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Unit 1

This document discusses business intelligence and analytics. It defines key concepts like big data, data analytics, descriptive analytics, predictive analytics, and prescriptive analytics. It also discusses popular analytics tools like SAS and R, and the Hadoop framework. Companies are increasingly using data analytics to gain insights from large amounts of data and make better business decisions.

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0% found this document useful (0 votes)
17 views47 pages

Unit 1

This document discusses business intelligence and analytics. It defines key concepts like big data, data analytics, descriptive analytics, predictive analytics, and prescriptive analytics. It also discusses popular analytics tools like SAS and R, and the Hadoop framework. Companies are increasingly using data analytics to gain insights from large amounts of data and make better business decisions.

Uploaded by

cooljainsidhant
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Intelligence –

The Intelligent Way of


Doing Business

1
World’s
most
valuable
resource
is no
longer
Oil, but
DATA……
2
3
What is Data?

4
5
Data Never
Sleeps

6
BIG
DATA
Shares traded on US
Stock Markets each
day:

7 Billion
Data generated in
one flight from NY
to London:

10 Terabytes

Number of tweets Number of ‘Likes’


Data that is TOO LARGE & TOO each day on
per day on Twitter:
COMPLEX for conventional data tools Facebook:
to capture, store and analyze.
400 Million 3 Billion
The 3V’s of Big Data

VOLUME VARIETY VELOCITY


90 % OF THE WORLD’S
DATA WAS
GENERATED IN THE
LAST TWO YEARS

7
Why Analytics?
Analytics is an encompassing and multidimensional field that uses

✓ Mathematics
✓ Statistics
✓ Predictive modelling
✓ Machine-learning techniques

to find meaningful patterns and


knowledge in recorded data.

8
What is Analytics?

Data on its own is useless unless you can make sense of it!

WHAT IS ANALYTICS?
The scientific process of transforming data into insight for making
better decisions, offering new opportunities for a competitive
advantage.
9
Why Analytics is Important?
Large business uses analytics to drive the entire organizational strategy. Some examples include:

Capital One, a credit card company in the U.S., uses analytics to differentiate customers based
on credit risk and they match customer characteristics with appropriate product offerings.

Harrah’s Casino, another U.S. company, identified that against popular belief, their most profitable
customers are the ones playing slots. To leverage this insight, they have created marketing programs to
attract and retain their MOST PROFITABLE CUSTOMERS.

NETFLIX, an online movie service, identifies the most logical movies to recommend based on past
behaviour. This model has increased their sales because the movie choices are based on customers’
preferences and therefore the experience is customized to each individual.

10
Why Business Analytics?

11
Future of Business Analytics

12
Type of
Analytics
13
Type of Analytics

14
Descriptive Analytics
The simplest class of analytics, one that allows you to condense big data into smaller, more useful
nuggets of information.

15
Diagnostic Analytics
Diagnostic analytics are used for discovery or to
determine why something happened. For example,
for a social media marketing campaign, you can
use descriptive analytics to assess the number of
posts, mentions, followers, fans, page views,
reviews, pins, etc. There can be thousands of online
mentions that can be distilled into a single view to
see what worked in your past campaigns and what
didn’t.

16
Predictive Analytics
Predictive analytics can only forecast what might happen in the future because all predictive analytics
are probabilistic in nature.

17
Prescriptive Analytics
Prescriptive Analytics is an advanced analytics concept based on:

18
Know Your Tools
& Why Learn
About Them?

19
Analytics Tools

20
Why SAS?

1
The largest independent

Market Leader vendor in the business

#
intelligence market

in Analytics The De facto industry


standard for Clinical Data
Analysis

INTEGRATED PLATFORM FOR END TO END SOLUTIONS:


SAS provides an integrated set of software products and Used in
services and integrated technologies for information 60,000+
management, advanced analytics and reporting. companies in
over 135
BUSINESS SOLUTIONS ACROSS DOMAINS AND INDUSTRIES: countries
Unmatched domain specific industry focused analytics
solutions

“Analytics powerhouse” 21
The Forrester Wave™: Big Data Predictive Analytics Solutions, Q1 2013
Why R ?

