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Chapter 1 BA

The document provides an overview of analytics and business analytics (BA), highlighting their roles in decision-making through data analysis and statistical methods. It discusses the evolution of BA, the differences between business analysis and business analytics, and the types of data used in analytics. Additionally, it covers the 5 Vs of big data and ethical considerations in data collection.

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Chandrakant Thorat
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7 views17 pages

Chapter 1 BA

The document provides an overview of analytics and business analytics (BA), highlighting their roles in decision-making through data analysis and statistical methods. It discusses the evolution of BA, the differences between business analysis and business analytics, and the types of data used in analytics. Additionally, it covers the 5 Vs of big data and ethical considerations in data collection.

Uploaded by

Chandrakant Thorat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 1

Analytics
• Analytics is a field that combines data, information technology,
statistical analysis, quantitative methods, and computer-based models
into one.
• It provides decision-makers with all the possible scenarios to make a
well-thought and researched decision.
Definitions of BA
• Business analytics (BA) is a set of disciplines and technologies for
solving business problems using data analysis, statistical models, and
other quantitative methods.
• Business analytics is the process of transforming data into insights to
improve business decisions. Data management, data visualization,
predictive modeling, data mining, forecasting simulation, and
optimization are some of the tools used to create insights from data.
• BA helps in
• Identifying new patterns in data
• Use of quantitative and statistical tools to develop business models
• Forecast future business needs
Evolution of BA
• Henry Ford and F W Taylor used scientific management to calculate the
time-motion studies where we can find the existence of analytics
• Operations Research: BA has its roots in operations research
• OR is a method of problem-solving and decision-making where
problems are broken down into basic components and solved.
• In OR a problem is identified, a model is constructed around it and used
to derive solutions, and solutions are tested on the model to analyze the
success and then are implemented for the real-world problems.
• Later with the help of computer systems the information was stored.
• Data warehousing was the next step in this evolution.
• Now we have software like ERP for performing analytical operations
The Growing Role of Business
Analytics
• Analyze the past trends
• Forecast the future demands
• Sustain the competition
Business Analysis Business Analytics
• primarily concerned with identifying business • focused on analyzing data to gain insights and
needs and finding solutions to business support decision-making.
problems.
• It deals with defining requirements, gathering • It encompasses data collection, data mining,
information from stakeholders, and ensuring statistical analysis, and predictive modeling.
that solutions align with business goals.
• Activities include requirements gathering,
stakeholder interviews, process mapping, gap • Activities include data analysis, statistical
analysis, and solution assessment. modeling, forecasting, and creating
dashboards or reports.
• The outcome of business analysis is a detailed
set of requirements or a clear understanding
of what needs to be changed or improved in • The outcome of business analytics is
the business. actionable insights derived from data.
• Example: Improving customer service in a • Example: Optimizing pricing in a retail
retail company company
Data Analyst Business Analyst
• Works for collecting, processing, and • Concentrates on understanding business
analyzing data to extract meaningful insights. needs, defining requirements, and facilitating
solutions that align with business goals.

• Core responsibilities are data collection, data


cleaning, data analysis, and report-generating • Core responsibilities are requirements
• . gathering, process improvement, solution
design, and stakeholder management.
• Skills required are technical and analytical

• Skills required are business acumen, and


communication skills along with analytical
skills
Difference Between Data
Information and knowledge
• data encompasses “plain facts, observations,
statistics, characters, symbols, images,
numbers, and more that are collected and can
be used for analysis.”
• Information is a collection of data that has
been processed, refined, structured, and/or
presented to create relevance and
usefulness.
• When information is analyzed to generate
insights, draw conclusions, make predictions,
and drive change, knowledge is created. What
sets knowledge apart from information is that
it also is made up of other elements such as
experience and intuition.
5 Vs of Big Data
• Big Data: A combination of unstructured, semi structured and structured data
collected by organizations
• Example
Unstructured Semi-structured Structured
Doctor’s Notes Electronic Health records Demographic Information
Patients Comments Patient Notes Medical Records
Medical Imaging Lab Reports Treatment History
• Velocity is the speed at which the
data is created and how fast it
moves.
• Volume is the amount of data
qualifying as big data.
• Value is the value the data
provides.
• Variety is the diversity that exists in
the types of data.
• Veracity is the data's quality and
accuracy.
Ethics in collecting Big Data
• Privacy
• Ownership
• Accuracy and integrity
• Bias and Fairness
• Impact on individuals and society
Types of data
• Quantitative data
• Quantitative data seems to be the easiest to explain. It answers key
questions such as “how many, “how much” and “how often”.
• Quantitative data can be expressed as a number or can be quantified.
Simply put, it can be measured by numerical variables.
• Quantitative data are easily amenable to statistical manipulation and
can be represented by various statistical types of graphs and charts
such as lines, bar graphs, scatter plots, etc.
• Qualitative data
• Qualitative data can’t be expressed as a number and can’t be
measured. Qualitative data consist of words, pictures, and symbols,
not numbers.
• Qualitative data is also called categorical data because the
information can be sorted by category, not by number.
• Qualitative data can answer questions such as “how this has
happened” or and “why this has happened”.
• 3. Nominal data
• Nominal data is used just for labeling variables, without any type of
quantitative value. The name ‘nominal’ comes from the Latin word
“nomen” which means ‘name’. E. g. Eye color, gender, ethnicity
• 4. Ordinal data
• Ordinal data shows where a number is in order. This is the crucial
difference from nominal types of data. E.g. rating experience on the
scale of 1-10
• 5. Discrete data
• Discrete data is a count that involves only integers. The discrete
values cannot be subdivided into parts. E.g. number of students in a
class
• 6. Continuous data
• Continuous data is information that could be meaningfully divided
into finer levels. It can be measured on a scale or continuum and can
have almost any numeric value. Height or weight of the students
Data Collection Methods
• Interviews
• Surveys
• Focused Groups
• Questionnaires

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