BUMA REVIEWER MODULE 1-5

 In big data, Volume is about how huge the data sets.

 In big data, Variety includes how many pieces of data we gather together from social
media data, government data, financial data, banking data, all sorts of transactions all
combined together to make one or more profiles for your customers.
 In big data, Veracity means that there is a lot of uncertainty, meaning, with all of these
different data coming altogether but the problem is we don’t know what to do with them.
 Refer to Module 1 Study Guide. According to Evans (2012), Business Analytics is the use
of data, information technology, statistical analysis, quantitative methods, and
mathematical or computer-based models to help managers gain improved insight about
business operations and make better, fact-based decisions.
 Refer to Module 1 Lecture Notes. According to Galleto (2018), Business Analytics is the
study of data through statistical and operations analysis, the formation of predictive
models, application of optimization techniques, and the communication of these results to
customers, business partners, and college executives.
 Business Intelligence is the process of collecting information from all sources to make
data-driven decisions in an organization.
 Business Intelligence is the process of combining aspects of reporting, monitoring and
alerting, dashboards, scorecards, and ad hoc query data exploration.
 The process of moving data from source systems into a data warehouse, and from a data
warehouse into an analytical tool is often called ETL (Extract, Transform, or Load
processes).
 In the data extraction, there are at least 3 sources of data which are the source systems,
raw transactions, and from documents and forms.
 Descriptive Analytics is the type of analytics where data is used to benchmark or to
profile.
 In business analytics, you need to follow a process turn data into value.
 The process of turning raw data into business action is the framework for business
analytics.
 The first step to turning data into analytics is the extraction phase
 Predictive analytics is used when you want to find relationships between two different
types of data and making predictions about future data.
 For the data to become business value, it has to be extracted from sources, curated and
cleansed, and joined in a data warehouse.
 Big data includes large volumes of structured and unstructured data that inundates a
business on a day-to-day basis.
 Prescriptive analytics is a way of providing recommendations and providing the
decision-maker the costs and benefits of a decision.
 Business intelligence is about combining aspects of reporting, data exploration, and ad
hoc queries.
 In the data warehouse, the data is cleaned, curated, organized, and prepared for analysis.
 In every database system, the heart of each system is what you call the data.
 Data are facts or figures that we can store in a database.
 Database is a collection of logically related data and it is typically visualized as tables;
composed of cells matched with several columns and rows.
 In computer terms, database is a collection of data, not necessarily always stored in a
computer, such as records stored in a filing cabinet, in a notebook.
 A DBMS is a collection of interrelated data using the software and hardware used to
access the data in a useful manner such as database or set of databases stored in a disk
 or other media, a computer, or set of computers where the software to access the
database can run.
 A DBMS is a software package or software that allows you to store, retrieve, and package
your database.
 The DBMS can provide a convenient and efficient interface for storing, retrieving, and
updating data, and for extracting useful information from the database, and a clear and
logical view of the process that manipulates the data.
 DBMS maintains the segregation between the program and the data.
 Concurrency Control refers to a process to ensure that data is updated correctly and
 Recovery Service refers to mechanisms for recovery of data that is apparently lost due
to system crashes.
 Utility Services is the initialization and maintenance operations on a database.
 Manipulation of data tells us that we can CRUD (create, retrieve, update, and delete) our
data within the DBMS.
 Metadata describes another data in terms of its constraints, size, and the data type of
the tables or the databases that are contained within your DBMS.
 Data Processing allows the user to perform different types of operations such as string
manipulation, date operations and so on. You can also manipulate the data based on an
event or what they call ‘triggers’ which is based on the event or the conditions of the
event.
 Data sharing means that within a database, privileges are provided to different types of
users. Different types of users can access the same database but the same users can have
different privileges.
 The users of a database system are the database administrator, system developer, and
end user.
 Database application is a computer program that allows users to manipulate the data in a
DBMS through a user-friendly interface.
 The databases store all its data in one location, thereby limiting data duplication.
 Database application can be divided into four broad categories: Personal which is
restricted to a single user; Departmental which is referenced by hundreds of users over a
shared system or network; Enterprise which extensions of departmental applications
involving thousands of users; and the Internet which is the largest form of information
sharing where billions of users are involved.
 The Interface is responsible for interacting with the user. It is also called the
“middleman” as it communicates between two different parties: the end user, which is
you, and the database management systems.
 Parser is responsible for checking the correctness of the syntax that was provided by the
end user through the interface. So it also checks the tables and other objects in the query.
 The query optimizer comes from the root word ‘optimize’, which means it simplifies the
query form or the input into a simpler type of input that can be digested and can be
understood by the database management system. This allows the DBMS to save time and
save space when performing operations.
 The main responsibility of engine is to execute the output of the query optimizer. Once the
query has been optimized, then it will pass the data or the optimized query to the
execution engine whose sole purpose is to execute the command.
 Storage is the physical location of your database, which can be the secondary or the
primary memory.
 Understanding how the traffic is today or how bad the traffic is in a certain location is an
example of a descriptive analytics.
Once we know the relationships inside the data, we can make predictions and forecasts by
feeding new data into the predictive model
 Prescriptive Analytics involves providing advice on what actions can be taken given the
predictions about the future and what drives the future. False.
 Prescriptive analytics in marketing can be seen through the recommendation engines
which are found to be successful in driving more sales.
 Database is the space in the disk or computer where the data are actually stored.
 Descriptive analytics is used to benchmark and to profile to be able to establish historical
trends.
 Understanding how the traffic is today or how bad the traffic is in a certain location is an
example of descriptive analytics.
 Once we know the relationships inside the data, we can make predictions and forecasts by
feeding new data into the predictive model.
 In marketing, prescriptive analytics can be seen through the recommendation engines
which are found to be successful in driving more sales.
Module 1
Business Analytics is said to focus on financial and operational analytics of the business
while big data involved machine automation to analyze data. The importance of big data is not
on how much data you have, but what you do with those data.
There are four aspects that define big data which are volume, variety, velocity and veracity.
1. Volume is about how huge the data sets are.
2. Variety includes how many pieces of data we gather together from social media data,
government data, financial data, banking data, all sorts of transactions all combined together to
make one or more profiles for your customers.
3. Velocity is the speed of data.
4. Veracity means that there is a lot of uncertainty, meaning, there is all of these different data
coming together, but the problem is we don’t know what to do with them.

