GROUP 1

DECISION MAKING WITH PRESCRIPTIVE ANALYTICS

WHAT IS PRESCRIPTIVE ANALYTICS?

Gartner - is a research and advisory firm that provides definitions, insights, and evaluations for
prescriptive analytics, helping organizations understand and adopt tools and technologies that
recommend optimal actions and predict outcomes.

Decision Making - prescriptive analytics involves using data, algorithms, and models to
recommend the best actions to achieve desired outcomes, helping organizations optimize
results and solve complex problems.

TWO PRIMARY APPROACHES IN PRESCRIPTIVE ANALYTICS

OPTIMIZATION TECHNIQUES
methods used to find the best possible solution from a set of alternatives, often aiming to
maximize or minimize a specific objective, like cost, profit, or efficiency. These techniques help
organizations make data-driven decisions by evaluating different scenarios and selecting the
most effective option.

COMPUTATIONAL LOGIC
the use of algorithms, rules, and decision models to analyze data and recommend actions
based on logical reasoning. It involves applying structured logic and conditions to simulate
scenarios and guide decision-making.

SINGLE FUNCTION PRESCRIPTIVE ANALYTICS:

Operational
Tactical
Strategic

TYPES OF PRESCRIPTIVE ANALYTICS

Financial Prescriptive Analytics

This type focuses on optimizing financial performance and achieving financial goals.

Operational Prescriptive Analytics

This type focuses on improving operational efficiency and effectiveness.

Prospective/ Strategic Prescriptive Analytics

This type focuses on risk management and identifying potential threats and opportunities.
HOW PRESCRIPTIVE ANALYTICS WORKS
Prescriptive analytics gathers large amounts of data from various sources and uses advanced
algorithms to suggest the best course of action.

The process generally consists of the following steps:

1. Data collection
2. Modeling and simulation
3. Optimization
4. Recommendation

EXAMPLES OF PRESCRIPTIVE ANALYTICS IN REAL WORLD

Hospitals
Prescriptive analytics can be used by hospitals to improve the outcomes for patients.

Finance
Prescriptive analytics in finance, often applied to fraud detection, risk management, and
investment decisions, uses historical transactional data to identify patterns that could signal
suspicious activity and provide recommendations for preventing that activity.

Transportation
One major priority for transportation companies is efficient route planning.

Marketing
Prescriptive analytics helps marketers analyze emerging trends and data-driven insights,
allowing them to fine-tune ad placements or content types.

THE MAIN PROBLEMS IN ADOPTING PRESCRIPTIVE ANALYTICS

1. Forecasting models cannot predict the future

Forecasts generated on historical data by the most sophisticated Machine Learning models rely
on strong assumptions and are not infallible.

2. Reaching the right decision is hard even with the right forecasts
BENEFITS OF PRESCRIPTIVE ANALYTICS

1. Less time on planning, more time on execution.

Prescriptive analytics allow teams to spend less on calculating the actions they should take in
order to achieve their goals and more time executing action.

2. Revenue generation. Prescriptive analytics can help a business to understand what their
customers want to buy and why. These outcomes can be arrived at with detailed and timely
information on customers and their purchasing journeys.

3. Expense reduction. With the right algorithmic model, a company will be able to ensure that
they have better inventory management systems in place. This will help in reduction of costs for
long term stock storage. It also brings down the number of manual processes and costs
involved.

GROUP 2

INTRODUCTION TO BIG DATA AND DATA WAREHOUSING

What is Big Data?

-it refers to extremely large and diverse collections of structured, unstructured, and semi-
structured data that continues to grow exponentially over time.

Big data is typically stored electronically in what are sometimes referred to as data warehouses
or data lakes. It is analyzed using software specifically designed to handle large, complex data
sets.

THE 5 V’S OF BIG DATA ARE:

Volume
Refers to the massive amount of data generated every second from various sources such as
social media, sensors, transactions, and more.

Velocity
Describes the speed at which data is generated, processed, and analyzed in real time.
Value
Highlights the importance of extracting meaningful insights and actionable knowledge from data
to make informed decisions.

Variety
Represents the different types and formats of data, including structured (e.g., databases), semi-
structured (e.g., XML files), and unstructured (e.g., videos, images, emails).

Veracity
Refers to the trustworthiness and accuracy of the data, emphasizing the need to filter noise and
ensure quality.

BENEFITS OF BIG DATA

-Enhanced decision-making
- Better customer and market insights
- Cost savings
- Positive social impact

WHAT SHOULD COMPANIES DO TO SUCCEED WITH BIG DATA? HERE ARE SOME OF
THE INDUSTRY TESTAMENTS:
I. Simplify.
2. Coexist.
3. Visualize.
4.Integrate.
5.Evangelize.

