IntroductIon to AnAlytIcs & It’s

Application

Dr. Jayasri Murali Iyengar

Welcomes you all!!

Bridge course – Introduction to Analytics
Welcome Note

Lets drive together in

the journey of
“Learning Analytics” in
the pursuit of
“Digital
Transformation”
Myths about Business Analytics
IT is too technical
I am not technical savvy
It is not cup of Tea
Only Computer Engineers or
IT Engineers can pursue
FACTS about big data analytics and Business
analytics

Creatively apply analytics to gain insight

Basic Analytical Skills
Basic Mathematical knowledge
Case Study
Mr. Raj is the owner of Sai Snacks Centre, Hinjewadi. He has
approximately 1000 esteemed clients. They regularly visit the snacks
centre because of the quality of the items as well as service rendered
by him. On 16 th March 2020, Maharashtra Government announced
Lock down. He has to pay the rent , salary to the employees. He
suffered from the working capital crunch. He got an idea. Many of his
clients are from IT background. He has heard about the boom in the
analytics. He approached the analyst to solve the problem. His main
aim is to revamp his business at least with 80% of clients. He was
flexible to expand the business in the same field only. You are
appointed as the analyst to Mr. Raj. How you can leverage analytics
to revamp his business.
Types of Data in Business

Data in Business
Customer Transactional Social Marketing Employees Product
Data Data Media Data Data Data
Data can help to improve the business

Improve marketing strategy

Identifying risk and frauds

Identifying business pain points

Improve sales process

Data can help to improve the business

Improving Customer Experience

Improve accuracy of Decision Making

Automate Execution
Market Strategies
Detecting Fraud
Identifying Pain Areas
Customer Experience
Automate Execution
Why Data Science is important ?
Steps involved in data analytics
Step 1 • Decide on the objectives

Step 2 • Set measurement priorities

Step 3 • Data collection

Step 4 • Data cleaning

Step 5 • Analysis of data

Step 6 • Interpreting the results

Step 7 • Communicate the results

The Future
Course Objectives
How data analysts describe, predict, and inform
business decisions in the specific areas of
marketing, human resources, finance, and
operations, and develop basic data literacy and
an analytic mindset that will help you make
strategic decisions based on data
205 – BA – Business Analytics Using R
Learning Outcomes:
Business Analytics Basics:
Definition of analytics, Evolution of analytics, Need of Analytics,
Business analytics vs business analysis, Business intelligence vs
Data Science, Data Analyst Vs Business Analyst, Types of
Analytics, Tools for Analytics. Concept of insights. Importance of
data in business analytics, Differences between data,
information and knowledge, various stages of an organization in
terms of data maturity, Options for organizations in the absence
of good quality data.
BUSINESS ANALYTICS
 What is Analytics?
Analysis of DATA for finding deeper insights about details of
events (variables), association and relationship among
phenomenon, hidden patterns etc for meaningful
Managerial Decision Making.

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 BA is the use of:

data,
Information technology,
statistical analysis,
quantitative methods, and
mathematical or computer-based
models
If a consumer has purchased bread and butter, what
more can be suggested him to buy?

Market Basket Analysis

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 If a consumer has purchased bread and butter, what
more can be suggested him to buy?

Market Basket Analysis

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In Pune, college girls do more shopping on weekends
or boys do?

Exploratory Data Analysis

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Can we profile the customers on basis of certain criterion?

Cluster Analysis

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What are the chances that the loan aspirant (customer)
will be a defaulter (Happy or Sad)?

Logistic Regression, Decision Trees, Support Vector Machines, Neural Networks

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Can we predict earthquake in a geographically
sensitive area?

Linear Regression, Decision Trees, Support Vector Machines, Neural Networks

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Can we draw meaningful insights through
tweeter analysis?
By Katrina 0n Katrina

Text Analytics, Social Media Analytics

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Which Machine Learning technique decide about
spam?

Naïve Bayes Classifiers and more!

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Can we identify meaningful pattern?

Artificial Neural Networks, Support Vector Machine, Deep Learning

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Evolution of Business Analytics

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In 1980 only few IT
Experts could use
EXCEL

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Excel became
more user
friendly!

