Unit I. Business Analytics Basics

Unit I.
Business Analytics Basics
• 1.1 Definition of analytics, Evolution of analytics, Need of

Analytics
• 1.2 Business analytics vs business analysis
• 1.3 Business intelligence vs Data Science
• 1.4 Data Analyst Vs Business Analyst
• 1.5 Types and Tools for Analytics
• 1.6 Classification of Business Analytics: Descriptive Analytics,
Predictive
• Analytics, Prescriptive Analytics
Business analytics vs Business analysis
• Business Analysis is defined as the discipline of recognizing
business needs and identifying solutions to business problems
• Business Analytics refers to the investigation of past business
performance using collection of tools, techniques and skills.
Business analysis Business analytics
Primary focus on processes, techniques Primary focus is on data and statistical
and functions. analysis.
It is used to solve complex business It is used to predict future states and drive
problems and give efficient solution. business decisions.
Functional , business and domain This requires statistical , mathematical

knowledge is required to for analyzing and programming knowledge for
business requirements performing business analytics.
It assist to improve performance by The process lead to findings which helps

standardizing various processes into further improvement opportunities
Defining and standardizing business Making a dashboard to track the main

processes across the business units for a performance metrics using statistical
company. methods to predict future sales based on
past sales.
Business intelligence vs Data Science
• Data science is basically a field in which information and
knowledge are extracted from the data by using various
scientific methods, algorithms, and processes.
• It can thus be defined as a combination of various

mathematical tools, algorithms, statistics, and machine
learning techniques which are thus used to find the hidden
patterns and insights from the data which helps in the
decision making process.
• Business intelligence(BI) is basically a set of technologies,
applications, and processes that are used by enterprises for
business data analysis. It is basically used for the conversion of
raw data into meaningful information which is thus used for
business decision making and profitable actions.
• It deals with the analysis of structured and sometimes

unstructured data which paves the way for new and profitable
business opportunities.
Factor Data Science Business Intelligence
It is a field that uses mathematics, It is basically a set of technologies,

Concept statistics and various other tools to applications and processes that are
discover the hidden patterns in the used by the enterprises for business
data. data analysis.
Focus It focuses on the future. It focuses the past and present.
Data It deals with both structured as well as It mainly deals only with structured
unstructured data. data.
Data science is much more flexible as It is less flexible as in case of business

Flexibility data sources can be added as per intelligence data sources need to be
requirement. pre-planned.
Method It makes the use of scientific method. It makes the use of analytic method.
Complexity It has a higher complexity in It is much simpler when compared to

comparison to business intelligence. data science.
Factor Data Science Business Intelligence
Expertise It’s expertise is data scientist. It’s expertise is business user.
Questions It deals with the questions what will It deals with the question what
happen and what if. happened.
It’s tools are SAS, BigML, MATLAB, It’s tools are InsightSquared Sales
Tools Excel etc. Analytics, Klipfolio, ThoughtSpot, Cyfe,
TIBCO Spotfire etc.
Data analyst Business analyst
Data analysis Needs analysis
Statistics Prototyping
Knowledge of data structures Knowledge of business structures
Microsoft Visio and software design

SQL and statistical programming
tools
• Role of Data Analyst Vs Role of Business Analyst
• https://www.youtube.com/watch?v=rD7pTI6OXQc
• Introduction to Business Analytics (2020 Edition)
• https://www.youtube.com/watch?v=diaZdX1s5L4
• What is Business Intelligence (BI)?
• https://www.youtube.com/watch?v=hDJdkcdG1iA
Definition of analytics
• Business analytics is more consequential , as it answers
questions such as what will be the eventualities if such a
things continues, and it also predicts the likely events and
answers questions on optimization.
Meaning of Business Analytics
• It refers to, the skill technology, practices for continuous
developing new insights and understanding of business
performance based on data and statistical methods
• The practice of exploration of an organizations data with

emphasis on statistical Analysis. It is used by the companies
committed to data driven decision making.
• The statistical analysis of the data a business has acquired in
order to make decisions that are based on the evidence rather
than guess work
• A combination of data analytics , business intelligence and
computer programming is the science of analyzing data to
find out patterns that will be helpful in developing strategies.
Evolution of Business Analytics
• It evolved from a simple number crunching exercise used for
solving problems and assisting in decision making to a
competitive strategy.
• It has its roots in operation research, which was extensively
used in World War II.
• Over a period of time , this technique started getting utilized
for business . Here OR evolved in Management Science.
• As economies started developing and companies became
more and more competitive Management Science Evolve into:
– Business Intelligence
– Decision Support System
– PC Software
• Today several products and solutions are driven by analytics

