Data Analytics in a Business

Operations

1
Data Analytics in Business

• Examining and Interpreting Data

• It refers to the process of examining and interpreting

data to derive meaningful insights.

• Making Informed Decisions

• It makes informed decisions and drives organizational

success.

2
Data Analytics in Business

• Using Techniques and Technologies

• It involves the use of various techniques statistical methods, and

technologies to analyze large volumes of data to

• Uncovering Patterns and Understanding Operations

• Converting Raw Data into Actionable Intelligence

• Facilitating evidence-based decision-making and

strategic planning
Benefits of Data Analytics in Business

• Informed Decision-Making: Empowering decision-makers with

accurate and timely insights to make informed and strategic choices.

• Operational Efficiency: Optimizing business processes, reducing

costs, and improving overall operational efficiency.

• Competitive Advantage: Gaining a competitive edge by leveraging

data to identify market trends, customer preferences, and emerging
opportunities.

• Customer Understanding: Enhancing understanding of customer

behavior, preferences, and expectations to tailor products and
services.

4
Benefits of Data Analytics in Business

• Risk Management: Identifying and mitigating risks by analyzing data

to foresee potential challenges and uncertainties.

• Innovation: Fostering innovation through data-driven insights that

guide product development, marketing strategies, and business
expansion.

• Adaptability: Enabling businesses to adapt to changing market

conditions and emerging trends.

• Personalization: Delivering personalized experiences for customers

through targeted marketing and tailored services

5
Types of analytics in organizations
1. Descriptive Analytics

2. Predictive Analytics

3. Prescriptive Analytics

4. Operational Analytics

5. Customer Analytics

6. Financial Analytics

7. Supply Chain Analytics

8. Text Analytics
6
1. Descriptive Analytics

• Purpose: Understand what has happened in the past.

• Application: Analyzing historical data to identify

patterns, trends, and performance metrics, including sales
trends, customer behavior, and operational efficiency.

7
2. Predictive Analytics

• Purpose: Forecast future outcomes based on historical

data.

• Application: Using statistical algorithms and machine

learning models to predict trends, demand, and
potential issues. It helps in inventory management,
workforce planning, and demand forecasting.

8
3. Perspective Analytics

• Purpose: Provide recommendations for optimal

decision-making.

• Application: Recommending actions to optimize

processes, resource allocation, scenario planning,
strategic decision support. and overall business
performance.

9
4. Operational Analytics

• Purpose: Improve day-to-day operational efficiency.

• Application: Monitoring and analyzing real-time data to

enhance operational processes, including supply chain
optimization, production scheduling, and quality control.

10
5. Customer Analytics

• Purpose: Understand and cater to customer needs.

• Application: Analyzing customer data to gain insights

into preferences, behaviors, and satisfaction. It helps in
marketing strategies, product development, and
customer relationship management.

11
6. Financial Analytics

• Purpose: Analyze financial data for strategic decision-

making.

• Application: Utilizing analytics to assess financial

performance, manage budgets, financial planning and
identify cost-saving opportunities.

12
7. Supply Chain Analytics

• Purpose: Enhance supply chain efficiency and

responsiveness.

• Application: Utilizing analytics to optimize inventory

levels, improve supplier relationships, and reduce
logistics costs. It helps in supply chain visibility and risk
management.

13
8. Text Analytics

• Purpose: Extract insights from unstructured text data.

• Applications: Sentiment analysis, customer feedback

analysis, and social media monitoring.

14
Applications of Data Analytics

• In Marketing and Sales:

– Customer Segmentation: Using analytics to identify distinct

customer segments based on demographics, behavior, and
preferences.

– Lead Scoring: Predicting the likelihood of leads converting

into customers, allowing for targeted sales efforts.

– Marketing ROI Analysis: Assessing the effectiveness of

marketing campaigns and channels to optimize budget
allocation.

15
Applications of Data Analytics

• In Customer Service

– Sentiment Analysis: Analyzing customer feedback to

understand sentiment and improve service quality.

– Ticket Categorization: Using machine learning to

automatically categorize and prioritize support tickets.

– Chat bot Analytics: Evaluating the performance of chatbots

in addressing customer queries.

16
Applications of Data Analytics

• In Product Development

– Market Research: Analyzing market trends and customer

feedback to inform product development.

– Feature Prioritization: Using data to prioritize and

implement product features that align with customer needs.

– Innovation Metrics: Measuring the success of innovation

initiatives and adjusting strategies based on data insights.

17
Applications of Data Analytics

• In E-commerce

– Recommendation Engines: Providing personalized product

recommendations based on customer behavior.

– Shopping Cart Analytics: Analyzing abandoned carts to

improve the online shopping experience.

– Dynamic Pricing: Adjusting pricing based on demand,

competitor prices, and other relevant factors.

18
Marketing models
◼ Marketing decision processes are characterized by a high level
of complexity.

◼ Marketers have lots of multiple objectives and countless alternative

actions resulting (like increasing sales).

◼ Therefore, a large number of mathematical models for

marketing have been successfully developed and applied in recent
decades to help marketers to make better decisions.

◼ The availability of massive databases of sales transactions, marketers

have more accurate information to use in their mathematical models.
Intelligence Marketing

◼ Marketing Intelligence (MI) is the everyday information

relevant to a company market gathered and analyzed specifically
for the purpose of accurate confident decision-making in
determining market opportunity, market penetration strategy, and
market development metrics.
Intelligence Marketing
MI as the central point, connected to various sources
of information
Relational Marketing
◼ The aim of a relational marketing strategy is to build
strong, lasting connections with your customers
and other important people for your business. It's about
turning them into loyal fans.
 Components of Relational Marketing
◼ A clear strategy to guide your efforts.
◼ Effective processes to implement your strategy.
◼ The right technology to support your processes.
◼ Data-driven insights to understand your customers.
◼ An organized team to execute your plans.

23
Environment of Relational Marketing Analysis
Environment of Relational Marketing Analysis
Environment of Relational Marketing Analysis

This figure shows the key activities involved in building strong customer
relationships, using "Business Intelligence and Data Mining" as the central engine.
It's a cycle of attracting, growing, and keeping customers.
Tasks of Relational Marketing
◼ Selection of Prospects: Identifying potential customers
who are likely to be interested in the company's products or
services.
◼ E.g. Using data to find people who have shown interest in similar
products on social media
◼ Customer Acquisition: Converting prospects into paying
customers. Getting new customers to buy your products or
services.
◼ E.g. Running targeted ads or offering promotions to attract new
customers
◼ Retention: Keeping existing customers loyal by continue
buying products or services from your business
◼ E.g. Offering personalized rewards, providing excellent customer
service, and sending relevant content
 Tasks of Relational Marketing

◼ Cross-selling and Up-selling:

◼ Cross-selling is offering related
products or services to existing
customers.
◼ E.g. A customer who buys a laptop is offered
a printer or software.
◼ Up-selling is encouraging customers
to purchase a more expensive version
of what they're already buying.
◼ E.g. A customer buying a basic phone is
offered a premium model with more features.
References

• “Business intelligence: data mining and

optimization for decision making” by
Vercellis, Carlo. John Wiley & Sons.

• "Predictive Analytics: The Power to Predict

Who Will Click, Buy, Lie, or Die" by Eric
Siegel

29