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
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
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