MODULE 1 – OVERVIEW OF BUSINESS ANALYTICS 1

MODULE 1 – OVERVIEW OF BUSINESS ANALYTICS

INTRODUCTION
Business analytics is a relatively new term that is gaining popularity in both
business and academic circles like nothing else in recent history. In most general
terms, business analytics is the art and science of discovering insight – by using
sophisticated mathematical, statistical, machine learning, and network science
methods along with a variety of data and expert knowledge – to support better
and faster decision-making. In addition, business analytics can also be thought of
as an enabler for decision-making and problem solving.

LEARNING OUTCOMES
After reading this module, the learner should be able to:
1. Explain what business analytics is;
2. Discuss the basic concept about business analytics;
3. Discuss the business model canvas and its building blocks; and
4. Prepare a business model canvas and value chain model.

TIME

The time allotted for this module is six (6) hours.

LEARNER DESCRIPTION

The participants in this module are BSBA second year students.

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MODULE CONTENTS

LESSON 1.1. Business Analytics

Source: https://onlinemasters.ohio.edu/blog/benefits-of-a-business-analytics-course-and-degree/

The word analytics has come into the foreground in last decade or so. The
proliferation of the internet and information technology has made analytics very
relevant in the current age. Analytics is a field which combines data, information
technology, statistical analysis, quantitative methods, and computer-based
models into one. These are combined to provide decision makers all the possible
scenarios to make well-thought and researched decisions. The computer-based
model ensures that decision makers are able to see the performance of such
decisions under various scenarios.

A subset of Business Intelligence (BI), business analytics is generally

implemented with the goal of identifying actionable data. Business intelligence is
typically descriptive, focusing on the strategies and tools utilized to acquire,
identify, and categorize raw data and report on past or current events. Moreover,
it is prescriptive and devoted to the methodology by which any data can be
analyzed, patterns can be recognized, and models can be developed to clarify
past events, create predictions for future events, and recommend actions to
maximize ideal outcomes.

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Definition of Business
Analytics
According to numerous sources, business analytics can be defined as:
 The process of transforming data into insights that
supports improve, and/or automate business decision.
 The skills, technologies, practices for continuous
iterative exploration and investigation of past business
performance to gain insight and drive business
planning. It focuses on developing new insights and
understanding of business performance based on data
and statistical methods (Sharma, 2018; Bentley, 2019).
 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 (Galleto, 2018).
 The acquisition of quantitative methods and evidence-
based data for business modeling and decision
making.
 The practice of iterative, methodical exploration of an
organization’s data with emphasis on statistical
analysis which can companies committed to data-
driven decision making.

Importance of Business
Analytics
 Business analytics is a methodology or tool used to make sound
commercial decisions, improve the profitability of the business, increase
the market share, and provide better return to a shareholder.

 It facilitates better understanding of available primary and secondary data

which affects the operational efficiency of several departments.

 It provides a competitive advantage to companies. In this digital age, the

flow of information is almost equal to all the players. It is the usage of the
information that makes the company competitive.

 It converts available data into valuable information. This can be presented

in any required format comfortable to the decision maker.

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User of Business
Analytics
 Students
 Businessman
 Accountants
 Organization
 Companies
 Group of industries
 Small firm
 Auditors

Advantages of Business
Analytics
 Eliminates guesswork
 Gets faster answer to one’s question
 Gets insight into customer behaviour
 Identifies cross selling and up selling opportunities
 Gets key business metrics reports when and where one needs them

Challenges in Implementing Business Analytics in an

Organization
 Lack of technical skills in employees
 Fussing over acceptable of B.A. by staff
 Data security and maintenance
 Integrity of data
 Inability to address complex issues

Why is it Time to Put Analytics to

Work?
Most companies today have massive amounts of data at their disposal. We can
see this by just accessing the net, social media and other surveys out there that
hold a very vast amount of data beneficial to the organization.

