DATA ANALYTICS

(Professional Elective - I)
Subject Code: CS513PE

Data Analytics – Introduction &

Tools and Environment

NOTES MATERIAL
UNIT 2

For
B. TECH (CSE)
3rd YEAR – 1st SEM (R18)
Faculty:
B. RAVIKRISHNA

DEPARTMENT OF CSE
DATA ANALYTICS UNIT–2

VIGNAN INSTITUTE OF TECHNOLOGY & SCIENCE

DESHMUKHI

UNIT – II Syllabus
Data Analytics: Introduction to Analytics, Introduction to Tools and Environment, Application of
Modeling in Business, Databases & Types of Data and variables, Data Modeling Techniques, Missing
Imputations etc. Need for Business Modeling.
Topics:
1. Introduction to Data Analytics
2. Data Analytics Tools and Environment
3. Need for Business Modeling.
4. Data Modeling Techniques
5. Application of Modeling in Business
6. Databases & Types of Data and variables
7. Missing Imputations etc.

Unit-2 Objectives:
1. To explore the fundamental concepts of data analytics.
2. To learn the principles Tools and Environment
3. To explore the applications of Business Modelling
4. To understand the Data Modeling Techniques
5. To understand the Data Types and Variables and Missing imputations

Unit-2 Outcomes:
After completion of this course students will be able to
1. To Describe concepts of data analytics.
2. To demonstrate the principles Tools and Environment
3. To analyze the applications of Business Modelling
4. To understand and Compare the Data Modeling Techniques
5. To describe the Data Types and Variables and Missing imputations

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INTRODUCTION:

Data has been the buzzword for ages now. Either the data being generated from large-scale
enterprises or the data generated from an individual, each and every aspect of data needs to be
analyzed to benefit yourself from it.

Why is Data Analytics important?

Data Analytics has a key role in improving your business as it is used to gather hidden insights,
generate reports, perform market analysis, and improve business requirements.

What is the role of Data Analytics?

 Gather Hidden Insights – Hidden insights from data are gathered and then analyzed with
respect to business requirements.
 Generate Reports – Reports are generated from the data and are passed on to the
respective teams and individuals to deal with further actions for a high rise in business.
 Perform Market Analysis – Market Analysis can be performed to understand the strengths
and weaknesses of competitors.
 Improve Business Requirement – Analysis of Data allows improving Business to
customer requirements and experience.

Ways to Use Data Analytics:

Now that you have looked at what data analytics is, let’s understand how we can use data analytics.

Fig: Ways to use Data Analytics

1. Improved Decision Making: Data Analytics eliminates guesswork and manual tasks. Be it
choosing the right content, planning marketing campaigns, or developing products. Organizations
can use the insights they gain from data analytics to make informed decisions. Thus, leading to
better outcomes and customer satisfaction.
2. Better Customer Service: Data analytics allows you to tailor customer service according to
their needs. It also provides personalization and builds stronger relationships with customers.
Analyzed data can reveal information about customers’ interests, concerns, and more. It helps you
give better recommendations for products and services.

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3. Efficient Operations: With the help of data analytics, you can streamline your processes, save
money, and boost production. With an improved understanding of what your audience wants, you
spend lesser time creating ads and content that aren’t in line with your audience’s interests.
4. Effective Marketing: Data analytics gives you valuable insights into how your campaigns are
performing. This helps in fine-tuning them for optimal outcomes. Additionally, you can also find
potential customers who are most likely to interact with a campaign and convert into leads.

Steps Involved in Data Analytics:

Next step to understanding what data analytics is to learn how data is analyzed in organizations.
There are a few steps that are involved in the data analytics lifecycle. Below are the steps that you
can take to solve your problems.

