What is Business Analytics?

● Business Analytics is analysing data and deriving insights from it to improve business
operations, make better decisions, reduce costs, and increase profits. It involves
collecting, cleaning, organising, visualising, and interpreting data to draw meaningful
conclusions about the data.

Scopes OF BUSINESS ANALYTICS

● Descriptive Analytics– summarising data to gain insight into it without making

predictions about future events or trends. Descriptive analytics can help organisations
understand the current state of their business and how different factors may affect
performance.
● PREDICTIVE ANALYTICS - uses past data to forecast future outcomes, such as
customer churn rate or demand for a particular product or service. Predictive models use
statistics and machine learning algorithms to detect data patterns and predict future
outcomes.
● PRESCRIPTIVE ANALYTICS - combines descriptive and predictive analytics to provide
actionable recommendations to achieve desired outcomes. This type of analytics is often
used in supply chain management, marketing campaigns, or customer segmentation
strategies.

DECISION MODELS

HUERISTIC AND HUERISTIC DECISION MODEL

● problem-solving or decision-making technique that uses minimum relevant information,

past results, and experiences to produce a workable and practical solution for a problem
in a reasonable time. These strategies focus on providing quick results with an
acceptable accuracy range rather than offering near-perfect solutions

● provide speedy solutions rather than accurate ones, they are generally blended with
optimization algorithms to improve the results

OPTIMIZATION
 ● process of improving a portfolio, algorithm or trading system to reduce costs or increase
efficiency
● process of fine-tuning a business strategy or process in order to improve efficiency or
reduce costs. This can be done by using resources more efficiently, cutting costs, or
investing in labor-saving technologies

DASHBOARD
● way of displaying various types of visual data in one place. Usually, a dashboard is
intended to convey different, but related information in an easy-to-digest form. And
oftentimes, this includes things like key performance indicators (KPI)s or other important
business metrics that stakeholders need to see and understand at a glance.

Uses of Dashboard
● Ad-hoc analysis: A company can use a dashboard to respond to individual challenges
when required, such as analyzing sudden decreases in sales. In real-time, the user can
track multiple key metrics, such as sales revenue, and then create custom reports to
solve these issues.
● Strategic planning: Creating a strategic plan can establish the organization's priorities
that can result in long-term improvements. This helps to find where the company can
focus its time and resources to achieve the results they desire by providing a hub to
assess performance.
● Data-driven decision making: A dashboard monitors vital KPIs and other business
metrics that can inform the leadership team to help make better strategic decisions. It
condenses a significant amount of data into a straightforward overview, which creates a
single source of information to help management identify crucial patterns and trends.
● Information sharing: It can be challenging for an organization to share information,
especially when communicating essential insights to executives who might not have the
same expertise as other professionals in the company. A dashboard can make sharing
vital insights with stakeholders easier by using succinct graphs and charts.

BUSINESS INTELLIGENCE SOFTWARE

● Business intelligence (BI) is a process driven by technology that analyzes business data
in order to provide information that can be actioned so that executives and managers
can make better-informed business decisions

Types of BI Tools and Software

● Spreadsheets: Spreadsheets like Microsoft Excel and Google Docs are some of the
most widely used BI tools.
● Reporting software: Reporting software is used to report, organize, filter, and display
data.
● Data visualization software: Data visualization software translates datasets into
easy-to-read, visually appealing graphical representations to quickly gain insights.
 ● Data mining tools: Data mining tools "mine" large amounts of data for patterns using
things like artificial intelligence, machine learning, and statistics.
● Online analytical processing (OLAP): OLAP tools allow users to analyze datasets
from a wide variety of angles based on different business perspectives.

TYPES OF CHART
● BAR CHART - one axis of the chart shows the categories being compared, and the
other, a measured value. The length of the bar indicates how each group measures
according to the value.

● PIE CHART - are one of the most common and basic data visualization techniques,
used across a wide range of applications. Pie charts are ideal for illustrating proportions,
or part-to-whole comparisons.

● HEAT CHART - type of visualization used to show differences in data through variations
in color. These charts use color to communicate values in a way that makes it easy for
the viewer to quickly identify trends. Having a clear legend is necessary in order for a
user to successfully read and interpret a heatmap.

● HISTOGRAM - illustrate the distribution of data over a continuous interval or defined

period. These visualizations are helpful in identifying where values are concentrated, as
well as where there are gaps or unusual values.

● GANNT CHART - particularly common in project management, as they’re useful in

illustrating a project timeline or progression of tasks. In this type of chart, tasks to be
performed are listed on the vertical axis and time intervals on the horizontal axis.
Horizontal bars in the body of the chart represent the duration of each activity.

