L E S S O N

1
Introduction to Data
Science
Ms. Asha Yadav
Assistant Professor
Department of Computer Science
School of Open Learning
University of Delhi

STRUCTURE
1.1 Learning Objectives
1.2 Introduction
1.3 Data and Its Types
1.4 Data Analytics and Data Analysis
1.5 Application of Analytics in Business
1.6 Big Data and Its Characteristics
1.7 Applications of Big Data
1.8 Challenges in Data Analytics
1.9 Summary
1.10 Answers to In-Text Questions
1.11 Self-Assessment Questions
1.12 References
1.13 Suggested Readings

1.1 Learning Objectives

After reading this lesson students will be able to:
Define key terms like data, data analytics, big data.
Explain the differences between data analytics and data analysis.
Classify different types of data.
Explain the characteristics and applications of big data.

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Notes
1.2 Introduction
Data Science is an interdisciplinary field that combines statistics, data
analysis, and machine learning to obtain meaningful insights and knowl-
edge from data. It is based on the processes of gathering, analysing data,
and making informed decisions by using the patterns that have evolved.
It is very versatile as it allows businesses and organizations to enhance
decision-making, perform predictive analyses, and discover hidden patterns
within datasets. Data science is applied in many spheres, including banks,
healthcare, manufacturing, and e-commerce, to serve critical applications
such as optimizing routes, forecasting revenues, creating targeted promo-
tional offers, and even predicting election outcomes.
Data Scientist combines expertise in machine learning, statistics, pro-
gramming (using tools like R), mathematics, and database management
to work with raw data. This brings together a systematic approach to
asking the right questions in defining a problem, gathering and cleaning
data, standardizing it for analysis, finding trends, and presenting action-
able insights in a clear and impactful manner. By using Data Science,
organizations could tap into this capability and discover the full potential
in their data; it could be improving operational efficiency or enhancing
customer experiences and providing competitive advantage. Truly, the
field is still growing and expanding its scope and application, making it
quite in-demand in today’s data-driven world.
This lesson will serve as your foundation to understand data and data
analysis. How can we classify analytics and how this can be applied to
various businesses? We will also understand which data comes into the
category of big data and various applications and challenges that occur
while dealing with big data.

1.3 Data and Its Types

Data is the raw material for extracting information, for example, num-
bers, text, observations or recordings. Data can be structured, i.e. they
are organized into predefined categories or concepts, such as lists, tables,
datasets, databases or spreadsheets. Data can also be unstructured, which
means they are not organized. Unstructured data like paragraph of text,

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 INTRODUCTION TO DATA SCIENCE

Satellite images need to be processed or parsed to become structured before Notes

any further work can be done on them. Data have meaning and value, but
they are difficult to identify unless we process them and apply statistical
method. Such methods are a way of summarizing the data so that the
meaning becomes clear. Statistical methods are applied to data to derive
meaning or find relationships.
It’s important to understand different types of data in order to choose the
appropriate method for analysing data and presenting the results. Data
can be divided into two main categories: Qualitative (or Categorial) and
quantitative. Qualitative data can be further subdivided into nominal and
ordinal data. Quantitative data can be discrete or continuous and are also
known as numerical data.
Qualitative data represent characteristics, such as gender, languages spoken,
types of disease or clothing sizes. For example, the languages spoken by
a particular person could be Hindi, English, German and Spanish. The
categories are referred to as classes or classifications. Every possible value
for a characteristic should be in one and only one category. When the
categories have no inherent order, the data are called nominal. The data
values in this case are labels like categories are types of disease, gender,
ethnicity, types of pets, and eye color. Nominal data can be analyzed and
summarized using frequencies, proportions, percentages, cross-tabulations,
and the mode, and they can be visualized using pie charts and bar graphs.
Ordinal values represent categorical data that can be ordered. Ordinal
data are very similar to nominal data, but—as the name implies—order
is important. The categories follow some logical order, such as sizes cat-
egorized as small, medium and large. Similarly to nominal data, ordinal
data can be analyzed, summarized and visualized. However, ordinal data
can also be described using percentiles, medians and modes. If the ordinal
data are numeric, interquartile ranges can also be used.
Quantitative data also called numerical data can be either discrete or
continuous. When the data values are distinct and separate, and they can
take on certain values only, they are called discrete data. Discrete data
can be only counted, not measured. For example, population, number of
cars etc. Continuous data, on the other hand, represent measurements, not
counts like height, weight and distance.

