Module 01

BUSINESS ANALYTICS AT A GLANCE

2
CONTENTS

01 What is Business Analytics

02 Business Analytics Value Escalator

03 Business Analytics Success - Organization

04 Business Analytics Success - Individual

 01

WHAT IS
BUSINESS ANALYTICS
Problem solving WE’RE IN BUSINESS
1. Define the problem.
2. Generate alternative solutions.
3. Evaluate and select an alternative.
4. Implement and follow up on the solution. All we need are answering below
questions:
• What is happening?
Decision making
• Why did something happen?
1. Identify a business problem.
• What will happen?
2. Seek information about different possible decisions and
• What will happen if we make
their likely effect.
changes to some of the
3. Evaluate the alternatives and choose one of them.
inputs?
4. Implement the decision in business operations.
5. Monitor the situation, gather data about
the decision's impact and make changes if necessary.
 TRADITIONAL APPROACH
Decisions were made by observing and intuitive
understanding of the situation at hand.
However, human can be vulnerable to cognitive
biases that lead them to make bad decisions.
ING
A K
- M
ION
S
CI DATA- DRIVEN APPROACH
DE Data-driven decision making is the practice where
data is collected, analyzed, and decisions are
made based on the insights which are derived
from the collected information.
 LOT OF CHANCES FOR WHO DARE TO TRY

Data by itself is not useful

unless it is processed to Machine
learning
Data
obtain information. engineer
scientist
Thus, there is a huge
Business
demand for professionals in
Analyst
the data field nowadays.
Data
The following are some data architect

careers that can shape your Business Data

future:
Intelligence Analyst
developer
Data
Engineer
• Analytics is the science of analysis—the processes by which
we analyze data, draw conclusions, and make decisions.

• Business analytics is a data-driven decision-making

approach to guide an organization in business planning and
effective decision making.

• Business analytics goes beyond simply presenting data and Business Analytics
creating visuals, crunching numbers, and computing statistics.

• The essence of analytics lies in the application—making

sense from the data using prescribed methods of statistical
analysis, mathematical and statistical models, and logic to
draw meaningful conclusion from the data. (*)

(*) Amar Sahay, Business Analytics – A Data – Driven Decision Making Approach for Business
DATA IS THE NEW OIL, BUSINESS ANALYTICS IS THE OIL-SHORE

Manage Sales And

Smart Decision Making
Marketing Goals
Having up-to-date, data-driven BA will deliver in-depth analysis to
intelligence at fingertips could lead kickstart sales, boost the
to better business decisions, as performance of marketing function
well as contribute to superior by measuring their activity and
financial performance identifying trends in customer
behavior
 DATA IS THE NEW OIL, BUSINESS ANALYTICS IS THE OIL-SHORE

Deepen Accelerate
Power Up Productivity
Customer Knowledge Return-on-Investment
It’s important to understand BA has the potential to The culmination of
how our customers are release inefficiency achieving all of the points
interacting with us and how bottlenecks, refine existing above should be a vast
best to reach them – or, to business processes, improvement in our return-
encourage them to reach automate routine tasks and on-investment across the
us. Without this knowledge, bring new levels of company
we are likely to find organization and
ourselves falling behind prioritization to everybody’s
competitors work
Business Analytics | Data Analytics
Key Focus Key Focus
Business analytics focuses on Data analytics involves combing
business implications of data through massive datasets to reveal
01 01
and the actions that should result patterns and trends, draw
from them conclusions about hypotheses,
and support business decisions
with data-based insights

SOW SOW
Business analysts use data to Data analysts gather data,
02 02
make strategic business manipulate it, identify useful
decisions & communicating information from it, and
with stakeholders transform their findings into
digestible insights

Requirement Requirement
03 03
Business analysts typically Data analysts require an
have extensive domain or understanding of complex
industry experience in areas statistics, algorithms, and
databases
 Business Analytics | Business Intelligence
Business Focus Business Focus
BA answers the question BI answers the questions
“why” so it can make more “what” and “how” so you can
01 01
educated predictions about replicate what works and
what will happen change what does not

Analytics Focus Analytics Focus

BA prioritizes predictive BI prioritizes descriptive
analytics, which uses data analytics, which provides a
mining, modeling and machine 02 02 summary of historical and
learning to determine the presents data to show what has
likelihood of future outcomes happened or what is currently
happening