What are the Sources of

Data?
 Customers
 Competitors
 Within the organization
 Outside the organization
 Environment

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Practical?
MODULE 1 – OVERVIEW OF BUSINESS ANALYTICS 5

 When there is no data.

 When there is no precedent.
 When history is misleading.
 When the decision maker has no considerable experience.
 When the available data is not applicable to the current software or
program.

Activity 1.1.

 Read the online article on “Definition: What is Business Intelligence?” by

Business Intelligence the Definitive Guide

 Watch online video on “Introduction to Business Analytics” by Cody

Baldwin

 Read the article on “What is Business Analytics?” by Molly Galleto

Study Questions

1. After learning about the different definitions of BA and BI, can you now
compare/differentiate BI and BA?

2. Galleto (2016) mentioned that "While Business Intelligence answers what

happened, Business Analytics answers why it happened and whether it
will happen again". What are your thoughts on this?

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References

Definition: what is business intelligence? Retrieved from

https://www.microstrategy.com/us/resources/introductory-guides/business-
intelligence-the-definitive-guide

Baldwin, C. (2016). Introduction to business analytics. Retrieved from

https://www.ssyoutube.com/watch?v=9IIgH0hNtgk.

Bently, D. (2019). Business analytics: Principles, concepts and applications.

Larsen and Keller.

Galletto, M. (2016). What is business analytics? Retrieved from

https://www.ngdata.com/what-is-business-analytics

Sharma, C. H. (2018). Business analytics: Concepts and theories. Random

Publications.

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LESSON 1.2. Big Data and Business Analytics

At this point we have an idea about Business Analytics (BA) and how it differs
from Business Intelligence (BI). It is now the time to introduce another concept
related to BA which is the Big Data. Sharma (2018) defines big data as the
collection of data sets that are so large and complex that software systems are
hardly able to process them. SAS however defines it as a term that describes
the large volume of structured and unstructured data which can be analyzed for
insights needed for better decisions and strategic business moves. IBM, on the
other hand, refers to it as data sets whose size or type is beyond the ability of
traditional relational databases to capture, manage, and process the data with
low-latency.

What is the difference? 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 (Almodiel & Garcia, 2019).
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.

Activity 1.2.

 Read the online article on "Difference between Big data and Business
Analytics"

 Watch online video on “Big Data Analytics for Business”

Study Questions

1. Upon reading the article how can you relate the above discussion to the
article?

2. Compare the discussion above against from the video presentation more
specifically on the four aspects the define big data. What have you learn
from it?

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References:

Big data analytics for business. Retrieved from

https://www.ssyoutube.com/watch?v=AIvJbpn3TZM

Difference between big data and business analytics. Retrieved from

https://talentedge.in/articles/difference-big-data-business-analytics/

Sharma, C. H. (2018). Business analytics: Concepts and theories. Random

Publications.

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LESSON 1.3. Big-Data Technology

Big Data Technology can be defined as a Software-Utility that is designed

to Analyse, Process and Extract the information from an extremely complex
and large data sets which the Traditional Data Processing Software could
never deal with.

Types of Big Data Technologies

Big Data Technology is mainly classified into two types:
1. Operational Big Data Technologies
Operational Big Data is all about the normal day to day data that we
generate. This could be the Online Transactions, Social Media, or the
data from a Particular Organization etc. Raw Data which is used to feed
the Analytical Big Data Technologies.
Examples are:
 Online ticket bookings, which includes your Rail tickets, Flight
tickets, movie tickets etc;
 Online shopping which is your Amazon, Flipkart, Walmart, Snap
deal and many more;
 Data from social media sites like Facebook, Instagram, what’s app
and a lot more; and
 The employee details of any Multinational Company.

