Data Analytics vs.

Data Analysis

Both terms are often used interchangeably, but they have distinct meanings in business
analytics.

Aspect Data Analysis Data Analytics

Definition The process of inspecting, A broader field that includes data

cleaning, and interpreting data to analysis, modeling, and decision-making
find insights. based on data.

Scope Focuses on understanding past Encompasses analysis, prediction, and

trends and summarizing data. optimization to drive business decisions.

Purpose Answers "What happened?" Answers "Why did it happen?", "What

will happen next?", and "What should
be done?"

Techniques Descriptive statistics, Machine learning, predictive modeling,

Used visualization, exploratory data AI-driven insights, prescriptive analytics.
analysis (EDA).

Tools Used Excel, SQL, Power BI, Tableau Python, R, SAS, Big Data tools (Hadoop,
for visualization. Spark), AI/ML frameworks.

Example Finding the average sales of a Using customer purchase history to

product over the past year. predict future sales trends and
recommend marketing strategies.

Key Takeaway

●​ Data Analysis is a part of Data Analytics but focuses only on examining historical data.
●​ Data Analytics is a broader discipline that includes predictive, prescriptive, and
AI-driven analytics for making future business decisions.
Types of Analytics in Business Analytics

There are four main types of analytics, each serving a different purpose in data-driven
decision-making:

1. Descriptive Analysis (Summarizing Data)

🔹 Definition: Descriptive analysis helps summarize historical data to identify patterns and
trends. It provides insights into what has already happened using simple statistical measures.

🔹 Key Techniques:
●​ Measures of Central Tendency: Mean, Median, Mode
●​ Measures of Dispersion: Standard Deviation, Variance, Range
●​ Data Visualization: Bar Charts, Pie Charts, Line Graphs

🔹 Example:​
📌 E-commerce – Amazon analyzes past sales data to see how revenue has changed over
time.

📌 Healthcare – A hospital examines patient admission rates over the past year.
📌 Marketing – A company tracks website traffic and customer engagement over a month.

2. Diagnostic Analysis (Finding Causes)

🔹 Definition: Diagnostic analysis examines past data to understand the reasons behind
trends and events. It answers why something happened.

🔹 Key Techniques:
●​ Correlation Analysis – Finding relationships between variables.
●​ Regression Analysis – Understanding the impact of one factor on another.
●​ Drill-Down Analysis – Exploring deeper layers of data to pinpoint causes.

🔹 Example:​
📌 Retail – If sales dropped in December, a company might analyze customer reviews,
competitor pricing, and marketing effectiveness to find out why.

📌 Finance – A bank investigates why loan default rates increased by analyzing customer
profiles.
📌 Healthcare – If a hospital sees a rise in heart disease cases, it may analyze patient
lifestyle habits to find contributing factors.

3. Predictive Analysis (Forecasting the Future)

🔹 Definition: Predictive analysis uses historical data, statistical models, and machine
learning to make informed forecasts about future events.

🔹 Key Techniques:
●​ Machine Learning Algorithms – Decision Trees, Neural Networks.
●​ Time Series Analysis – ARIMA, Exponential Smoothing.
●​ Probability Models – Monte Carlo Simulations.

🔹 Example:​
📌 Stock Market – Investment firms use machine learning to predict stock price trends.
📌 Healthcare – AI predicts disease outbreaks based on patient data trends.
📌 Retail – Amazon predicts which products will be in high demand next month using
customer purchase history.

4. Prescriptive Analysis (Decision-Making)

🔹 Definition: Prescriptive analysis goes beyond prediction to recommend actions based on

data insights. It helps businesses make optimal decisions using AI and complex algorithms.

🔹 Key Techniques:
●​ Optimization Models – Linear Programming, Genetic Algorithms.
●​ Simulation Models – Predicting different scenarios and outcomes.
●​ Decision Trees – Mapping out different decision paths.

🔹 Example:​
📌 Ride-Sharing (Uber) – Uber uses prescriptive analytics to adjust pricing based on
demand and traffic conditions in real time.