Fig: Data Analytics process steps

1. Understand the problem: Understanding the business problems, defining the organizational
goals, and planning a lucrative solution is the first step in the analytics process. E-commerce
companies often encounter issues such as predicting the return of items, giving relevant product
recommendations, cancellation of orders, identifying frauds, optimizing vehicle routing, etc.
2. Data Collection: Next, you need to collect transactional business data and customer-related
information from the past few years to address the problems your business is facing. The data can
have information about the total units that were sold for a product, the sales, and profit that were
made, and also when was the order placed. Past data plays a crucial role in shaping the future of a
business.
3. Data Cleaning: Now, all the data you collect will often be disorderly, messy, and contain
unwanted missing values. Such data is not suitable or relevant for performing data analysis. Hence,
you need to clean the data to remove unwanted, redundant, and missing values to make it ready
for analysis.

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4. Data Exploration and Analysis: After you gather the right data, the next vital step is to
execute exploratory data analysis. You can use data visualization and business intelligence tools,
data mining techniques, and predictive modelling to analyze, visualize, and predict future outcomes
from this data. Applying these methods can tell you the impact and relationship of a certain feature
as compared to other variables.
Below are the results you can get from the analysis:
 You can identify when a customer purchases the next product.
 You can understand how long it took to deliver the product.
 You get a better insight into the kind of items a customer looks for, product returns, etc.
 You will be able to predict the sales and profit for the next quarter.
 You can minimize order cancellation by dispatching only relevant products.
 You’ll be able to figure out the shortest route to deliver the product, etc.
5. Interpret the results: The final step is to interpret the results and validate if the outcomes
meet your expectations. You can find out hidden patterns and future trends. This will help you gain
insights that will support you with appropriate data-driven decision making.

What are the tools used in Data Analytics?

With the increasing demand for Data Analytics in the market, many tools have emerged with various
functionalities for this purpose. Either open-source or user-friendly, the top tools in the data analytics
market are as follows.

 R programming – This tool is the leading analytics tool used for statistics and data
modeling. R compiles and runs on various platforms such as UNIX, Windows, and Mac OS.
It also provides tools to automatically install all packages as per user-requirement.
 Python – Python is an open-source, object-oriented programming language that is easy to
read, write, and maintain. It provides various machine learning and visualization libraries
such as Scikit-learn, TensorFlow, Matplotlib, Pandas, Keras, etc. It also can be assembled on
any platform like SQL server, a MongoDB database or JSON

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 Tableau Public – This is a free software that connects to any data source such as
Excel, corporate Data Warehouse, etc. It then creates visualizations, maps, dashboards etc
with real-time updates on the web.
 QlikView – This tool offers in-memory data processing with the results delivered to the
end-users quickly. It also offers data association and data visualization with data being
compressed to almost 10% of its original size.
 SAS – A programming language and environment for data manipulation and analytics, this
tool is easily accessible and can analyze data from different sources.
 Microsoft Excel – This tool is one of the most widely used tools for data analytics. Mostly
used for clients’ internal data, this tool analyzes the tasks that summarize the data with a
preview of pivot tables.
 RapidMiner – A powerful, integrated platform that can integrate with any data source types
such as Access, Excel, Microsoft SQL, Tera data, Oracle, Sybase etc. This tool is mostly used
for predictive analytics, such as data mining, text analytics, machine learning.
 KNIME – Konstanz Information Miner (KNIME) is an open-source data analytics platform,
which allows you to analyze and model data. With the benefit of visual programming, KNIME
provides a platform for reporting and integration through its modular data pipeline concept.
 OpenRefine – Also known as GoogleRefine, this data cleaning software will help you clean
up data for analysis. It is used for cleaning messy data, the transformation of data and
parsing data from websites.
 Apache Spark – One of the largest large-scale data processing engine, this tool executes
applications in Hadoop clusters 100 times faster in memory and 10 times faster on disk. This
tool is also popular for data pipelines and machine learning model development.

Data Analytics Applications:

Data analytics is used in almost every sector of business, let’s discuss a few of them:
1. Retail: Data analytics helps retailers understand their customer needs and buying habits to
predict trends, recommend new products, and boost their business. They optimize the supply
chain, and retail operations at every step of the customer journey.
2. Healthcare: Healthcare industries analyse patient data to provide lifesaving diagnoses and
treatment options. Data analytics help in discovering new drug development methods as well.
3. Manufacturing: Using data analytics, manufacturing sectors can discover new cost-saving
opportunities. They can solve complex supply chain issues, labour constraints, and equipment
breakdowns.
4. Banking sector: Banking and financial institutions use analytics to find out probable loan
defaulters and customer churn out rate. It also helps in detecting fraudulent transactions
immediately.