Highest Paid 75% of data Supports close to


IT Skill professionals 10,000 free
Linkedin Skills and use R packages
O'Reilly Survey, Rexer Survey, CRAN Figure as on
2016 Oct 2015 Second best December 2016
Most-used data programming
science language languages for
after SQL data science
O’Reilly Survey, O'Reilly Survey,
Jan 2014 2016

Companies Already Onboard R


R is the #1 Google Search for Advanced Analytics software
Google Trends, April 2016 Facebook BCG
Google Uber
R is #13 of all Programming Languages
Redmonk Language Ratings, June 2015 Twitter Lloyds of London
McKinsey & Many More…
Demand for R language skills is on the rise. ANZ Bank

22
What is Hadoop ?
Hadoop is
Transforming
Businesses Across
Industries
1 in 4
Organizations use Hadoop to
manage their data today
(up from 1 out of 10 in 2012)

BIG DATA STORING AND FASTER PROCESSING


Hadoop is an open source software framework created in
2005 that keeps and processes big data in a distributed
manner on large collection of hardware.
BUSINESS SOLUTIONS ACROSS DOMAINS AND INDUSTRIES:
Low cost solution with a high fault tolerance to access and
create value from data.
“The growing use of Apache Hadoop, increasing data warehouse volume sizes and the accumulation of
legacy systems in organizations are fostering structured data growth. These factors are leading
enterprises to understand how to reuse, repurpose and gain critical insight from this data.” Gartner 23
Why Hadoop ?
Hadoop – Big DataTop
is a comprehensive class room training
5 Reasons Organizations areprogram that enables you to analyse
using Hadoop
data and create useful information for careers in Data Analytics.

Computing Storage Data


Low Cost Scalability
Power Flexibility Protection

Enterprises using Hadoop

Top 5 Industries using Hadoop:


• Computer Manufacturing
• Business Services
• Finance
• Retail & Wholesale
• Education & Government

24
Why Hadoop & Big Data Jobs in India ?

25
Why Python?
Python is a powerful, flexible, open-source language that is easy to learn, easy to use, and
has powerful libraries for data manipulation and analysis
What are the reasons for its sudden popularity?

Python is an open source Multi-purpose language that


Cost of
software that is free to Versatility can be used to build an entire
Ownership
download. application

Big data Python has become one of the big go-to languages for big data processing due to its
compatibility wide selection of libraries

A Data Scientists’ Dream Integration


Python offers extensive
analytics capabilities for Python is particularly useful in data analytics In industry, the data
Text & Predictive because it has a rich library for reading and science trend shows
Analytics. writing data, running calculations on the increasing popularity of
information and creating graphical Python. A Python-based
representations of data sets. application stack can more
IDLE & Spyder IDE is easily integrate a data
widely used for data We can write map reduce programs in python scientist who writes
mining. using PyDoop. Here is where Python scores over Python code, since that
R. While R uses in-memory processing, Python eliminates a key hurdle in
Big Data Analytics made productionizing a data
possible by PyDoop and using PyDoop can process PetaBytes of data
scientist's work.
26
Scipy
Why Python?
46% of job
2nd most
Official ads mention
popular data
language of Python
science language
Google (after SQL)
KDNuggets KDNuggets 2013
Among top Dec 2014 Ranked #1 of
in-demand data all programming
science skills languages
Codeeval rankings,
KDNuggets,
Feb 2015
Dec2014

Companies Already
Onboard Python
Google IBM
Yahoo National Weather
Quora Service
Nokia & Many More…
ABN
AMRO Bank
27
Business
Intelligence

28
Journey from Business Analytics to Business Intelligence

29
What is BI?
Business intelligence (BI) leverages software and
services to transform data into actionable intelligence
that informs an organization’s strategic and tactical
business decisions.