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Uses of Business Analytics
Exploring data to find new patterns and relationships (data mining)

Explaining why a certain result occurred (statistical analysis, quantitative analysis)

Experimenting to test previous decisions (A/B testing, multivariate testing)

Forecasting future results (predictive modeling, predictive analytics)

Answers the questions:

Why did it happen?
Will it happen again?
What will happen if we change x?
What else does the data tell us that never thought to ask?
BUZZ WORDS!!
Data science
Data science, also known as data-driven
science, is an interdisciplinary field about
scientific processes and systems to
extract knowledge or insights from data in
various forms, either structured or
unstructured, which is a continuation of
some of the data analysis fields such
as statistics, machine learning, data mining,
and predictive analytics.
 1. Classification Algorithm

2. Anomaly Detection Algorithm

3. Regression Algorithm
5. Clustering Algorithm

6. Reinforcement learning Algorithm

Applications of Data Science
Internet search: Search engines make use of data science algorithms to deliver best results for
search queries in fraction of seconds.
Digital Advertisements: The entire digital marketing spectrum uses the data science algorithms
- from display banners to digital billboards. This is the main reason for digital ads getting higher
CTR than traditional advertisements.
Recommender systems: The recommender systems not only make it easy to find relevant
products from billions of products available but also adds a lot to user experience. A lot of
companies use this system to promote their products and suggestions in accordance to the
user’s demands and relevance of information. The recommendations are based on the user’s
previous search results.
Big Picture
Data Visualization
“...to convey information through visual representations.”
“...produces (interactive) visual representations of abstract
data to reinforce human cognition; thus enabling the viewer to
gain knowledge about the internal structure of the data and
causal relationships in it.”
“…involve detection, measurement, and comparison, and is
enhanced via interactive techniques and providing the
information from multiple views and with multiple techniques”

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Why Visualization?

Accelerates the identification of hidden patterns

in data
“A picture is worth a thousand words”
Represents large quantities of data coherently
and efficiently
The power to visualize and graphically represent
results, ideas, solutions, and problems in multiple
dimensions, as well as to manipulate data and
virtually collaborate with others, is the next big
revolution in technology.
Types of graphs
Scatter Chart
Suggests correlation between two variables.
Ability to show nonlinear relationships between variables.

Histogram
Shows entire distribution of one
particular variable.
Box and whisker plot
 Display differences between subpopulations in
your data.

Waterfall chart
 A waterfall chart can be used for analytical purposes,
especially for understanding or explaining the gradual
transition in the quantitative value of an entity which is
subjected to increment or decrement.
Dashboards
What’s a Dashboard?
A dashboard is a single screen that tracks a number of key metrics in real time.

That may not sound very exciting…

Lets take an example of Sales and Marketing Dashboard :

The place where the entire revenue creation team tracks your progress and
collaborates around opportunities.

CEO Cockpit!!

Now that’s exciting!!

With a well-designed dashboard, you can see:
 If you’re attracting enough leads
 How well they’re progressing
through the sales cycle
 How well you’re converting them
 How much revenue is coming
your way
 Where the revenue is coming
from
 How your campaigns and sales
people are performing
 How happy your customers are…

And that’s just a small sample.

Need of Analytics
Availability of large amounts of data, in various forms both
structured and unstructured
Easier, cheaper storage and retrieval of this data
Need to take decisions at a faster pace to stay competitive in the
market
Need to get the most of out of every dollar spent
Analytics allow you to quantify the effects of making a change to your
marketing strategy, and that’s invaluable to the process of improving and
optimizing online marketing campaigns.
Need of Analytics
Availability of large amounts of data, in various forms both
structured and unstructured
Easier, cheaper storage and retrieval of this data
Need to take decisions at a faster pace to stay competitive in the
market
Need to get the maximum return out of the money spent
Analytics allow you to quantify the effects of making a change to improve
and optimize the existing process.
Business Analytics versus Analysis
Many think that business Analysis and Business Analytics are the same. But
they are not.
Business Analysis is defined as the discipline of recognizing business needs
and identifying solutions to business problems.
The business analyst makes sure that the service or product provided by the
technical team meets the client’s requirements.
The focus of business analytics is data and reporting – analyzing
past business performance and predicting future business performance.
The focus of business analysis is functions and processes –
identifying business needs and recommending solutions.
Business Analytics versus Analysis
Parameter Business Analytics Business Analysis

Definition: Business analytics involves the use of statistical Business analysis focuses on understanding
analysis, data mining, and predictive modeling business processes, identifying business
techniques to extract insights from data and needs, and recommending solutions to
make informed decisions. improve business performance.