Requirement Requirement
With BA, the data is taken a few The data is arranged into easy-to-
03 03
steps further than reporting read reports (mostly Dashboards
(including statistical analysis, and charts) that tell users what’s
machine learning…) to look further happening. BI require math, basic
into trends and determine why statistics & tool
things are happening
 Business analytics vs.
Data Analytics | Business Intelligence

People often use these terms to mean a variety of things, so when choosing the type of technology, tools,
and talent company want to invest in, the company may focus less on BI vs. BA vs. DA.
Instead, the company should focus more on what they need the data system to do and
who will be using it.
 CASE STUDY: RETAIL VALUE CHAIN

Supply Chain Warehouse & Merchandising Customer Horizontal

& Sales Marketing
Management Logistics Operations Service Functions
 CASE STUDY: RETAIL VALUE CHAIN

Merchandising & Sales

Supply Chain Management Warehouse & Logistics
Operations
• Demand planning • Transportation & logistics • Store location analysis
• Production planning management • Space, range & display
• Inventory management (cost • On-time product availability at optimization
optimization, shortage & low cost • On-site merchandizing
excess management) • Order fulfillment • Promotions & price
• Supply network planning & • Transportation cost optimization
optimization optimization • Sales tracking & forecasting
• Purchasing operations • Customer experience
management
• Staff optimization
 CASE STUDY: RETAIL VALUE CHAIN

Marketing Customer Service Horizontal Functions

• Consumer understanding • Customer relationship • Infrastructure services

• Pricing analytics management • Staff performance
• Promotion management • Customer satisfaction & evaluation
• Social media marketing NPS • ….
• SEO
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] the consumption of fast-

moving products and order them with
1. Which products have high
sufficient inventory to avoid a stock-
Inventory demand?
out scenario.
Optimization 2. Which product are slow-moving
[Link] fast inventory turnover of
or becoming obsolete?
slow-moving products by combing
them with one in high demand.
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] price for each product can

[Link] much net margin do I have
be optimized to reduce the margin
on the product?
Price Elasticity loss.
[Link] much discount can I give on
[Link] price for bundle of product
this product?
is identified to increase the margin.
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] products should I combine

[Link] affinity analysis identifies the
to create a bundle offer?
Market Basket hidden correlation between the
[Link] I combine products which
Analysis products which can help to increase
are slow-moving with those are
cross-sell/ up-sell by:
fast-moving to push sales?
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] affinity analysis identifies the

hidden correlation between the
products which can help to increase
[Link] products should I combine
cross-sell/ up-sell by:
to create a bundle offer?
Market Basket • On-premises: Display products that
[Link] I combine products which
Analysis are commonly bought together.
are slow-moving with those are
• Online shopping: Recommendation
fast-moving to push sales?
mechanism to suggest what
products to buy increasing Selling
opportunity.
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] RIGHT customers a RIGHT

[Link] are our customer segment? product at a RIGHT time with a
Customer
[Link] can we design right strategy RIGHT cost.
Segmentation
for right customers? 2.A first step to Personalize/Customize
experience for customers.
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] on the customer lifetime value,

[Link] are the customers who will business can do targeted marketing
Customer Churn not return? resulting in retention of the customers.
Analysis [Link] can I retain them? [Link] factors which impact churn
[Link] of loyal customers rate then develop strategy to limit this
rate.
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] channel have lower

customer acquisition cost?
[Link] budget can be optimized
Channel analysis [Link] channel have better
based on right place investment.
customer retention?
[Link] channel is more profitable?
 CASE STUDY: RETAIL VALUE CHAIN
APPLIED BUSINESS ANALYTICS
ANALYTICS
APPLICATION BUSINESS QUESTION BUSINESS VALUE

[Link] the association of

products to decide store layout which
[Link] should I do store layout for
fit with customer needs.
better topline?
Store Layout [Link] deployment can be
[Link] can I increase in-store
planned for better customer
customer experience?
interactivity resulting in customer
satisfaction increase.
 02

Business Analytics
Value Escalator
 ANALYTICS MATURITY

Alert
Highlight & alert are
automated using Automation
Recommendation &
Competitive advantage

algorithms & technology

decision are automated
using algorithms &
technology
Business Intelligence Optimization
Realtime & interactive dashboard; Recommended optimal
Answer “What happened”; actions based on champion
More intuitive testing outcomes

Predictive
Historical pattern being used
Diagnostic
Data system to predict outcomes using
analytics
Data is stored, algorithms
Answer “Why
secured, & available thing happened?”;
Basic Reporting Apply Statistics &
Routine & Ad-hoc report; Math
Answer “What happened?”;
OMG
Less intuitive
Don’t know what
we have
Analytics maturity
 BUSINESS ANALYTICS VALUE ESCALATOR
NO ANALYTICS DESCRIPTIVE DIAGNOSTIC PREDICTIVE PRESCRIPTIVE
Hindsight – Foresight - Foresight –
Insight –
What’s happening What’s likely to What do I need to do?
Why is it
in my business happening? happen?

