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Module 3 - Types of BA

Descriptive analytics involves collecting and organizing historical data and presenting it in a way that is easily understood, such as through visual tools like charts. It is commonly used to summarize past events, trends, and survey results. Predictive analytics uses techniques like data mining and statistical modeling to predict future outcomes and likelihoods based on probabilities. Prescriptive analytics takes the learnings from descriptive and predictive analytics a step further by recommending the best courses of action after considering implications of decisions and anticipating what will happen and why.

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67 views9 pages

Module 3 - Types of BA

Descriptive analytics involves collecting and organizing historical data and presenting it in a way that is easily understood, such as through visual tools like charts. It is commonly used to summarize past events, trends, and survey results. Predictive analytics uses techniques like data mining and statistical modeling to predict future outcomes and likelihoods based on probabilities. Prescriptive analytics takes the learnings from descriptive and predictive analytics a step further by recommending the best courses of action after considering implications of decisions and anticipating what will happen and why.

Uploaded by

Noel Josef
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DESCRIPTIVE ANALYTICS

OVERVIEW OF USING DATA


QUANTITATIVE AND CATEGORICAL DATA

▸ Quantitative Data - numeric and arithmetic operations such


as addition, subtraction, and division, can be performed on
them.

▸ Categorical Data - arithmetic operations cannot be


performed on the data

TEXT

CROSS-SECTIONAL AND TIME SERIES DATA

▸ Cross-sectional - data are collected from several entities


at the same or approximately the same, point in time.

▸ Time series data are collected over several time period.

SOURCES OF DATA

▸ Experimental study - variables are being identi ed


▸ Non- experimental of observational study does not control
any variables of interest

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TYPES OF BUSINESS ANALYTICS

D
escriptive analytics is a commonly used form of data analysis whereby historical data is
collected, organized and then presented in a way that is easily understood.

▸Visual tools such as line graphs and pie and bar charts are used to present ndings, meaning
descriptive analytics can – and should – be easily understood by a wide business audience.

▸ Examples of how descriptive analytics can be used include the following:

▸ Summarizing past events such as sales and operations data or marketing campaigns

▸ Social media usage and engagement data such as Instagram or Facebook likes

▸ Reporting general trends

▸ Collating survey results


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TYPES OF BUSINESS ANALYTICS

P
redicting and understanding what could happen in the future. It is based on
probabilities and uses a variety of techniques – such as data mining,
statistical modeling and machine learning algorithms

▸ Predictive analytics attempts to forecast possible future outcomes and the


likelihood of those events.

▸ Businesses can use predictive analytics for anything from forecasting


customer behavior and purchasing patterns to identifying sales trends.
Predictions can also help forecast such things as supply chain, operations
and inventory demands.

PREDICTIVE ANALYTICS (CONT’N)


▸ Predictive Analytics can improve many areas of business, including

▸ Ef ciency, which could include inventory forecasting

▸ Customer service, which can help a company gain a better understanding of


who their customers are and what they want in order to tailor recommendations

▸ Fraud detection and prevention, which can help companies identify patterns
and changes

▸ Risk reduction, which, in the nance industry, might mean improved candidate
screening
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TYPES OF BUSINESS ANALYTICS

P
rescriptive analytics is the most complex stage of the business analytics
process, requiring much more specialised analytics knowledge to perform, and
for this reason it is rarely used in day-to-day business operations. 

▸ Takes what has been learned through descriptive and predictive analysis and goes
a step further by recommending the best possible courses of action for a business.

▸ Prescriptive analytics anticipates what, when and, importantly, why something


might happen. After considering the possible implications of each decision option,
recommendations can then be made in regard to which decisions will best take
advantage of future opportunities or mitigate future risks.

PRESCRIPTIVE ANALYSIS APPLICATION


▸ Oil and manufacturing – tracking uctuating prices  

▸ Manufacturing – improving equipment management, maintenance, price


modeling, production and storage

▸ Healthcare – improving patient care and healthcare administration by evaluating


things such as rates of readmission and the cost-effectiveness of procedures

▸ Insurance – assessing risk in regard to pricing and premium information for clients

▸ Pharmaceutical research – identifying the best testing and patient groups for
clinical trials.

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