📌 Supply Chain Management – Companies use analytics to optimize inventory levels and
reduce waste.

📌 Healthcare – AI recommends the best treatment plans for cancer patients based on
predictive modeling.
Summary Table
Type Question Example
Answered

Descriptive What happened? Sales reports showing a 10% increase in revenue.

Analytics

Diagnostic Why did it Finding that sales dropped due to seasonal

Analytics happen? factors.

Predictive What will happen? Forecasting customer demand for the next
Analytics quarter.

Prescriptive What should be AI recommending the best marketing strategy for

Analytics done? maximum ROI.
Applications of Analytics Across Industries

Analytics is widely used in various industries to improve decision-making, efficiency, and

profitability. Here are some key applications:

1. Finance & Banking

📊 Use Cases:
●​ Fraud Detection: AI models detect suspicious transactions in real time.
●​ Risk Management: Credit scoring models assess loan default risks.
●​ Algorithmic Trading: Machine learning optimizes stock trading strategies.
●​ Customer Segmentation: Banks analyze spending patterns to personalize offers.

🔹 Example: JPMorgan Chase uses predictive analytics to prevent credit card fraud.

2. Marketing & Advertising

📊 Use Cases:
●​ Customer Targeting: Analyzing consumer behavior to personalize ads.
●​ A/B Testing: Comparing two ad versions to optimize conversions.
●​ Sentiment Analysis: AI monitors customer reviews and social media sentiment.
●​ Churn Prediction: Identifying customers likely to stop using a service.

🔹 Example: Netflix analyzes viewing history to recommend personalized content.

3. Healthcare

📊 Use Cases:
●​ Disease Prediction: AI detects early signs of diseases from medical records.
●​ Patient Readmission Forecasting: Hospitals predict which patients may return.
●​ Drug Discovery: Machine learning accelerates new medicine research.
●​ Operational Efficiency: Predicting hospital bed occupancy to optimize resources.

🔹 Example: IBM Watson assists doctors in diagnosing diseases based on medical data.
4. Retail & E-Commerce

📊 Use Cases:
●​ Inventory Optimization: Predicting product demand to avoid overstocking.
●​ Price Optimization: AI dynamically adjusts prices based on demand and competitor
trends.
●​ Recommendation Systems: Personalized product suggestions using past purchase
data.
●​ Customer Lifetime Value (CLV) Analysis: Identifying high-value customers.

🔹 Example: Amazon’s recommendation engine drives 35% of total sales.

5. Supply Chain & Logistics

📊 Use Cases:
●​ Route Optimization: GPS and AI minimize fuel consumption and delivery time.
●​ Demand Forecasting: Predicting future inventory needs to reduce waste.
●​ Warehouse Management: Robotics and AI improve storage efficiency.
●​ Risk Mitigation: Identifying supply chain disruptions early.

🔹 Example: FedEx uses predictive analytics to optimize delivery routes.

6. Manufacturing

📊 Use Cases:
●​ Predictive Maintenance: Sensors detect machine failures before they occur.
●​ Quality Control: AI detects product defects in real-time.
●​ Supply Chain Analytics: Ensuring timely raw material procurement.
●​ Lean Manufacturing: Data-driven waste reduction strategies.

🔹 Example: General Electric (GE) uses IoT and AI for predictive maintenance.

7. Sports & Entertainment

📊 Use Cases:
●​ Performance Analysis: AI tracks athlete performance for training improvements.
 ●​ Fan Engagement: Personalized content recommendations for viewers.
●​ Ticket Pricing Optimization: Dynamic pricing based on demand.
●​ Game Strategy Optimization: Teams use analytics for tactical advantages.

🔹 Example: NBA teams use data analytics to refine player strategies.

8. Government & Public Policy

📊 Use Cases:
●​ Crime Prediction: AI forecasts high-risk areas for law enforcement.
●​ Economic Policy: Data analytics helps in tax collection and economic planning.
●​ Smart Cities: Optimizing traffic management, waste disposal, and energy use.
●​ Public Health Surveillance: Tracking disease outbreaks (e.g., COVID-19 trends).

