EXCELLENCE AND VIRTUE

CS191-3P
Introducti
on to Data
Analytics
 Learning
Objectives
- Understand the fundamentals of Data
Analytics

- Identify and Explain the Phase of the

Data Analytics Lifecycle

- Apply the Data Analytics Lifecycle to

Real World Scenarios
What is Data?

In the context of data analytics, data serves as the

foundational element that drives the entire process. It can
be defined as raw facts, observations, or measurements
that are collected from various sources. These sources can
include databases, surveys, sensors, social media
platforms, customer interactions, and many other
channels. Data is the fundamental material that holds
information, and it can take various forms and formats.
Types of Data:
Data can be classified into different types based on its nature and
structure.
The two main types of data are structured and unstructured data.

Structured Data:
Structured data refers to data that is organized in a predefined format,
typically residing in databases or spreadsheets. It is highly organized and
easily searchable. Examples of structured data include numerical values,
dates, customer information, transaction records, and survey responses.
Structured data is well-suited for analysis and can be easily processed
using various data analytics techniques.
Unstructured Data:
Unstructured data refers to data that does not have a predefined format or
organization. It can come from diverse sources, such as social media posts,
emails, documents, videos, or sensor data. Unstructured data is more
challenging to analyze due to its lack of organization and standardization.
However, it contains valuable insights and patterns that can be unlocked
through advanced data analytics techniques.
Data Formats:
Data can also be classified based on its format, which provides
information about how the data is represented. Common data formats
include numerical, categorical, and textual data.

Numerical Data:
Numerical data consists of quantitative measurements or values. It can be
continuous, such as temperature readings or stock prices, or discrete, such
as counts or ratings.
Numerical data allows for mathematical calculations, statistical
analysis, and visualization.

Categorical Data:
Categorical data represents qualitative attributes or characteristics. It
includes data that can be divided into categories or groups, such as
gender, product types, or customer segments. Categorical data is often
represented as labels or codes, enabling us to perform analysis based on
different categories.

Textual Data:
Textual data comprises written or spoken words, sentences, or paragraphs.
It can be found in sources like customer reviews, social media posts, or
articles. Analyzing textual data involves techniques such as natural
language processing (NLP) to extract insights, sentiment analysis, or text
classification.
Importance of Data Collection:
Data collection plays a critical role in the data analytics process, as it
involves gathering relevant data from various sources and organizing it for
analysis. Effective data collection is vital for accurate and reliable analysis,
leading to valuable insights and informed decision-making.

Data collection serves as the foundation for analysis, providing the raw
material for extracting insights and identifying patterns. It ensures the
accuracy and reliability of the analysis, as rigorous data collection
procedures minimize errors and biases. Informed decision-making relies on
accurate and relevant data, allowing organizations to optimize processes,
mitigate risks, and gain a competitive advantage.
By systematically collecting data over time, organizations can
observe changes, detect emerging patterns, and make proactive
decisions. Data collection also enables organizations to assess and
ensure the quality of the data, enhancing its integrity for analysis.
Ethical considerations, such as privacy regulations and data
protection laws, must be taken into account during data collection.

Choosing appropriate data sources and methods is crucial for

effective data collection. Different sources, such as surveys,
interviews, or observations, offer distinct advantages and
limitations. By carefully considering data sources, organizations
can collect relevant and reliable data for analysis.
Understanding Data Analytics