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Notes Apart from types of data, its quality is also an important aspect. We are
exposed to data every day, for example, in news stories, weather reports
and advertising, but how can we determine whether the data is of good
quality or not. Quality is something that is important throughout the en-
tire data journey. The six aspects of data quality are relevance, accuracy,
timeliness, interpretability, coherence, accessibility.
Relevance: The relevance of data or statistical information reflects
the degree to which it meets the needs of data users. Some questions
that must be answered are, “does this information matter?” “Does
it fill an existing data gap?”
Accuracy: Accurate data give a true reflection of reality, a data
which is not accurate doesn’t help to gain any fruitful decision and
hence has no value.
Timeliness: It is the time when data is available to the user or
decision maker. It is the delay between the time when the data are
meaningful and when they are available. For example, the stock
information of an e-commerce needs to be updated and available
as soon as an order is placed.
Interpretability: An information that people can’t understand has
no value and could even be misleading. To avoid such misunderstandings,
data is followed by meta data which is supplementary information or
documentation that allows users to interpret the data properly.
Coherence: It can be split into two concepts: consistency and
commonality. Consistency means using the same concepts, definitions
and methods over time. Commonality means using the same or
similar concepts, definitions and methods across different statistical
programs. If there is good consistency and good commonality, then
it is easier to compare results from different studies or track how
they stay the same or change over time.
Accessibility: It is defined as how easy it is for people to find,
get, understand, and use data. When determining whether data
are accessible, make sure they are organized, available, accountable,
and interpretable.

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 INTRODUCTION TO DATA SCIENCE

Notes
1.4 Data Analytics and Data Analysis
Data analytics and data analysis are two terms frequently used inter-
changeably, but they also have different meanings in context of working
with data and extracting useful insights. While both have relevance for
data-based decisions making, each has its own scope and purpose.
Data analytics refers to the whole process of examining datasets in or-
der to find trends, patterns, relationships, and other insights that might
help in the decision-making processes. There are various techniques and
processes through which data is analyzed and interpreted meaningfully.
Data analytics is usually applied to answer questions or solve problems or
predict outcomes. There are four main types of data analytics: descriptive,
diagnostic, predictive and prescriptive.
Descriptive Analytics: This type of analytics focuses on summarizing
past data and describing what happened. It includes the use of
historical data to identify trends and patterns, often through statistical
measures like mean, median, and mode. Descriptive analytics answers
questions like, “What happened?” and provides insights into the
past performance of an entity or system, like how well a business
performed last year.
Diagnostic Analytics: IT is a step ahead, which identifies the
causes of certain trends or patterns identified in the descriptive
analytics phase. It addresses the “Why did it happen?” by focusing
on deeper analysis to understand root causes of the data observed,
like determining the factors of drop in subscribers of an Instagram
account.
Predictive Analytics: It has the ability to make predictions based
on historical data through statistical models, and the output could
be a machine learning algorithm. It answers the question, “What is
likely to happen?” Analyzing trends, patterns, and relationships for
future behaviours or outcomes. For example, predicting the sales
of a new trend for coming six months.
Prescriptive Analytics: This type of analytics suggests possible
actions and outcomes based on the analysis. It combines insights
from all other types of analytics to answer “What should we

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Notes do?” Prescriptive analytics recommends solutions for optimizing

performance, minimizing risks, or maximizing profits. For example
examining the past data on inventory levels, supplier performance,
and shipping paths using prescriptive analytics to suggest improved
supply chain management.
Table 1.1 shows the various analytics types, its focus and tools used.

