Analytics in Practice

Targeted Competencies

• Understand the functions and data access constraints of various

departments within an organization
• Understand business processes as they relate to data requirements
and decision modeling
• Demonstrate understanding of business intelligence, including the
importance of data gathering, storage, retrieval, and analysis
• Understand data management concepts and criticality of data
availability in order to make sound decisions
• Participate actively in discussions with various departments and
design/create reports
• Identify data sources and create required reports
• Apply analytic modeling concepts on enterprise data
• Convey results of data analysis to stakeholders

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 Analytics in Practice

In this lesson, the concept of analytics is

introduced. The learners shall be able to
answer the questions, “What are the
challenges business users face today?;
“What are the trends in analytics?”; and
“What important factors drives business to
put analytics in practice?”.

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What do we mean by Analytics?

4
 Analytics in Practice: What It Means

Analytics is defined as the extensive use of data, statistical and quantitative

analyses, explanatory and predictive modeling, and fact-based
management to drive decision making.

Analytics is all about providing business users with better insights, particularly from
operational data stored in transactional systems.

Fortunately, data mining, analytic applications, and business intelligence systems are
now being better integrated with transactional systems.

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Three Types of Analytics

6
What do we mean by analytics? [continued]

Predictive analytics

Prescriptive analytics

Descriptive analytics

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 What do we mean by analytics? [continued]

Data Analyze (Descriptive Provides and

Model)
Generate Reports

Smart Decisions

Process involved using Descriptive Analytics.

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 What do we mean by analytics? [continued]

 Descriptive analytics answers the questions what happened and why it

happened.

 A sample picture shows data of the context of the source data “Course Pro
Campaign” used in a report.
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 What do we mean by analytics? [continued]

Data Analyze (Predictive

Model) Provides Predictions
and Forecasting

Smart Decisions

Process involved using Predictive

Analytics.

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 What do we mean by analytics? [continued]

 Predictive analytics answers the question what will happen. A sample

picture shows predictive analytics workbench. A predictive analytics workbench
allows a user to create, validate, manage, and deploy predictive analytic models. A
predictive analytics workbench consists of these components

Predictive Analytics

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 What do we mean by analytics? [continued]

Data Analyze (Prescriptive Provides ,Generate

Model) Recommendation using
Mathematical Algorithms

Smart Decisions

Process involved using Prescriptive

Analytics.

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 What do we mean by analytics? [continued]
 Prescriptive analytics not only anticipates what will happen and when it will
happen. but also why it will happen. Prescriptive analytics software has the
potential to help during each phase of the oil and gas business through its ability to
take in seismic data, well log data, and their related data sets to prescribe where to
drill, how to drill there and how to minimize the environmental impact.

Prescriptive Analytics

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Fundamentals of Business Analytics
Analytics in Practice

What Kind of Questions Can Analytics Answer?

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What Kinds of Questions Can Analytics Answer?

Figure 1-1 Degree of Complexity

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 Business Users and Their Challenges

The following challenges highlight characteristics of this gap:

The time to perform the overall cycle of collecting, analyzing, and

acting on enterprise data must be reduced.

Clear business goals and metrics must be defined.

Analytics results must be distributed to a wider audience.

Data must be integrated from multiple sources.

Acceptance criteria of the analysis models must be clearly stated.

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 Trends in Business Analytics

 Verticalization
Analytics solutions are becoming increasingly focused on industry
specific problem solving.

 Comprehensive Models and Transformations for Insight

Rich visualization functionalities that show only a few and the most
important attributes.

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Fundamentals of Business Analytics
Analytics in Practice

Why It’s Time to Put Analytics to Work?

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 Why It’s Time to Put Analytics to Work
Most companies today have massive amounts of data at their disposal. We can see
this by just accessing the net, social media and other surveys out there holds a very
vast amount of Data. On the next slide we will cite a sample analytics at work

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Fundamentals of Business Analytics
Analytics in Practice

Where Does Analytics Apply?

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 Where Does Analytics Apply?
 Analytics can help to transform just about any part of your business or
organization.

 Some processes and example of data analytics transformations:

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Fundamentals of Business Analytics
Analytics in Practice

Information: The Power of Information

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 THE POWER OF INFORMATION

Information has always been

power, but the past few decades
have seen a subtle shift occur,
fundamentally altering the way
we perceive it.

It has been only relatively

recently that the amount of data
available to us has outstripped
our ability to investigate that
data.

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Fundamentals of Business Analytics
Analytics in Practice

Metrics and Measurements

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 Metrics and Measurements

 Metrics will translate the business challenges into operational measures that
can be monitored over time, not only for analytics impact, but for the entire
company.
 Objective means by which your company can measure progress and
business analytics impact.

 Increase productivity and market share

 Increase retention and conversion rate
 Increase wallet share
 Increase customer satisfaction
 Increase average order size/number of products
 Increase average spend per customer
 Decrease operational costs
 Decrease time-to-decision
 Optimize human capital

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Fundamentals of Business Analytics
Analytics in Practice

When Is Analytics Not Practical?

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 When Is Analytics Not Practical?

 When There’s No Data.

 When There’s No Precedent.

 When History Is Misleading.

 When the Decision Maker Has

Considerable Experience.

 When the Variables Can’t Be

Measured.

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Fundamentals of Business Analytics
Analytics in Practice

Overview: The Challenges of Business Analytics

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 The Challenges of Business Analytics

 Effective business analytics is a focus for business leaders across the globe
in ever-increasing numbers. A 2011 report by the McKinsey Global Institute
projects that the United States needs 1.5 million more data-literate managers to
meet the demands of the data-driven enterprise. In addition, during IBM's 2012
IBM Partner World Conference, its CEO predicted that analytics will be the
thread that weaves together front- and back-office systems in order to give
companies that harness huge volumes of unstructured data a competitive
business advantage.

 Must be grounded in key business questions.

 The most impact on the organization when it is forward looking—not backward

looking.

 New age of business analytics requires the integration and synthesis of

various information disciplines across the organization.

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Fundamentals of Business Analytics
Analytics in Practice

Challenges from Outside

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 Challenges from Outside

 Environment

 Competition

 Customers

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Fundamentals of Business Analytics
Analytics in Practice

Challenges from within

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 Challenges from within

 Inside the organization

 Evolving Business Analytics

 Less Subject Matter Experts

 External Factors

 Internal Factors

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Fundamentals of Business Analytics
Analytics in Practice

The Secret of Success

34
 The Secret of Success

Possibly the best-guarded secret in business analytics is

that in practice, they must

 Establish business analytic

culture

 Understand analytic in play

 Recognize the insights as a

competitive advantage.

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Fundamentals of Business Analytics
Analytics in Practice

Analytics for the Rest of Us

36
 Analytics for the Rest of Us

Many of our practitioners worked in companies that didn’t want to become analytical
competitors, but rather wanted to move their organizations toward greater analytical
maturity. They believed that making decisions on facts and analytics was beneficial, but they
didn’t necessarily want to build their companies and value propositions around doing so.

In this module we occasionally refer to analytical competitors, such as Cincinnati Zoo , Papa
Gino’s , Kraft Vegemite and other business, because they are great repositories of leading
analytical practices.

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