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5. Logistics: Logistics companies use data analytics to develop new business models and
optimize routes. This, in turn, ensures that the delivery reaches on time in a cost-efficient
manner.

Cluster computing:
 Cluster computing is a collection of tightly or loosely
connected computers that work together so that they
act as a single entity.
 The connected computers execute operations all
together thus creating the idea of a single system.
 The clusters are generally connected through fast local
area networks (LANs)

Why is Cluster Computing important?

 Cluster computing gives a relatively inexpensive, unconventional to the large server or

mainframe computer solutions.
 It resolves the demand for content criticality and process services in a faster way.
 Many organizations and IT companies are implementing cluster computing to augment their
scalability, availability, processing speed and resource management at economic prices.
 It ensures that computational power is always available. It provides a single general
strategy for the implementation and application of parallel high-performance systems
independent of certain hardware vendors and their product decisions.

Apache Spark:

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 Apache Spark is a lightning-fast cluster computing technology, designed for fast

computation. It is based on Hadoop MapReduce and it extends the MapReduce model to
efficiently use it for more types of computations, which includes interactive queries and
stream processing.
 The main feature of Spark is its in-memory cluster computing that increases the processing
speed of an application.
 Spark is designed to cover a wide range of workloads such as batch applications, iterative
algorithms, interactive queries and streaming.
 Apart from supporting all these workloads in a respective system, it reduces the
management burden of maintaining separate tools.

Evolution of Apache Spark

Spark is one of Hadoop’s sub project developed in 2009 in UC Berkeley’s AMPLab by Matei Zaharia.
It was Open Sourced in 2010 under a BSD license. It was donated to Apache software foundation
in 2013, and now Apache Spark has become a top level Apache project from Feb-2014.

Features of Apache Spark:

Apache Spark has following features.
Speed − Spark helps to run an application in Hadoop cluster, up to 100 times faster in memory,
and 10 times faster when running on disk. This is possible by reducing number of read/write
operations to disk. It stores the intermediate processing data in memory.
Supports multiple languages − Spark provides built-in APIs in Java, Scala, or Python.
Therefore, you can write applications in different languages. Spark comes up with 80 high-level
operators for interactive querying.
Advanced Analytics − Spark not only supports ‘Map’ and ‘reduce’. It also supports SQL queries,
Streaming data, Machine learning (ML), and Graph algorithms.

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Spark Built on Hadoop

The following diagram shows three ways of how Spark can be built with Hadoop components.

There are three ways of Spark deployment as explained below.

Standalone − Spark Standalone deployment means Spark occupies the place on top of
HDFS(Hadoop Distributed File System) and space is allocated for HDFS, explicitly. Here, Spark and
MapReduce will run side by side to cover all spark jobs on cluster.
Hadoop Yarn − Hadoop Yarn deployment means, simply, spark runs on Yarn (Yet Another
Resource Negotiator) without any pre-installation or root access required. It helps to integrate
Spark into Hadoop ecosystem or Hadoop stack. It allows other components to run on top of stack.
Spark in MapReduce (SIMR) − Spark in MapReduce is used to launch spark job in addition to
standalone deployment. With SIMR, user can start Spark and uses its shell without any
administrative access.
Components of Spark
The following illustration depicts the different components of Spark.

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Apache Spark Core

Spark Core is the underlying general execution engine for spark platform that all other functionality
is built upon. It provides In-Memory computing and referencing datasets in external storage
systems.