● WATERFALL CHART - visual representation that illustrates how a value changes as it’s
influenced by different factors, such as time. The main goal of this chart is to show the
viewer how a value has grown or declined over a defined period. For example, waterfall
charts are popular for showing spending or earnings over time.

DATABASE
● Relational Database - RDBMS stands for Relational Database Management Systems. It
is most popular database. In it, data is store in the form of row that is in the form of tuple.
It contain numbers of table and data can be easily accessed because data is store in the
table. This Model was proposed by E.F. Codd.

● NOSQL Database - doesn’t use table to store the data like relational database. It is used
for storing and fetching the data in database and generally used to store the large
amount of data. It supports query language and provides better performance

SCALABILITY
 ● Scalability refers to the ability of a system to handle increasing workloads efficiently. In
the context of application development, this means that the system should be able to
handle increasing user traffic and data processing needs without sacrificing performance
or reliability

Types of scalability

Vertical Scalability: This refers to the ability of a system to handle increased load by adding
more resources to the existing infrastructure. This can include adding more CPU, RAM, or
storage to a single server.

Horizontal Scalability: This refers to the ability of a system to handle increased load by adding
more servers to the infrastructure. This allows the system to distribute workloads across multiple
servers, thereby improving performance and reliability.

Importance
● Rapid growth of technology
- With technology evolving at a rapid pace, the demand for high-performance
applications that can handle increasing user traffic and data processing needs
has never been higher. Scalability is essential for ensuring that your application
can keep pace with the growth of technology and continue to deliver a positive
user experience.

● Increased demand for high-performance applications

- Consumers today have higher expectations for the performance of applications,
and they demand fast and responsive applications that can handle large amounts
of data and user traffic. Without scalability, your application may not be able to
meet these demands and may struggle to deliver a positive user experience.

● The impact of scalability on user experience

- The scalability of an application can have a significant impact on user
experience. A scalable application will be able to handle increasing workloads
efficiently and deliver a fast and responsive user experience, while an unscalable
application may struggle to keep up and deliver a poor user experience. As a
result, scalability is essential for ensuring that your application can deliver a
positive user experience to your users

DATA MINING

Process of Data Mining

1. Data is collected and loaded into data warehouses on site or on a cloud service.
2. Business analysts, management teams, and information technology professionals
access the data and determine how they want to organize it.
3. Custom application software sorts and organizes the data.
 4. The end user presents the data in an easy-to-share format, such as a graph or table.

Techniques of Data Mining

1. Classification- is a technique used to categorize data into predefined classes or

categories based on the features or attributes of the data instances. It involves training a
model on labeled data and using it to predict the class labels of new, unseen data
instances
2. Regression- is employed to predict numeric or continuous values based on the
relationship between input variables and a target variable. It aims to find a mathematical
function or model that best fits the data to make accurate predictions.
3. Clustering- is a technique used to group similar data instances together based on their
intrinsic characteristics or similarities. It aims to discover natural patterns or structures in
the data without any predefined classes or labels
4. Association rule - mining focuses on discovering interesting relationships or patterns
among a set of items in transactional or market basket data. It helps identify frequently
co-occurring items and generates rules such as "if X, then Y" to reveal associations
between items. This simple Venn diagram shows the associations between itemsets X
and Y of a dataset.
5. Anomaly detection, sometimes called outlier analysis, aims to identify rare or unusual
data instances that deviate significantly from the expected patterns. It is useful in
detecting fraudulent transactions, network intrusions, manufacturing defects, or any
other abnormal behavior.
6. Time series analysis - focuses on analyzing and predicting data points collected over
time. It involves techniques such as forecasting, trend analysis, seasonality detection,
and anomaly detection in time-dependent datasets.
7. Neural networks - are a type of machine learning or AI model inspired by the human
brain's structure and function. They are composed of interconnected nodes (neurons)
and layers that can learn from data to recognize patterns, perform classification,
regression, or other tasks.
8. Decision trees - are graphical models that use a tree-like structure to represent
decisions and their possible consequences. They recursively split the data based on
different attribute values to form a hierarchical decision-making process.
9. Ensemble methods- combine multiple models to improve prediction accuracy and
generalization. Techniques like Random Forests and Gradient Boosting utilize a
combination of weak learners to create a stronger, more accurate model.
10. Text mining techniques- are applied to extract valuable insights and knowledge from
unstructured text data. Text mining includes tasks such as text categorization, sentiment
analysis, topic modeling, and information extraction, enabling your organization to derive
meaningful insights from large volumes of textual data, such as customer reviews, social
media posts, emails, and articles.