Objective: The primary objective of business analytics is to The primary objective of business analysis is
analyze data and generate insights that drive to understand business problems and
data-driven decision-making, identify trends, requirements, identify opportunities for
patterns, and relationships to support strategic improvement, and provide
and operational goals. recommendations for business process
optimization and change management.
Business Analytics versus Analysis
Parameter Business Analytics Business Analysis

Focus: Business analytics primarily focuses on quantitative data Business analysis primarily focuses on
analysis, statistical modeling, data visualization, and understanding the business context, eliciting
predictive analytics to identify patterns, correlations, requirements, conducting stakeholder analysis,
and future trends. process modeling, and impact assessment to
improve business processes and systems.
Methods and Business analytics utilizes advanced statistical and Business analysis employs techniques such as
Techniques: analytical techniques, such as regression analysis, requirements gathering, SWOT analysis, process
clustering, machine learning, and data visualization modeling, gap analysis, and root cause analysis to
tools, to analyze large volumes of structured and understand business needs, identify problems,
unstructured data and propose solutions.
Outcome: The outcome of business analytics is actionable insights The outcome of business analysis is a thorough
and data-driven decision-making, enabling understanding of business needs, clear
organizations to optimize processes, improve efficiency, requirements, and recommendations for process
identify new business opportunities, and gain a improvements, system enhancements, and
competitive advantage. business strategies.
Business Intelligence versus Data Science
Business Intelligence is a means of performing descriptive analysis of data using
technology and skills to make informed business decisions. The set of tools used for BI
collects, governs, and transforms data. It facilitates decision-making by enabling the
sharing of data between internal and external stakeholders. The goal of BI is to derive
actionable intelligence from data. Some of the actions that BI may enable are:
Gaining a better understanding of the market
Uncovering new revenue opportunities
Improving business processes
Staying ahead of competitors.
The most impactful enabler of BI in recent years has been cloud computing. The cloud
has made it possible to process more data, from more sources, more efficiently than
was ever possible before cloud technologies came into use.
Business Intelligence versus Data Science
Business Intelligence versus Data Science
Parameter Business Intelligence Data Science
Focus and Purpose: Business Intelligence focuses on analyzing Data Science focuses on extracting knowledge and
past and present data to provide insights from data, including both historical and real-
descriptive and diagnostic insights. It time data. It employs various techniques, such as
primarily aims to support business statistical analysis, machine learning, and predictive
decision-making, monitor performance, modeling, to uncover patterns, make predictions,
and generate reports and dashboards for and drive actionable insights.
executives and stakeholders.
Scope and Applications: Business Intelligence typically focuses on Data Science encompasses a broader scope and can
analyzing structured data from internal handle structured and unstructured data from
sources, such as databases, data various sources, including social media, IoT devices,
warehouses, and operational systems. It is and text data. It finds applications in predictive
widely used in areas such as sales modeling, fraud detection, recommendation
analysis, financial reporting, customer systems, natural language processing, image
segmentation, and performance recognition, and more.
monitoring.
Business Intelligence versus Data Science
Parameter Business Intelligence Data Science