Spark SQL
Spark SQL is a component on top of Spark Core that introduces a new data abstraction called
SchemaRDD, which provides support for structured and semi-structured data.
Spark Streaming
Spark Streaming leverages Spark Core's fast scheduling capability to perform streaming analytics.
It ingests data in mini-batches and performs RDD (Resilient Distributed Datasets) transformations
on those mini-batches of data.
MLlib (Machine Learning Library)
MLlib is a distributed machine learning framework above Spark because of the distributed memory-
based Spark architecture. It is, according to benchmarks, done by the MLlib developers against the
Alternating Least Squares (ALS) implementations. Spark MLlib is nine times as fast as the Hadoop
disk-based version of Apache Mahout (before Mahout gained a Spark interface).
GraphX
GraphX is a distributed graph-processing framework on top of Spark. It provides an API for
expressing graph computation that can model the user-defined graphs by using Pregel abstraction
API. It also provides an optimized runtime for this abstraction.

What is Scala?
 Scala is a statically typed programming language that incorporates both functional
and object oriented, also suitable for imperative programming approaches.to
increase scalability of applications. It is a general-purpose programming language.
It is a strong static type language. In scala, everything is an object whether it is a
function or a number. It does not have concept of primitive data.
 Scala primarily runs on JVM platform and it can also be used to write software for
native platforms using Scala-Native and JavaScript runtimes through ScalaJs.
 This language was originally built for the Java Virtual Machine (JVM) and one of
Scala’s strengths is that it makes it very easy to interact with Java code.
 Scala is a Scalable Language used to write Software for multiple platforms. Hence,
it got the name “Scala”. This language is intended to solve the problems of Java

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while simultaneously being more concise. Initially designed by Martin Odersky, it

was released in 2003.

Why Scala?
 Scala is the core language to be used in writing the most popular distributed big
data processing framework Apache Spark. Big Data processing is becoming
inevitable from small to large enterprises.
 Extracting the valuable insights from data requires state of the art processing tools
and frameworks.
 Scala is easy to learn for object-oriented programmers, Java developers. It is
becoming one of the popular languages in recent years.
 Scala offers first-class functions for users
 Scala can be executed on JVM, thus paving the way for the interoperability with
other languages.
 It is designed for applications that are concurrent (parallel), distributed, and resilient
(robust) message-driven. It is one of the most demanding languages of this decade.
 It is concise, powerful language and can quickly grow according to the demand of
its users.
 It is object-oriented and has a lot of functional programming features providing a lot
of flexibility to the developers to code in a way they want.
 Scala offers many Duck Types(Structural Types)
 Unlike Java, Scala has many features of functional programming languages like
Scheme, Standard ML and Haskell, including currying, type inference, immutability,
lazy evaluation, and pattern matching.
 The name Scala is a portmanteau of "scalable" and "language", signifying that it is
designed to grow with the demands of its users.

Where Scala can be used?

 Web Applications
 Utilities and Libraries
 Data Streaming
 Parallel batch processing
 Concurrency and distributed application
 Data analytics with Spark
 AWS lambda Expression

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Cloudera Impala:

 Cloudera Impala is Cloudera's open source massively parallel processing (MPP) SQL
query engine for data stored in a computer cluster running Apache Hadoop.
 Impala is the open source, massively parallel processing (MPP) SQL query engine for
native analytic database in a computer cluster running Apache Hadoop.
 It is shipped by vendors such as Cloudera, MapR, Oracle, and Amazon.
 Cloudera Impala is a query engine that runs on Apache Hadoop.
 The project was announced in October 2012 with a public beta test distribution and
became generally available in May 2013.
 Impala brings enabling users to issue low latency SQL queries to data stored in HDFS
and Apache HBase without requiring data movement or transformation.
 Impala is integrated with Hadoop to use the same file and data formats, metadata,
security and resource management frameworks used by MapReduce, Apache Hive,
Apache Pig and other Hadoop software.
 Impala is promoted for analysts and data scientists to perform analytics on data
stored in Hadoop via SQL or business intelligence tools.
 The result is that large-scale data processing (via MapReduce) and interactive
queries can be done on the same system using the same data and metadata –
removing the need to migrate data sets into specialized systems and/or proprietary
formats simply to perform analysis.

