Data Science with R

Lesson 1:-Introduction to Business

Analytics
• Need for Business Analytics
• Discuss Different types of Business Analytics
• Discuss Business Analytics Case Studies
• Explain the importance of Data Science
Need of Business Analytics
• Some businesses continue to work in traditional ways.
However, nowadays,
• All aspects of a business collect data and are equipped for data collection e.g. Supply chain management, Marketing
Campaign performance, Manufacturing operations and work flow procedures.
• The wide availability of data has lead in increasing interest in methods to extract useful information from data science.
• Organisations in almost every industry focus on exploiting data for competitive advantage.
Business Decisions
• What is the possibility that a customer will buy the product?
• Which should be the next recommended product?
• What is the “realistic” view of opportunity as a customer?
• Do any accounts exist in which there is substantial untapped revenue?
• Which sellers may miss their target orders?
• How to align sellers with customers opportunities to target maximum revenue Impact?
• Which factors can influence its product in the marketplace?
• Some others Questions that may arise:-
• Which customers are likely to go to its customers?
• Which type if talent is required to achieve its target?
• Which business segments are not performing as expected?
• What would be the optimal marketing strategy?
• Which employees can possibly leave the company voluntarily?
• How many employees are required to be hired to achieve its production goals in the next six months.
Introduction to Business Analytics
• Business Analytics:-
• It is a scientific process that transforms data into insight. Types presentations technological and quantitative.
• It is used for fact-based or data driven decision making
• Uses tools such as reports and graphs (simple), Optimisation, data mining, and simulation complex.
• Features of Business Analytics:-
1. Various Methodologies:-
• Methodologies include concepts from applied probability, applied mathematics, applied statistics, and computer science.
• Data produced helps gain meaningful insights into better business planning and business performance.
2. Decision Support Systems:-
• Solutions are primarily used as decision support systems or as their components.
• The solutions helps executives, salespersons, or other organisational leaders to make business decisions.
3. Business Continuity Support:-
• Business analytics support essential business functions.
• It also aids in functions such as hiring, attrition, improving retention, performing staff deployment, and decision strategy.
Types of Business Analytics
1. Descriptive Analytics
2. Predictive Analytics
3. Prescriptive Analytics
4. Supply Chain Analytics
5. Health Care Analytics
6. Marketing Analytics
7. Human Resource (HR) Analytics
8. Web Analytics
Descriptive Analytics
• Descriptive Analytics includes techniques that explains what has happened in the past,
examples Include.
1. Reports
2. Data Mining techniques
3. Descriptive Statistics
4. Data Queries
5. Data Dashboard
6. Basic what-if spreadsheet models.
Predictive Analytics
• Predictive Analytics includes techniques that use models created from past data to predict the
future or determine the impact of one variable on another. Below are few examples:-

1. A company can create a mathematical model for predicting the future sales by using past data on product
sales.
2. A food manufacturing company can estimate the measurement and quantity of unit sales by using the
point of sale scanner data from retail stores.
3. A Company can predict the market share of a new product by using the survey data and past purchase
behaviour.
4. Companies also use a few other predictive analytics techniques, such as time series analysis, linear
regression, data mining techniques, and simulation (risk analysis).
Prescriptive Analytics
• Prescriptive analytics specifies the best course of action for a business activity in the form of
the output of a prescriptive model. The models used in this analytics are called optimization
models. They are used in:-
1. Airline Industry:- Uses revenue management models and past purchasing data as input to get the best
pricing strategy across all flights.
2. Finance:- Uses portfolio models that utilize historical investment return data to decide the mix of
investment.
3. Operations:- Uses supply network design models that provide the cost minimizing plant and distribution
centre locations.
4. Retailing:- Uses price markdown models that provide the timing of decision offers and revenue-
maximising discount levels.