Techniques and Tools: Business Intelligence primarily relies Data Science utilizes a wide range of statistical
on traditional reporting tools, data techniques, machine learning algorithms,
visualization software, and SQL-based programming languages (such as Python and
queries. It emphasizes pre-defined R), and data manipulation tools. It involves
reports, interactive dashboards, and exploratory data analysis, data preprocessing,
key performance indicators (KPIs). feature engineering, model training and
evaluation, and deployment of predictive
models.
Time Horizon: Business Intelligence focuses on Data Science can handle both historical and
analyzing historical data and real-time data, enabling the creation of
providing insights for the current and predictive models and forecasting future
past performance of an organization. trends. It has a forward-looking approach and
It is primarily retrospective and helps can provide insights for future decision-making
in understanding what happened and and planning.
why.
Business Intelligence versus Data Science
In Summary,
Business Intelligence is focused on analyzing structured data for
reporting and performance monitoring, while Data Science
encompasses a broader scope, including both structured and
unstructured data, and employs advanced techniques for predictive
modeling and insights generation.
Business Analyst versus Data Analyst
Business Analyst Data Analyst
Focus and Purpose: Business Analysts focus on understanding Data Analysts primarily focus on collecting,
the business domain, processes, and organizing, and analyzing data to uncover
requirements. They work closely with insights and trends. They work with data sets,
stakeholders to identify business problems, perform data cleaning and transformation,
gather requirements, and define solutions conduct statistical analysis, and create
that align with the organization's goals. Their visualizations to communicate findings. Data
role involves analyzing business operations, Analysts play a key role in providing data-
improving processes, and recommending driven insights and supporting decision-
strategies to enhance business performance. making processes.
Skillset and Tools: Business Analysts possess strong business Data Analysts have a strong foundation in
acumen, communication skills, and domain statistics, data manipulation, and data
knowledge. They excel in requirements visualization. They are proficient in
gathering, process modeling, and problem- programming languages like SQL, R, or Python
solving. Business Analysts often use tools for data querying and analysis. Data Analysts
like Microsoft Excel, business process work with data visualization tools such as
modeling software, and requirements Tableau or Power BI to create interactive
management tools. dashboards and reports.
Business Analyst versus Data Analyst
Business Analyst Data Analyst
Data Focus: Business Analysts work with data, but Data Analysts have a strong focus on
their primary focus is on understanding working with data. They collect,
and analyzing the business context and clean, and transform data to ensure
requirements. They may use data to its quality and usability. Data Analysts
validate assumptions, assess business perform various data analysis
performance, and support decision- techniques, such as statistical
making. analysis, exploratory data analysis,
and data modeling, to derive
meaningful insights.
Outputs and Deliverables: Business Analysts deliver artifacts such as Data Analysts deliver insights and
business requirements documents, findings through data visualizations,
process models, use cases, and functional reports, and presentations. They
specifications. Their deliverables focus on communicate data-driven insights to
providing solutions and recommendations stakeholders, enabling them to make
to address business challenges. informed decisions based on the
analysis.
Business Analyst versus Data Analyst
Business Analyst Data Analyst
Overall Specifications It provides the functional It extracts meaning from the data
specifications that inform IT system those systems produce and
design. collect.
Skill Sets Business analysts require data science Data analysts require similar skills
knowledge as well as skills related to with a more in-depth focus on
communication, analytical thinking, technical data manipulation.
negotiation, and management.
User Interaction As project facilitators and managers, Data analysts may consult initially
business analysts often have more with internal subject matter
direct interaction with systems users, experts to identify important data
customers, system developers, and sets, the bulk of their work is
others than data analysts do. done independently.
Types of Analytics
With data being a vital asset for any business ranging from finance, healthcare,
social media, energy, retail, real estate, manufacturing, it is highly important to
know how to analyze it. However, the data itself is raw, unstructured without any
meaning. To get meaningful insights into this data, we need to know the ways and
types of business analytics, which allows us to understand what the data reflects
and how it can be used.
There are broadly five types of business analytics. The types are implemented in
stages and are interrelated. Each of these types is an essential building block for a
business to know and offers a different insight. This helps us to know what is
currently happening in the company to what might happen, and what solutions
and steps could be adopted to optimize functions. Equipped with the right choice
of analytical tools and techniques, one can gain deeper insights into the data,
informed recommendations, and make better decisions.
Types of Analytics
 Types of Analytics
Descriptive Analytics: It helps in describing or summarizing what has happened in the past. Descriptive analytics
helps a business learn from its past behavior and how it will impact the future. It provides information that
helps to understand the performance of the business on an overall aggregate level. It is also an important step in
explaining the current raw data to the various stakeholders.
This is more like a management information system (MIS), where an MIS gathers data from multiple online
systems, analyzes the information, and reports data to aid in management decision-making. The key techniques
used are data aggregation and data mining to summarize the past data of understanding the data’s underlying
behavior and not for any predictions.
 Types of Analytics
Example of descriptive analytics is to assess credit risk: we can predict a consumer’s likely financial riskiness by
seeing their balance amount against the credit limit. It is also used to analyze the sales cycle of a store. Also, it
can be used to categorize the customers based on their product preferences, purchase transactions, how often
they purchase. In the context of social media, descriptive analytics offers an overview of the performance