Table 1.1: Classification of Analytics

Question Techniques/
Type Focus Answered Methods
Descriptive An- Historical Data What happened? Statistical analy-
alytics Analysis sis, reporting
Diagnostic Ana- Cause Analysis Why did it hap- Correlation, re-
lytics pen? gression
Predictive Ana- Future Forecast- What could hap- Machine learning,
lytics ing pen? forecasting
Prescriptive An- Actionable Rec- What should we Optimization, de-
alytics ommendations do? cision analysis
On the other hand, data analysis refers to inspecting, cleaning,
transforming, and modeling data to discover useful information,
draw conclusions, and support decision-making. It is mostly focused
on extracting insights and answering specific questions from data,
whether qualitative or quantitative. The process of data analysis
can be divided into a number of steps as follows:
Data Collection: Data analysis begins from where one generates data
from different sources. These may include databases, spreadsheets,
surveys, or data sources from other locations. Quality and relevance
in the collected data will determine the accuracy of the analysis.
Data Cleaning: Raw data, oftentimes, contains missing values,
duplicates, or inconsistencies. Data cleaning is thus the identification
and resolution of data inaccuracies to ascertain the reliability of the
dataset. This can include removing or correcting erroneous data,
completing missing values, or standardization.
Data Exploration: After the data has been cleaned, the structure,
distribution, and relationship of the data are understood. Exploratory
Data Analysis (EDA) applies statistical graphics and summary

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statistics to make inferences based on patterns, correlations, and Notes

outlying observations.
Data Transformation: The steps of transforming data into a format
suitable for analysis involve normalizing values, aggregating data,
or creating new features to enhance the effectiveness of the model.
Data Modeling: Here, statistical, mathematical, or machine learning
models are applied to the data for answering specific research
questions. Common techniques used include regression analysis,
classification algorithms, clustering, and time-series analysis.
Data Interpretation: This is the last stage of data analysis wherein
results are interpreted and conclusions drawn. The process involves
grasping the meaning of the findings as well as using the insights
to support decision-making or make recommendations.
Hence, Data analytics is a more comprehensive field, ranging from several
techniques, tools, to a set of processes used in analyzing data; while, data
analysis is a subset of data analytics and typically encompasses specific
tasks such as cleaning up, transforming, and interpreting. The key difference
lies in their purpose-data analytics strives to identify hidden insights and
patterns that can be used for business decisions and predictions, whereas
data analysis is essentially about extracting meaning from the data to an-
swer specific questions or solve problems. For example, in business: data
analytics helps optimize marketing strategy, customer experience, and sales
trend forecasts for businesses. Data analysis allows businesses to monitor
their performance, note inefficiencies, and base data-driven decisions.
Data analytics and data analysis both work to play crucial roles in any
decision-making process of the modern world in any industry. Data an-
alytics offers a holistic view to discover insights, whereas data analysis
will focus on extracting practical conclusions from data. Therefore, it
becomes essential to understand the difference and application of both
to help organizations and people use the power of data effectively.

1.5 Application of Analytics in Business

As discussed in previous section, data analytics is very important to re-
trieve meaning from data. Analytics is an essential tool that organizations
of all sizes and industries rely on to make informed decisions, enhance

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Notes processes, and gain a competitive edge in today’s fast-paced and da-
ta-driven business world. Businesses can understand their past and present
by harnessing data from different forms of analytics as well as forecast
future trends, optimize operations, and create more personalized customer
experiences. Let’s see some examples that will help you understand the
underlying worth of analysis.
One of the most powerful applications of analytics in business
is understanding customer behavior and preferences. Business
organizations can identify trends, predict needs, and personalize their
offerings to increase customer satisfaction and loyalty by analyzing
customer data. This personalized shopping experience boosts sales
and enhances customer engagement by making it easier for customers
to find what they need. Retailers, e-commerce platforms, and even
service industries like healthcare use analytics to segment customers,
predict their future needs, and tailor their marketing campaigns or
product recommendations accordingly.
Analytics is also an important function for improving business
processes. From such studies, analyses of inventory, supply chain
logistics, and workforce performance can help tune business processes
to lower costs and optimize efficiency. The world’s largest retailer,
Walmart, makes use of predictive analytics to optimize inventory
management: it considers the seasonality of demand for particular
goods, thus ensuring that the right merchandise arrives in time at
the stores and is not overstored. It can be easily applied across
various sectors like manufacturing, logistics, and even hospitality,
where strong demand forecasting and resource optimization are key
to operational success.
Companies need to make wise financial decisions to stay ahead.
Analytics can help in forecasting revenue, manage budgets, and assess
financial risks so that companies can have a well-supported decision-
making process regarding investments and expenses. For example,
predictive analytics will help a bank assess the creditworthiness
of someone applying for a loan. Through analyzing a consumer’s
financial history, spending patterns, or even social media activity,
a bank can forecast the probability of loan repayment and charge
the appropriate interest rate.

