r (emer Hs asic Business Analysis Using R Analytics relies on the application of statistics, computer programming and operations | Present FEES ees | Ability Analytics is all about ition and experience. Actually intuition and experience is invaluable, but they should be taken together with facts in analytics. 455 | tah cocaine 727306 ‘A business is more comfortable with analytics. ‘Anal This is when data that is hardly appreciated, sitting on technology that is hardly seen, PS ‘comes together with mathematics that the person can hardly compute, comes together. And Dat also allows you to make. Da PET a tence ne ‘The difference between Business Analytics and Business Analysis is as follows, 9 Table Lt ‘Business Intelligence : se | Point for inetone aibaies Pein daahae | at No. | Comparison business intelligence is imi 1. | Focus Business Analytics focus on data | The Business Analysis focus Business Ineligence i and reporting and analyzing past | on functions and processes __itsights and extracting inf data"of ‘bisiess. performance | and identifying "business In busines intligen and predicting future business | needs and recommending} business performance. solutions. Data Science : Career overview | Business Analytics communicate | Business Analysis evaluate Duress with findings to stakeholders and | an organization's business wide may of complet senior management through | model, including documents, he ak oa summaries, graphs and.| processes, systems, and. aa Des ae forecasting modes. Business | technologies, 12Basic Business Analysis UsingR Business Analytics Basics A Analytics look at sales of | Business analysis collect and 28 figures, competitive market | ranslate business problems and esearch and logistics data to| and requirements into ina interpret meaningful trends, gaps | Janguage understandable by and opportunities. the technical team: | | Required skills | Business Analytics requires: | Business Analysis requires: Data visualization and | Ability to work well with ince presentation skills, others. ‘Vin the Programming skills in the | Ability to speak in the languages used in organization, | technical terms used by ze Ability to translate mathematical | imemml departments, and statistical methods and Understanding of the % results into business language to | specific technologies that the viding the present to stake holders and | organization is used. Lae oe ‘The skill of understanding of the specific technologies that eens cat the organization is using Job openings | Job Openings for Business Job Openings for Business Analytics are: Analysis are: is hardly seen, Data analyst ‘Strategy consultant. together, And ‘Data technician Funetion analyst ‘Data manager. Business analyst. Raa Operations analyst. follows : ‘Business Intelligence Business Intelligence can be thought of as a part of the bigger picture, Furthermore ‘business intelligence is limited in the scope ofthe business. ‘Business Intelligence is about developing dashboards, organizing data, creating business insights and extracting information that help to grow the business. ‘In business intelligence, past data is analysed to understand the current trends of the ‘business, Data Science + ‘Data science isthe bigger pool containing greater information. Data science makes use of ‘awide array of complex algorithms, statistics and predictive models. “The tools of a data scientist involve complex algorithmic models, data processing and even big tools. Data science focuses on generating reports based om the internal structured ‘ata. Data science focuses on generating insights out ofthe data. These insights are generated vess Analysis focus ions and processes cenifying business ‘and recommencing, ss Analysis evaluate ‘ganization’s business |, including documents, asses, systems, and nolosies aBasic Business Analysis Using ctive aalytics and the output presented is not a report but ae lt as a result of complex pred model This data model is predictive platform that uses Machine Learning ain fu sain futur, insights and capture trends in the data. The Business Intelligence and Data Science both revolve around data. The difereney between business intelligence and data science is as follows Table 1.2 Sr. No. Hisiness Intelligence Data Science 1. _ | Business Intelligence deals with da fe ssson tees pin, [SE So ea 2, | Business Intelligence handles static | Data Sciences handles both structured and structured data, and unstructured data that is also dynamic, 3. | Business Intelligence analyses the | Data Scionose analyses past data for past data. future predictions. 7 Business Intelligence stores data, | Data’ Sciences, data wilized in mostly in data warehouses, distributed in real time cluster. 5. | Business — Intelligence “helps to | Questions are both curated and solved companies to solve the questions. by data scientists, 6. | The tool used in business intelligence | The tool used by Data Sclentiss aw : are : MS-Excel, Microstrategy. Python, R, Hadoop. Business Analyst Analyst Vs Business Analyst The difference between Data Analyst and Business Analyst as follows Data Analyst 1. Business Analyst focuses on the larger business implications of data and actions that should result from them, such as whether the company should develop a new product line to prioritize one project over another. 