metrics: the total of posts, mentions, followers, comments, page views, reviews, the average time is taken to
respond, and so on.
Descriptive Analytics
 Types of Analytics
Diagnostic Analytics: It is the second type of data analytics. Like descriptive analytics, this also focuses on the
past and ascertains why something has happened. It is also known as root cause analysis because it looks
deeper to understand the events’ root cause. It allows us to isolate the patterns to identify these patterns’
source and the factors that affect the business. The diagnostic analytics helps to understand, for instance, why
there has been a sudden surge or decrease in sales.
This type also helps detect the anomalies and determine the causal relationship for the cause and effect present
in the data. It is characterized by discovering data, data mining, and correlations. Some of the techniques
employed at this stage are feature importance, principal component analysis, sensitivity analysis, conjoint
analysis.
Diagnostic Analytics
Types of Analytics
This type only uncovers and provides the causal relationship, and it can not provide any actionable insights,
hence has limitations. That’s why the next two types of analytics are important.
Predictive analytics: It uses the gathered data and descriptive and diagnostic analytics results to tell what is
likely to happen in the future on a granular level. This is where the earlier steps’ insights can be used into
actionable insights for decision-making. Its use involves forecasting the future, predicting the market trends,
changing customer behaviors, and analyzing competitors to optimize and build strategies to maximize the
business results.
Types of Analytics
The predictions are made by analyzing the past data, detecting patterns, casual relationships in the data, and
then extrapolating them in the future. For instance, a bank to predict which customer is likely to default will
need all the past data about which customers have defaulted to predict.
The predictive analysis can also be used to generate, test, and evaluate hypotheses. It is useful to understand
whether a set of features are explaining or predicting other features. For example, it can validate a person’s
hypothesis inhibiting from a certain region, age group, gender defaults in its credit card payments. This is
especially useful when some of the features are actions determined by the business decision-makers. One of
the applications of prescriptive analysis is sentiment analysis..
Types of Analytics
Predictive analytics is extensively used in every industry: finance, healthcare, social media, sports, energy,
manufacturing. One of the most frequent applications is in retail, where the retailers are always using predictive
analytics to predict and improve their sales positions. Amazon’s recommendation engines are a classic example
where on making one purchase, the engine shows the list of other similar items that the buyers have purchased.
Predictive Analytics
Types of Analytics
Prescriptive analysis: Building on predictive analytics, prescriptive analysis is the next step that helps in
exploiting the future. It essentially tells the business what should be done. Using simulation and optimization,
it advises on the possible outcomes and suggests actions that can maximize the key business metrics. The focus
here is on how to make it happen.
It can be defined as a business optimization data analytics that provides insights on “what should a business
do” to solve a problem. It explores several possible outcomes and suggests actions depending on the results of
descriptive, diagnostic, and predictive analytics of the data. The prescriptive analysis uses a feedback system
that constantly learns, updates the relationship between the action and the results.
 Types of Analytics
It does not predict one possible future but rather multiple future outcomes. It is an advanced analytics concept
based on optimization and simulation. Optimization helps understand how to achieve the best outcome and
identify the data uncertainties to make better decisions. The other approach of prescriptive analytics is a
simulation in which all the key performance areas are combined to design the correct metric goals. This ensures
whether the key performance metrics are included in the solution.
The prescriptive analysis is performed when scenario analysis simulates the future under various sets of
assumptions and combines it with different optimization techniques. It uses statistical models and machine
learning algorithms to estimate the probabilities, optimizing and recommending actions. A prescriptive model can
recommend the best course of action for any pre-specified outcome as it can predict the possible results based on
a different choice of action. Recommendation engines are a use case of prescriptive analysis.
Prescriptive Analytics
Types of Analytics
Cognitive Analytics: This is the most advanced type of business analytics that applies human intelligence to
certain tasks by combining many technologies such as artificial intelligence, semantics, machine, and deep
learning algorithms. The goal is to understand and mimic how a human brain makes a decision and comes with a
system or computer that does the same. Some of the tasks that can be performed using cognitive analytics are
chatbots, virtual assistants, recognizing objects in an image, and segmentation of those images.
Cognitive Analytics works by searching the entire available “knowledge base” to locate real-time data. It is highly
dependent upon and often combines artificial intelligence techniques, machine learning, deep learning, neural
networks, and semantics. It mimics the human brain to study and learn from the available data to extract
actionable insights hidden behind data patterns. It collects and makes real-time data sources such as text,
images, audio, and video available to these analytics tools for decision-making.
Types of Data Analytics
Business Analytics Maturity Stages
Types of Analytics
Technology Support
Tools for Analytics
Analytics tools are a core part of any BI and analytics platform and can help you understand and interpret
data. With the right analytics tools, you can identify new opportunities to generate revenue, optimize costs,
mitigate risk, improve compliance, improve decision-making, and gain a competitive edge. Analytics tools
provide different insights, depending on your organization’s priorities, size, complexity, growth rate, and
maturity.
1. R Programming: R is the leading analytics tool in the industry and widely used for statistics and data
modeling. It can easily manipulate your data and present in different ways. It has exceeded SAS in many ways
like capacity of data, performance and outcome. R compiles and runs on a wide variety of platforms viz -
UNIX, Windows and MacOS. It has 11,556 packages and allows you to browse the packages by categories. R
also provides tools to automatically install all packages as per user requirement, which can also be well
assembled with Big data.
You must explore!

