Essay on Introduction To Analytics

Submitted By deepanbaalan
Words: 2303
Pages: 10

Introduction to Analytics

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What, Why & Where

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What is analytics?
 Analytics is the application of: computer technology, statistics and domain knowledge to solve problems in business and industry, to aid efficient and effective decision making
 Analytics is simply the scientific process of converting raw data into knowledge to support decision making
 Analytics involves finding patterns in data
 The goal of analytics is to improve business, society or personal performance by gaining knowledge from data

 Analytics is moving decision making from gut feel and guesstimates to better, more informed ones driven by data
So why is analytics so important all of a sudden?

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Why is analytics used?
Decision making is now fact and performance based
Intuition is out, metrics are in
Intense competition, shorter time-to-market, demanding customers

Make each and every dollar count and increase return on investment

Take real-time decisions

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Industries using analytics
Banks
IT
Education
Investment funds Sales &
Marketing

Media
Human
Resources

Social
Networking
Sites
Credit Cards

Transport
Defense
Tourism

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FMCG

Retail

Consumer
Research

Hospitals

Supply Chain
& logistics
Manufacturing

Ecommerce

Stock Markets

Sports
Hotels

Insurance

Health Care
NGOs
Airlines
Telecom

Investment Banking

Uses of Analytics
Marketing
• Customer segmentation
• Upselling/cross-selling
• Market basket analysis
• Marketing media mix analysis

Financial Sector
• Credit risk management
• Credit scorecard modeling
• Fraud detection
• Stock market analysis

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Uses of Analytics
Management of Customer Relationship
• Analysis of customer feedback data
• Analysis of loyalty / membership benefits
• Churn management

Manpower Resource Planning
• Long term / short term planning for resources
• Hiring strategy
• Profitability management

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Uses of Analytics
Retail analytics
• Shelf-space allocation
• Analysis of customer preference for store-brand or brand names
• Pricing decisions
• Promotions and product bundle offerings

Media Analytics
• Decision making on allocation of air-time of a new
TV show
• Primetime rate for advertisement
• Analysis of channel viewership

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How : Tools Used in
Analytics

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Some Analytics Tools and Technologies

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What Businesses consider before they choose a tool?
Cost
Compliance
Support
Ease of Use
Capabilities
Efficiency
Legacy
In what order these will be considered very much varies with industries to domains to organisations. Copyright 2014 RESTRICTED CIRCULATION

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How: Analytics
Methodology

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Business analytics process

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Defining the Business Problem
Identify the problem to solve
What you observe is the result of the problem. This may not be the problem itself

Two quick examples:
A particular bank has recently gone into retail loan market and is accumulating losses due to defaulters
There are too many diet programs to choose from!

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Convert Business Problem to Analytics Problem
What is an analytics problem?
Form of the problem which identifies targets in terms of numbers, definite outcome values
Identifies factors affecting the outcome as numbers
, definite outcome values
Identifies data contents needed to solve the problem Copyright 2014 RESTRICTED CIRCULATION

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Data Requirement
Identify ways to quantify factors which you considered in the business problem
Identify data sources and gather data
Plan Data collection if data is not present/available currently
Decide preferable formats for the data…