Dealing with Di,erent Types of Data FDA Unit 2

Data Fundamentals
1. Data
• Definition: Data refers to raw, unorganized facts and figures that can be
collected, stored, and processed. By itself, data may not have a specific
meaning, but it forms the foundation for all analysis.
• Examples:
o Individual sales transaction records.
o Website visitor counts for a specific day.
o A list of temperatures recorded by a sensor.
o Survey responses from a customer feedback form.

2. Data Sets and Data Sources

• Data Set: A data set is a structured collection of related data points. It is
typically organized into a tabular format, like a spreadsheet or a database table,
where columns represent variables and rows represent individual records.
• Data Sources: These are the origins from which data is collected. Identifying
and understanding data sources is the first step in any data analysis process.
o Internal Sources: Data generated within the organization (e.g., sales
data, employee records, website logs).
o External Sources: Data acquired from outside the organization (e.g.,
government statistics, market research reports, social media data).

3. Metadata
• Definition: Metadata is often called "data about data." It provides context and
descriptive information about other data, making it easier to find, use, and
manage.
• Purpose: It answers key questions about the data, such as:
o What is it? (e.g., file name, content description)
o Who created it? (e.g., author, department)
o When was it created? (e.g., timestamp)
o How is it formatted? (e.g., file type like .csv or .xlsx, data type like text or
number)

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Dealing with Di,erent Types of Data FDA Unit 2

4. ETL (Extract, Transform, Load)

• Definition: ETL is a three-phase process where data is moved from one or more
sources into a central destination, such as a data warehouse. It is a critical
component of data integration and business intelligence.
• Steps in the ETL Process:
1. Extract: Data is retrieved from various sources, which can be structured
(like databases) or unstructured (like social media feeds).
2. Transform: The extracted data is cleaned, validated, and converted into a
consistent format suitable for analysis. This step may involve removing
duplicates, standardizing formats, and enriching the data.
3. Load: The transformed data is loaded into the target system, such as a
data warehouse, where it can be accessed for analysis and reporting.
• Example: A retail company extracts daily sales data from all its stores (Extract),
converts all currency and date formats to a standard convention (Transform),
and then loads the standardized data into a central data warehouse for
company-wide performance analysis (Load).

5. Data Governance
• Definition: Data governance is the overall management of the availability,
usability, integrity, and security of the data in an enterprise. It establishes the
processes and responsibilities that ensure the quality and security of data.
• Goals of Data Governance:
o To ensure data is accurate, consistent, and reliable.
o To comply with regulations and policies (like GDPR or HIPAA).
o To improve data security and prevent unauthorized access.
o To make data more accessible and usable for decision-making.
• Example: A hospital implements a data governance framework to ensure that
patient records are kept confidential, are only accessible by authorized medical
staff, and are accurate and up-to-date, thereby complying with healthcare
regulations and improving patient care.

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Dealing with Di,erent Types of Data FDA Unit 2

Types of Analytics
1. Text Analytics
• Definition: Text analytics, also known as text mining, is the process of extracting
high-quality, relevant information from unstructured text data. It uses natural
language processing (NLP) and machine learning techniques to transform text
into structured data that can be analyzed to uncover patterns, topics,
sentiments, and other insights.
• Key Points:
o It deals with unstructured data like emails, documents, social media
comments, and customer reviews.
o The primary goal is to derive meaningful business intelligence from large
volumes of text.
o It helps organizations understand customer opinions, identify emerging
trends, and manage their reputation.
• Techniques Used:
o Sentiment Analysis: Determines the emotional tone (positive, negative,
neutral) behind a piece of text.
o Topic Modeling: Identifies the main topics or themes within a collection
of documents.
• Example: A company analyzes thousands of customer reviews for its new
product. Text analytics helps automatically categorize feedback into topics like
"battery life," "screen quality," and "price." Sentiment analysis then reveals that
customers are highly positive about the screen but have negative sentiments
regarding the battery life, allowing the company to focus its improvement efforts.