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Tools for Analytics
2. Tableau Public: Tableau Public is a free software that connects any data source be it corporate Data
Warehouse, Microsoft Excel or web-based data, and creates data visualizations, maps, dashboards etc. with
real-time updates presenting on web. They can also be shared through social media or with the client. It
allows the access to download the file in different formats. If you want to see the power of tableau, then we
must have very good data source. Tableau’s Big Data capabilities makes them important and one can analyze
and visualize data better than any other data visualization software in the market.
3.Python: Python is an object-oriented scripting language which is easy to read, write, maintain and is a free
open source tool. It supports both functional and structured programming methods. Python is easy to learn
as it is very similar to JavaScript, Ruby, and PHP.
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Tools for Analytics
4. SAS: SAS is a programming environment and language for data manipulation and a leader in analytics. SAS
is easily accessible, manageable and can analyze data from any sources.
5.Excel: Excel is a basic, popular and widely used analytical tool almost in all industries. Whether you are an
expert in SAS, R or Tableau, you will still need to use Excel. Excel becomes important when there is a
requirement of analytics on the client’s internal data. It analyzes the complex task that summarizes the data
with a preview of pivot tables that helps in filtering the data as per client requirement.
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Artificial Intelligence

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 Internet of Things

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Source: https://www.analyticsvidhya.com/blog/2016/01/20-powerful-images-perfectly-captures-growth-data-science/, last accessed on 15th February 2018

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Currently, India is among the top ten destinations for analytics and Nasscom expects India to be
among the top three in the world by 2025 having 32 per cent share in the global market. There are over
600 analytical firms in India, of which approximately 400 are start-ups, which are positioning the country
as an emerging hub for analytics solutions for industries across the globe, stated Mr K S Viswanathan,
Vice President, Nasscom. There are currently 90,000 analytics professionals in India working across HR,
marketing, risk & security, healthcare and other sectors. Indian analytics market is expected to continue
growing at 26 per cent compounded annual growth rate (CAGR) which will enable India soon emerge as a
big data and analytics hub of the world.

