Chapter 4: Exploring Business

Analytics
 Chapter Index
S. No. Reference Particulars Slide
No. From - To

1 Learning Objectives 4

2 Topic 1 What is Business Analytics (B 5

A)?

3 Topic 2 Types of Business Analytics 6

4 Topic 3 Importance of Business Analyti 7

cs

5 Topic 4 What is Business Intelligence ( 8-9

BI)?
 Chapter Index

S. No. Reference Particulars Slide

No. From - To

6 Topic 5 Emerging Trends in BA 10 – 14

7 Topic 6 Descriptive Analytics 15 – 17

8 Topic 7 Diagnostic Analytics 18

9 Topic 8 Predictive Analytics 19 – 20

10 Let’s Sum Up 21
 Learning Objectives

 Describe business analytics and its types

 Recognize the importance of business analytics
 Elucidate the concept of Business Intelligence (BI)
 Describe the relation between BI and BA
 Identify the emerging trends in BA
 Describe descriptive statistics
 Discuss diagnostic analytics
 Explain predictive modelling
1. What is Business Analytics (BA)?

 Business Analytics is a group of techniques and applications for storing,

analyzing and making data accessible to help users make better strategic
decisions.
 Business Analytics is a subset of Business Intelligence which creates
competencies for companies to contest in the market efficiently and is
likely to become one of the main functional areas in most companies.
 Business Analytics can be divided into many branches. We can say that
for a sales and advertisement company, marketing analytics are essential
to understand which marketing tactics and strategies clicked with the
customer and which didn’t.
 2. Types of Business Analytics

There are three types of Business Analytics given below:

• Descriptive analysis: It can be defined as condensing the existing data
to get a better understanding of what is going on using business
intelligence tools.
• Diagnostic analysis: Diagnostic analysis provides a way to dig deeper
by drilling down and find out patterns and dependencies.
• Predictive analysis: Predictive analysis can be defined as the process of
focusing on predicting the possible outcome using machine–learning
techniques like SVM, random forests and statistical models.
 3. Importance of Business Analytics

 Business analytics actually are an efficient way of measuring and

tracking your results periodically. This is more true for a business.

 Business analytics helps in understanding leads, audience, prospects

and visitors.

 Business analytics also helps in understanding, improving and

tracking the method that can be used to impress and convert the first

lead or prospect to a valuable customer.

 BA is an important area that helps you in equipping with correct weapons

to make the correct business decisions.

 4. What is Business Intelligence (BI)?

• Business Intelligence (BI) is a set of applications, technologies and ideal

practices. It is used for the integration, collection and presentation of
business information and analysis.
• Business Intelligence utilizes computing techniques for the discovery,
identification and business data analysis – like products, sales revenue,
earnings and costs.
• BI models provide present, past and projecting opinions of structured
internal data for goods and department.
• It provides effective strategic operational insights and helps in decision-
making through predictive analytics, reporting, benchmarking, data/text
mining and business performance administration..
 4. What is Business Intelligence (BI)?

BI BA
Uses current and past data to optimize the Utilizes the past data and separately
current age performance for success analyses the current data with past data as
Difference between BI and BA reference to prepare the businesses for the
future

Informs about what happened Tells why it happened

Tells you the sales numbers for the first Tells you about why your sales numbers
quarter of a fiscal year or total number of tanked in the first quarter or about the
new users signed up on our platform effectiveness of the newly launched user
campaign for making users refer other
users to our platform

Quantifiable in nature, it can help you in More subjective and open to

measuring your business in visualizations, interpretations and prone to changes due
chartings and other data representation to ripples in organizational or strategic
techniques structure
 5. Emerging Trends in BA

Following are the contemporary trends in the BI and BA fields:

 More Power and Monetary Impact for Data Analysts

 Location Analytics

 Data at the Rough Edge

 Artificial Intelligence (AI)

 Predictive Analytics and Impact on Data Discovery

 Cloud Computing

 Digitization
 5. Emerging Trends in BA

Data, Information and Knowledge

 Data: Data is simply a raw material. It can be anything like numbers,

text, symbols etc.

 Information: Information is the result of Processed data.

