Introduction to Business Analytics

Fall 2013

Instructor: Stephen Mahar, Ph. D.

Associate Professor of Business Analytics
Villanova School of Business, Villanova University

Email: stephen.mahar@villanova.edu
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SYLLABUS
Description:

Analytics has been defined as the extensive use of data, statistical and
quantitative analysis, explanatory and predictive models, and fact-based
management to drive decisions and actions. Analytics is more than just
analytical methodologies or techniques used in logical analysis. It is a
process of transforming data into actions through analysis and insights in
the context of organizational decision making and problem
solving. Analytics includes a range of activities, including business
intelligence, which is comprised of standard and ad hoc reports, queries and
alerts; and quantitative methods, including statistical analysis, forecasting/
extrapolation, predictive modeling (such as data mining), optimization and
simulation.

Course Materials:

Selected readings and articles – distributed in class and/or posted online

Software:

Excel and Excel add-ins will be the primary software used throughout the
course. Both of the add-ins: XLMiner (available at www.solver.com/xlminer-
data-mining) and @Risk (www.palisade.com/trials.asp) are available as free
15 day trial versions.

Prerequisites:

Business Statistics

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Course Objectives:

1. To gain an understanding of how managers use business analytics to

formulate and solve business problems and to support managerial
decision making.

2. To become familiar with the processes needed to develop, report, and

analyze business data.

3. To learn how to use and apply Excel and Excel add-ins to solve
business problems.

Method:

This course stresses the factors that impact the performance of business
decision makers and the data management and analysis methods that have
value to them. This course includes lectures, presentations, and
demonstrations that emphasize discussion and illustration of methods, as
well as hands-on, practical exercises that provide both a sound base of
learning and an opportunity to test and develop skill. The use of software
supports the presentation of the material. Students complete assigned
readings, group projects, and participate in exercises and discussions.
Groups of about four students will form teams to work on the various
presentations.

Group Projects:

Student groups will be asked to complete a series of group projects that

apply analytics principles and techniques to a business problem. Students
are expected to make every effort to attend all classes.

Examination and Grading:

There will be a 1-hour written exam covering all material on Monday,

October 14.

Credits

3 ECTS in MMI or MBWL

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TENTATIVE COURSE OUTLINE*

I. Overview of Business Analytics

• Introduction to Analytics
• Davenport article - “Competing on Analytics”
• LaValle et al. article - “Analytics: The New Path to Value”

II. Visualization/ Data Issues

• Organization/sources of data
• Importance of data quality
• Dealing with missing or incomplete data
• Data Classification
• Davenport and Harris article - “The Dark Side of Customer Analytics”

III. Introduction to Data Mining

• Introduction to Data Mining

• Data Mining Process
• Data mining tool XLMiner (Excel add-in – free 15 day trial available at
www.solver.com/xlminer-data-mining)
• Loveman article – “Diamonds in the Data Mine”
• Market Basket Analysis – Shmueli Chapter 13
• Classification and Regression Trees – Shmueli Chapter 14

IV. Introduction to Decision Modeling

• Optimization
Use of Excel to solve business problems: e.g. marketing mix, capital
budgeting, portfolio optimization

• Decision Making under Uncertainty

Simulation
Introduction to @Risk (Excel add-in – free 15-day trial
available at www.palisade.com/trials.asp)

Types of problems: inventory management, capital

investment analysis, market share estimation, sensitivity
analysis

*The material is subject to change. All changes will be announced in

class with ample notice.

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Tentative Schedule

8th Oct to 11th Oct from 9am-3pm

On 14th Oct from 9am-1pm

Topic Total Daily

Date Topic Duration Duration
10/8 T Intro to Business Analytics 1:20
Break 0:10
Visualization & Data Issues 1:20
5:00
Break 0:10
Ethical Issues 1:00
Lab Work 1:00
10/9 W Data Mining - Intro 0:30
Data Mining - Market Basket 1:20
Break 0:10
Data Mining - CART 1:20 5:00
Break 0:10
Data Mining - CART wrapup 0:30
Lab Work 1:00
10/10 R Intro to Optimization, LP 1:00
Break 0:10
Optimization - LP continued 1:10
Break 0:10 5:00
Optimization - LP + Sensitivity Analysis 1:20
Break 0:10
Lab Work 1:00
10/11 F Intro to Simulation 1:20
Break 0:10
Simulation Wrapup 1:40
5:00
Break 0:10
Lab Work 0:40
Exam Review 1:00
10/14 M Advanced Applications 0:20
Integer Programming (IP) at Eli Lilly 1:00
Break 0:10
4:00
Ranking Sports Teams with NLP 1:20
Break 0:10
Exam 1:00