Data Science for Managers

BY
Dr Keerthi Jain
 Introduction to the Data Analytics Value Chain

The data analytics value chain represents the structured process of collecting, cleaning, analyzing,
and utilizing data to drive business decisions. It transforms raw data into actionable insights that
provide strategic value to organizations.
Key Stages of the Data Analytics Value Chain:
• Data Collection – Gathering raw data from multiple sources.
• Data Processing – Cleaning and preparing data for analysis.
• Data Storage & Management – Storing data efficiently in databases or cloud platforms.
• Data Analysis & Modeling – Applying statistical techniques and machine learning to derive
insights.
• Data Interpretation & Business Insights – Translating analytical findings into business decisions.
• Data-driven Decision Making – Implementing insights for competitive advantage.
• Real-Time Example:
A leading e-commerce company (Amazon, Flipkart) uses the analytics value chain to understand
customer purchasing behavior. They collect customer browsing and purchase history, process this
data to remove inconsistencies, analyze patterns using machine learning, and use insights to
personalize product recommendations.
 Overview of the Data Analysis Cycle: Connecting Data Science to Business
Problems
Overview of the Data Analysis Cycle: Connecting Data Science to Business Problems
• Data science bridges the gap between raw data and business problems by applying analytical
methods. The data analysis cycle involves:
• Problem Identification: Understanding business challenges (e.g., predicting customer churn).
• Data Collection: Gathering structured and unstructured data from various sources.
• Data Preprocessing & Cleaning: Handling missing values, duplicates, and inconsistencies.
• Data Exploration & Visualization: Understanding data trends before applying models.
• Model Building & Evaluation: Applying machine learning or statistical models to find patterns.
• Deployment & Decision Making: Implementing insights into business strategy.
Real-Time Example:
A bank (HDFC, ICICI) wants to detect fraudulent credit card transactions. They define the
problem, collect transaction data, clean it to remove incorrect entries, explore spending
patterns, apply machine learning models to classify fraudulent vs. legitimate transactions, and
deploy the system to prevent fraud in real-time.
 Work Cycle of a Data Scientist
A data scientist’s work cycle involves several critical tasks:
1. Data Wrangling (Preprocessing & Cleaning)
• Handling missing values
• Removing duplicate records
• Converting unstructured data into structured format
Example: A telecom company like Jio or Airtel cleans customer call records before analyzing user behavior.
2. Modeling (Building Predictive Models)
• Selecting appropriate machine learning models
• Training models using historical data
• Evaluating model accuracy
Example: A ride-hailing app (Uber, Ola) uses predictive modeling to estimate ride fares based on distance, time,
and demand.
3. Validation (Ensuring Model Accuracy & Reliability)
• Cross-validation techniques
• Performance measurement (precision, recall, RMSE)
Example: A healthcare provider (Apollo, AIIMS) validates its AI-driven disease prediction model before
deploying it to diagnose patients.
 Determining Data Quality: Key Aspects
High-quality data is crucial for effective decision-making. Poor data quality leads to incorrect business insights.
The major aspects of determining data quality include:
1. Data Cleansing
Removing inconsistencies, duplicate entries, and irrelevant data.
📌 Example: Netflix removes duplicate user preferences before recommending content.
2. Entity Matching
Matching records across multiple datasets (e.g., customer data from different sources).
📌 Example: Facebook merges duplicate user accounts when people accidentally create multiple profiles.
3. Imputation (Handling Missing Data)
Filling missing values using statistical methods.
📌 Example: A hospital (Apollo, Fortis) fills missing patient records by predicting values based on similar past
data.
4. Background Modeling
Identifying patterns in historical data to predict future trends.
📌 Example: Google Ads analyzes past ad interactions to suggest optimized campaigns.
5. Exploratory Data Analysis (EDA)
Visualizing data trends using graphs, histograms, and scatter plots.
📌 Example: A retail chain (Reliance, Big Bazaar) uses EDA to understand seasonal purchase trends.