– Amazon Go , Recommender System
– Predictive keyboards used in smart phones
– Chatbots
• are few examples of solutions that are driven by analytics.
• It has become evident that analytics has become an important

differentiator between high- performing and low performing
companies.
• https://www.youtube.com/watch?v=NrmMk1
Myrxc
• https://www.youtube.com/watch?v=OfzMkER
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• https://www.youtube.com/watch?v=8FoAkEfI
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Significance and Usage of Business analytics
• To make data driven decisions

• To convert available data into valuable information
• Eliminate Guesswork
• Get faster answers to Questions
• Get insight into Consumer Behaviour
• Get key business matric reports when and where needed
• It impacts functioning of the whole organization and can
1. Improve profitability of the business

2. Increase market share and revenue
3. Provide better return to the shareholders
4. Reduce overall Cost
5. Sustain in Competition
6. Monitors KPIs
7. Reacts to changing trends in real time
https://www.youtube.com/watch?v=diaZdX1s5L4
Challenges for Business Analytics
• It depends upon sufficient volumes of High Quality Data
• Difficulty in ensuring Data Quality
• Data Warehousing require a lot more storage space than it did

speed
• It is becoming a tool that can influence the outcome of
customer interaction.
• Technology infrastructure and tools must be able to handle the
data and business analytics process.
• Organizations should be prepared for the changes that BA
brings to current business and technology operations
Scope of Business Analytics
• Business Analytics has wide range of Application and usage
1. Descriptive Analysis
2. Predictive Analysis
3. Prescriptive Analysis
Descriptive Analysis
• This branch analyses and finds answers to the Question
• What has happened in the Past?
• Descriptive analysis performs the function of describing or
summarizing raw data to make it easily understandable and
interpretable buy the humans.
Predictive Analysis
• This branch uses forecasting techniques and statistical models
to find out
• What is going to happen in future?
• Predictive analysis help us in predicting the future course of
events and taking necessary actions for the same
• It employs predictive modeling and machine learning.
Prescriptive Analysis
• This branch uses optimization and simulation algorithms to
find answers to the question
• What should we do?
• It is used to give advise on possible outcome
• This is relatively new field of analytics that allow users to
recommend several different possible solutions to the
problem and to guide them about the best possible course of
action.
Users of Business Analytics
• Students
• Business Peoples
• Accountants and Auditors
• Organizations or Companies
Tools used for Business Analytics
• MS Excel
• SPSS
• R
• SAS
• E Views

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Unit I.

Business Analytics Basics

• 1.1 Definition of analytics, Evolution of analytics, Need of

Functional , business and domain This requires statistical , mathematical

It assist to improve performance by The process lead to findings which helps

Defining and standardizing business Making a dashboard to track the main

• It can thus be defined as a combination of various

• It deals with the analysis of structured and sometimes

It is a field that uses mathematics, It is basically a set of technologies,

Focus It focuses on the future. It focuses the past and present.

Data science is much more flexible as It is less flexible as in case of business

Complexity It has a higher complexity in It is much simpler when compared to

Expertise It’s expertise is data scientist. It’s expertise is business user.

Data analysis Needs analysis

Knowledge of data structures Knowledge of business structures

Microsoft Visio and software design

• The practice of exploration of an organizations data with

– Decision Support System

• Today several products and solutions are driven by analytics

– Predictive keyboards used in smart phones

• are few examples of solutions that are driven by analytics.

• It has become evident that analytics has become an important

• To make data driven decisions

1. Improve profitability of the business

• Difficulty in ensuring Data Quality

• Data Warehousing require a lot more storage space than it did

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