Unit 3- Data

and
Analytics
Resources providing Sustainable Competitive Advantage

The emphasis of the RBV is on the resources of the firm which can help in bringing
Competitive advantage for the firm

1. Physical Capital Resources

2. Human Capital Resources

3. Organizational Capital Resources

Using the Resource Based approach in Internet Analysis

4. Breaking Resources

5. Taking a functional Perspective

6. Looking at organizational Processes

7. Using the Value Chain Approach

Big Data Analytics

What is big data analytics?

Big data analytics is the often complex process of examining big data to uncover
information -- such as hidden patterns, correlations, market trends and customer
preferences -- that can help organizations make informed business decisions.

On a broad scale, data analytics technologies and techniques give organizations a

way to analyze data sets and gather new information. Business intelligence (BI)
queries answer basic questions about business operations and performance.

Big data analytics is a form of advanced analytics, which involve complex

applications with elements such as predictive models, statistical algorithms and
what-if analysis powered by analytics systems.
Types of big data analytics

1. Descriptive analytics
Descriptive analytics refers to data that can be easily read and interpreted. This data
helps create reports and visualize information that can detail company profits and
sales.

2. Diagnostics analytics
Diagnostics analytics helps companies understand why a problem occurred. Big data
technologies and tools allow users to mine and recover data that helps dissect an
issue and prevent it from happening in the future.

3. Predictive analytics
Predictive analytics looks at past and present data to make predictions. With artificial
intelligence (AI), machine learning, and data mining, users can analyse the data to
predict market trends.

4. Prescriptive analytics
Prescriptive analytics solves a problem, relying on AI and machine learning to gather
and use data for risk management.
Benefits of big data analytics
Incorporating big data analytics into a business or organisation has several advantages.
These include:

Cost reduction: Big data can reduce costs in storing all business data in one place.
Tracking analytics also helps companies find ways to work more efficiently to cut costs
wherever possible.

Product development: Developing and marketing new products, services, or brands is

much easier when based on data collected from customers’ needs and wants. Big data
analytics also helps businesses understand product viability and to keep up with trends.

Strategic business decisions: The ability to constantly analyse data helps businesses
make better and faster decisions, such as cost and supply chain optimisation.

Customer experience: Data-driven algorithms help marketing efforts (targeted ads, for
example) and increase customer satisfaction by delivering an enhanced customer
experience.

Risk management: Businesses can identify risks by analysing data patterns and
developing solutions for managing those risks.
Knowledge

Knowledge is an “understanding gained through experience or study.”

Knowledge is a fluid mix of framed experience, contextual information, values and

expert insight that provides a framework for evaluating and incorporating new
experiences and information.

Characteristics of Knowledge
1. Knowledge is Volatile
2. Knowledge is Replicable
3. Transfer of Knowledge is Costless
4. Knowledge only has contextual Value
5. Knowledge is Catalytic
6. Knowledge is Dynamic
7. Knowledge is Engineerable
8. Knowledge is synthesized in Real time
9. Knowledge requires New representations because of its immense complexity
10. New paradigms of knowledge production exist
11. Knowledge represents a new source of Value
 Types of Knowledge

Direct Knowledge Indirect Knowledge

Intuitive Knowledge Indirect Knowledge

Explicit Knowledge Procedural Knowledge

Declarative Knowledge Tacit Knowledge

Knowledge as know-how Shallow and Deep Knowledge

General Knowledge Reasoning and Heuristics

Specific Knowledge
Harnessing and Sharing Knowledge in Organizations

1. Encourage & Foster a knowledge sharing culture

2. Create spaces for knowledge sharing to happen

3. Encourage knowledge sharing activities

4. Lead by Example

5. Have experts share their knowledge

6. Formalize a knowledge Management process

What is data analytics?
Data analytics converts raw data into actionable insights. It includes a range of tools,
technologies, and processes used to find trends and solve problems by using data.
Data analytics can shape business processes, improve decision-making, and foster
business growth.
Descriptive Analytics

Descriptive analytics is the simplest type of analytics and the foundation the
other types are built on. It allows you to pull trends from raw data and
succinctly describe what happened or is currently happening.
Descriptive analytics answers the question, “What happened?”