Alert
Highlight & alert are
automated using Automation
Recommendation &
Competitive advantage

algorithms & technology

decision are automated
using algorithms &
technology
Business Intelligence Optimization
Realtime & interactive dashboard; Recommended optimal
Answer “What happened”; actions based on champion
More intuitive testing outcomes

Predictive
Historical pattern being used
Diagnostic
Data system to predict outcomes using
analytics
Data is stored, algorithms
Answer “Why
secured, & available thing happened?”;
Basic Reporting Apply Statistics &
Routine & Ad-hoc report; Math
Answer “What happened?”;
OMG
Less intuitive
Don’t know what
we have
Analytics maturity
 BUSINESS ANALYTICS VALUE ESCALATOR

INFORMATION & INSIGHT FOCUSED ACTION FOCUSED

Alert
Highlight & alert are
automated using Automation
Recommendation &
Competitive advantage

algorithms & technology

decision are automated
using algorithms &
technology
Business Intelligence Optimization
Realtime & interactive dashboard; Recommended optimal
Answer “What happened”; actions based on champion
More intuitive testing outcomes

Predictive
Historical pattern being used
Diagnostic
Data system to predict outcomes using
analytics
Data is stored, algorithms
Answer “Why
secured, & available thing happened?”;
Basic Reporting Apply Statistics &
Routine & Ad-hoc report; Math
Answer “What happened?”;
OMG
Less intuitive
Don’t know what
we have
Analytics maturity
 BUSINESS ANALYTICS VALUE ESCALATOR
NO ANALYTICS DESCRIPTIVE DIAGNOSTIC PREDICTIVE PRESCRIPTIVE

Alert
Highlight & alert are
automated using Automation
Recommendation &
Competitive advantage

algorithms & technology

decision are automated
using algorithms &
technology
Business Intelligence Optimization
Realtime & interactive dashboard; Recommended optimal
Answer “What happened”; actions based on champion
More intuitive testing outcomes

Predictive
Historical pattern being used
Diagnostic
Data system to predict outcomes using
analytics
Data is stored, algorithms
Answer “Why
secured, & available thing happened?”;
Basic Reporting Apply Statistics &
Routine & Ad-hoc report; Math
Answer “What happened?”;
OMG
Less intuitive
Don’t know what
we have
Analytics maturity
 BUSINESS ANALYTICS VALUE ESCALATOR
NO ANALYTICS DESCRIPTIVE DIAGNOSTIC PREDICTIVE PRESCRIPTIVE

Alert
Highlight & alert are
automated using Automation
Recommendation &
Competitive advantage

algorithms & technology

decision are automated
using algorithms &
technology
Business Intelligence Optimization
Realtime & interactive dashboard; Recommended optimal
Answer “What happened”; actions based on champion
More intuitive testing outcomes

Predictive
Historical pattern being used
Diagnostic
Data system to predict outcomes using
analytics
Data is stored, algorithms
Answer “Why
secured, & available thing happened?”;
Basic Reporting Apply Statistics &
Routine & Ad-hoc report; Math
Answer “What happened?”;
OMG
Less intuitive
Don’t know what
we have
Analytics maturity
 BUSINESS ANALYTICS TECHNIQUE

Descriptive Diagnostics Predictive Prescriptive

Analytics Analytics analytics analytics

Data sources & Data mining

Data type Regression Optimization

Inferential Statistics Forecasting Simulation

Data Processing
Hypothesis
testing Classification Machine learning
Exploratory Data & Artificial
Analysis Intelligence
Correlation Clustering
Descriptive
Statistics Regression Association

Advanced Data
Data Visualization Visualization
CASE STUDY
 CASE STUDY
Step 1:
Apply Explore Data Analysis to learn about business index which can drive revenue such as Volume/ Price, No. of customer, their purchasing
behavior (frequency) & basket (basket size, products in basket…)

Does Performance reach out target?

