Unit 1
Unit 1
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
7
Why Analytics?
Analytics is an encompassing and multidimensional field that uses
✓ Mathematics
✓ Statistics
✓ Predictive modelling
✓ Machine-learning techniques
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
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Type of
Analytics
13
Type of Analytics
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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
#
intelligence market
“Analytics powerhouse” 21
The Forrester Wave™: Big Data Predictive Analytics Solutions, Q1 2013
Why R ?
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)
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?
Big data Python has become one of the big go-to languages for big data processing due to its
compatibility wide selection of libraries
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
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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.
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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.
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?
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.
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
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.
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.
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
6-10
AVP Director Rs. 15-20 Lakhs
Yrs