9 KEY EXAMPLES OF BIG DATA APPLICATIONS

1.Transportation
2.Advertising and Marketing
3.Banking and Financial Services 4.Government
5.Media and Entertainment
6.Meteorology
7.Healthcare
8.Cybersecurity
9.Education

DATA WAREHOUSING
A data warehouse is a database designed for analyzing and reporting, not day-to-day
transactions. It consolidates data from multiple sources (e.g., sales, marketing, production) to
help organizations make better decisions.
TYPES OF DATA WAREHOUSE

Enterprise Data Warehouse (EDW)

This type of warehouse serves as a key or central database that facilitates decision-support
services throughout the enterprise.

Operational Data Store (ODS)

This type of data warehouse refreshes in real-time. It is often preferred for routine activities like
storing employee records. It is required when data warehouse systems do not support reporting
needs of the business.

Data Mart
A data mart is a subset of a data warehouse built to maintain a particular department, region, or
business unit

CHARACTERISTICS OF DATA WAREHOUSE

•SUBJECT ORIENTED
Data warehouses are organized around specific subjects.

•INTEGRATED
Data warehouses consolidate data from various sources into a single place.

•TIME-VARIANT(Time Series)
Data warehouses record the timestamp of data, allowing for a time-variant table structure.

•NON-VOLATILE
Data in a data warehouse is not changed or deleted, ensuring data integrity and stability.

MAJOR COMPONENTS OF THE DATA WAREHOUSING PROCESS:

DATA SOURCES
Data are sourced from multiple independent operational "legacy" systems and possibly from
external data providers (such as the U.S. Census). Data may also come from an OLTP or ERP
system. Web data in the form of Web logs may also feed a data warehouse.

DATA LOADING
Data is loaded into a staging area, where they are transformed and cleansed. The data are then
ready to load into the data warehouse and/or data
DATA EXTRACTION AND TRANSFORMATION
Data are extracted and properly transformed using custom-written or commercial software
called ETL.

METADATA
Metadata are maintained so that they can be assessed by IT personnel and users. Metadata
include software programs about data and rules for organizing data summaries that are easy to
index and search, especially with Web tools.

COMPREHENSIVE DATABASE.
Essentially, this is the EDW to support all decision analysis by providing relevant summarized
and detailed information originating from many different sources.

GROUP 3
USING MACHINE LEARNING FOR BUSINESS ANALYTICS

MACHINE LEARNING - is a part of artificial intelligence that relies on systems learning from
data, identifying patterns, and making decisions with minimal human input.

SUPPLY CHAIN OPTIMIZATION: PREDICTING DEMAND AND OPTIMIZING SUPPLY CHAIN

OPERATIONS USING MACHINE LEARNING MODELS.

Fraud Detection:
Detecting and preventing fraudulent transactions using machine learning algorithms.

Employee Performance Evaluation: Analyzing employee data to predict job performance and
identify areas for improvement.

CUSTOMER SEGMENTATION: IDENTIFYING CUSTOMER PREFERENCES, BEHAVIORS,

AND DEMOGRAPHICS USING CLUSTERING ALGORITHMS.

Market Basket Analysis:

Analyzing customer purchasing behavior to recommend products or services.
Credit Risk Assessment:
Evaluating creditworthiness using machine learning models and credit scoring algorithms.

Sentiment Analysis:
Analyzing customer feedback and reviews to gauge brand reputation.

BENEFITS OF MACHINE LEARNING IN BUSINESS ANALYTICS:

Improved Accuracy:
Machine learning models can provide more accurate predictions and insights than traditional
statistical models.

Increased Efficiency:
Automating data analysis and reporting processes, freeing up time for strategic decision-
making.

Cost Savings:
Reducing operational costs by optimizing processes, predicting demand, and preventing errors.
Enhanced

Customer Experience:
Personalizing marketing, sales, and customer service through data-driven insights.

EXAMPLES OF COMPANIES THAT USE MACHINE LEARNING

1.YOUTUBE
A company that has been using machine learning for business for a long time.

2.GOOGLE Google is using machine learning for a variety of task,including image

recognition,email spam filtering,and targeting.

3. PEOPLISE is a company that is using machine learning to help businesses find the best
candidate for their position. It analyzes their skills, experiences, and education to calculate a " fit
grade" for them

4. NORTH FACE
Used Watson's machine learning for business capabilities to create a virtual assistant that helps
customers find the perfect product for their needs.