The process of turning raw data into business action is the framework for Business
Analytics. There are 3 steps in turning data into analytics which are Data Extraction, Data
Warehousing and the Extract, Transform, or Load Processes (ETL).
1. Data extraction. This is the first step in turning data into analytics. There are at least 3
sources of data which are the source systems, raw transactions, and from documents and forms.
2. Data warehousing. This is where the data is cleaned, curated, organized, and ready for
analysis.
3. Extract, Transform, or Load Processes (ETL). This is the process of moving data from
source systems to data warehouse to an analytical tool.

Module 2
There are three types of analytics that can help businesses make the most out of the big data
that they have and find the solutions to problems that they have: descriptive, predictive and
prescriptive.
1. Descriptive Analytics. This is the data that is used to benchmark or to profile.
2. Predictive Analytics. This is used to determine relationships between two different types of
data and making predictions about future data.
3. Prescriptive Analytics. This is used to create recommendations through simulation and
optimization models.

Module 3
What is data?
For every database system, the heart of each system is what you call the data
(Recario, 2018). Data are facts or figures which we can store in a database. An example of this is
your ID number, the name of your teacher, the number of students in your class now.
What is a database?
1. A database is a collection of logically related data and it is typically visualize as tables;
composed of cells matched with several columns and rows (Recario, 2018).
2. In computer terms, database is a collection of data, not necessarily always stored in a
computer, such as records stored in a filing cabinet, in a notebook (Crisanto, 2018).
Here are some of the functions of a DBMS (Crisanto, 2018, Recario, 2018 ):
• The DBMS can provide a convenient and efficient interface for storing, retrieving, and updating
data, and for extracting useful information from the database, and a clear and logical view of the
process that manipulates the data.
• Data Independence: DBMS maintains the segregation between the program and the data.
What is a Database Management System (DBMS)?
1. A DBMS is a collection of interrelated data using the software and hardware used to access
the data in a useful manner such as database or set of databases stored in a disk or other media,
a computer, or set of computers where the software to access the database can run (Crisanto,
2018).
2. A DBMS is a software package or software that allows you to store, retrieve, package your
database (Recario, 2018).

