Digital Transformation for Leaders

Business Analytics and Big Data

 Learning Objectives

By the end of this lesson, you will be able to:

Define Big Data and the four V's of Big Data

Explain big data analytics and its importance

Discuss different types of business analytics

Describe the analytics process flow

Explain how companies use Big Data

Case Study: Disney
 Case Study: Disney

In the 2000s, Disney's customer experience began to fade as ticket prices

climbed and the customer base increased.

In response, Disney created the next generation experience project aimed at

creating personalized experiences for its guests.
 Case Study: Disney

Launched in 2013, MyMagicPlus allows guests to book ride times, restaurant reservations, and
shows in advance using the website.

The magic bands given to the guests act as admission tickets and can also be connected to
guest’s credit cards for payment across the park and resorts.
 Case Study: Disney

Disney's success story gives us insights into how technology proves very important in improving
customer experience and in retaining customers.

“Technology is lifting the limits of creativity and transforming the possibilities for entertainment
and leisure”
-Bob Iger, Chairman and CEO, Walt Disney Company
Case Study: Disney

● Despite the big customer base resulting in

huge data, Disney was able to extract
outcomes to create magic again.

● It would have been difficult for Disney to

provide any solution for the problem,
without analyzing the data

● It is crucial for businesses to manage their

data flow and gain insights to improve their
business.
Big Data: Overview
Big Data: Overview

● Large organizations have a huge customer

base, resulting in a huge amount of
incoming data, also known as big data.

● Big data represents extremely large datasets

analyzed computationally to reveal patterns,
trends, and associations.

● It describes any voluminous amount of

structured, semi-structured, or unstructured
data.
 Four V’s of Big Data

Big Data is defined by four important features, also known as the

Four V's of Big Data:

Volume Variety Velocity Veracity

 Four V’s of Big Data

● Volume refers to the scale of data as it is the main

characteristic that makes data big.

Volume ● Everyday, data volumes rise exponentially as

organizations have multiple internal and external
sources such as transactions, enterprise content,
sensors, etc.
 Four V’s of Big Data

● Variety refers to the different forms of data as the

data is captured from multiple sources in multiple
Variety formats.

● Data can be structured, semi-structured, or

unstructured.

Structured Unstructured
Data Data
Semi-Structured
Data
 Four V’s of Big Data

● Structured data refers to information with a high

degree of organization.

● Semi-structured data is a form of structured data

Variety
that does not conform with the formal structure of
data models but contains tags or other markers.

● Unstructured data is data that either does not have a

predefined data model or is not organized in a
predefined manner.
Structured Unstructured
Data Data
Semi-Structured
Data
 Four V’s of Big Data

● Velocity refers to the frequency of incoming data

that needs to be processed.

Velocity ● Example: SMS messages, Facebook status updates,

or credit card swipes, sent on a particular telecom
carrier every minute of every day.
 Four V’s of Big Data

● Veracity refers to the biases, noises, uncertainty or

abnormality in data.

Veracity ● Huge amounts of data can be increasingly utilized

with big data analytical tools for harvesting insights
and supporting business decisions.
Big Data: Applications

● Big data technologies are a popular

platform for data analytics and data
exploration.

● They are used to implement data mining

and data processing techniques.

● It handles data at an extremely large scale

and is characterized by massive parallel
computing.
Data Science and Data Analytics
 Data Science: Overview

Big Data technologies allow organizations to make new predictions, uncover patterns in
business, and unlock new sources of value, also scientifically known as Data Science.

Data science is an interdisciplinary field of scientific methods, processes, algorithms, and

systems to extract insights from data in various forms, similar to data mining.
 Data Analytics: Overview

Data analytics is the discovery and communication of meaningful patterns in data to drive smart
decisions.

Companies use different analytics solutions to uncover hidden patterns, meanings, and other
insights from the huge volume of data to improve decision-making.
Data Analytics: Applications

● Data has become a strategic asset to be

mined for business intelligence and to
differentiate products in the market.

● Businesses use data analytics to get value

from the existing data, provided they have
the right analytical talent.

