Introduction to Business Analytics.pdf

Presentation on Introduction to Business Analytics for BBA students

1. BUSINESS ANALYTICS
By
Prof. Suku Thomas Samuel
Department of Management

2. Introduction to Business Analytics
•Name of the course: Business Analytics
•Course code : BBA203B63
•Number of credits: 3
•Marks for the course: 75 marks
: 50 marks for ESE + 25 marks for CIA

3. Business Analytics: BBA203B63
Chapter nameChapter No
Introduction to Business Analytics1
Types of Business Analytics2
Digital Data and Data Warehouse3
Risk Return Measurement4

4. Chapter 1
Introduction to Business Analytics
By
Prof. Suku Thomas Samuel
Department of Management

5. Key terminologies
Dataisasequenceofcharactersorsymbolsthatarestoredand
processedforanalysispurposes.
Adatabaseisanorganizedcollectionofstructuredinformation,or
data,typicallystoredelectronicallyinacomputersystem.
Arelationaldatabaseisatypeofdatabasethatstoresandprovides
accesstodatapointsthatarerelatedtooneanother.Relational
databasesarebasedontherelationalmodel,anintuitive,
straightforwardwayofrepresentingdataintables.

6. DIKW Pyramid

7. Business Analytics
What is Analytics?
Analytics is the process of discovering, interpreting, and
communicating significant patterns in data.
Applying analytics in context to business scenarios is called as
Business Analytics.

8. Business Analytics
•Businessanalytics(BA)referstotheskills,technologies,and
practicesforcontinuousiterativeexplorationandinvestigationof
pastbusinessperformancetogaininsightanddrivebusiness
planning.
•Businessanalyticsfocusesondevelopingnewinsightsand
understandingofbusinessperformancebasedondataandstatistical
methods.
•Businessanalyticsmakesextensiveuseofanalyticalmodelingand
numericalanalysis,includingexplanatoryandpredictivemodeling,
andfact-basedmanagementtodrivedecisionmaking.

9. Steps to Business Analytics
Data
driven
decisions
Analysis
to generate
insights
Processing
Data
Collecting
Data

10. History of Business Analytics
•1865-Stayingahead
Mr.RichardMillerDevensdescribedinhisbook-Cyclopaediaof
CommercialandBusinessAnecdotes,howSirHenryFurnese,a
Britishbankerof16
th
century,wasalwaysonestepaheadby
activelygatheringinformationandactingonitbeforeanyofhis
competitors.
•1890-IntroductionofScientificManagement
IttookoversevenyearsfortheU.S.CensusBureautoprocessthe
collectedinformationandcompleteafinalreport.InventorHerman
Hollerithproduceda“tabulatingmachine”.Thetabulatingmachine
helpedinprocessingdatarecordedonpunchcardandthecensusof
1890wasfinishedin18months.

11. History of Business Analytics
•Late1800s-IntroductionofScientificManagement
FrederickTaylorintroducedthefirst-eversystemofbusiness
analyticsintheUSA.Theapproachwascalledscientific
management.Thepurposeofthesystemwastoanalyzethe
productiontechniquesandlaborer'sbodymovementstoidentify
greaterefficiencies.
•Early1900s-TransformationoftheManufacturingIndustry
HenryFordintroducedtheassemblylineofproduction,andthe
analysistransformedthemanufacturingindustryacrosstheglobe.

12. History of Business Analytics
•1950s-FirstharddrivediskbyIBM
ComputershadamassivedemandduringWorldWarII.Untilthen
punchcardsortapeswereusedtostoreinformation.In1956,the
techgiant,IBMinventedthefirstharddiskdrivewhichallowed
userstosaveavastamountofdatawithbetterflexibility.
•1970’s–Relationaldatabases
RelationaldatabaseswereinventedbyEdgarF.Coddinthe1970s
andbecamequitepopularinthe1980s.Relationaldatabases
(RDBMs),inturn,alloweduserstowriteinsequel(SQL)and
retrievedatafromtheirdatabase.

13. History of Business Analytics
•Late1980s-EmergenceofBusinessIntelligence
Businessintelligencesolutionsemerged.However,therewasa
considerableamountofdataavailablebutnotacentralizedplaceto
storeit.RalphKimballandBillInmonproposedstrategiestobuild
datawarehouses(DW).
•Early2000's-RelationalDatabases
CompanieslikeSAP,Microsoft,SASandIBMintroducedvarious
solutionsandsoftwarewithrelationaldatabases.
•2005:Bigdata!
In2005,bigdatawascoinedbyRogerMagoulasdescribingalarge
amountofdata,whichseemedalmostimpossibletocopewithusing
theBusinessIntelligencetoolsavailableatthetime

