants’ likely success.
Conversely, it aids international students in pinpointing the schools best matched to their
academic goals and most likely to admit them.

9 Big Data Examples & Use Cases

Learn more about MongoDB Atlas

The technology known as Big Data is one of the most impactful innovations of the digital age.
Patterns and correlations hidden in massive collections of data, revealed by powerful analytics,
are informing planning and decision making across nearly every industry. In fact, within just the
last decade, Big Data usage has grown to the point where it touches nearly every aspect of our
lifestyles, shopping habits, and routine consumer choices.

Here are some examples of Big Data applications that affect people every day.

1. Transportation
2. Advertising and Marketing
3. Banking and Financial Services
4. Government
5. Media and Entertainment
6. Meteorology
7. Healthcare
8. Cybersecurity
 9. Education

1. Transportation

Big Data powers the GPS smartphone applications most of us depend on to get from place to
place in the least amount of time. GPS data sources include satellite images and government
agencies.

Airplanes generate enormous volumes of data, on the order of 1,000 gigabytes for transatlantic
flights. Aviation analytics systems ingest all of this to analyze fuel efficiency, passenger and
cargo weights, and weather conditions, with a view toward optimizing safety and energy
consumption.

Big Data simplifies and streamlines transportation through:

 Congestion management and traffic control

Thanks to Big Data analytics, Google Maps can now tell you the least traffic-prone route
to any destination.
 Route planning
Different itineraries can be compared in terms of user needs, fuel consumption, and other
factors to plan for maximize efficiency.
 Traffic safety
Real-time processing and predictive analytics are used to pinpoint accident-prone areas.

 Advertising and Marketing

Ads have always been targeted towards specific consumer segments. In the past, marketers have
employed TV and radio preferences, survey responses, and focus groups to try to ascertain
people’s likely responses to campaigns. At best, these methods amounted to educated guesswork.

Today, advertisers buy or gather huge quantities of data to identify what consumers actually
click on, search for, and “like.” Marketing campaigns are also monitored for effectiveness using
click-through rates, views, and other precise metrics.

For example, Amazon accumulates massive data stories on the purchases, delivery methods, and
payment preferences of its millions of customers. The company then sells ad placements that can
be highly targeted to very specific segments and subgroups.

3. Banking and Financial Services

The financial industry puts Big Data and analytics to highly productive use, for:

 Fraud detection
Banks monitor credit cardholders’ purchasing patterns and other activity to flag atypical
movements and anomalies that may signal fraudulent transactions.
 Risk management
Big Data analytics enable banks to monitor and report on operational processes, KPIs,
and employee activities.
 Customer relationship optimization
Financial institutions analyze data from website usage and transactions to better
understand how to convert prospects to customers and incentivize greater use of various
financial products.
 Personalized marketing
Banks use Big Data to construct rich profiles of individual customer lifestyles,
preferences, and goals, which are then utilized for micro-targeted marketing initiatives.
 4. Government

Government agencies collect voluminous quantities of data, but many, especially at the local
level, don’t employ modern data mining and analytics techniques to extract real value from it.

Examples of agencies that do include the IRS and the Social Security Administration, which use
data analysis to identify tax fraud and fraudulent disability claims. The FBI and SEC apply Big
Data strategies to monitor markets in their quest to detect criminal business activities. For years
now, the Federal Housing Authority has been using Big Data analytics to forecast mortgage
default and repayment rates.

The Centers for Disease Control tracks the spread of infectious illnesses using data from social
media, and the FDA deploys Big Data techniques across testing labs to investigate patterns of
foodborne illness. The U.S. Department of Agriculture supports agribusiness and ranching by
developing Big Data-driven technologies.

Military agencies, with expert assistance from a sizable ecosystem of defense contractors, make
sophisticated and extensive use of data-driven insights for domestic intelligence, foreign
surveillance, and cybersecurity.

5. Media and Entertainment

The entertainment industry harnesses Big Data to glean insights from customer reviews, predict
audience interests and preferences, optimize programming schedules, and target marketing
campaigns.

Two conspicuous examples are Amazon Prime, which uses Big Data analytics to recommend
programming for individual users, and Spotify, which does the same to offer personalized music
suggestions.