7 Steps of the Text Analytics Process

1. Text Gathering: Collect unstructured text data from various sources like social
media, websites, and internal documents.
2. Text Transformation: Clean the data by removing irrelevant information (like
HTML tags or ads) and structuring it for analysis.
3. Feature Selection: Identify the most relevant words and phrases (features) that
will be used in the analysis. This often involves ignoring common words like "the"
or "and."
4. Feature Extraction: Convert the selected text features into a numerical format
that machine learning models can understand.
5. Analysis & Pattern Mining: Apply data mining and machine learning algorithms
to the structured data to identify patterns, trends, and relationships.
6. Visualization: Represent the findings using visual aids like word clouds, charts,
and graphs to make the insights easy to understand.
7. Decision Making: Use the insights gained from the analysis to make informed,
data-driven business decisions.

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2. Web Analytics
• Definition: Web analytics is the process of collecting, measuring, analyzing, and
reporting on website data to understand and optimize web usage. The goal is to
improve the user experience and achieve business objectives like increasing
sales or generating leads.
• Purpose: It helps answer critical questions about a website's performance,
such as:
o How many people are visiting our website?
o Where are our visitors coming from?
o Which pages are the most popular?
o What actions are users taking on the site?

Benefits of Web Analytics

• Provides data-backed forecasts to support strategic planning.
• Optimizes marketing efforts, inventory, and workforce allocation.
• Helps anticipate problems before they occur, reducing risks.
• Enhances the customer experience by offering services based on predicted
behavior.

Key Components of Web Analytics

• Data Collection: Gathering data from website traffic, often using tools like
Google Analytics that place a tracking code on the website.
• Metrics (Performance Measurements): These are quantitative measurements
that track user behavior.
o Page Views: The total number of times a specific page is viewed.
o Sessions: A group of user interactions with your website that take place
within a given time frame.
o Bounce Rate: The percentage of visitors who navigate away from the site
after viewing only one page.
o Conversion Rate: The percentage of users who complete a desired goal
(e.g., making a purchase, filling out a form).
• Dimensions: These are attributes or characteristics of the data that provide
context to the metrics.
o Source: Where the traffic came from (e.g., Google, Facebook, a direct
link).
o Location: The geographical location of the user (e.g., country, city).
o Device: The type of device used to access the site (e.g., desktop, mobile,
tablet).
• Analysis and Insights: Interpreting the data to find actionable insights.
o Identify High Traffic Pages: Discover which content is most popular with
your audience.
o Find Drip-off Points: Identify where users are leaving your site, which can
indicate problems with a specific page or process (like a checkout
funnel).
o Spot Traffic Sources: Understand which channels are most effective at
driving visitors to your site.

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• Reporting and Visualization: Presenting the findings to stakeholders using

dashboards, charts, and reports to facilitate decision-making.

3. Marketing Analytics
• Definition: Marketing analytics is the practice of measuring, managing, and
analyzing marketing performance to maximize its effectiveness and optimize
return on investment (ROI).
• Purpose: To evaluate the success of marketing initiatives by tracking key
performance indicators (KPIs) and understanding how different campaigns
contribute to business goals.
• Real-time Example: An e-commerce company runs two different digital ad
campaigns (A and B). Using marketing analytics, they track the click-through
rates and conversion rates for each ad in real-time. They quickly see that Ad A
has a much higher ROI and decide to shift more of their budget from Ad B to Ad A
to maximize sales.

Key Components of Marketing Analytics

• Data Collection: Gathering data from various sources like CRM systems, social
media platforms, email marketing tools, and ad networks.
• Metrics: Measuring performance through KPIs such as Cost Per Lead (CPL),
Customer Acquisition Cost (CAC), and Customer Lifetime Value (CLV).
• Types of Marketing Analytics: Includes social media analytics, campaign
analytics, and customer analytics.
• Tools Used: Google Analytics, social media analytics platforms (e.g.,
Hootsuite), and CRM software (e.g., Salesforce).
• Analysis and Insights: Analyzing the data to understand campaign
effectiveness and customer behavior.
• Reporting and Decision Making: Creating reports and dashboards to inform
marketing strategy and budget allocation.

Benefits of Marketing Analytics

• Better Decision Making: Provides concrete data to guide marketing strategies.
• Optimized Budget: Helps allocate resources to the most effective channels and
campaigns.
• Higher ROI: Maximizes the return on marketing investments by focusing on what
works.
• Improved Targeting: Leads to a better understanding of the target audience,
allowing for more personalized and effective marketing messages.