 Knowledge: The valuable and meaningful information is called

knowledge. There are two types of knowledge :
1.€€ Obtaining and memorizing the facts
2. Using the information to crack problems
 5. Emerging Trends in BA

How are Data, Information and Knowledge linked?

Data signifies an element or statement of procedures without being related to
other things, e.g., It is raining. Information symbolizes the relationship of some
type, perhaps cause and effect, that act as a bridge between the data and
information. The topics are hierarchical in the order, as shown in following
figure:
 5. Emerging Trends in BA

BA Business Analytics Personnel and their Roles

 A business analyst is anyone who has the key domain experience and
knowledge related to the paradigms being followed.
 A business analyst often needs to sport multiple hats related to the field
he/she is in. A BA can be anyone, from an executive to a top-level
project director, given that the has a grasp of the system, its techniques
and functionality – since all the represents is the business his
organization is offering to the customers.
 5. Emerging Trends in BA

Key Roles and Responsibilities of a Business Analyst

 Gathering the requirements
 Expecting requirements
 Constraining requirements
 Organizing requirements
 Translating requirements
 Protecting requirements
 Simplifying requirements
 Verifying requirements
 Managing requirements
 Maintaining system and operations
 6. Descriptive Analytics

Descriptive analytics is the most essential type of analytics and establishes

the framework for more advanced types of analytics.
Comprehending the information in its raw configuration is troublesome.
There are three ways to abridge and describe the raw data:
 Dashboards and MIS reporting: This technique gives condensed data,
giving information on “What has happened”, “What’s been going on?”
and “How can it stand with the plan?”.
 Impromptu detailing: This technique supplements the past strategy in
helping the administration extract the information as required.
 Drill-down Reporting: This is the most complex piece of descriptive
analysis and gives the capacity to delve further into any report to
comprehend the information better.
 6. Descriptive Analytics

Sampling and Estimation

A sampling plan is a description of the approach that is used to obtain
samples from a population prior to any data collection activity. A sampling
plan states the following:
• Objectives of the sampling activity
• €€ Target population
• €€ Population frame (the list from which the sample is selected)
• €€ Method of sampling
• €€ Operational procedures for collecting the data
• €€ Statistical tools that will be used to analyze the data
 6. Descriptive Analytics

Sampling Methods
 Many types of sampling methods exist. Sampling methods can be subjective or
probabilistic.
 Subjective methods contain judgment sampling, in which expert judgment is
used for selecting the sample and convenience sampling, in which easier-to-
collect samples are selected (e.g., survey all customers who visited this month).
 Probabilistic sampling includes items selected from the sample using a random
procedure and it is necessary to derive effective statistical conclusions.
 7. Diagnostic Analytics

 Diagnostic analytics is defined as a type of advanced analytics which is

performed to answer more complex questions related to a project or event,
such as ‘Why did it happen?’
 It is used to find the root cause of a given situation.
 It is also used to find the casual relationships between two or more data sets if
the root cause is not detectable.
 The analytics team or person must be careful about selecting relevant data for
analysis or for finding relation among more than one data set.
 8. Predictive Analytics

 Predictive analytics mainly predicts the likelihood of events in future. It predicts

the near future probabilities and trends and helps in ‘what-if’ analysis. Following
figure shows the steps involved in predictive analytics:
 8. Predictive Analytics

Predictive Modelling
 It is the method of making, testing and authenticating a model to best predict
the likelihood of a conclusion.
 Predictive analysis and models are characteristically used to predict future
probabilities.
 Predictive modelling is at the heart of business decision–making.
 The various business processes on predictive modelling are as follows:
1. Creating the model
2. Testing the model
3. Authenticating the model
4. Assessing the model
 Let’s Sum Up

 Business Analytics is a group of techniques and applications for storing,

analyzing and making data accessible to help users make better strategic
decisions.
 Descriptive analysis, Diagnostic analysis, Predictive analysis are three types of
Business Analytics.
 Business Intelligence (BI) is a set of applications, technologies and ideal
practices.
 Predictive modelling is the method of making, testing and authenticating a
model to best predict the likelihood of a conclusion.
 Predictive analysis and models are characteristically used to predict future
probabilities.
THANK YOU