🔹 Example: The UK government uses data analytics to detect tax fraud.

Summary Table
Industry Key Applications

Finance & Banking Fraud detection, risk assessment, algorithmic trading

Marketing & Advertising Customer targeting, sentiment analysis, churn prediction

Healthcare Disease prediction, patient monitoring, drug discovery

Retail & E-Commerce Recommendation systems, price optimization, inventory

management

Supply Chain & Logistics Route optimization, demand forecasting, warehouse

management

Manufacturing Predictive maintenance, quality control, supply chain

efficiency

Sports & Entertainment Performance analysis, ticket pricing, fan engagement

Government & Public Crime prediction, tax fraud detection, smart cities
Policy
Types of Data in Business Analytics

Data can be classified in multiple ways based on structure, nature, and source. The key
classifications are:

1. Based on Nature (Quantitative vs Qualitative Data)

Type Description Example

Quantitative Data Data that can be measured and Sales revenue, temperature,
(Numerical Data) expressed in numbers. height, age

Qualitative Data Non-numerical data representing Customer feedback, product

(Categorical Data) characteristics or labels. reviews, job titles

🔹 Example:
●​ Quantitative: A company’s monthly revenue is ₹10,00,000.
●​ Qualitative: Customer feedback: "Excellent service!"

2. Based on Measurement (Nominal, Ordinal, Discrete,

Continuous)
Type Description Example

Nominal Data Categorical data with no inherent Gender (Male/Female), Blood Type
order. (A, B, AB, O)

Ordinal Data Categorical data with a meaningful Customer satisfaction (High,

order but unknown spacing. Medium, Low)

Discrete Data Countable numerical data (finite Number of employees, number of

values). cars in a parking lot

Continuous Data that can take infinite values Temperature, weight, height
Data within a range.

🔹 Example:
●​ Nominal: Eye color (Brown, Blue, Green).
●​ Ordinal: Movie ratings (1 star, 2 stars, 3 stars, etc.).
 ●​ Discrete: Number of students in a class (50 students).
●​ Continuous: Height of a person (5.8 ft, 5.85 ft, etc.).

3. Based on Structure (Structured, Semi-Structured,

Unstructured Data)
Type Description Example

Structured Data Organized in a fixed format, easily Excel sheets, SQL databases
stored in databases. (customer names, sales figures)

Semi-Structured Partially organized but lacks a JSON, XML files, emails, social
Data strict structure. media posts

Unstructured No predefined format, difficult to Images, videos, audio, PDFs, chat

Data analyze directly. messages

🔹 Example:
●​ Structured: An Excel file with employee IDs and salaries.
●​ Semi-Structured: A JSON file containing customer reviews.
●​ Unstructured: A collection of CCTV footage from a retail store.

4. Based on Source (Primary vs. Secondary Data)

Type Description Example

Primary Data Collected firsthand for a specific Surveys, interviews, experiments

purpose.

Secondary Pre-existing data collected for Government reports, financial

Data other purposes. statements, industry research

🔹 Example:
●​ Primary Data: A company conducts a customer satisfaction survey.
●​ Secondary Data: A business uses World Bank reports for market research.
5. Based on Sensitivity (Personal, Sensitive, Public Data)
Type Description Example

Personal Identifiable information related to Name, phone number, email ID

Data individuals.

Sensitive Confidential data requiring Credit card details, health records

Data protection.

Public Data Available for public use with no Government census reports, company
restrictions. stock prices

🔹 Example:
●​ Personal: A customer’s email address.
●​ Sensitive: A bank’s account login credentials.
●​ Public: India’s GDP data published by the government.