Source: https://www.ibef.org/news/indias-analytics-industry-expected-to-grow-eightfold-to-us-16-billion-by-2025-nasscom, last

accessed 22nd February, 2018

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You must explore!

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You must explore!

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 Why did you choose Mba ?

You want to become managers ?

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 Why did you choose Mba ?

What is common in your answers

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What is the main difference between
managerial position and other cadre

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What is the main difference between
managerial position and other cadre

You are responsible for taking decisions

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Taking decisions at different levels of
management

Top

Middle

Low

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Taking decisions at different levels of
management

Top

Middle

Low

To take decisions, Managers need

Data
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Data Insights
Data insights are knowledge that a company gains from analyzing sets of
information pertaining to a given topic or situation. Analysis of this
information provides insights that help businesses make informed decisions
and reduces the risk that comes with trial-and-error testing methods.
Insights are the knowledge gained through analyzing data, generating
conclusions from the data that can benefit your business. Data is the input.
Insights are the output.
What is Data ?

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 What is Data ?

Data is acts and statistics collected together for

reference or analysis.
The quantities, characters, or symbols on which
operations are performed by a computer, which may
be stored and transmitted in the form of electrical
signals and recorded on magnetic, optical, or
mechanical recording media.

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Information

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 Information

Information is processed, organized and structured data.

It provides context for data and enables decision making.
For example, a single customer’s sale at a restaurant is data
– this becomes information when the business is able to
identify the most popular or least popular dish

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Customer Personality Analysis

• Old customers with • New customers with

high income and below-average
high spending income and low
nature. spending nature.

Need
Stars:
Attention:

Leaky High
Bucket: Potential:
• Old customers with • New customers with
below-average high income and
income and a low high spending
spending nature. nature.

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Customer Personality Analysis

Non Low
Buyer Buyer

Biggest Frequent
Buyer Buyer

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What is knowledge ?

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 What is knowledge ?

understanding of or information about a subject that you

get by experience or study, either known by one person or
by people generally:

Application of information according to situation

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What is Wisdom ?

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 What is Wisdom ?

Wisdom is the prediction of future based on your knowledge

and experience you have gained

To predict what is going to happen in

future in short span and long term based
on the knowledge and experience

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 Four Pillars

• Data • Information

1 2

4 3
• Wisdom • Knowledge

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Data Maturity
Data Maturity: Data maturity refers to the level of
sophistication and effectiveness with which an organization
manages and utilizes its data assets. It represents the
organization's ability to harness the value of data to drive
decision-making, operational efficiency, and innovation.
Data maturity is typically characterized by different stages,
which can vary based on various frameworks or models
Some Common Stages of Data Maturity in Organizations:

Initial Stage:
1) Data is fragmented, inconsistent, and poorly managed.
2) Limited awareness of the potential value of data.
3) Lack of standardized processes for data collection, storage, and analysis.
Reactive Stage:
1. Recognizing the importance of data but reacting to specific needs or
problems.
2. Implementing ad-hoc data management practices.
3. Limited governance and coordination across departments.
Some Common Stages of Data Maturity in Organizations
Proactive Stage:
1. Developing a data strategy and formalizing data management processes.
2. Implementing data governance frameworks and policies.
3. Establishing data quality controls and data integration mechanisms.
Managed Stage:
1. Implementing data management systems and tools.
2. Establishing data standards, metadata management, and data stewardship.
3. Centralized data storage and access control.
4. Implementing data security and privacy measures.
Some Common Stages of Data Maturity in Organizations :
Optimized Stage:
1. Data-driven decision-making is embedded in the organization's
culture.
2. Utilizing advanced analytics and data science techniques.
3. Investing in data analytics capabilities and technologies.
4. Establishing a data-driven mindset across the organization.
5. In the absence of good quality data, organizations may face
challenges in deriving accurate insights and making informed
decisions.
Some Common Stages of Data Maturity in Organizations :
Data Improvement Initiatives:
1. Implement data cleansing and data quality improvement processes.
2. Invest in data integration and data enrichment strategies.
3. Enhance data collection methods to ensure data accuracy and completeness.
External Data Sources:
1. Supplement internal data with external data sources, such as third-party data
providers or open data repositories.
2. Leverage data partnerships or collaborations with other organizations to
access high-quality data.
Some Common Stages of Data Maturity in Organizations :
Data Imputation and Estimation:
1. Utilize statistical techniques or imputation methods to fill gaps in the data.
2. Develop estimation models based on available data to derive meaningful
insights.
Focus on Data Governance:
1. Establish data governance frameworks to ensure data quality, security, and
compliance.
2. Implement data management processes and controls to improve data
reliability and consistency.
Some Common Stages of Data Maturity in Organizations :

