Business Analytics

(OP301)

Name: Firdos Solanki Email ID: [email protected] Contact: 9925658986

Unit 1
 Introduction

https://www.pwc.com/gx/en/issues/data-and-analytics.html
 Example
Loan Application Airline Ticket Medical Practitioner

Revenue Research,
Credit History,
Management, Diagnosis
Similar Cases,
Frequency of detail across
Default
Purchase, globe, Patient
Probability
Past Trends History

Approve / Reject Pricing Treatment

https://www.youtube.com/watch?v=0z03xkwFbw4&t=788s
 Business Analytics Defined
Business analytics, or simply 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 their
business operations and make better, fact based decisions.
Business Analytics Defined
Categorization of Analytical Methods and Models
1
Descriptive Analytics

 Set of techniques that

describes what has
happened in the past.
 Data queries, Reports,
Data Visualization, Data
Dashboards, What if “How many and
spread sheet. “How much did
what type of
 Descriptive analytics we sell in each
complaint we
summarizes data into region?”
resolve?”
meaningful charts and
reports.
“What was our “Which factory
revenue & profit has the lowest
last quarter?” productivity?”
Categorization of Analytical Methods and Models
2
Predictive Analytics “What will
happen if
Predictive analytics consists demand falls by
of techniques that use 10%?”
models constructed from
“What will
past data to predict the
happen if
future or ascertain the impact
supplier prices
of one variable on another.
go up by 5%?”
 Linear Regression, Data
mining, Simulation, etc.
e.g. bank manager might
want to identify the most
profitable customers or
predict the chances that a “What is the risk
loan applicant will default, or of loosing
alert a credit-card customer money in new
to a potential fraudulent venture?”
charge.
Categorization of Analytical Methods and Models
3
Prescriptive Analytics “What is the best
“How much should
shipping mode to
we produce to
minimize the
Prescriptive analytics uses maximize profit?”
cost?”
optimization to identify the
best alternatives to minimize
or maximize some objective. “Impacts of
natural disaster on
our supply, what
to do?”
Spectrum of Business Analytics
Types of Data
Performing calculations on the types of Data

All calculations are permitted on numerical data.

We can’t perform any calculations. Best we can do is

frequencies & proportions of the data

The average of these numerical codes is 2.0. Does this

mean that the average person is married?
Performing calculations on the types of Data

The only permissible calculations are those involving a

ranking process.
Example
 Problem Solving with Analytics
Recognizing a Problem Analyzing the Problem
Gap between what is Experimentation process to
happening and what we evaluate different scenarios
think should be happening & finding solutions.

Defining the Problem Interpreting Result

Finding the real problem and
Incorporate judgment into
distinguishing it from the
making decisions.
symptoms.

Structuring the Problem Implement the Solution

Stating goals, objectives, Translating result of the
constraints & possible model back to the real
decisions. world.
Analytics on Spreadsheets

File: Purchase Orders

Analytics on Spreadsheets
Analytics on Spreadsheets – Logical Functions

File: Purchase Orders

Analytics on Spreadsheets – Logical Functions
File: Purchase Orders
Analytics on Spreadsheets – Excel Lookup Function

File: Sales Transactions

Analytics on Spreadsheets – Excel Lookup Function
Question: What is the payment type & transaction code for Customer ID: 10007?

File: Sales Transactions

Analytics on Spreadsheets – Index + Match
Question: Input the month & product name and retrieve the corresponding product sales

File: Monthly Product Sales Queries

 Data Visualization
Data visualization is the process of displaying data (often in large quantities) in a
meaningful fashion to provide insights that will support better decisions.
 Data Dashboards
A dashboard is a visual representation of a set of key business measures.

File: Monthly Product Sales Queries

 Column & Bar Charts
Excel distinguishes between vertical and horizontal bar charts, calling the former
column charts and the latter bar charts.

File: EEO Employment Report

 Column & Bar Charts
Excel distinguishes between vertical and horizontal bar charts, calling the former
column charts and the latter bar charts.
 Line Charts
Line charts provide a useful means for displaying data over time

US Exports to China
120.0

100.0

80.0

60.0 US Exports to China

40.0

20.0

0.0
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20

File: China Trade Data

 Pie Charts
A pie chart displays relative proportion of each data source by partitioning a circle
into pie-shaped areas showing the relative proportion.

Marital Status - Not a High School

Grade
Divorced Never Married
10% 13%
Widowed
17%

Married, spouse
Separated present
4% 50%
Married, spouse
absent
6%

File: Census Education Data

 Scatter Charts
Scatter charts show the relationship between two variables.

Market Value
$130,000.00

$120,000.00

$110,000.00

$100,000.00 Market Value

$90,000.00

$80,000.00

$70,000.00

$60,000.00
1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600

File: Home Market Value

 Bubble Chart
A bubble chart is a type of scatter chart in which the size of the data marker
corresponds to the value of a third variable; consequently, it is a way to plot three
variables in two dimensions.

Market Cap
90 Amazon
80 Netflix
70
60
50 Market Cap

40
A&F
30
20 GE GE
10
0
-50 0 50 100 150 200 250 300 350

File: Stock Comparisons

 Histogram – Frequency Distribution
A graphical depiction of a frequency distribution for numerical data in the form of a
column chart is called a histogram.

Width of the bins:

Histogram
Series1
76

File: Purchase Orders

13
5

15 30 45
Analyzing Distribution
Quartiles
 Analyzing Distribution
Quartiles

Q2 = (199500 + 208000)/2 = 203750

Analyzing Distribution
Quartiles

Q3 = 256625
 Analyzing Distribution
Quartiles

The difference between the third and first quartiles is often referred
to as the interquartile range, or IQR. For the home sales data,
IQR = Q3 – Q1 = 256,625 - 139,000 = 117,625.
Analyzing Distribution
Box Plot
Analyzing Distribution
Box Plot
Analyzing Distribution
Box Plot
Analyzing Distribution
Box Plot
Data Visualization
Why Dashboard Visualization
Software for Interactive Visual Analytics
Software for Interactive Visual Analytics