BUSINESS ANALYTICS

BBA 202

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 Learning Outcome

Unit CO PO KL

CO1: Demonstrate skills for computation and aggregation PO1, PO2, PO3, PO4, PO5, K2
of data using different software. PO6, PO7, PO8 and PO9

1 CO3: Acquire Knowledge about data concepts like big PO1, PO2, PO3, PO4, PO5, K2
data, data warehousing etc. PO6, PO7, PO8 and PO9

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 Contents

• Concept

• Evolution of Business Analytics

• Analytics Process

• Overview of Data Analysis

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Introduction-

Business analytics (BA) is a set of disciplines and technologies for solving business problems using data analysis,

statistical models and other quantitative methods. It involves an iterative, methodical exploration of an

organization's data, with an emphasis on statistical analysis, to drive decision-making.

Data-driven companies treat their data as a business asset and actively look for ways to turn it into a competitive

advantage. Success with business analytics depends on data quality, skilled analysts who understand the

technologies and the business, and a commitment to using data to gain insights that inform business decisions

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 How business analytics works
Before any data analysis takes place, BA starts with several foundational processes:
• Determine the business goal of the analysis.
• Select an analysis methodology.
• Get business data to support the analysis, often from various systems and sources.
• Cleanse and integrate data into a single repository, such as a data warehouse or data mart.
Initial analysis is typically performed on a smaller sample data set of data. Analytics tools range from spreadsheets with statistical functions to
complex data mining and predictive modeling applications. Patterns and relationships in the raw data are revealed. Then new questions are
asked, and the analytic process iterates until the business goal is met.
Deployment of predictive models involves a statistical process known as scoring and uses records typically located in a database. Scores help
enterprises make more informed, real-time decisions within applications and business processes.

BA also supports tactical decision-making in response to unforeseen events. Often the decision-making is automated using artificial
intelligence to support real-time responses

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 Types of business analytics

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 Common challenges of business analytics

Businesses might encounter both business analytics and business intelligence challenges when trying to
implement a business analytics strategy:

1. Too many data sources. There is an increasingly large spectrum of internet-connected devices generating
business data. In many cases, they are generating different types of data that must be integrated into an
analytics strategy. However, the more complex a data set becomes, the harder it is to use it as part of an
analytics framework.

2. Lack of skills. The demand for employees with the data analytic skills necessary to process BA data has
grown. Some businesses, particularly small and medium-sized businesses (SMBs), may have a hard time
hiring people with the BA expertise and skills they need.

3. Data storage limitations. Before a business can begin to decide how it will process data, it must decide
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where to store it. For instance, a data lake can be used to capture large volumes of unstructured data.
 Evolution of Business Analytics

Business analytics has been existence since very long time and has evolved with availability of newer and better

technologies. It has its roots in operations research, which was extensively used during World War II. Operations research

was an analytical way to look at data to conduct military operations. Over a period of time, this technique started getting

utilized for business. Here operation’s research evolved into management science. Again, basis for management science

remained same as operation research in data, decision making models, etc.

As the economies started developing and companies became more and more competitive, management science evolved into

business intelligence, decision support systems and into PC software.

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 Scope of Business Analytics

1. Customer Experience: Quality consumer experience is key to ensuring smooth business operations. By gaining a deep understanding of
what type of customers frequent your business and what their purchase habits are like and studying their behaviours, companies can tailor their
services to achieve customer gratification and ensure their loyalty to the brand. Business analytics provides businesses with this possibility and
allows them to personalize their products and services to cater to customers.

2. Inventory Management: businesses can streamline supply chain processes and reduce overhead costs. Business analytics provides an
understanding of the frequency and timing of orders, which products are in demand and how poised a company is to serve those demands,
strategically planning their supply chain operations. It also provides businesses with the capability to scale their services sustainably.

3. Sales and Marketing: Companies can study customers’ reactions towards their marketing campaigns and product offerings to create
targeted campaigns and identify the most effective cross-sell and up-sell opportunities. It involves investigating the age demographic a
consumer falls into, their average income, what motivates them to make purchases to predict patterns, and trends in their purchasing behavior.
This helps businesses focus their product messages and launch timings to suit their customers’ requirements.

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4. Hiring and Recruitment: Companies are keen on associating with HR officials with a background in data analytics and
business intelligence. This ensures that HR specialists can analyze data to onboard skilled and professional employees who
contribute to a company’s growth. It also helps save companies hiring and training costs.

5. Finance: Big data and business analytics allow companies to handle their finances more effectively. Insights on
marketing spend, and a comprehensive view of incoming and outgoing transactions can help businesses improve their
business decision-making abilities, so they allocate their resources more efficiently.

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 Future of Business Analytics in India
The scope in the area of business analytics is ever growing and is improving it enhance mainstream as businesses of all sizes and analytics skill levels get into the big data
game. Exploring business analytics requires the proper focus, best technology, right people, clean culture and best management promise. Companies like IBM, Cognizant,
and KPMG are practicing business analytics tools and coming up with decisions that are valuable and effective.

One needs to obtain an appropriate skill-set to succeed in a business analytics profession. Inquisitiveness, interpretation skills, a thorough knowledge of tools and
techniques, ability to do in-depth analysis and quantitative skills are essential to shine in the subject. Sensing the need to build a workforce that knows the area and is
qualified to tackle the difficult problems related to business analytics; Indian institutes, in partnership with various premiere colleges, are allowing regular as well as
executive business analytics courses. Besides the regular colleges, there are many analytics coaching institutes that are giving their own business analytics courses or are in
collaboration with famous institutes.

In recent times, Business Analytics has been an area of key focus in most industries. With multitude of data floating in all verticals of a business, such as marketing, sales,
finance, social media, etc., it becomes essential to analyze and understand the data to make better business decisions and market development.

Business Analytics (BA) describes the skills, technologies, practices for constant pragmatic investigation and analysis of previous business performance to gain insight and
drive industry preparation. Company analytics focuses on developing new insights and comprehension of firm operation predicated on data and statistical methods. By
comparison, industry intelligence normally targets with a consistent group of metrics to both measure past operation and direct firm preparation, which is also centered on
data and statistical strategies.
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 Conclusion

Business analytics (BA) is a set of disciplines and technologies for solving business problems using data analysis, statistical models and other quantitative methods. It

involves an iterative, methodical exploration of an organization's data, with an emphasis on statistical analysis, to drive decision-making.

In recent times, Business Analytics has been an area of key focus in most industries. With multitude of data floating in all verticals of a business, such as marketing, sales,
finance, social media, etc., it becomes essential to analyze and understand the data to make better business decisions and market development.

Business Analytics (BA) describes the skills, technologies, practices for constant pragmatic investigation and analysis of previous business performance to gain insight and
drive industry preparation. Company analytics focuses on developing new insights and comprehension of firm operation predicated on data and statistical methods. By
comparison, industry intelligence normally targets with a consistent group of metrics to both measure past operation and direct firm preparation, which is also centered on
data and statistical strategies.

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 References

https://www.techtarget.com/searchbusinessanalytics/definition/business-
analytics-BA

https://www.managementstudyguide.com/business-analytics.htm

https://www.upgrad.com/blog/scope-of-business-analytics-in-india/

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 Thank you

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