Features include:
 Supports HDFS and Apache HBase storage,
 Reads Hadoop file formats, including text, LZO, SequenceFile, Avro, RCFile, and
Parquet,
 Supports Hadoop security (Kerberos authentication),
 Fine-grained, role-based authorization with Apache Sentry,
 Uses metadata, ODBC driver, and SQL syntax from Apache Hive.

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Databases & Types of Data and variables

Data Base: A Database is a collection of related data.
Database Management System: DBMS is a software or set of Programs used to define,
construct and manipulate the data.
Relational Database Management System: RDBMS is a software system used to
maintain relational databases. Many relational database systems have an option of using
the SQL.
NoSQL:
 NoSQL Database is a non-relational Data Management System, that does not require
a fixed schema. It avoids joins, and is easy to scale. The major purpose of using a
NoSQL database is for distributed data stores with humongous data storage needs.
NoSQL is used for Big data and real-time web apps. For example, companies like
Twitter, Facebook and Google collect terabytes of user data every single day.
 NoSQL database stands for “Not Only SQL” or “Not SQL.” Though a better term
would be “NoREL”, NoSQL caught on. Carl Strozz introduced the NoSQL concept in
1998.
 Traditional RDBMS uses SQL syntax to store and retrieve data for further insights.
Instead, a NoSQL database system encompasses a wide range of database
technologies that can store structured, semi-structured, unstructured and
polymorphic data.

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Why NoSQL?
 The concept of NoSQL databases became popular with Internet giants like Google,
Facebook, Amazon, etc. who deal with huge volumes of data. The system response
time becomes slow when you use RDBMS for massive volumes of data.
 To resolve this problem, we could “scale up” our systems by upgrading our existing
hardware. This process is expensive. The alternative for this issue is to distribute
database load on multiple hosts whenever the load increases. This method is known
as “scaling out.”

Types of NoSQL Databases:

 Document-oriented: JSON documents MongoDB and CouchDB

 Key-value: Redis and DynamoDB
 Wide-column: Cassandra and HBase
 Graph: Neo4j and Amazon Neptune
Relational Non-relational
Databases (SQL) Databases (NoSQL)

Oracle MongoDB

MySQL couchDB

SQL Server BigTable

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SQL vs NOSQL DB:

SQL NoSQL

RELATIONAL DATABASE MANAGEMENT Non-relational or distributed database

SYSTEM (RDBMS) system.

These databases have fixed or static or

predefined schema They have dynamic schema

These databases are not suited for These databases are best suited for
hierarchical data storage. hierarchical data storage.

These databases are best suited for These databases are not so good for
complex queries complex queries

Vertically Scalable Horizontally scalable

Follows CAP (consistency, availability,

Follows ACID property partition tolerance)

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Differences between SQL and NoSQL

The table below summarizes the main differences between SQL and NoSQL databases.

SQL Databases NoSQL Databases

Document: JSON documents, Key-value:

Data Storage Tables with fixed key-value pairs, Wide-column: tables with
Model rows and columns rows and dynamic columns, Graph: nodes
and edges

Developed in the Developed in the late 2000s with a focus

Development 1970s with a focus on on scaling and allowing for rapid
History reducing data application change driven by agile and
duplication DevOps practices.

Document: MongoDB and CouchDB, Key-

Oracle, MySQL,
value: Redis and DynamoDB, Wide-
Examples Microsoft SQL Server,
column: Cassandra and HBase, Graph:
and PostgreSQL
Neo4j and Amazon Neptune

Document: general purpose, Key-value:

large amounts of data with simple lookup
queries, Wide-column: large amounts of
Primary Purpose General purpose
data with predictable query patterns,
Graph: analyzing and traversing
relationships between connected data

Schemas Rigid Flexible

Vertical (scale-up Horizontal (scale-out across commodity

Scaling
with a larger server) servers)

Multi-Record Most do not support multi-record ACID

ACID Supported transactions. However, some—like
Transactions MongoDB—do.

Joins Typically required Typically not required

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SQL Databases NoSQL Databases

Requires ORM Many do not require ORMs. MongoDB

Data to Object
(object-relational documents map directly to data structures
Mapping
mapping) in most popular programming languages.