2. Analytical Big Data Technologies

Analytical Big Data is like the advanced version of Big Data
Technologies. It is a little complex than the Operational Big Data. In short,
Analytical big data is where the actual performance part comes into the
picture and the crucial real-time business decisions are made by analyzing
the Operational Big Data.
Examples are:
 Stock marketing
 Carrying out the Space missions where every single bit of
information is crucial.
 Weather forecast information
 Medical fields where a particular patients health status can

Top Big Data Technologies

Top big data technologies are divided into 4 fields which are classified as follows:
 Data Storage
 Data Mining
 Data Analytics
 Data Visualization

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Activity 1.3.

 Read the online article on “Top Big Data Technologies that you Need to
know” by Ravi Kiran (2019).

 Watch the online video “Top Big Data Technologies | Big Data Tools
Tutorial | Big Data Hadoop Training.” Edureka - 2019.

Study Question

Upon reading the article and watching the video explain how do top Big Data
Technologies or tools were classified?

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References:

Top big data technologies | big data tools tutorial | big data Hadoop training.
Edureka - 2019. Retrieved from
https://www.ssyoutube.com/watch?v=Vs9k3FThNic

Almodiel, M. & Garcia, Dr. P. G. (2019). Fundamentals of business analytics: A

business analytics course. UPOU.

Kiran, R. (2019). Top big data technologies that you need to know. Retrieved
from https://www.edureka.co/blog/top-big-data-technologies/

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LESSON 1.4. Business Model Canvas

Being exposed from simple to complex business environment, emerging

of new business idea is inevitable. A business manager has no choice
but to go into competition to sustain the business operation. Being
overwhelmed by different business environmental factors, writing a best
and suitable business plan is very difficult. Moreover, having it feasible
another challenged.

Business model canvas is the solution! But what is business model

canvas? In this lesson, you’ll have an idea, knowledge, and through
continuous practice you’ll able to develop some techniques and skills on
creating a business model canvas.

Figure 1.4A. Twitter Business Model

Source: https://www.ncrypted.net/blog/wp-content/uploads/2018/08/Twitter.jpg

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Figure 1.4B. Twitter Business Model

Source: https://businessmodelinnovationmatters.files.wordpress.com/2012/02/twitter-business-
model.png

A business model canvas describes the rationale of how an organization creates,

delivers and captures value. It is a strategic management and lean startup
template for developing new or documenting existing business models. A visual
chart with a variety of elements, it provides a description of the firm and its
products’ value proposition, infrastructure, customers, and finances.

Nine Building Blocks in the Business Model

Canvas
1. Customer Segment – the different groups of people or organizations an
enterprise aims to reach and serve.

2. Value propositions – the bundle of products and services that create value
for a specific customer segment.

3. Channels – it refers to how a company communicates with and reaches its

customer segments to deliver a value proposition.

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4. Customer relationships – the types of relationships a company establishes

with specific customer segments.

5. Revenue streams – the cash a company generates from each customer

segment (one time or recurring).

6. Key resources – the most important things a company must do to make its
business work.

7. Cost structure – all the cost incurred to operate a business model.

Activity 1.4.

 Read the online articles on “Understanding Twitter Business Model” and

"Understanding Business Model" by
BUSINESSMODELINNOVATIONMATTERS

 Read the article on “The 9 Building Blocks of Business Model Canvas by

Strategyzer.”
Study Questions

1. After reading the articles, how do business model canvas significantly change
their business operations?

2. How importance is the Nine (9) Building Blocks of Business Model Canvas in
developing a business model canvas?

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References:

The 9 building blocks of business model canvas by Strategyzer. Retrieved from

https://www.wemla.co/business-model-canvas/.

Understanding business model. Retrieved from

https://businessmodelinnovationmatters.wordpress.com/tag/business-
model-canvas-examples/

Understanding twitter business model. Retrieved from

https://businessmodelinnovationmatters.wordpress.com/2012/02/18/under
standing-twitter-business-model-design/

Ebinum, M. (2016). How to: Business model canvas explained. Retrieved from
https://medium.com/seed-digital/how-to-business-model-canvas-
explained-ad3676b6fe4a

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LESSON 1.5. Value Chain Model

An organization is always on the verge of sustaining its competitive advantage –

on edge to its competitors in terms of improved efficiency and increased profit
margins. Organization analyze its internal activities and enhance its competitive
advantages and evaluates its disadvantages based on a model. This will
become their basis to perform its activities better than competitors would do. The
competitive analysis model that had been the basis by different business
organization was introduced by Michael Porter in 1985 which was known as
“value chain model”.

