UNIT II

Advanced Analytics

 Advanced analytics is a data analysis methodology using predictive modeling, machine learning algorithms, deep learning, business
process automation and other statistical methods to analyze business information from a variety of data sources.

 Advanced analytics uses data science beyond traditional business intelligence (BI) methods to predict patterns, estimate the likelihood of
future events and find insights in data that experts might miss.

 Data science is the field of applying advanced analytics techniques and scientific principles to extract values

 It is and advanced analytics is an umbrella term referring to a range of data analysis techniques used primarily for predictive purposes,
such as machine learning, predictive modeling, neural networks, and AI.

 Businesses employ advanced analytics primarily to forecast future outcomes and to guide their decision-making, not just to gain business
insights.

 Advanced analytics is a valuable resource because it enables an organization to improve data asset functionality, regardless of where the
data is stored or what format it's in.

 Advanced analytics can also help address some of the more complex business problems traditional BI reporting cannot.
Advanced analytics techniques

Advanced analytics encompasses a variety of impactful techniques that can benefit companies as they make strategic decisions to improve
their operations, development, and bottom line.

At its core, advanced analytics is really just a collection of data analytics techniques and methodologies.
1.Predictive modeling
 Pairs machine learning and data mining to forecast potential future outcomes using both current and historical data.
 Predictive modeling uses past data to predict future outcomes.
 Organisation mainly use predictive analysis in risk-related fields or when you want to find new opportunities.
 By seeing potential future scenarios, you can make better decisions with confidence.
 It contributes to risk reduction and increases operational efficiency.
2.Data mining
 It is the process of identifying trends, patterns, and anomalies within data sets.
 To accomplish this task, data mining often employs a combination of statistics, machine learning, and AI.
 The data mining process sorts through large data sets to identify patterns and establish relationships.
 It's a key part of successful analytics operations because BI and advanced analytics applications use the data that mining generates to
solve problems.
 It has applications across a variety of industries including healthcare, government, scientific research, mathematics and sports.
3.Sentiment analysis.
 Sentiment analysis is about understanding emotions.
 It processes text data to determine the attitude or emotion behind the words, which can be positive, negative or neutral.
 In a business setting, sentiment analysis can help the business to understand how customers feel about a brand based on their reviews,
social media comments or direct feedback.
 Tools used for sentiment analysis range from basic text analytics software to more advanced natural language processing (NLP) tools,
some of which use machine learning to improve accuracy.
 Mines text and uses natural language processing (NLP) to identify whether the data is negative, positive, or neutral. This technique can
help businesses understand how their brand might be perceived by potential customers.
4.Cluster analysis.
 Cluster analysis is a method of grouping. (Process of analyzing data to identify clusters of related data points)
 It brings together similar items in a data set.
 Cluster analysis organizes data points into groups based on similarities.
 It doesn't require initial assumptions about the relationship between data points, so you can find new patterns and associations in your
data.
 Data groups, or clusters, contain items more similar to each other than items in other clusters.
 For example, a telecom company could use cluster analysis to group customers based on their usage patterns. Then, they can target each
group with a specific marketing strategy.
5.Cohort analysis (Group)
 Breaks large volumes of data down into classifiable related groups, or “cohorts.”
 Businesses use this technique to break down customer information into specific segments, which can give them insight into targeted
marketing efforts.
 Like cluster analysis, cohort analysis divides large data sets into small segments.
 It tracks a group's behavior over time.
 Cohort analysis is often used in user behavior and retention (retain) studies.
 Organisations can use it to trace how each cohort responds to different events.
 This advanced analytics method improves customer retention, user engagement, product adoption, and interaction.
6.Complex event processing (CEP)
 It is a method that tracks and analyzes data in real-time in order to derive actionable conclusions.
 CEP involves analyzing multiple events happening across various systems in real time to detect patterns.
 If CEP detects patterns of interest or abnormal behaviors, it can trigger alerts for immediate action.

 A practical example is credit card fraud detection: The system monitors transactions and flags any suspicious patterns for investigation.
7.Data visualization
 It is the graphic or pictorial representation of data. This common data analytics practice seeks to convey findings through easily
understood visual representation.
 Process of presenting data in graphical format.
 It makes data analysis and sharing more accessible across organizations.
 Data scientists use visualizations after writing predictive analytics or machine learning algorithms to visualize outputs, monitor results
and ensure models perform as intended.
 It's also a quick and effective way to communicate information to others.
8.Machine learning (ML)
 It is a form of artificial intelligence (AI) concerned with building analytic models capable of autonomous learning.
 To create machine learning models, algorithms are trained using large data sets that incrementally alter the algorithm with each iteration.
 Machine learning uses AI to enable software applications to predict outcomes more accurately.
 The inputs use historical data to predict new outputs. Common use cases include recommendation engines, fraud detection and predictive
maintenance.
9.Time series analysis.
 Time series analysis focuses on data changes over time.
 It looks at patterns, trends and cycles in the data to predict future points.
 For instance, a retailer might use time series analysis to forecast future sales based on past sales data.
 The results can help the retailer plan stock levels and manage resources efficiently.