1. Data Analyst involves combing through massive data sets to reveal patterns and trends, draw — conclusions about hypotheses, and support business decisions with data based insights. 2. The term business analytics refer to a combination of skills, tools and applications that allows businesses to measure and improve the effectiveness of core business functions such as marketing, customer services sales of it. 2. Data Analyst attempt to answer questions such as “what is the influence of geography or seasonal factors on customer preferences?” or “what is the likelihood a customer defeat 10 @ competitor?” The practice of data analytics encompasses many diverse techniques and approaches and is also frequently referred to as data science, data mining and data modelling. 14Descriptive analytics Type of analytics Prescriptive analytics Fig. 11 Big data analytics cannot be considered as one-size fits all strategy. In fact, what distinguishes a best data analyst from others is, their ability to identify the kind of analytics that can be benefit the business. The three dominant types of analytics - Descriptive, Predictive and Prescriptive analytics are interrelated solutions helping companies make the most out of the big data that they have. Each of these analytic types offers a different insight. 1.7.1 Descriptive Analytics Descriptive Analytics is a preliminary stage of data processing that create a summary of historical data to yield useful information and possibly prepare the data for future analysis. Data mining and data aggregation are the methods to organize the data and to make it possible to identify patterns and the relationships in it that would not otherwise be visible. Descriptive analytics are useful because they A allow us to learn from past behaviours, and understand how they might influence future ‘outcomes. The vast majority of the statistics we use fall into this category such as basic arithmetic, sum averages, percentages etc. Fig. 12: What has happened? Applications of Descriptive Analytics : There are some common applications of Descriptive Analytics which are as follows : 1. Summarizing past data or events such as regional sales, customer attrition or success of marketing campaigns. 2. Tabulation of social metrics such as facebook likes, tweets or followers. 3. Reporting of general trends like news trends, not travel destinations. Procedure of Descriptive Analytics : © Descriptive analytics are used to describe the basic features of data in a study. © They provide simple summaries about the sample and the measures. © With simple graphics analysis, they form virtually the basis of every quantitative analysis of data. “ 15Basic Business Analysis Using R Busi 1.7.2 Predictive Analytics Anat Bag, ‘What could happen in the future based on previous trends and patterns ? x Vint cou happen inthe future based ke *& (on previous trends and patterns Fig 1.3 (b) Predictive analytics encompasses a variety of statistical techniques from data mining, predictive modelling and machine learning that analyze current and historical facts to make predictions about future or otherwise unknown events. In business, predictive models exploit patterns found in historical and transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk. or potentially associated with a particular set of conditions, guiding decision-making for candidate transaction. 16Basle Business Analysis Using R Business Analytics Basics Predictive analytics is often defined as, “predicting at a more detailed level of granularity ic. generating predictive scores (probabilities) for each individual organizational element”. Applications of Predictive Analytics Predictive analytics can be put to use in many applications as follows 1, Analytical Customer Relationship Management (CRM) : Analytical customer relationship management is a frequent commercial application of predictive analysis. Methods of predictive analysis are applied to customer data to pursue CRM objectives. CRM uses predictive analysis in applications for marketing campaigns, sales and customer services to name a few. 2. Child Protection : Over the last 5 years, some child welfare agencies have started using predictive analytics | to flag high risk cases. 3. Clinical Decision Support Systems : Experts use predictive analysis in health care primarily to determine which patients are at risk of developing certain conditions, like diabetes, asthma, heart disease and other lifetime "illness. 4. Collection Analytics : _ Many portfolios have a set of delinquent customers who do not make their payments on time. The financial institution has to undertake collection activities on these customers to _ ecover the amounts. 