Data analytics is a comprehensive process that involves

examining vast amounts of data in order to extract meaningful
insights and identify patterns. It is an essential tool for
organizations looking to make data-driven decisions and gain a
competitive advantage in today's data-rich environment.
At its core, data analytics utilizes
various analytical techniques to
analyze and interpret data,
revealing valuable information that
can drive decision-making
processes. Through the application
of
statistical analysis, data mining,
machine learning algorithms, and
other advanced methods, data
analysts are able to uncover
hidden patterns, relationships, and
trends within the data.
Data analytics can be categorized into
different types, each serving a
specific purpose:
●Descriptive Analytics: Descriptive analytics
focuses on summarizing and visualizing
historical data to gain an understanding of
past events and trends.
This type of analysis helps organizations
answer questions like "What happened?" and
"What are the key characteristics of the data?"
Descriptive analytics techniques include data
aggregation, data visualization, and
exploratory data analysis.
●Diagnostic Analytics: Diagnostic analytics goes
a step further by seeking to determine the
causes behind certain outcomes or trends
observed in the data. It aims to answer
questions such as "Why did it happen?" and
"What factors influenced the outcomes?"
Diagnostic analytics involves conducting root
cause analysis, hypothesis testing, and drill-
down analysis to uncover the underlying factors
contributing to a particular situation.
●Predictive Analytics: Predictive analytics
leverages historical data to make informed
predictions about future events or behaviors. By
identifying patterns and relationships in the
data, organizations can anticipate future
outcomes and trends. Predictive analytics
techniques include regression analysis, time
series forecasting, and data modeling using
machine learning algorithms.
●Prescriptive Analytics: Prescriptive analytics
takes predictive analytics a step further by
providing recommendations or actions to
optimize outcomes based on the analysis of
data. This type of analysis helps answer
questions such as "What should we do?" and
"What is the best course of action?" Prescriptive
analytics employs optimization algorithms,
simulation models, and decision trees to
generate actionable insights and guide
decision-making processes.
Real-world examples across industries showcase the wide
application of data analytics. In the retail industry, data
analytics is used to understand customer buying
behavior, optimize inventory management, and
personalize marketing campaigns. In healthcare, it aids in
predicting disease outbreaks, optimizing patient
treatment plans, and improving operational efficiency. In
finance, data analytics enables risk assessment, fraud
detection, and investment strategies. Marketing
departments utilize data analytics to segment customers,
analyze campaign effectiveness, and optimize pricing
strategies.
 Overall, data analytics plays a crucial role in driving
decision-making processes and empowering
organizations to make informed choices based on data-
driven insights. By leveraging the power of data,
organizations can uncover valuable information, identify
market trends, enhance customer experiences, and
enable proactive strategies that lead to improved
outcomes and competitive advantage.
Importance of Data Analytics

Data analytics enables organizations to make decisions based on

evidence and insights derived from data. By analyzing and
interpreting data, organizations can uncover patterns, trends, and
correlations that provide valuable insights. This data-driven
decision-making approach reduces reliance on intuition or
guesswork and enables organizations to make more accurate,
objective, and informed choices.
 Data analytics helps organizations optimize their
operational efficiency and overall performance. By
analyzing data, organizations can identify bottlenecks,
inefficiencies, and areas for improvement. This insight
enables them to streamline processes, allocate resources
effectively, and enhance productivity. Data analytics
allows organizations to make data-backed decisions that
lead to cost savings, time optimization, and improved
overall operational efficiency.
Key Concepts of Data Analytics

Data analytics is a field that revolves around several key concepts

essential for understanding its principles and applications. These
concepts form the foundation of data analytics and enable
organizations to derive meaningful insights from data.
Data-Driven Decision Making:
Data-driven decision making emphasizes using
data and analysis to guide decision-making
processes. It involves relying on objective
evidence and insights derived from data analysis
rather than relying solely on intuition or
experience.
By adopting a data-driven approach,
organizations can make informed choices
backed by data insights, leading to more
accurate and effective decision making.
Insights:

Insights are valuable pieces of information

obtained through data analytics. When data is
analyzed and interpreted, it reveals patterns,
trends, and correlations that were previously
unknown or not readily apparent. Insights provide
organizations with a deeper understanding of their
operations, customers, and market dynamics.
They serve as the basis for informed decision
making and strategic planning.
Patterns:

Patterns refer to recurring structures or behaviors

identified within datasets during data analytics.
Analytical techniques help identify these patterns
by examining data points, relationships, and
trends. Recognizing patterns allows organizations
to understand underlying dynamics, make
predictions, and uncover opportunities or risks.
Identifying patterns is vital for understanding the
past, present, and potential future trends in the
data.
Data Exploration and Visualization:
Data exploration involves investigating the data to
gain a comprehensive understanding of its
characteristics, structure, and relationships.
Visualization plays a crucial role in data
exploration, as it enables analysts to represent
data in visual formats such as charts, graphs, and
dashboards. Data visualization makes it easier to
identify patterns, trends, and outliers within the
data, leading to a more intuitive and
comprehensive understanding of the insights
hidden within the data.
Statistical Analysis:
Statistical analysis is a key component of data
analytics. It involves applying statistical
techniques to analyze data, identify relationships,
and draw meaningful conclusions. Statistical
analysis enables organizations to quantify and
validate patterns, perform hypothesis testing, and
make reliable predictions. It provides a solid
framework for data-driven decision making and
enables organizations to make informed choices
based on statistical evidence.
Predictive Modeling:
Predictive modeling utilizes historical data to make
informed predictions about future events or
behaviors. By building models based on historical
data, organizations can forecast trends, anticipate
customer behavior, and make proactive decisions.
Predictive modeling involves the use of statistical
algorithms, machine learning techniques, and data
mining to identify patterns and make predictions.
 Do you
have any
questions
?
EXCELLENCE AND VIRTUE