● Incorrect data and unsuitable data science

talent results in poor business decisions.
Types of Data Analytics
 Types of Data Analytics

To perform big data analysis, companies use a robust analytic environment that includes:

Descriptive Predictive Prescriptive

Analytics Analytics Analytics

Descriptive analytics Predictive analytics uses Prescriptive analytics

uses tools like data statistical models and uses tools like
aggregation and data simulation to make optimization models
mining to summarize educated guesses at and heuristics to derive
the results. likely results. important, complex, and
sensitive decisions.
 Types of Data Analytics

● Descriptive analytics is regarded as the first stage

in data analytics, involving consolidation and
summarization of data for further analysis.

Descriptive ● It includes techniques that explain what has

Analytics
happened in the past: reports, data queries, data
dashboards, etc.

● The data received from descriptive analytics is

further used in predictive analytics to predict
future unforeseen events.
 Types of Data 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.

● Examples:
Predictive
Analytics
○ A company can create a mathematical model for
predicting the future sales by using past data on
product sales.

○ A food manufacturing company can estimate the

measurement and quantity of unit sales by using the
point-of-sale data from retail outlets.
 Types of Data Analytics

● Prescriptive analytics specifies the best course of action

for a business activity in the form of prescriptive model,
also called Optimization Models.

● Examples:
Prescriptive
Analytics ○ The airline industry chooses the best pricing strategy
by analyzing revenue management models and past
purchasing data.

○ Finance companies decide on a certain mix of

investments by analyzing portfolio models that utilize
historical investment return data.
 Application of Business Analysis: Example

Earlier, credit cards had uniform pricing because the companies did not have the appropriate
information systems to deal with differential pricing on a large scale.

Richard Fairbanks and Nigel Morris approached big banks to offer predictive modeling
consulting and finally got the Signet Bank, a Regional Virginia Bank, to agree.
Application of Business Analysis: Example

Using predictive modelling, the bank:

● Offered different terms to different customers at

random which increased the numbers of bad
accounts

● Changed to about 6% charge-offs from the prevailing

charge-off

● Built the predictive models from the data, evaluated

them, and continuously improve them to increase
profits despite the initial losses

● Eventually turned around the credit card portfolio into

its most profitable operation
Analytics Process Flow
 Analytics Process Flow

The analytics process flow diagram has five stages.

Data Sources Data Acquisition

Data Storage

Data Reporting
Data Analysis
and Visualization
 Analytics Process Flow

● Data source acts as a primary location for the data

source.
Data Sources
(ERP, CRM, Excel, etc)
● It has numerous forms like a data set, a program, or
perhaps hard coded data.

● Organizations might leverage multiple sources of data

together with ERP, CRM, and alternate systems.
 Analytics Process Flow

● Data Acquisition involves extract, load, and rework.

● It is an information integration method for

Data Acquisition transferring raw data from supply systems to a target
(ETL) information.

● It makes the data ready for downstream uses,

primarily in business intelligence and analytics
applications.
 Analytics Process Flow

● Data storage is a method of archiving data in an

electromagnetic or alternate forms by a laptop or
associate degree device.

Data Storage
● It is regarded as a central repository of integrated
(Data Warehouse)
information, from one or additional disparate sources.

● It is a system used for reportage and information

analysis.
 Analytics Process Flow

● Data analysis is the process of inspecting, cleansing,

transforming, and modeling data.
Data Analysis
● The main goal is to discover useful information, suggest
conclusions, and support the decision-making process.
 Analytics Process Flow

● Data visualization is the procedure of exhibiting and

presenting data in a graphical format.

Data Visualization
● It is used as a measure to deliver visual reports to users.

● It gives insights related to performance operations or

general statistics of an application.
Big Data Analytics: Case Studies
Case Study: Rolls-Royce

● Rolls-Royce has put big data analytics to

use in three key areas of its operations:
design, manufacturing, and after sales
support.

● Adopting big data driven approach has

helped the company diagnose faults,
correct them, and prevent them from
occurring again.

● It has also helped in taking the right

business decisions, resulting in significantly
reduced costs.
 Analytics Process Flow

Amazon use big data analytics in two key areas of its operations: Data warehousing
or Redshift and Hosted hadoop solution or Elastic MapReduce.

It uses big data analytics to create a personalized recommendation system and improve
customer service operations in order to serve its customers effectively and improve sales.
 Key Takeaways

Big data is a term that describes the large volume of data that
inundates a business on a day to day basis.

Volume, variety, velocity, and veracity are the four V's of big data.

Analytics is the discovery and communication of meaningful

patterns in data to drive smart decisions.

To perform analysis of big data, companies use an analytic

environment that includes descriptive, predictive, and prescriptive
analysis