Here are some of the functions of a DBMS (Crisanto, 2018, Recario, 2018 ):
• The DBMS can provide a convenient and efficient interface for storing, retrieving, and updating
data, and for extracting useful information from the database, and a clear and logical view of the
process that manipulates the data.
• Data Independence: DBMS maintains the segregation between the program and the data.
• Concurrency Control. This refers to a process to ensure that data is updated
correctly and appropriately when more than one person is accessing the data
• Recovery Services. This refers to mechanisms for recovery of data that is apparently lost
due to system crashes
• Utility Services: An initialization and maintenance operations on a database.
• Manipulation of data. It tells us that we can CRUD (create, retrieve, update, and delete)
our data within the DBMS.
• Database definition. Metadata describes the contents of your database. This is a data
that describes another data in terms of its constraints, size, and the data type of the tables or
the databases that are contained within your DBMS.
• Data Processing. This allows the user to perform different types of operations such as
string manipulation, date operations and so on. You can also manipulate the data based on an
event or what they call ‘triggers’ which is based on the event or the conditions of the event.
• Data sharing. This means that within a database, privileges are provided to different
types of users. Different types of users can access the same database but the same users
can have different privileges.
A database system has the following components (Crisanto, 2018):
1. Users
The users of a database system are the database administrator, system developer, and end user.
A database administrator (DBA) is the person responsible for all the data resources in an
organization. The DBA uses tools that come with a DBMS to improve the productivity and
performance of database planning and design. The system developers are those groups of
people who create the application programs that cater to the user requirements. And, they use
their own tools to write programs that communicate with the DBMS. Finally, the end-users in an
organization are the ones that can add, update, and delete data in a database through
application programs or directly through a DBMS. They use the application program to
accomplish their day-to-day tasks.
2. Database Application
The next component of the database system is the database application. This is a computer
program that allows users to manipulate the data in a DBMS through a user-friendly interface. It
can be divided into four broad categories: Personal which is restricted to a single user;
Departmental which is referenced by hundreds of users over a shared system or network;
Enterprise which extensions of departmental applications involving thousands of users; and the
Internet which is the largest form of information sharing where billions of users are involved.
3. Database Management System (DBMS)
The DBMS decouples application programs from data. The databases store all its data in one
location, thereby limiting data duplication. Examples of DBMS include Access, Oracle, IBM’s DB2,
and SQL Server.
4. Database
The final component of a database system is the database itself. This is the space in the disk or
computer where the data are actually stored.

A database system has the following components (Recario, 2018):

1. Interface
The interface is responsible for interacting with the user. It is also called the
“middleman” as it communicates between two different parties: the end user, which is you, and
the database management systems. The interface allows the end user to input values that will
be understood by the database management system. It is also responsible for the receiving and
outputting, and providing the results of the queries or the commands that the end user issued.
2. Parser
The parser is responsible for checking the correctness of the syntax that was provided
by the end user through the interface. So it also checks the tables and other objects in the query.

3. Query Optimizer
If the parsing is correct and proper, then it will proceed to what we call the query optimizer. The
query optimizer comes from the root word ‘optimize’, which means it simplifies the query form or
the input into a simpler type of input that can be digested and can be understood by the
database management system. This allows the DBMS to save time and save space when
performing operations.
4. Execution Engine
The next one is the execution engine. Its main responsibility is to execute the output of the
query optimizer. Once the query has been optimized, then it will pass the data or the optimized
query to the execution engine whose sole purpose is to execute the command.
5. Storage
Storage is the physical location of your database, which can be the secondary or the
primary memory.
Module 4
Types of Analytics
1. Descriptive : data-driven benchmarking
This is data that is used to benchmark and to profile to be able to establish
historical trends. It is the commonly used analytics by companies. Going back to the
example in the video on how Waze works (Ligot, 2018), understanding how the traffic is
today or how bad the traffic is in a certain location, that’s descriptive analytics. Here,
you're not making any predictions nor looking for any relationships yet - just looking at
data as it is.
2. Predictive : data driven prediction
Now that we already know how the data looks like, we can now understand the
relationships in the data. Once we know the relationships inside the data, we can make
predictions and forecasts by feeding new data into the predictive model. Now let us go
back to the example on how Waze works (Ligot, 2018). Since we already have information
on the destination and a time of departure, Waze will estimate the time of arrival and
predict how long it will take for us to travel, Waze will estimate the time of arrival. This is
prescriptive analytics.
3. Prescriptive: data driven recommendation
The third type of analytics is the prescriptive analytics. It involves providing advice
on what actions can be taken given the predictions about the future and what drives the
future. To explain this further, let’s go back to the example in the video on how Waze
works (Ligot, 2018). If you want to know what the three best routes are, for example,
between Quezon City and Makati, Waze can suggest the top three routes. The decision is
up to you to choose which you think is the best route. And that's the essence of
prescriptive analysis: knowing the costs and benefits of a decision.
Applications of Business Analytics in Finance
Now that we are familiar with the types of analytics, let us look at the applications of
business analytics in finance industry. An example of descriptive analysis in finance is using
analytics in reporting financial results, from gathering financial inputs from different sources,
cleansing it, to reporting it. Predictive analysis, on the other hand, is when we want to predict the
trend of sales for the next two months using historical patterns of seasonality, and examining
whether investing a lot in sales people might also drive the sales trend. Prescriptive analysis is
applied when we want to determine the feasibility of the project, say the likelihood that the
project will falter, or overshoot the budget, or fail. This is with the assumption that we have
looked into consideration the various inputs such as cost of materials, location of project, etc.