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Analytics helps marketing teams better understand the performance Notes

of campaigns, customer segmentations, and spend optimization.
Businesses can refine marketing strategies by analyzing customer
data and campaign performance as they improve targeting resulting
in more sales. Netflix makes use of customers’ view data to create
original content that is highly specific in line with user preferences.
Analytics are also used to determine which genres, actors, or themes
will move an audience, thus increasing customer satisfaction and
retention. Businesses track the effectiveness of digital advertising
through analytics, optimize email marketing campaigns, and even
decide what products to feature or at what price to discount based
on what the consumer would do.
Analytics can also apply to Human Resources (HR) by helping
improve employee performance, reduce turnover, and optimize the
hiring process. Through data analytics on employee job performance,
satisfaction surveys, and engagement metrics, HR teams will be
able to make decisions based on data, ultimately leading to positive
workplace culture.
Effective supply chain management is crucial to maintaining smooth
operations and meeting customer demand. Analytics can help
businesses optimize their supply chains by forecasting demand,
managing supplier relationships, and minimizing disruptions.
Analytics can be the most important tool for developing new products
or services. Analyzing what customers say, industry trends, and
conditions of the market can often guide companies into designing
a product that matches the wants of consumers and hopefully also
gains considerable space in the market.
Hence, analytics is no longer a luxury; it is key to successful business
and has to be done. This is because analytics gives businesses the tools
to make smarter, data-driven decisions and consequently improve their
efficiency, effectiveness toward customers, and profitability. Whether this
means optimizing operations, predicting market trends, or personalizing
customer experiences, analytics makes business sustainability possible in
the face of a continuously changing environment. The opportunities con-
tinue to keep piling on the analytics-simulated innovation and success in
businesses which continue to collect even more data from time to time.

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Notes Whenever analytics is implemented across multiple business operation

activities, companies will still lead in advancing with continued delivery
of value to customers and stakeholders.
IN-TEXT QUESTIONS
1. Data analysis focuses primarily on __________, while data analytics
involves using advanced tools and techniques to __________.
2. Which of the following is NOT one of the four main classifications
of analytics?
(a) Descriptive analytics
(b) Diagnostic analytics
(c) Predictive analytics
(d) Intuitive analytics
3. A company uses predictive analytics to forecast future sales
trends based on historical data. This is an example of __________
analytics.
4. Which of the following is an example of ordinal data?
(a) Customer ID numbers
(b) Ranking of employees (1st, 2nd, 3rd)
(c) Employee names
(d) Age of employees
5. The temperature measured in degrees Celsius is an example of
__________ data.

1.6 Big Data and Its Characteristics

In this section we discuss big data as we know that the field of big
data analytics is very popular nowadays this is because we can see data
everywhere. Let’s understand the term Big Data with the simple day-
to-day example: Imagine you are in a busy shopping mall during a big
sale like black Friday sale. Thousands of people are shopping, and every
time someone buys something, data is generated—like what they bought,
when they bought it, and how much they spent. Now, think about how

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many malls, stores, and websites around the world are generating similar Notes
information every second.
This huge amount of data is termed as big data. Businesses use this
data to understand the preference of customers, predict trends, and even
recommend products to you (like “You might also like.”). For example,
when Netflix suggests shows based on what you have watched, it’s using
big data to make smart recommendations tailored just for you.
In the modern technological world the data is expanding far too quickly
and people frequently rely on it, additionally because of the rate at which
the data is expanding it has become increasingly difficult to store the
data on any server hence to handle this to process and to analyze this
huge amount of data the concept of Big Data came into picture. It is a
collection of data that is large in volume (obviously the data is generated
every day hence it grows exponentially with time), it becomes difficult
for us to store it and manage it hence the traditional methods which were
used to store manage and handle data were proven to be inefficient.
Hence we can say Big data refers to extremely large datasets that are too
complex, vast, or fast-moving to be processed, stored, or analyzed using
traditional data processing methods. It is the accumulation, management,
and analysis of huge amounts of structured, semi-structured, and unstruc-
tured data to expose patterns, trends, and insights.
Some real-world examples of big data could be Instagram every minute
many photos and videos are shared across the world. Twitter generates
billion tweets per year each tweet can contain textual data, or it can be
image video or audio data. Gmail or outlook can also be an example as
around billion emails are sent every day and most of them contain differ-
ent attachments like text, video, photo etc. Banks, e-commerce, weather
monitoring systems, CCTVs etc. all contribute to big data.
Let’s understand the characteristics of big data or we can say 5 V’s of
big data:
Volume: It is the huge data amount generated which is major in
terms of Terabytes, petabytes, or even exabytes For example, the
likes, comments and post shared by billions of users of Facebook
every day.