5. Customer Retention : With the number of competing services available businesses need to focus efforts on ‘maintaining continuous customer satisfaction, rewarding consumer loyalty and minimizing ‘customer attrition. 6. Direct Marketing : When marketing consumer products and services, there is the challenge of keeping up ‘with competing products and consumer behaviour. Apart from identifying prospects, predictive analytics can also help to identify the most effective combination of product versions, marketing material, communication channels and timing that should be used to target a given consumer. 7. Fraud Detection : Fraud is big problem for many businesses and can be of various types inaccurate credit applications fraudulent transactions identify thefts and false insurance claims, 17Predictive Analytics Process + The process of predi 1 2; 3. 7. Data collection z Baia anaes z Siaistes a Modeling t Baslyornent x edar monitoring ig 14 follows : ject outcomes, business objectives, Se, tive analytics is as First define the Pro a sets that are going to be used. ides a complete view of customer intera ‘data from multiple sources for amin > is Define Project effort and also identify the dat Data Collection : This provi mining for predictive analytics prepares Data Analysis : Data Analysis is the process of inspecting, leaning ang jon arriving at conclusine aa vith the objective of discovering useful informat tandard statistical models, statistical analysis eng ables Statistics : By using st oniidate the assumptions, hypothesis and test them. Modelling : Predictive modelling provides the ability t0 automaticay ‘ure. There are also options to choose ce accurate predictive modes about ful tion. dep J deployment provides the option to solution with multi-model evalua Development : Predictive mode fo everyday decision-making process to get resuls, .d on the modelling. * pons analytical results int output by automating Model Monitoring : Models performance to ensure that itis the decisions base: ‘are managed and monitored to review the providing the results expected. = 41.7.3 Prescriptive Analytics What should a business do? Fig. 1.5 : Prescriptive Analytics 18Basic Business Analysis Using R _ Business Analytics Basics Prescriptive analytics is the third and final stage of business analytics, which also includes descriptive analytics and predictive analytics. | Prescriptive analytics entails the application of mathematical and computational sciences " and suggests decision options to take advantage of the results of descriptive and predictive analytics. The first stage of business analytics is descriptive analytics, which will accounts for the majority of all business analytics today. Second stage of business analytics is predictive analytics which make predictions about future or unknown events. But prescriptive analytics not only anticipates what will happen and when will happen, but also why it will happen. Prescription analytics suggests decision options on how to take advantage of @ future _ opportunity or mitigate a future risk and shows the implication of each decision-option. Prescriptive analytics can continuously take in new data to repredict and represcribe, thus automatically improve prediction accuracy and prescribing better decision options. | Prescriptive analytics ingests hybrid data, in a combination of structured and unstructured " data and business rules to predict what less ahead and to prescribe how to take advantage of “this predictive future without compromising other priorities. One criticism of prescriptive analytics is that, its distinction from predictive analytics is ill-defined and therefore ill-conceived. : Natural language processing ‘Computer. Applied vision ‘statistics Operation oustal oman snalysis, a Machine Teaming Metahetuistes props ng Fig. 1.6 All three phases of analytics can be performed through professional services or technology of combination. In order to scale, prescriptive analytics technology need to be adaptive to take into account the growing volume, velocity and variety of data that most mission critical processes and their environments may produce. Applications of Perspective Analytics : 1. Applications in Oil and Gas : Prescriptive analytics software can help with both locating and producing hydrocarbons by taking in seismic data, well log data, production data, and other related data sets to prescribe specific recipes for how and where to drill complete, and produce wells in order to optimize recovery, minimize cost, and reduce environmental foot print. 