Summary Table
Category Types of Data Examples

Nature Quantitative, Qualitative Sales revenue (Quantitative), Product reviews

(Qualitative)

Measurement Nominal, Ordinal, Eye color (Nominal), Customer ratings (Ordinal),

Discrete, Continuous Employee count (Discrete), Temperature
(Continuous)

Structure Structured, Excel data (Structured), JSON files

Semi-Structured, (Semi-Structured), Videos (Unstructured)
Unstructured

Source Primary, Secondary Survey data (Primary), Industry reports

(Secondary)

Sensitivity Personal, Sensitive, Phone number (Personal), Credit card info

Public (Sensitive), GDP data (Public)
Big Data: Definition, Characteristics, and Applications

1. What is Big Data?

Big Data refers to extremely large and complex datasets that cannot be managed, processed,
or analyzed using traditional data processing tools. It requires advanced technologies such as
machine learning, artificial intelligence (AI), cloud computing, and distributed databases
for efficient handling.

🔹 Example:
●​ Amazon processes over 1 million customer transactions per second.
●​ YouTube users upload 500+ hours of video every minute.

2. Characteristics of Big Data (5 Vs)

V Description Example

Volume Massive amount of data generated every second. Facebook generates 4

petabytes of data daily.

Velocity Speed at which data is created, collected, and Stock market data updates in
processed. real-time.

Variety Different types and formats of data (structured, Text, images, videos, IoT
semi-structured, unstructured). sensor data.

Veracity Reliability and accuracy of data. Fake news detection in social

media.

Value The usefulness of data in decision-making. Customer behavior analysis

for targeted ads.

3. Types of Big Data

Type Description Example

Structured Data Organized in fixed formats like SQL databases, Excel files.
databases.

Semi-Structured Partially organized but lacks strict JSON, XML, emails, social
Data formatting. media posts.
Unstructured Data No predefined format, difficult to Videos, images, PDFs, call
analyze directly. recordings.

4. Sources of Big Data

1.​ Social Media Data – Twitter, Facebook, LinkedIn generate vast amounts of
user-generated content.
2.​ E-commerce Data – Websites like Amazon collect user preferences, purchase history.
3.​ IoT & Sensor Data – Smart devices and sensors collect data from machines,
wearables, smart cities.
4.​ Financial Data – Stock markets, credit card transactions, blockchain.
5.​ Healthcare Data – Electronic health records, medical imaging, patient histories.

5. Applications of Big Data

Industry Application Example

Finance Fraud detection, algorithmic Banks analyze transaction patterns to

trading. detect fraud.

Healthcare Predictive diagnosis, AI analyzes X-rays for early cancer

personalized medicine. detection.

Retail Customer behavior analysis, Amazon recommends products based

demand forecasting. on past purchases.

Manufacturing Predictive maintenance, supply Tesla predicts car maintenance needs

chain optimization. before failure.

Marketing Sentiment analysis, targeted ads. Google Ads personalizes advertising

based on search history.

Telecom Network optimization, customer Vodafone uses AI to improve network

retention. speed and detect outages.

6. Technologies Used in Big Data

Technology Function

Hadoop Open-source framework for storing and

processing large data.
Spark Fast data processing engine for big data
analytics.

NoSQL Databases (MongoDB, Handles unstructured and semi-structured data.

Cassandra)

Machine Learning & AI Helps find patterns, make predictions from big
data.

Cloud Computing (AWS, Google Provides scalable storage and processing power.
Cloud, Azure)

7. Challenges in Big Data

1.​ Data Storage – Managing petabytes of data requires advanced infrastructure.

2.​ Data Privacy & Security – Protecting sensitive data from breaches (GDPR, CCPA
regulations).
3.​ Processing Speed – Real-time analytics requires high computational power.
4.​ Data Quality – Ensuring accurate and relevant data.
5.​ Integration Issues – Combining structured and unstructured data from different
sources.

8. Real-World Examples of Big Data Use

✔ Netflix – Uses big data to recommend shows based on user preferences.​

✔ Uber – Analyzes traffic patterns to optimize ride fares and reduce wait times.​
✔ Google Search – Processes billions of queries daily to deliver instant search results.​
✔ Tesla – Uses big data to improve self-driving car algorithms.