BI tools access and analyse data sets and present


analytical findings in reports, summaries, dashboards,
graphs, charts and maps to provide users with detailed
intelligence about the state of the business

30
How does BI differ from BA?
Business intelligence is also called descriptive analytics, in that it describes a past or current state. “It
doesn’t tell you what to do; it tells you what was and what is,” says Michael F. Gorman, professor of
operations management and decision science at the University of Dayton in Ohio.

Compare that explanation of BI with the definition for business analytics (BA), a technology-aided
process by which software analyses data to predict what will happen (predictive analytics) or what could
happen by taking a certain approach (prescriptive analytics). BA is also sometimes called advanced
analytics.

31
How business intelligence works?
Although business intelligence does not tell business users
what to do or what will happen if they take a certain
course, neither is BI only about generating reports. Rather,
BI offers a way for people to examine data to understand
trends and derive insights.

or example, a company that wants to better manage its


supply chain needs BI capabilities to determine where
delays are happening and where variabilities exist within
the shipping process, Hagans says.

That company could also use its BI capabilities to discover


which products are most commonly delayed or which
modes of transportation are most often involved in delays.

32
What is Data Visualization?
Data visualization is the presentation of data in a pictorial or graphical format. For
centuries, people have depended on visual representations such as charts and maps to
understand information more easily and quickly.

33
Tableau
Tableau is a robust yet easy-to-use BI solution. Businesses can utilize it to easily understand, visualize,
and share their data. The best part is you don’t need programming skills to create, publish, and share
dashboards. Plus, this self-service analytics system provides fast answers to even complex queries. Top
features include: Dashboard for commenting, server REST API, security permissions at any level,
automatic updates, and mobile-ready dashboards.

34
Why Tableau for Data Visualization?
Tableau is a powerful, flexible Data Visualization tool that is easy to learn, easy to use, and
has powerful libraries for data visualization and presentation.
Tableau is a competitively Multi-purpose package that
Cost of
priced software that is Versatility can be used to build an entire
Ownership
available for a trial download. application

Tableau has become one of the big go-to software programs for Data visualization due
Big data
to the wide variety of tools it provides and compatibility with Big Data platforms such
compatibility
as Hadoop.

35
Why Tableau for Data Visualization?

Tableau offers Powerful


A BUSINESS ANALYSTS’ DREAM INTEGRATION
visualization capabilities, Tableau is easy to learn, use, and significantly Tableau integrates
without a single line of faster than existing solutions. One can easily see exceptionally well with R
code. patterns, identify trends and discover visual and Hadoop, making it a
insights in seconds. No wizards, no scripts. powerful visualization tool
for analytics and big data
Experiment with trend use cases. Developers
Tableau facilitates live, up-to-date data analysis
analyses, regressions, creating web applications
that taps into the power of the firm’s data
correlations. can integrate fully
warehouse.
interactive Tableau content
Scalable, secure and into their applications via
Extract data into Tableau’s data engine and take
Reliable Cloud and the JavaScript API.
advantage of breakthrough in-memory
Mobile Connectivity. architecture. 36
Microsoft SharePoint
Microsoft SharePoint is so popular, it hardly needs introduction: this management and analytics solution
is one of the most common choices for businesses around the world, and is an especially good fit for
companies that already store their information on a SQL Server. SharePoint makes it easy to share, sync
and analyze all company data; enables collaboration; and provides tight security for sensitive data.

37
Salesforce Analytics Cloud
Sisense is business analytics software that aims to enable business users to easily prepare, analyze and
visualize complex data. The software is mainly focused on user-friendliness and high performance for
organizations that work with large or diverse datasets, and provides a single-stack solution for
integrating many disparate data sources, performing queries and displaying results in interactive
dashboards.

38
Future of business intelligence
“Someone will look at reports from, for example, last year’s sales — that’s BI — but they’ll also get predictions
about next year’s sales — that’s business analytics — and then add to that a what-if capability: What would happen
if we did X instead of Y,” Gorman says, explaining that software makers are moving to develop applications that will
provide those functions within a single application rather than delivering them via multiple platforms as is now the
case.