Figure 1.5A. Value Chain Analysis

Source: https://www.smartsheet.com/value-chain-model

Figure 1.5B. Value Chain Analysis

Source: https://www.managementexchange.com/hack/mapping-porter%e2%80%99s-value-
chain-activities-business-functional-units

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A value chain model canvas is a type of business model that describes the full
range of activities needed to create a product or service. The purpose of a value-
chain analysis in such canvas is to increase production efficiency so that a
company can deliver maximum value for the least possible cost.

Benefits of Value Chain

Modeling
A value chain can help an organization identify in-house and outsourcing
opportunities that take advantage of cost savings and specialized expertise.

Ultimately, value chain modeling offers the following benefits:

 Cost reduction
 Competitive differentiation
 Increased profitability and busines success
 Increased efficiency
 Decreased waste
 Higher quality products at lower costs

Activity 1.5.1.

 Read the online articles on “The Straightforward Guide to Value Chain

Analysis” by Meredith Hart and “How Your Business Can Benefit from Value
Chain Modelling” by The Smart Street.
Study Question

Is there an specific value chain model for all types of industry?

Activity 1.5.2.

Performance Task (Assignment No. 1)

1. [Group activity consisting of five members]. Create a business model canvas

and value chain model for a typical firm suited from the following
sector/industry. Choose only one from the following:
 Agriculture (Poultry and livestock)
 Utilities (Power, water, and telecom)
 Public Transportation
 Finance and Insurance
 Information Services (Media)
 Professional Services (Consultations)
 Educational Services
 Entertainment and Recreation (Sports)

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2. If face-to-face class is already allowed once the lesson is given, the first
output is to be written in a yellow paper, while the second one is to be
submitted in a short bond paper, its content printed. Otherwise, both of them
are to be submitted in LMS, in the Dropbox to be provided.

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References:

Evans, J. R. (2017). Business Analytics: Methods, Models and Decision. Boston:

Pearson Publishing Co.

Evans, J. R. (2017). Business Analytics: Principles, Concepts and Applications.

Boston: Pearson Publishing Co.

Hart, M. (2020). “The Straightforward Guide to Value Chain Analysis.” Retrieved

from https://blog.hubspot.com/sales/value-chain-analysis

The Smart Sheet (2020). “How Your Business Can Benefit from Value Chain
Modelling.” Retrieved from: https://www.smartsheet.com/value-chain-
model

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ONLINE READING MATERIALS

 “Definition: What is Business Intelligence?” Retrieved from

https://www.microstrategy.com/us/resources/introductory-guides/business-
intelligence-the-definitive-guide

 Galletto, M. (2016). “What is Business Analytics?” Retrieved form

https://www.ngdata.com/what-is-business-analytics

 "Difference between Big data and Business Analytics." Retrieved form

https://talentedge.in/articles/difference-big-data-business-analytics/

 Kiran, R. (2019). “Top Big Data Technologies that you Need to know.”
Retrieved form https://www.edureka.co/blog/top-big-data-technologies/

 “The 9 Building Blocks of Business Model Canvas by Strategyzer.”

Retrieved from https://www.wemla.co/business-model-canvas/.

 “Understanding Business Model.” Retrieved from

https://businessmodelinnovationmatters.wordpress.com/tag/business-
model-canvas-examples/

 “Understanding Twitter Business Model.” Retrieved from

https://businessmodelinnovationmatters.wordpress.com/2012/02/18/under
standing-twitter-business-model-design/

 Ebinum, M. (2016). How To: Business Model Canvas Explained.