6. Meteorology

Weather satellites and sensors all over the world collect large amounts of data for tracking
environmental conditions. Meteorologists use Big Data to:

 Study natural disaster patterns

 Prepare weather forecasts
 Understand the impact of global warming
 Predict the availability of drinking water in various world regions
 Provide early warning of impending crises such as hurricanes and tsunamis

7. Healthcare

Big Data is slowly but surely making a major impact on the huge healthcare industry. Wearable
devices and sensors collect patient data which is then fed in real-time to individuals’ electronic
health records. Providers and practice organizations are now using Big Data for a number of
purposes, including these:

 Prediction of epidemic outbreaks

 Early symptom detection to avoid preventable diseases
 Electronic health records
 Real-time alerting
 Enhancing patient engagement
 Prediction and prevention of serious medical conditions
 Strategic planning
 Research acceleration
 Telemedicine
 Enhanced analysis of medical images

8. Cybersecurity

While Big Data can expose businesses to a greater risk of cyberattacks, the same datastores can
be used to prevent and counteract online crime through the power of machine learning and
analytics. Historical data analysis can yield intelligence to create more effective threat controls.
And machine learning can warn businesses when deviations from normal patterns and sequences
occur, so that effective countermeasures can be taken against threats such as ransomware attacks,
malicious insider programs, and attempts at unauthorized access.

After a company has suffered an intrusion or data theft, post-attack analysis can uncover the
methods used, and machine learning can then be deployed to devise safeguards that will foil
similar attempts in the future.
 9. Education

Administrators, faculty, and stakeholders are embracing Big Data to help improve their curricula,
attract the best talent, and optimize the student experience. Examples include:

 Customizing curricula
Big Data enables academic programs to be tailored to the needs of individual students,
often drawing on a combination of online learning, traditional on-site classes, and
independent study.
 Reducing dropout rates
Predictive analytics give educational institutions insights on student results, responses to
proposed programs of study, and input on how students fare in the job market after
graduation.
 Improving student outcomes
Analyzing students’ personal “data trails” can provide a better understanding of their
learning styles and behaviors, and be used to create an optimal learning environment.
 Targeted international recruiting
Big Data analysis helps institutions more accurately predict applicants’ likely success.
Conversely, it aids international students in pinpointing the schools best matched to their
academic goals and most likely to admit them.

How does big data analytics work?

Big data analytics follows five steps to analyze any large datasets: 

1. Data collection
2. Data storage
3. Data processing
4. Data cleansing
5. Data analysis
Data collection

This includes identifying data sources and collecting data from them. Data collection follows
ETL or ELT processes.

ETL – Extract Transform Load

In ETL, the data generated is first transformed into a standard format and then loaded into
storage.

ELT – Extract Load Transform

In ELT, the data is first loaded into storage and then transformed into the required format.

Data storage

Based on the complexity of data, data can be moved to storage such as cloud data warehouses or
data lakes. Business intelligence tools can access it when needed.

Comparison of data lakes with data warehouses

A data warehouse is a database optimized to analyze relational data coming from transactional
systems and business applications. The data structure and schema are defined in advance to
optimize for fast searching and reporting. Data is cleaned, enriched, and transformed to act as the
“single source of truth” that users can trust. Data examples include customer profiles and product
information.

A data lake is different because it can store both structured and unstructured data without any
further processing. The structure of the data or schema is not defined when data is captured; this
means that you can store all of your data without careful design, which is particularly useful
when the future use of the data is unknown. Data examples include social media content, IoT
device data, and nonrelational data from mobile apps.

Organizations typically require both data lakes and data warehouses for data analytics. AWS
Lake Formation and Amazon Redshift can take care of your data needs.

Data processing

When data is in place, it has to be converted and organized to obtain accurate results from
analytical queries. Different data processing options exist to do this. The choice of approach
depends on the computational and analytical resources available for data processing.

Centralized processing 

All processing happens on a dedicated central server that hosts all the data.
Distributed processing 

Data is distributed and stored on different servers.

Batch processing 

Pieces of data accumulate over time and are processed in batches.

Real-time processing 

Data is processed continually, with computational tasks finishing in seconds. 

Data cleansing

Data cleansing involves scrubbing for any errors such as duplications, inconsistencies,
redundancies, or wrong formats.  It’s also used to filter out any unwanted data for analytics.

Data analysis

This is the step in which raw data is converted to actionable insights. The following are four
types of data analytics:

1. Descriptive analytics

Data scientists analyze data to understand what happened or what is happening in the data
environment. It is characterized by data visualization such as pie charts, bar charts, line graphs,
tables, or generated narratives.

2. Diagnostic analytics

Diagnostic analytics is a deep-dive or detailed data analytics process to understand why

something happened. It is characterized by techniques such as drill-down, data discovery, data
mining, and correlations. In each of these techniques, multiple data operations and
transformations are used for analyzing raw data.

3. Predictive analytics

Predictive analytics uses historical data to make accurate forecasts about future trends. It is
characterized by techniques such as machine learning, forecasting, pattern matching, and
predictive modeling. In each of these techniques, computers are trained to reverse engineer
causality connections in the data.
4. Prescriptive analytics

Prescriptive analytics takes predictive data to the next level. It not only predicts what is likely to
happen but also suggests an optimum response to that outcome. It can analyze the potential
implications of different choices and recommend the best course of action. It is characterized by
graph analysis, simulation, complex event processing, neural networks, and recommendation
engines.