PCBA116 MODULE NO.

12
Big Data Management
and Business Analytics
 Topics for Discussion
• Applications of Business Analytics
• Definition of Business Analytics
• Types of Business Analytics
• Importance of Business Analytics
BA Story No. 1
TARGET
• A furious father stormed into a
Target outlet in Minneapolis, USA,
complaining that 17-year old
daughter has started receiving
coupons for maternity clothes,
cribs, etc. from Target.
• The store manager apologized
profusely and made sure that the
17-year old daughter was taken off
the list.
• Four days later, the store manager
called to make sure that
everything was okay and to
apologize to the upset father once
again.
• The father in a soft voice
apologized back to the manager
saying that there were things
happening in his house that he
was unaware of.
• Apparently, Target knew that the
17-year old daughter was
pregnant way before the father
knew about it.
HOW?
• Answer: ANALYTICS.

• The daughter bought pre-natal

vitamins and scent-free soaps.

• If you buy these two items there is a

very high probability that you are in
your second trimester of pregnancy.
BA Story No. 2
GOOGLE
• The Center for Disease Control
(CDC) in the United States is
tasked to monitor epidemics and
outbreaks, determine the causes
and origins, and find the cure as
fast as possible.
• But Google can tell when and
where there is a flu outbreak
because people keep searching
for flu-related keyword phrases,
neighborhood by neighborhood.
• Google knows that there is a flu
outbreak two weeks before CDC
knows because they can look at
the data in real time. This is
ANALYTICS.
 BA Story No. 3
IBM’S PREDICTIVE
POLICING
• When we have earthquakes there
are aftershocks. In much the same
way, it has been found out that
there are also aftershocks when a
crime is committed; other crimes
happen in the same area.
• When there is a crime, the
criminal immediately goes to
where his friends are and brags
about it.
• Friends become envious and try
to compete and repeat the crime.
• This is ANALYTICS leading to
predictive behavior.
IBM television commercial depicts
predictive policing where a police
officer ends up at a store just
before a man shows up to try and
rob it.
• Predictive policing means using
data to anticipate crimes before
they actually happen.
BA Story No. 4
WAL-MART
• Wal-mart looked at its data to
determine by correlation analysis
based on weather patterns, and in
particular, hurricanes, what
products sell well when
hurricanes are forthcoming?
• The correlation analysis yielded
all the usual suspects, except for
one product.
• One product that consistently did
well in sales at times when
hurricanes are coming was
strawberry pop-tarts.
• The answer is in the data. This is
ANALYTICS.
• These stories lead us to ask:
WHAT IS BUSINESS
ANALYTICS?
• BUSINESS ANALYTICS is the
extensive use of data, information
technology, statistical and
quantitative analysis, explanatory
and predictive models, and fact-
based management to drive
decisions and actions.
• It includes a wide range of activities
and processes from data
identification and collection, to data
processing, to data analysis, to
decision making, and to
implementation and control.
• It entails BIG DATA characterized by:
VOLUME – quantity of data
VARIETY – different types of data
VELOCITY – the speed by which data is
created, processed and analyzed
VERACITY – level of uncertainty and
reliability
• The goal of BA in business is to
create smarter decisions, faster
decisions and decisions that make a
difference.

• These decisions are informed,

evidence-based and data-driven.

• BUSINESS ANALYTICS: TURNING

DATA INTO INSIGHTS
• Provides business users with better
insights, particularly from operational
data stored in transactional systems.
ANALYTIC COMPETENCIES

• MANAGE THE DATA (Information

Management)
• UNDERSTAND THE DATA (Analytic
Skills and Tools)
• ACT ON THE DATA (Data-oriented
Culture)
TECHNICAL SKILLS
• Education
• Analytical tools
• Computer science

NON-TECHNICAL SKILLS
• Intellectual curiosity
• Business acumen
• Communication skills
TYPES OF ANALYTICS

• Descriptive analytics
• Predictive analytics
• Prescriptive analytics
DESCRIPTIVE ANALYTICS

• Answers the questions:

WHAT HAPPENED?

WHY DID IT HAPPEN?

PREDICTIVE ANALYTICS

• Answers the question:

WHAT WILL HAPPEN?

WHEN WILL IT HAPPEN?

PRESCRIPTIVE ANALYTICS

• Answers the question:

WHY WILL IT HAPPEN?

WHAT SHOULD WE DO ABOUT IT?

WHY ANALYTICS?

• 2.5 quintillion bytes of data are

created everyday.

• 90% of the world data was

created in the last two years
alone.
WHY ANALYTICS?

• The International Data

Corporation (IDC) predicts that
between 2009 to 2020, digital
data will grow 44 times to 35ZB.
WHY ANALYTICS?

• In a survey of 422 European and

US executives in 2015, 43% said
that analytics and big data will
be the most important digital
competencies at their company.
WHY ANALYTICS?

• The US alone faces a shortage of

140,000 to 190,000 people with
analytical and managerial expertise,
and 1.5 million managers and
analysts with the skills to
understand and make decisions
based on the study of big data.
WHY ANALYTICS?

• The Business Analytics market is

expected to grow to US$16.52
billion in 2018.
WHY ANALYTICS?

• Companies will look to educational

institutions to provide essential
skills.

• Companies feel that 11% of new

hires are well-trained and ready to
go.