Benefits of NoSQL
 The NoSQL data model addresses several issues that the relational model is not
designed to address:
 Large volumes of structured, semi-structured, and unstructured data.
 Object-oriented programming that is easy to use and flexible.
 Efficient, scale-out architecture instead of expensive, monolithic architecture.

Variables:
 Data consist of individuals and variables that give us information about those
individuals. An individual can be an object or a person.
 A variable is an attribute, such as a measurement or a label.
 Two types of Data
 Quantitative data(Numerical)
 Categorical data

 Quantitative Variables: Quantitative data, contains numerical that can be added,

subtracted, divided, etc.
There are two types of quantitative variables: discrete and continuous.

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Discrete vs continuous variables

Type of What does the data represent? Examples

variable

Discrete Counts of individual items or values. • Number of students in a

variables class
• Number of different tree
species in a forest

Continuous Measurements of continuous or non- • Distance

variables finite values. • Volume
• Age

Categorical variables: Categorical variables represent groupings of some kind. They are
sometimes recorded as numbers, but the numbers represent categories rather than actual
amounts of things.
There are three types of categorical variables: binary, nominal, and ordinal variables.

Type of variable What does the data Examples

represent?

Binary variables Yes/no outcomes. • Heads/tails in a coin flip

• Win/lose in a football game

Nominal Groups with no rank or • Colors

variables order between them. • Brands
• ZIP CODE

Ordinal variables Groups that are ranked in a • Finishing place in a race

specific order. • Rating scale responses in a
survey*

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Missing Imputations:
Imputation is the process of replacing missing data with substituted values.

Types of missing data

Missing data can be classified into one of three categories
1. MCAR
Data which is Missing Completely At Random has nothing systematic about which
observations are missing values. There is no relationship between missingness and either
observed or unobserved covariates.

2. MAR
Missing At Random is weaker than MCAR. The missingness is still random, but due entirely
to observed variables. For example, those from a lower socioeconomic status may be less
willing to provide salary information (but we know their SES status). The key is that the
missingness is not due to the values which are not observed. MCAR implies MAR but not
vice-versa.

3. MNAR
If the data are Missing Not At Random, then the missingness depends on the values of the
missing data. Censored data falls into this category. For example, individuals who are
heavier are less likely to report their weight. Another example, the device measuring some
response can only measure values above .5. Anything below that is missing.

There can be two types of gaps in Data:

1. Missing Data Imputation
2. Model based Technique

Imputations: (Treatment of Missing Values)

1. Ignore the tuple: This is usually done when the class label is missing (assuming
the mining task involves classification). This method is not very effective, unless the
tuple contains several attributes with missing values. It is especially poor when the
percentage of missing values per attribute varies considerably.
2. Fill in the missing value manually: In general, this approach is time-consuming
and may not be feasible given a large data set with many missing values.
3. Use a global constant to fill in the missing value: Replace all missing attribute
values by the same constant, such as a label like “Unknown” or -∞. If missing values

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are replaced by, say, “Unknown,” then the mining program may mistakenly think
that they form an interesting concept, since they all have a value in common-that of
“Unknown.” Hence, although this method is simple, it is not foolproof.
4. Use the attribute mean to fill in the missing value: Considering the average
value of that particular attribute and use this value to replace the missing value in
that attribute column.
5. Use the attribute mean for all samples belonging to the same class as the
given tuple:
For example, if classifying customers according to credit risk, replace the missing
value with the average income value for customers in the same credit risk category
as that of the given tuple.
6. Use the most probable value to fill in the missing value: This may be
determined with regression, inference-based tools using a Bayesian formalism, or
decision tree induction. For example, using the other customer attributes in your
data set, you may construct a decision tree to predict the missing values for income.

Need for Business Modelling:

The main need of Business Modelling for the Companies that embrace big data analytics
and transform their business models in parallel will create new opportunities for revenue
streams, customers, products and services. ... Having a big data strategy and vision that
identifies and capitalizes on new opportunities.