39
Careers
in
Analytics
40
Data Scientist: A Business analyst is not able
to discover insights from huge
The sets of data of different
domains.

SEXIEST Data scientists can work in co-

Job
ordination with different
verticals of an organization
and find useful
patterns/insights for a

In The 21
company to make tangible
ST business decisions.

century
Harvard Business Review, Oct 2012
15,000%
INCREASE IN JOB POSTINGS FOR
DATA SCIENTISTS IN THE US
BETWEEN 2011-12

41
Careers in Business Analytics

42
Demand for Analytics Professionals in India
Domestic Market Analytics Market Job Openings

$ 163
$ 1 Billion 31,500
Million
Jan, 2014 Jan, 2014
Jan, 2014

$ 375 $ 2.3 2,50,000


Million Billion
Projected for
Projected for Projected for 2018
2018 2018

Source: NASSCOM
Salary Report
Experience 0-2 Years 2-5 Years 5-10 Years 10+ Years
Salary in INR 4.5 Lakhs 5.8 Lakhs 8.8 Lakhs 15 Lakhs 43
Analytics Job – Industry Wide
Analytics Services and Pharma lead the pack in the highest percentage
of Analytics jobs being created in developing nations.

US INDIA CHINA UK BRAZIL JAPAN SINGAPORE

ANALYTICS SERVICES 11% 54% 25% 9% 14% 6% 9%

PHARMA 14% 24% 32% 19% 30% 44% 26%

INSURANCE 39% 7% 8% 32% 11% 27% 24%

BANKING 11% 22% 25% 19% 14% 25%


20%
OIL & GAS 14% 3% 10% 13% 23% 8% 9%
COMMUNICATIONS 2% 1% 3% 2% 3% 1% 7%
TECHNOLOGIES

TOTAL NUMBER OF JOBS 38,700 31,500 30,500 7,000 6,200 2,400 1,300

44
Career Options in Analytics
No matter what your educational background or aspirations,
you have a fulfilling career in one of the many fields of Business Analytics.

FIELDS IN MIS NON-PREDICTIVE PREDICTIVE MACHINE


ANALYTICS REPORTING ANALYTICS ANALYTICS LEARNING

• Data management • Segmentation • Probability models • Neural networks


• Data Exploration • Customer profiling • Classification and • Multi-layer
• MIS and report • Portfolio Analysis regression trees Perceptron
creation • Trend Analysis • Time series • Geospatial models
KEY • Forecasting models • Associative rule
• Automation of
FEATURES learning
reports
• Inductive logic
programming

• BCom • BCom • B.E • B.E


TARGET • B.E • B.E • BTech • BTech
AUDIENCE • BTech • BTech • MSc (Statistics) • MSc (Statistics)
• MBAs • MBAs • MBAs
• MCA • MCA

Data Scientist
MIS Analyst
Statistician
INDICATIVE Data Analyst
Advanced Analytics – Team Manager
JOB ROLES Strategy Analyst
Market / Global Research Analyst
Cost Analyst
Analytics Manager

45
Career Path and Indicative Salaries (CTC)
CAREER TRAJECTORY Skills require to succeed in the Industry
• Strong analytical and • Understanding complex data
critical thinking skills & tools for Analytics
• Statistics • Soft Skills & Communication
15+ Director • Predictive Analytics • Business Understanding
Yrs • SQL Knowledge

10-15 Average Salaries


Yrs VP

6-10
AVP Director Rs. 15-20 Lakhs
Yrs

AVP Rs. 15-20 Lakhs


4-6Yrs Manager

Manager Rs. 9-15 Lakhs


2-4 Senior Analyst
Yrs
Senior
Analyst Rs. 6-8 Lakhs
0-2 Analyst
Yrs
Analyst Rs 4-6 Lakhs 46
Question
&
Answers
47

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