UCS551

Chapter 1:
Introduction to Data Analytics

AZLIN BINTI AHMAD (DR.)

EZZATUL AKMAL KAMARU-ZAMAN
SAYANG MOHD DENI (DR.)
NORSHAHIDA SHAADAN (DR.)
Ref: https://www.coursera.org/lecture/data-
analytics-business/0-introduction-to-data-analysis-in-
real-world-1TNLZ
 Outline
INTRODUCTION TO DATA ANALYTICS

1. Definition of data analytics

2. Importance of data analytics
3. Type of data analytics
4. Example of applications
5. Data Science
6. Data Analytics Process
 1.1 Definition of data analytics

Data All Around

• Lots of data is being collected
and warehoused
– Web data, e-commerce
– Financial transactions, bank/credit transactions
– Online trading and purchasing
– Social Network
 1.1 Definition of data analytics

How Much Data That We Have?

• Google processes 20 PB a day

• Facebook has 60 TB of daily logs
• eBay has 6.5 PB of user data +
50 TB/day
• 1000 genomes project: 200 TB
 1.1 Definition of data analytics

How Much Data That We Have?

 1.1 Definition of data analytics

• Data Analytics WordCloud

 1.1 Definition of data analytics
• What is Data?
Data is a set of values of subjects with respect to qualitative or quantitative variables. Data and
information or knowledge are often used interchangeably; however data becomes information
when it is viewed in context or in post-analysis.
 1.1 Definition of data analytics

• What is Big Data?

Big Data is any data that is expensive to
manage and hard to extract value from
• Volume
The size of the data
• Velocity
The latency of data processing relative
to the growing demand for interactivity
• Variety and Complexity
The diversity of sources, formats,
quality, structures.

Guess another 6 V’s

 1.1 Definition of data analytics
• Types of Data
– STRUCTURED:
• Relational Data
(Tables/Transaction/Legacy
Data)
– UNSTRUCTURED
• Text Data (Web)
• Semi-structured Data (XML)
• Graph Data
• Streaming Data
 1.1 Definition of data analytics
• Types of Data
– Relational Data (Tables/Transaction/Legacy Data)
COLUMN

ROW
 1.1 Definition of data analytics
• Types of Data
– Text Data (Web)
 1.1 Definition of data analytics
• Types of Data
– Semi-structured Data – Graph Data
(XML)

Political Polarization During

the 2008 US Presidential
Campaign Graph data
 1.1 Definition of data analytics
• Types of Data
– Streaming Data

https://www.zoomdata.com/
solutions/modern-bi/streaming-
analytics/
 1.1 Definition of data analytics

• What is Data Analytics

 “is a process of inspecting, cleansing, transforming, and
modeling data with the goal of discovering useful information,
suggesting conclusions, and supporting decision-making”. -
Wikipedia
 "leverage data in a particular functional process (or application)
to enable context-specific insight that is actionable.“ – Gartner
 1.2 Importance of data
analytics
• Data analytics is important because it helps a business of a
particular sector to optimize its performance. Implementing it into
the business model means companies can help reduce costs by
identifying more efficient ways of doing business and by storing
large amounts of data. A company/ sector can also use data
analytics to make better business decisions and help analyze
customer trends and satisfaction per say, which can lead to new
(and better) products and services or at least provide input or
guideline.
•  
 1.2 Importance of data
analytics
• Value Chain: The analytics will tell how the existing information is
going to aid the business in finding out the gold mine that is the way
to success for a company.
• Knowledge: The insights able to comprehend a guide to show how you
can go about your business in the near future and what is that the
economy already has its hands on. That’s how you are going to avail
the benefit before anyone else.
• Opportunities: Data Analytics gives us analyzed data that helps us in
seeing opportunities before the time that’s another way of unlocking
more options.
 1.3 Type of data analytics
• There are four basic types of data analytics:
• Descriptive analytics describes what has happened over a given period of time. Have the
number of views gone up? Are sales stronger this month than last?
• Diagnostic analytics focuses more on why something happened. This involves more diverse
data inputs and a bit of hypothesizing. Did the weather affect beer sales? Did that latest
marketing campaign impact sales?
• Predictive analytics moves to what is likely going to happen in the near term. What happened
to sales last time we had a hot summer? How many weather models predict a hot summer
this year?
• Prescriptive analytics moves into the territory of suggesting a course of action. If the
likelihood of a hot summer as measured as an average of these five weather models is above
58%, then we should add an evening shift to the brewery and rent an additional tank to
increase output.
1.3 Type of data analytics
 1.4 Example of applications
• Nowadays, data analytics has become important needs in solving business
problem in various field including:
–Case 1: Customer Analytics

•Analytics are often used to model customer behavior. For example,

modeling the events that lead to a customer becoming brand loyal.

–Case 2: Credit Risk Analytics

•Analytics conducted on credit data that help risk managers to stay

competitive in today’s marketplace. The manager can use analytics to
access real credit data, inference evaluation and decision, conduct low
default portfolio risk modelling, stress-testing as well as building and
validate credit risk management model. Predictive analytics is often used
to model business risk such as the credit risk associated with a particular
customer.
 1.4 Example of applications

–Case 3: Retail Analytics

•Analytics for retail forecasts and operations. For example, a retailer may attempt to predict demand for
a trendy new style of shoe by color and sales region.

–Case 4: Marketing Analytics

•Analytics to look at the results of product, pricing, promotion, advertising and distribution strategies.
For example, analytics might show that female customers in their 20s are 70% more likely to purchase a
particular item at price A as compared to price B

–Case 5: Business Analytics

•A company would like to identify which of their customers are likely to stop using their services (to
churn). Thus, this company can use data analytics to explore and understand the customer’s behaviour
based on the company’s business data. Based on the results obtained the company can focus on the
retention strategy.
Example of applications. More…
• https://www.edureka.co/blog/data-scie
nce-applications/
 1.5 Data Science
What is Data Science?

Data science is a multi-disciplinary

field that uses scientific methods,
processes, algorithms and systems to
extract knowledge and insights from
structured and unstructured data.

Diagram 1: Data science process flow

1.6 Process of Data Analytics