Data Strategy and Roadmap:

1. Develop a data strategy that outlines the steps to improve data quality
and maturity over time.
2. Create a roadmap for data initiatives, prioritizing areas that require
immediate attention.
3. By focusing on improving data quality, establishing data governance
practices, and adopting a data-driven mindset, organizations can
progress in their data maturity journey and unlock the full potential of
their data assets.
Data Maturity in a Retail Organization
Objective: Illustrate the stages of data maturity in a retail organization
and discuss options in the absence of good quality data.
Initial Stage:
1. The retail organization has fragmented data sources, such as
separate systems for sales, inventory, and customer information.
2. Data is inconsistently stored and lacks standardization, making it
difficult to derive meaningful insights.
3. There is limited awareness of the value of data and its potential
impact on business decisions.
Data Maturity in a Retail Organization
Reactive Stage:
1. The retail organization recognizes the need for better data
management when faced with challenges like inventory stockouts
and inefficient supply chain processes.
2. They start implementing ad-hoc data management practices, such as
integrating some data sources and performing basic data analysis.
3. Data governance processes and coordination across departments are
still limited.
Data Maturity in a Retail Organization
Proactive Stage:
1. The retail organization develops a data strategy and formalizes data
management processes.
2. They establish data governance frameworks, including data
standards, data quality controls, and data integration mechanisms.
3. Data collection methods are improved, ensuring consistent and
reliable data across the organization.
Data Maturity in a Retail Organization
Managed Stage:
◦The retail organization invests in data management systems and
tools, such as a centralized data warehouse and data analytics
platforms.
◦They implement data security measures to protect sensitive customer
information.
◦Data governance practices, including metadata management and
data stewardship, are established to ensure data accuracy and
compliance.
Data Maturity in a Retail Organization
Optimized Stage:
◦ The retail organization has a data-driven culture, with decision-making at all
levels based on data insights.
◦ They utilize advanced analytics techniques, such as predictive modeling and
machine learning, to drive personalized marketing campaigns, optimize pricing
strategies, and forecast demand.
◦ The organization invests in data analytics capabilities, including hiring data
scientists and data analysts, and provides training to employees on data
literacy.
Options in the Absence of Good Quality Data:
The retail organization can initiate data improvement initiatives, such
as data cleansing and data quality improvement processes, to enhance
the accuracy and reliability of existing data.
They can leverage external data sources, such as market research
reports or industry benchmarks, to supplement internal data and gain
additional insights.
In cases where certain data is missing or incomplete, statistical
techniques or imputation methods can be used to estimate values
based on available data.
Options in the Absence of Good Quality Data:
Focus on data governance by establishing data quality control
measures, implementing data management processes, and ensuring
compliance with data privacy regulations.
By progressing through the stages of data maturity and addressing the
challenges associated with data quality, the retail organization can
leverage data to gain a competitive advantage, make informed business
decisions, and drive business growth.
Lets Summarize!!
Business Analytics and its related terms such as Data science,
Big Data, Data Mining, etc. has become a powerful tool for
companies.
A Business Analyst is someone who combines analytics
knowledge with strong domain expertise and are valuable to
businesses because they tend to focus on the role of analytics in
the context of a business problem or an opportunity.
According to the Harvard Review, “Data Scientist is the hottest
job of 21st Century”.
Gartner, a global research firm, predicts that by 2020 nearly 4.4
million new jobs will be created globally by Business Analytics.