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Notes Velocity: The speed at which data is generated, processed, and

analyzed. Real-time processing is often necessary like stock market
systems process millions of transactions per second to give real-
time updates.
Variety: It refers to different type of data it can be; structured data
is the data that is ready for modeling and analyzing, unstructured
data which is very much scattered data which cannot be straight
away used, semi-structured data which lies in between structured
and unstructured. For example, videos from YouTube, tweets etc.
have different structure.
Veracity: It refers to the accuracy, quality, and trustworthiness of
data. Data can be messy, incomplete, or misleading, hence we need
filtering before processing.
Value: The insights and benefits that organizations are able to derive
from the analysis of big data. E-commerce companies use data to
recommend products, increasing sales and customer satisfaction.
These are the characteristics that distinguish big data from traditional data
and emphasize its challenges and potential. Some of the key difference
between big data and traditional data is shown in Table 1.2.

Table 1.2: Traditional vs. Big Data

Parameter Traditional Data Big Data
Data Size Limited (gigabytes to Vast (terabytes to petabytes
terabytes) or more)
Data Type Primarily structured data Structured, semi-structured,
(rows, columns) and unstructured
Processing Speed Batch processing; slower Real-time or near-real-time
insights processing
Storage Relational databases Distributed systems (e.g.,
(e.g., SQL) Hadoop, NoSQL)
Complexity Manageable with tradi- Requires advanced tools and
tional tools and methods technologies
Technology Uses tools like RDBMS Uses tools like Hadoop,
(MySQL, Oracle) Spark, NoSQL
Data Sources Limited (e.g., business Multiple (e.g., social media,
transactions, logs) loT, sensors)

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Parameter Traditional Data Big Data Notes

Analysis Focus Historical data analysis Predictive, real-time, and
trend analysis
Scalability Limited scalability Highly scalable using dis-
tributed systems
Cost of Analysis Higher for large datasets Cost-efficient with modern
big data tools

1.7 Applications of Big Data

Big data can be found present in almost every field like banking, healthcare,
entertainment etc., in this section we will see some major applications
of big data along with example.
Healthcare: Big data is crucial in health care because it allows
for predictive analytics, which enables them to identify potential
health risks and personalize treatments. Based on a patient’s medical
history, genetic data, and lifestyle habits, healthcare providers can
predict diseases and recommend measures to prevent them. IBM
Watson Health uses big data to assist doctors in diagnosing and
treating diseases like cancer. It processes massive datasets, including
medical journals, patient records, and clinical trials, to provide
evidence-based treatment options.
Retail and E-commerce: Retailers leverage big data to analyze
customer behavior and preferences, enabling personalized shopping
experiences. This data-driven approach improves customer satisfaction
and boosts sales. For example, Amazon uses big data to recommend
products based on a user’s past purchases, browsing history, and
items in their cart. For instance, if you search for a smartphone,
Amazon may suggest accessories like cases or screen protectors.
Finance and Banking: Big data analytics enables financial institutions
to identify fraud by monitoring transaction patterns and discovering
anomalies in real time. Such systems utilize machine learning for the
differentiation between normal and suspicious activities. PayPal uses
big data algorithms to monitor transactions for unusual activity. If a
user suddenly makes a purchase from an unfamiliar location or device,
the system flags it and alerts the user, preventing unauthorized access.