Analytics applications to various Business Domains

Application of Modelling in Business:
 Applications of Data Modelling can be termed as Business analytics.
 Business analytics involves the collating, sorting, processing, and studying of
business-related data using statistical models and iterative methodologies. The goal
of BA is to narrow down which datasets are useful and which can increase revenue,
productivity, and efficiency.
 Business analytics (BA) is the combination of skills, technologies, and practices used
to examine an organization's data and performance as a way to gain insights and
make data-driven decisions in the future using statistical analysis.

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Although business analytics is being leveraged in most commercial sectors and industries,
the following applications are the most common.
1. Credit Card Companies
Credit and debit cards are an everyday part of consumer spending, and they are an ideal
way of gathering information about a purchaser’s spending habits, financial situation,
behavior trends, demographics, and lifestyle preferences.
2. Customer Relationship Management (CRM)
Excellent customer relations is critical for any company that wants to retain customer loyalty
to stay in business for the long haul. CRM systems analyze important performance indicators
such as demographics, buying patterns, socio-economic information, and lifestyle.
3. Finance
The financial world is a volatile place, and business analytics helps to extract insights that
help organizations maneuver their way through tricky terrain. Corporations turn to business
analysts to optimize budgeting, banking, financial planning, forecasting, and portfolio
management.
4. Human Resources
Business analysts help the process by pouring through data that characterizes high
performing candidates, such as educational background, attrition rate, the average length
of employment, etc. By working with this information, business analysts help HR by
forecasting the best fits between the company and candidates.
5. Manufacturing
Business analysts work with data to help stakeholders understand the things that affect
operations and the bottom line. Identifying things like equipment downtime, inventory
levels, and maintenance costs help companies streamline inventory management, risks, and
supply-chain management to create maximum efficiency.
6. Marketing
Business analysts help answer these questions and so many more, by measuring marketing
and advertising metrics, identifying consumer behavior and the target audience, and
analyzing market trends.

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Data Modelling Techniques in Data Analytics:

What is Data Modelling?
 Data Modelling is the process of analyzing the data objects and their relationship to the
other objects. It is used to analyze the data requirements that are required for the business
processes. The data models are created for the data to be stored in a database.
 The Data Model's main focus is on what data is needed and how we have to organize data
rather than what operations we have to perform.
 Data Model is basically an architect's building plan. It is a process of documenting
complex software system design as in a diagram that can be easily understood.

Uses of Data Modelling:

 Data Modelling helps create a robust design with a data model that can show an
organization's entire data on the same platform.
 The database at the logical, physical, and conceptual levels can be designed with the help
data model.
 Data Modelling Tools help in the improvement of data quality.
 Redundant data and missing data can be identified with the help of data models.
 The data model is quite a time consuming, but it makes the maintenance cheaper and
faster.

Data Modelling Techniques:

Below given are 5 different types of techniques used to organize the data:
1. Hierarchical Technique
The hierarchical model is a tree-like structure. There is one root node, or we can say one parent
node and the other child nodes are sorted in a particular order. But, the hierarchical model is very
rarely used now. This model can be used for real-world model relationships.

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2. Object-oriented Model
The object-oriented approach is the creation of objects that contains stored values. The object-
oriented model communicates while supporting data abstraction, inheritance, and encapsulation.
3. Network Technique
The network model provides us with a flexible way of representing objects and relationships
between these entities. It has a feature known as a schema representing the data in the form of a
graph. An object is represented inside a node and the relation between them as an edge, enabling
them to maintain multiple parent and child records in a generalized manner.
4. Entity-relationship Model
ER model (Entity-relationship model) is a high-level relational model which is used to define data
elements and relationship for the entities in a system. This conceptual design provides a better
view of the data that helps us easy to understand. In this model, the entire database is represented
in a diagram called an entity-relationship diagram, consisting of Entities, Attributes, and
Relationships.
5. Relational Technique
Relational is used to describe the different relationships between the entities. And there are different
sets of relations between the entities such as one to one, one to many, many to one, and many to
many.

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RK VIGNAN VITS – CSE 23 | P a g e