19In Business Analytics data plays an important role as the w /orkplace becos tech-driven and fast-spaced, data analysis and the skills gained from mes data, BS Data and data analytics are very important for business over the centuries. For the simple reason that data help m business is faring and what needs to be done. for several reasons. Ihas bee wnagers (0 understand thay, jon Most of the businesses worth their name are online now-a-days. They mark thet y i bresence through a website simple or complex or even an e-commerce poral i ct om People to order online. This makes data very important for business analytice, ” Some important factors of data for business analytics are: (a) Bounce Rate : The frst data should concer any business is the bounce rate of the, website, Lower bounce rates indicates that custome interested in the business a genuine and which to tearm more about its offspring. On the other hand, bighe, bounce rate is a clear signal that something is very good. (b) Demographies : Gathering data about who is visiting website of the business and from which location is also very important. It helps to understand whether the business is reaching the right target or not, (©) Conversion Rate : Online marketing campaigns, though economical compared ove traditional media advertising, does cost money. And if these campaigns are nq leading to adequate conversions as customers, there is a need to review the ene marketing strategy. This is done by 2 simple method of calculating cos pu conversion, (@) Predicting Client Behaviours : Predicting client behaviour is not an requires very skilled data analysts, strong back-up of data, software, with customer relations management system. 'Y easy task. It and integration For this, online data is very important that a business captures from a website and its analysis can provide an important knowledge of client behaviour. (©) Helps Decision-Making : Data and data analytics are invaluable when it comes to decision-making for any business. They provide insight whether the business is headed in the right direction or something needs to be done to steer it on desired track or not. It helps identify market trends and needs while finding why specific products ot services are faring well while others lag behind. Thus, data can help to business analytics to take vital decisions, including market expansion, widening the range of products and their services and prices of products. Lizeran le a te workplace beret skis gained fom data. Ra Fhe cote mic fer impor for bases fr ere son Wy Basins as he sl eson that ta belp manages cece ete business faring and what needs tobe dene “ol (©) Demographics : Gathering data about whois visting website of the business tion is also very important. It helps to undersia a and whether business is reaching the right target or not, “aa + Online marketing campaign, traditional media advertising, does cost money. And if these ‘campaigns are gy) leading to adequate conversions as customers, there is & need TEVieW the entice ‘marketing strategy. This is done by simple method of calculating cos. yep conversion, (4) Predicting Client Behaviours : Predicting client beha vious is MOL any easy ask ‘equires very skilled data analysts, strong back-up of data, software, and ‘negation ‘with customer relations management system, For this, online data is very important that a busine analysis can provide an important knowledge of (©) Helps Decision-Making : Data and data analyis ave invaluable when it comes to decision-making for any business, They Provide insight whether the business is headed in the right direction or something needs to be done to steer it ‘on desited | track or not. 88 captures from a website and tg client behaviour, It helps identify market trends and needs while finding hy specific products or services are faring well while others ‘ag behind, Thus, data can help to business analytics to take vital decisions, ‘including market expansion, widening the range of Products and their services and prices af products, imBusiness Analysis Using R lyties By FET YMTacne ad ee ene Grae Jn Business Analytics data plays an important role as the workplace becomes my tech-driven and fast-spaced, data analysis and the skills gained from data, Data and data analytics are very important for business for several reasons. It has been xer the centuries, For the simple reason that data help managers to understand thay, ey business is faring and what needs to be done. Most of the businesses worth their name are online now-a-days, They mark theig onli Presence through a website simple or complex or even an e-commerce portal that alloy People to order online. This makes data very important for business analytics, ‘Some important factors of data for business analytics are : (@) Bounce Rate : The first data should concem any business is the bounce rate of te website, Lower bounce rates indicates that customers interested in the business ¢ genuine and which to learn more about its offspring. On the other hand, high bounce rate is a clear signal that something is very good. (©) Demographics : Gathering data about who is visiting website of the business an from which location is also very important. It helps to understand whether th business is reaching the right target or not. (©) Conversion Rate : Online marketing campaigns, though economical compared ove traditional media advertising, does cost money. And if these campaigns are ne leading to adequate conversions as customers, there is a need to review the ent marketing strategy. This is