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Notes Transportation: Transportation systems use big data to analyze

traffic patterns, optimize routes, and reduce congestion, improving
travel efficiency and safety. Google Maps collects data from GPS
devices, sensors, and user inputs to provide real-time traffic updates.
For example, if there’s an accident on a highway, Google Maps
suggests alternative routes to avoid delays.
Media and Entertainment: Streaming platforms use big data to
analyze viewing habits and preferences, ensuring users receive
personalized content recommendations. This enhances user engagement
and retention. Netflix studies what shows you watch, pause, or skip
and uses this data to recommend similar content. If you binge-watch
a crime series, Netflix might suggest other crime or thriller genres
that align with your interests.
Education: Educational platforms use big data to track student
performance, identify learning gaps, and customize study materials.
This approach makes learning more effective and engaging. Platforms
like Khan Academy analyze user progress to recommend practice
exercises or videos. For instance, if a student struggles with
algebra, the platform suggests targeted lessons to strengthen their
understanding.
Manufacturing: Big data allows manufacturers to keep track of the
performance of the equipment and predict potential failure, which
decreases downtime and maintenance costs. Sensors embedded in
machines collect data; the data is then analyzed to point out patterns
that signal a problem. General Electric monitors its engines and turbines
through big data. If it senses overheating or abnormal vibration in a
machine, it schedules maintenance before it breaks down.
Government: Governments utilize big data to improve urban planning
and optimize resources, creating smarter and more sustainable cities.
For example, Singapore’s Smart Nation initiative uses data from IoT
devices to manage traffic, monitor air quality, and improve public
transport systems. For instance, smart traffic lights adjust their
timings based on real-time vehicle flow data, reducing congestion.
Energy and Utilities: Energy providers use big data to analyze
consumption patterns, forecast demand, and improve energy efficiency.
This helps in reducing costs and promoting sustainability. Smart

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meters in homes collect data on electricity usage and send it Notes

to utility companies. For example, if peak usage occurs during
evenings, companies can adjust power distribution to avoid outages
and encourage off-peak usage.
Social media sites scan user-generated content such as posts,
comments, and tweets to understand public opinion and trends. This
is very important for businesses and policymakers. Twitter uses big
data for sentiment analysis during elections. It analyzes millions of
tweets to identify the public’s opinion about candidates, which is
useful for campaign strategies.
The examples are few scenarios that illustrate how the capability of big
data is revolutionizing industries by offering innovative solutions to
complex challenges. Therefore understanding and harnessing the power
of big data is need of the hour.

1.8 Challenges in Data Analytics

Although it seems very overwhelming and powerful, but data analytics
comes with challenges that the organization needs to overcome when
meaning from this power is expected. Below are the major issues that
are being faced.
Getting poor-quality data like old data or data that might be
completely inconsistent. Such data is likely to produce incorrect
analysis and eventually wrong decisions. For example, If a company
uses incorrect customer details, it might send irrelevant marketing
messages, reducing customer trust.
Integrating data from diverse sources, such as databases, IoT
devices, and social media, can be complex due to varying formats
and structures. This incompatibility between systems can result in
delays and incomplete analysis.
The sheer size of big data makes storage, processing, and analysis
resource intensive. Handling such petabytes of data requires significant
computational power, which can strain infrastructure.
Processing data in real-time for immediate insights is difficult,
especially with high-velocity data streams but delayed insights can

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Notes lead to missed opportunities in time-sensitive scenarios like fraud

detection. Hence processing in real time is an issue.
Protecting sensitive data from breaches and ensuring compliance
with data protection regulations (e.g., GDPR, HIPAA) is critical.
Any data leaks can damage reputations and result in legal penalties.
There is a shortage of qualified data scientists and analysts who
can work with advanced tools and techniques. Organizations may
struggle to derive insights from complex datasets, slowing decision-
making processes. Techniques like machine learning and predictive
analytics require advanced knowledge and computational resources.
Smaller organizations might find it challenging to adopt these
methods effectively.
The above challenges indicate that we should not forget to surpass the
hurdles to reveal all the vast potential data analytics has for any orga-
nization and to enjoy all its benefits. Investments in technology, skilled
professionals, and ethical practices will allow organizations to change
obstacles into opportunities for growth.
IN-TEXT QUESTIONS
6. Which of the following is NOT one of the 5 V’s that define
the characteristics of Big Data?
(a) Volume
(b) Velocity
(c) Veracity
(d) Vulnerability
7. Big Data is used in healthcare to analyze patient data and predict
disease outbreaks. This application is an example of how Big
Data is used in __________.
8. The velocity characteristic of Big Data refers to __________.

1.9 Summary
This lesson introduced the basic concepts of data and its importance in
the field of data science and analytics. It distinguished between data
analysis and data analytics, with the insight into the types of analytics:

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