Business Analytics
Presented by Premnath Dalai
NTAC:4UC-11
Descriptive – What has happened?
Diagnostic - Why did it happen?
Introduction Predictive – What could happen?
Prescriptive – What should happen?
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Simplest Class of Analytics
Descriptive Break big chunk of data into smaller pieces (subsets)
Analytics Sub-setting out relevant information
Brief synopsis of what has happened
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Dig deeper why did it happen
Exploratory Data Analysis
Diagnostic An advancement of descriptive analytics
Analytics
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Uses statistical and data mining technique
Study the past trend based on available attributes
Allow data analyst and data scientist to make prediction
An example from marketing analytics (product campaign)
Predictive > Who responds to the campaign
Analytics > Which channel they responded through
> What product they responded for
> Potential value and prospect of each customer
> Product buying propensity or likelihood of the customer
What could happen based on past trends
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Predictive + Descriptive Analytics
Prescribe prediction based on past description
Descriptive helps find what, why has happened
Prescriptive Predictive helps find what could happen
Analytics So, prescriptive helps optimized the decision making based on the
best available solution for what should happen amongst various
choice given a business constraint
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Customer Analytics
Industry-focused Analytics
Example/Area Financial Analytics
Of Analytics Performance Analytics
Risk Analytics
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Helps the organization to take critical decision and deliver offers
that are anticipated
Offers the organization the customer insights to take necessary
decision
Helps develop fact based solution to design marketing strategy
Customer E.g. Customer acquisition, retention, x- sell, up sell etc.
Analytics Uses techniques like market segmentation, visualization,
predictive analytics and data modeling
Predicts customers’ behavior or buying propensity
Telecom, banks, product, ecommerce and retail industry uses this
analytics
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Helps financial experts explore different ways to answer specific
financial requirements
Drive the executives to forecast financial related business
Financial Uses different financial functions to solve the necessary query
Analytics E.g. consolidation of financial statements to showcase detailed
financial position of the institution to the market, shareholders,
stakeholders (creditors), government and general public
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Uses data driven technology to study business performance
Helps explore how to continue better and better (improvement
performance)
Like managing daily operation, scoping strategies, budgeting
business, SLA, analyzing areas of improvement
Performance
E.g. HR management monitors the performance of the employees
Analytics on regular basis based on the parameters of organization style and
expectation etc.
Helps take corrective action well in advance, if required, to
improve the productivity in the organization
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Things or factors change in dynamic pace in the dynamic business
environment which causes high risk
These risks affect the success of the business
Risk analytics analyze risk associated with the different business,
product or portfolio etc.
Risk Analytics Tries to reduce the risk in foreseen uncertainties and helps
evaluate or project the success of failure chances
Organization define and understand the risk for that particular
business in terms of risk limits and risk appetite. Risk analytics
helps manage and mitigate the different risk component of the
organization.
E.g. credit risk, market risk and op risk etc.
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