Data Analytics Overview

Difference Between Data & Information

Example
More Data 🡪 More Opportunities
LARG
TERABYTES PETABYTES EXABYTES
E
VOLUME OF INFORMATION

SMALL

1990’s 2000’s 2010’s

Relational Databases Content Management Key-Value Storages
& Data Warehouses & Unstructured Data
Introduction to Data Science https://sherbold.github.io/intro-to-data-science
 More Data 🡪 More Opportunities

► Some years ago, data was less and mostly available in a

structured form, which could be easily stored in excel
sheets, and processed using BI tools.
► But in today's world, data is becoming so vast, data is
generating on every day, which led to data explosion. It
is estimated as per researches, that by 2025, 3.5 MB of
data will be created at every single second, by a single
person on earth. Every Company requires data to work,
grow, and improve their businesses.
► Now, handling of such huge amount of data is a
challenging task for every organization. So to handle,
process, and analysis of this, we required some
complex, powerful, and efficient algorithms and
technology, and that technology came into existence as
data Science
 Structured Data Unstructured Data Semi-structured Data

Well organised data Not organised at all Partially organised

Easy analysis Difficult analysis Difficult analysis compared to structured

data but easier when compared to
unstructured data.
Financial data, bar codes are some of the Media logs, videos, audios are some of the Tweets organised by hashtags, folder
examples of structured data. examples of unstructured data. organised by topics are some of the
examples of unstructured data.

Structured Data
Structured data is quantitative, highly organized, and easy to analyze using data
analytics software. It’s formatted into systems that have a regular design, fitting into
set rows, columns, and tables.
Semi-Structured Data
There is also semi-structured data, which contains mostly unstructured text, but is
loosely categorized with “meta tags.” An example of this would be email, which you
can search by Inbox, Sent, Drafts
Unstructured Data
Unstructured data is information that has no set organization and doesn’t fit into a
defined framework. Examples of unstructured data include audio, video, images, and
all manner of text: reports, emails, social media posts, etc.
By using Data Analysis companies are able to make:

•Better decisions (should we choose A or B)

•Predictive analysis (what will happen next?)
•Pattern discoveries (find pattern, or maybe hidden
•information in the data)
1. Understand the problem:

Understanding the business

problems, defining the
organizational goals, and planning a
lucrative solution is the first step in
the analytics process. E-commerce
companies often encounter issues
such as predicting the return of
items, giving relevant product
recommendations, cancellation of
orders, identifying frauds, optimizing
vehicle routing, etc
2. Data Collection:

Next, you need to collect

transactional business data
and customer-related
information from the past few
years to address the problems
your business is facing. The
data can have information
about the total units that were
sold for a product, the sales,
and profit that were made, and
also when was the order
placed. Past data plays a
crucial role in shaping the
future of a business.
3. Data Cleaning:

Now, all the data you collect will

often be disorderly, messy, and
contain unwanted missing
values. Such data is not suitable
or relevant for performing data
analysis. Hence, you need to
clean the data to remove
unwanted, redundant, and
missing values to make it ready
for analysis.
4. Data Exploration and
Analysis:
After you gather the right data,
the next vital step is to
execute exploratory data
analysis. You can use data
visualization and business
intelligence tools, data mining
techniques, and predictive
modeling to analyze, visualize,
and predict future outcomes
from this data. Applying these
methods can tell you the
impact and relationship of a
certain feature as compared to
other variables
5. Interpret the results:

The final step is to interpret

the results and validate if
the outcomes meet your
expectations. You can find
out hidden patterns and
future trends. This will help
you gain insights that will
support you with
appropriate data-driven
decision making.
 Descriptive Analysis
► What happened?
► Shows What going on in the business
► Descriptive analytics juggles raw data from multiple data
sources to give valuable insights into the past. However,
these findings simply signal that something is wrong or
right, without explaining why?
► For example, Data analysts are working with an
e-commerce marketing team to review sales data to
identify the sales trends and patterns, you will see an
increase or decrease in sales from last year, specifically
in what region and by what percentage
 Diagnostic Analysis
► Why did something happen?
► Investigate Why part of the problem
► Like descriptive analytics, diagnostic analytics also focus on the
past. However, these types of analyses look for cause and effect
to illustrate why something happened. The objective is to compare
past occurrences to determine causes. Of course, this is seldom a
black-and-white answer but instead provided in the context of
probability, likelihood, or a distributed outcome.
• For Example
• You can identify the reason why there a sudden drop in sales?
• Why there is sudden dip in sale or why profit is going down.?
 Predictive Analytics
► What is LIKELY to happen?
► Shows what will happen in future based on
past trends
► Predictive analytics tells what is likely to
happen. It uses the findings of descriptive and
diagnostic analytics to detect clusters and
exceptions and to predict future trends, which
makes it a valuable tool for forecasting.

► Now that we know the reason for the drop in sales.

Predictive analytics helps to find what would
be the expected sale in the next month,
quarter, or year, etc. The goal is to determine a
trend, correlation, causation, or probability for the
next purchase.
► What will be the sale in next quarter?
 Prescriptive Analytics
► What action should be taken?
► The purpose of prescriptive analytics is to literally
prescribe what action to take to eliminate a future
problem or take full advantage of a promising trend. It
uses advanced tools and technologies, like machine
learning, business rules, and algorithms, which makes
it sophisticated to implement and manage.
► Makes conclusion based on all previous analysis and
advise what to do next
► As part of prescriptive analytics, if sales are falling
then you can make timely decisions such as to cut
prices, market more, or discontinue the product. If an
item is selling off the shelves, you can be sure to stock
inventory accurately across channels.
► Whether a new product to be launched or not ?
Data Analytics Applications
► Data analytics is used in almost every sector of business, let’s discuss a few of
them:
► 1. Retail: Data analytics helps retailers understand their customer needs and buying
habits to predict trends, recommend new products, and boost their business.
► They optimize the supply chain, and retail operations at every step of the customer
journey.
► 2. Healthcare: Healthcare industries analyze patient data to provide lifesaving
diagnoses and treatment options. Data analytics help in discovering new drug
development methods as well. , Predictive Modeling for Diagnosis etc
► 3. Manufacturing: Using data analytics, manufacturing sectors can discover new
cost-saving opportunities. They can solve complex supply chain issues, labor
constraints, and equipment breakdowns.
► 4. Banking sector: Banking and financial institutions use analytics to find out
probable loan defaulters and customer churn out rate. It also helps in detecting
fraudulent transactions immediately.
► 5. Logistics: Logistics companies use data analytics to develop new business
models and optimize routes. This, in turn, ensures that the delivery reaches on time
in a cost-efficient manner.