14. History of Business Analytics
Punch card used in early 1900’s

15. History of Business Analytics
Tape drives used in 1940’s

16. History of Business Analytics
Hard drive used in 1970’s

17. History of Business Analytics
Inside a data center

18. Components of Business Analytics
ThefollowingarethecorecomponentsofBusinessAnalytics:
1.DataStorage
•Dataneedstobestoredforfutureuse.
•Approachtostoragecanbefilestorage,objectstorageorblockstorage.
2.DataVisualization
•Representationofthedateusingvisualaids.
•Makesthecommunicationofoutputstothestakeholdereasier.
3.DataInsights
•Outputsgeneratedbyprocessingdata.
•Referstotheinferences/conclusionsdrawnfromdata.
4.DataSecurity
•Monitoringandidentifyingmaliciousactivitiesinthesecuritynetworks.
•Identifyingvulnerabilitiesinthesystem.

19. Data visualization using
Business Analytics

20. Benefits of Business Analytics
•Data-drivendecisions
Quantifyingrootcausesandclearlyidentifyingtrendscreatesasmarter
waytolookatthefutureofanorganizationtotakebetterdecisions.
•Easyvisualization
Businessanalyticssoftwarehelpsintakingbiddataandturnitinto
simple-yet-effectivevisualizations.
•Goaugmented
Augmentedanalyticsusestheabilitytoself-learn,adapt,andprocess
bulkquantitiesofdatatoautomateprocessesandgenerateinsights
withouthumanbias.•Modellingofwhat-ifscenario
Createsmodelsforuserstolookfortrendsandpatternsthatwillaffect
futureoutcomes.

21. Benefits of Business Analytics
•Budgetspecificdecisions
Applicationofbusinessanalyticshelpswithbetterdecisionswith
increaseinresourceutilisationandminimisingwastage.
•Increaseefficiency
Businessanalyticshelpstotakerealtimedecisionshelpingbusinessto
increaseandimproveefficiency.
•Measureprogress
Helpsinmeasuringtheperformanceofthebusinesswithrealtimedata
analyticsandattaingoals.

22. Types of Business Analytics
Therearefour(five)typesofBusinessAnalyticsmodels:
1.DescriptiveAnalytics
2.DiagnosticsAnalytics
3.PredictiveAnalytics
4.PrescriptiveAnalytics
5.CognitiveAnalytics

23. Scope of Business Analytics
ThescopeofBusinessAnalyticsareasfollows:
1.ClientRelationshipManagement
•Organizationcanaccuratelymonitorandquantify
customerservicefactorsandconsumer
gratification
•Makeappropriatecorrectionsandensureclient
retention.2.InventoryManagement
•Efficientlymanagetheinventoryforprofit
maximizationandgrowingcustomerdelight.
•Helptoreducelossofrevenueandminimisecost.

24. Scope of Business Analytics
3.MarketAnalysis:
•Helpscompaniestopredictcustomer
purchasingpatternsforthefuture.
4.HRProfessionals
•HRanalyticshelpsinHRfunctions.
5.Banking
•Helpsbankingplayerstoeffectivelyprofile
customers.

25. Business Analytics Models

26. MOST Analysis
•Mission–Missionisbasicallywhatyourorganizationwantsto
accomplishoritspurpose.Itshouldbecenteredaroundyour
stakeholdersandbenefits.Writedownyourmissionstatementinthe
MissionboxofyourMOSTanalysistemplate.
•Objectives–Thesearetheindividualgoalsthatwillhelpyou
completeyourmission.
•Strategy–Thissectionincludesthedifferenttasksyouhavetodoto
reachyourobjectives.
•Tactics–Hereyouneedtoidentifyandlistdownthespecifictactics
youneedtogetyouractivitiesdone.
•Onceyou’vefilledoutthetemplate,youcangetaquickoverviewof
howyouneedtoplanyourorganizationalstrategies.

27. PESTLE Analysis
PESTLEanalysisisatoolthatisusedtoidentifyandexaminetheexternal
factorsthataffectabusiness.Thesemacroenvironmentalfactorsthe
analysistrytoidentifyare
•Politicalfactorssuchasgovernmentpolicies,tradingpoliciesorelections
•Economicfactorssuchaseconomictrends,taxes,orimport/exportratios
•Socialfactorssuchasdemographics,lifestyles,orethnicissues
•Technologicalfactorslikeadvancingtechnologyortechnologylegislation
•Legalfactorssuchasemploymentlawsorhealthandsafetyregulations
•Environmentalfactorssuchasclimatechangeorenvironmental
regulations

29. Link Strategy and Business Analytics

30. Moving ahead with Business Analytics
1.AI and Machine Learning
2.Cloud Computing
3.Predictive Analytics Tool
4.Data Automation
5.Decision Intelligence