Retrieved from https://medium.com/seed-digital/how-to-business-model-
canvas-explained-ad3676b6fe4a

 Hart, M. (2020). “The Straightforward Guide to Value Chain Analysis.”

Retrieved from https://blog.hubspot.com/sales/value-chain-analysis

 “How Your Business Can Benefit from Value Chain Modelling.” Retrieved
form The Smart Street.

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ONLINE VIDEO LINKS AND MATERIALS

 “Introduction to Business Analytics.” by Cody Baldwin. Retrieved from

https://www.youtube.com/watch?v=9IIgH0hNtgk.

 “Big Data Analytics for Business.” Retrieved from

https://www.youtube.com/watch?v=AIvJbpn3TZM

 “Top Big Data Technologies | Big Data Tools Tutorial | Big Data Hadoop
Training” Edureka - 2019. Retrieved from
https://www.ssyoutube.com/watch?v=Vs9k3FThNic

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TEST YOUR KNOWLEDGE

Online Quiz No. 1 (50 pts)

1. Discuss the current concepts and applications of business analytics in

both local and global business environments.

2. Make a comprehensive differentiation on Business Analytics, Business

Intelligence and Big Data.

3. Give twelve (8) examples of big data technologies and classified them
accordingly based on Edureka video presentation and article by Kiran
(2019).

4. Define business model canvas building and enumerate its building blocks.

5. Distinguish the difference between business model canvas and value

chain model.

Rubrics for Nos. 1., 2., 3., & 5

Knowledge and understanding 2.5 pts.
Thinking and Inquiry 2.5 pts.
Application 2.5 pts.
Communication 2.5 pts.

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MODULE REFERENCES

Big data analytics for business. Retrieved from

https://www.ssyoutube.com/watch?v=AIvJbpn3TZM

Definition: What is business intelligence? Retrieved from

https://www.microstrategy.com/us/resources/introductory-guides/business-
intelligence-the-definitive-guide

Difference between big data and business analytics. Retrieved rom

https://talentedge.in/articles/difference-big-data-business-analytics/

How your business can benefit from value chain modelling. The Smart Street.
Retrieved form www.smartsheet.com/value-chain-model

The 9 building blocks of business model canvas by Strategyzer. Retrieved from

https://www.wemla.co/business-model-canvas/.

top big data technologies | big data tools tutorial | big data Hadoop training”
Edureka - 2019. Retrieved from
https://www.youtube.com/watch?v=Vs9k3FThNic

Understanding business model. Retrieved from

https://businessmodelinnovationmatters.wordpress.com/tag/business-
model-canvas-examples/

What is big data analytics. Retrieved from

https://www.ibm.com/analytics/hadoop/big-data-analytics

Almodiel, M. & Garcia, Dr. P. G. (2019). Fundamentals of business analytics: A

business analytics course. UPOU.

Baldwin, C. (2016). Introduction to business analytics. Retrieved from

https://www.ssyoutube.com/watch?v=9IIgH0hNtgk.

Bently, D. (2019). Business analytics: principles, concepts and applications.

Larsen and Keller.

Ebinum, M. (2016). How to: Business model canvas explained. Retrieved from
https://medium.com/seed-digital/how-to-business-model-canvas-
explained-ad3676b6fe4a

Evans, J. R. (2017). Business analytics: methods, models and decision. Pearson

Publishing Co.

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Evans, J. R. (2017). Business analytics: Principles, concepts and applications.

Pearson Publishing Co.

Galletto, M. (2018). What is business analytics? Retrieved from

https://www.ngdata.com/what-is-business-analytics

Hart, M. (2020). The straightforward guide to value chain analysis. Retrieved

from https://blog.hubspot.com/sales/value-chain-analysis

Kiran, R. (2019). Top big data technologies that you need to know. Retrieved
from https://www.edureka.co/blog/top-big-data-technologies/

Sharma, C. H. (2018). Business analytics: Concepts and theories. Random

Publications.

FBANA – FUNDAMENTALS OF BUSINESS ANALYTICS