done by a simple method of calculatin 1B COst per conversion. (@ Predicting Client Behaviours : Predicting client behaviour is not any easy tsk. requires very skilled data analysts, strong back-up of data, software, and integration with customer relations management system. For this, online data is very important that a business captures from a website and its analysis can provide an important knowledge of client behaviour, (©) Helps Decision-Making : Data and data analytics are invaluable when it comes to decision-making for any business. They provide insight whether the business is headed in the right direction or something needs to be done to steer it on desired track or not. : It helps identify market trends and needs while finding why specific products ot services are faring well while others lag behind. Thus, data can help to business analytics to take vital decisions, including market expansion, widening the range of products and their services and prices of products. 112Basic Business Analysis Using R Business Analytics Basics Ee enero ee 4.11.1 Data Data are the minimal semantic unit and correspond to primary elements of information ‘which by themselves are irrelevant to support in decision-making. Data can also be seen as a discrete set of values that say nothing about why of the things and are not indicative for action, Data can be a collection of facts stored in a physical place and a role, an electronic devices such as CD, DVD etc. In this regard, the information technologies have contributed a Jot to data collection. ‘As might be expected, the data can be come from the internal and external sources of the organization, can be objective or subjective quantitative or qualitative etc. 4.14.2 Information Information can be defined as, “a set of data processed and that have meaning, purpose and context and therefore useful for who should make decisions by reducing uncertainty”. Data can be transformed into information adding value of : 1. Contextualizing : We know that, in what context and for what purpose the information is generated. 2. Categorizing : The units of measurement that help interpret are known. 3. Calculating : The data can be processed mathematically or statistically. 4, Righting : They were eliminated errors and inconsistencies in the data. . Condensing : More concisely the data condensing have been summarized. ‘Therefore, information is the communication of knowledge or intelligence and is able to | change the way to the receiver perceives something, impacting on their value judgement and their behaviours. 4.11.3 Knowledge Knowledge is a mixture of experiences, values, information and know-how that serves as 4 framework for incorporating new experiences and information and is useful for action. In organizations often not only we found within the documents or data stores but is also organizational routines, processes, practices and standards. Knowledge is derived from the information as well as information derived from the data. for information to became knowledge it is necessary to perform actions such as : (a) Comparison with other elements. (b) Predicting consequences. (c) Search for connections. (4) Conversation with other carriers of knowledge, 1aBasic Business Analysis Using R_ Cire. The various stages of an organization in terms of data maturity are a ae fe Stage 1: Collection of Basic Data: You can not be data-driven With, oll stage you are collecting the basic information, but you do not know hese agg 4 wit © Strateg, Aly Bas lows do with this data. Stage 2 : Collection of Data systematically: There is intention collection of data. You are regularly collecting data and organize S¥stemant yo can sort it and create the report about it. tical, ; t rN Stage 3 : Get the Community Feedback : AC this third stage, you ie « track basic information. You need to find out how your constituents or tea members feel about your programs. Now, you begin conducting Surveys eg Wt cont how your non-profit is doing. Bet feag Stage 4 : You are responding to feedback and matching adjustments 7 You are also noticing patterns in your data and are coming up with Ways to ae ot Pp are getting. tess Stage § : Look at your data and you will see whether your changes difference. Use the data to think about what you want to accomplish ang Set spear My your programs based on the numbers. *PECifie Pi Stage 6 : Take Data-Driven: Decision Data is decision process. You move from small-scale to I evaluate success on organizations issues. 8 part of Your day-to-day wo large-scale applications Of data ales "Magi, sion-making across an organization fidence you can have in your design s provement in result. For this, date May vi Improved data quality leads to better deci high-quality data is required, then the more cor data decreases risk and can result in consistent im important in the organization. Data Quality : Business — Applied knowledge ‘outcomes: Decision Actionable ‘quality information Informative - Information | quality Data in Data ~ context quality | Fig. 1.7 114