For example, imagine you’re analyzing your company’s data and find there’s a
seasonal surge in sales for one of your products: a video game console. Here,
descriptive analytics can tell you, “This video game console experiences an
increase in sales in October, November, and early December each year.”

Data visualization is a natural fit for communicating descriptive analysis because

charts, graphs, and maps can show trends in data—as well as dips and spikes—
in a clear, easily understandable way.
Diagnostic Analytics

Diagnostic analytics addresses the next logical question, “Why did this
happen?”

Taking the analysis a step further, this type includes comparing coexisting
trends or movement, uncovering correlations between variables, and
determining causal relationships where possible.

Continuing the aforementioned example, you may dig into video game
console users’ demographic data and find that they’re between the ages of
eight and 18. The customers, however, tend to be between the ages of 35 and
55. Analysis of customer survey data reveals that one primary motivator for
customers to purchase the video game console is to gift it to their children.
The spike in sales in the fall and early winter months may be due to the
holidays that include gift-giving.

Diagnostic analytics is useful for getting at the root of an organizational issue.

Predictive Analytics

Predictive analytics is used to make predictions about future trends or events

and answers the question, “What might happen in the future?”

By analyzing historical data in tandem with industry trends, you can make
informed predictions about what the future could hold for your company.
For instance, knowing that video game console sales have spiked in October,
November, and early December every year for the past decade provides you
with ample data to predict that the same trend will occur next year. Backed by
upward trends in the video game industry as a whole, this is a reasonable
prediction to make.

Making predictions for the future can help your organization formulate
strategies based on likely scenarios.
Prescriptive Analytics
Finally, prescriptive analytics answers the question, “What should we do next?”
Prescriptive analytics takes into account all possible factors in a scenario and suggests
actionable takeaways. This type of analytics can be especially useful when making data-
driven decisions.

Rounding out the video game example: What should your team decide to do given the
predicted trend in seasonality due to winter gift-giving? Perhaps you decide to run an
A/B test with two ads: one that caters to product end-users (children) and one targeted to
customers (their parents). The data from that test can inform how to capitalize on the
seasonal spike and its supposed cause even further. Or, maybe you decide to increase
marketing efforts in September with holiday-themed messaging to try to extend the spike
into another month.

While manual prescriptive analysis is doable and accessible, machine-learning algorithms

are often employed to help parse through large volumes of data to recommend the
optimal next step. Algorithms use “if” and “else” statements, which work as rules for
parsing data. If a specific combination of requirements is met, an algorithm recommends
a specific course of action. While there’s far more to machine-learning algorithms than
just those statements, they—along with mathematical equations—serve as a core
component in algorithm training.
What Is Artificial Intelligence (AI)?
Artificial intelligence, or AI, refers to the simulation of human intelligence by software-
coded heuristics. Nowadays this code is prevalent in everything from cloud-based,
enterprise applications to consumer apps and even embedded firmware.

Features of Artificial Intelligence

•Ability of thinking and reasoning

•Ability to solve problems using reasons

•Ability to understanding and learning through experience.

•Capability of acquiring knowledge and applying it.

•Ability to showcase imagination and creativity

•Capability of dealing with confusing and complicated situations

•Ability of quick response to new situations in a successful manner.

•Dealing with incomplete , ambiguous and erroneous information

Role of AI in Business

1. Preserve Intelligence and Knowledge

2. Store information for access by a wider group than may be possible with a Human

3. Eliminates Monotonous Jobs

4. Suggests solutions of similar situations

5. Provides Strategic Advantage

 Applications of AI

Competitive
Robotics Natural Interface
Science
Applications Applications
Applications

Learning Systems
Expert Systems
Fuzzy Logic Visual Perception
Genetic Algorithms Tactility
Neural Networks Dexter
Intelligent Agents