Applications of Business Analytics in Human Resources (HR)

Analytics plays an important role in human resources. Suppose you are an HR manager
and you want to understand demographics of the employees in your company. You may need
information on the diversity of the employees’ location, address, school graduated, etc. This is
where descriptive analysis can be used to manage human resources better. As an HR manager,
you may also want to determine which employees are likely to resign, because recruiting new
people will mean additional cost for the company. You may use predictive analysis in this case by
looking at the historical patterns of resignations to determine the likely causes of resignations
and the number of employees that are likely to resign in the future. Finally, as an HR manager,
you may also want to determine the drivers that make employees stay in the company.
Employee engagement, such as looking at what makes them content, happy and stay in the
company (ex. party, bonus, free training, etc) is where prescriptive analysis can be used.

Applications of Business Analytics Marketing

Analytics is very useful especially if you are in the marketing industry. Let’s say you are in charge
of monitoring the results of an online marketing and sales campaign in your company. You can
use descriptive analytics to determine how many people clicked the ads, how many people
bought the product, how many people paid cash-on-delivery, or by credit card. If you want
understand how factors (ex. price, marketing mix and attributing the effect, channels, mode of
payment, etc) contribute to the performance to predict the future performance (success or
failure) of a campaign, or do achieve targets, you can use predictive analytics. Prescriptive
analytics in marketing can be seen through the recommendation engines which are found to be
successful in driving more sales. These are the recommendations that you can see whenever you
visit in an online shopping website, say to buy a book. This recommendation will go something
like “those who bought that book also bought this book”. This recommendation is based on the
prescriptive algorithms which look on the patterns of people who buy the same product or
profiles that look similar or items that are purchased together.
MODULE 5
Objectives and Capabilities of CRM
 A comprehensive business model for increasing
 revenues and profits by focusing on customers.
 No one department owns CRM.
 Must have the support of senior management.
 Cuts across the entire organization but most used by
 marketing, sales, and customer service.
 Drives the firm to be customer-centric
Objectives of CRM
Customer Acquisition - Acquisition of the right customers based on known or learned
characteristics that will drive growth and increase margins.
Customer Retention - Retention of satisfied and loyal profitable customers and channels lead
to long- term growth and profits.
Customer Profitability- Increased customer margins while offering the right products at the
right time.

Customer satisfaction means that the offering meets or exceeds the customer’s
expectations.
Customer loyalty implies repeat purchases.
• High satisfaction
• High level of perceived value
• Strong relationship with the brand

 Return on customer investment can be calculated to determine if the fire should fire
a customer.
 Customer touchpoints: point-of-sale systems, call-center files, Internet access, direct
selling contacts, other customer contact.
A data warehouse contains all information about touchpoints.
Data mining uses massive amounts of data collected through CRM to develop segments and
micro-segments. Database marketing is the creation of lists to reach segments.
Marketing planning phase uses the key use of the output from the knowledge discovery phase.
Develops the marketing mix strategy.
Customer interaction phase is the implementation of the customer strategies and programs.
Includes personal selling and other customer-directed interactions aimed at touchpoints.
Analysis and refinement is where organizational learning takes place.
Interactive touchpoints are two-way and have direct interface between customers and the
sales force, telemarketer, customer service rep, or interactive website.
Non-interactive touchpoints are static such as direct mail or website data entry form.
Formalization means that structure, processes and tools, and managerial knowledge and
commitment are formally established in support of the culture.
Customer mind-set means all employees see both internal and external customer satisfaction as
central.

Big Data: the every-increasing quantity and complexity of data being continuously produced by
technological sources such as laptops, smartphones, and other smart devices
Four V’s: Characteristics of Big Data
Volume: the amount of data produced in bytes
Velocity: the frequency and speed of analysis
Variety: different types of data
Veracity: reliability and validity