1 YTD % VS. LY

Profit margin Gross Margin Return on

Investment

83% 35% 4.4 35%

2 Is our stock level optimal?
4
How Portfolio effectiveness?

Value per SKU (Mil. VND/ SKU (# of SKU) Value COGS ([Link]) Inventory turnover
SKU) ([Link])
80 0% 5 15%
22 35% 6,685 16% 146 57%

Price – list price (‘000VND/ Price – selling price Volume

item) (‘000VND/item) (‘000 items)

310 11% 294 6% 497 48%

Is the price optimal? 5

3 Volume per buyer What are Buyer
(items/buyer) Shopper profile (‘000 ppi.)
driving the growth?
3,9 6% 127 39%

6 8
Volume per trip Frequency Buyer per store
Customer retention Store (# of outlet)
(# of items/trip) (# of trip/year) (# of ppi/outlet)

ESSENTIAL KPIs 2,0 -4% 1,9 10% 30 13% 2,643 7% 48 30%

FOR TRACKING How is Marketing effectiveness to

increase basket size?
Conversion rate Foot traffic
Sale per square foot (Mil.

RETAIL VND) Are our outlets

efficient
45 5% 5,873 9% 5,4 3% in investment?
PERFORMANCE How is Loyalty program to push extra engagement?
7
 CASE STUDY

Step 2:
Strategy is to increase basket size Figure out which factors impact to customer’s basket: customer profile (age/ gender/
marriage status..), promotion program, product display… by apply Regression analysis
🡪
 CASE STUDY

Step 3:
Association technique help to find out products that are frequently bought together based on orders of thousands of customers
To identify product combo and define the right gross sales strategy

Step 4:
Optimization algorithm gives the most optimal solution in terms of display based on input from product combo, product price,
necessary display area for each product and so on.
🡪
 03
Business Analytics Success
- Organization
 BUSINESS ANALYTICS SUCCESS

Build a Data-driven mindset & culture

The whole company (from business managers to operations professionals & staffs) need to have a consensus
view on the role of data & analytics.

Expand the analytical power of leadership

Business managers must update their analytical skills and become leaders in this field.

Have a clear strategy & roadmap

Company need a strategy of what it is the company wants to accomplish and a clear
roadmap to achieve it.

Data need to be transparent across organization

To make information trustful and actionable, company need make full use of its main
assets. ‘Two half truths do not make a truth’.

Invest for right people & right technology infrastructure and tools
Company need a professional team with right tool to develop, deploy, maintain &
enhance BA systems.
 MILESTONE ON THE PATH TO VALUE

DEFINE YOUR GOALS PERFORM PLENTY OF RESEARCH MAKE A LIST OF MUST-HAVE

▪ Before getting started, determine ▪ Find out what similar companies are CAPABILITIES
what you hope to accomplish with doing with data, what tools are they ▪ Once you’ve defined your use case,
your business analytics strategy using, what kind of results are they you’ll want to come-up-with a list of
▪ Whatever it is, you’ll want to define seeing? requirements.
its potential impact on the business ▪ In this step, you can consult with an ▪ Requirements may include both
also and establish a plan for how expert to identify impactful use people & technology infrastructure
you’ll actually use insights once cases, align data initiatives with big and tools
they’re available picture goals, and choose the tools ▪ You don’t need to invest all the
that best support key objectives things from the beginning, but need
to ensure the simplicity and
compatibility of the system in the
future
 MILESTONE ON THE PATH TO VALUE

DEPLOYMENT CHANGE MANAGEMENT PERFORMANCE MANAGEMENT

▪ You need a professional project ▪ Encourage buy-in of stakeholders & ▪ Measure value against in step 1
team to develop, deploy & maintain end-users goals
these systems ▪ Communicate analytics value & ▪ Evaluate performance
▪ Project leader need to be benefits ▪ Continuously invest in follow-up
empowered enough to make ▪ Push past inertia projects
decision to change the whole
▪ Train organization and operational
company’s systems users
▪ Project champions/project sponsors
should be top level of the company
to endorse the project
▪ Start with simple applications
targeting small improvements
 04
Business Analytics Success
- Individual
 ANALYTICS JOURNEY
Analyze data
Data source
Identify Business • Prepare &
Questions • Plan data Explore data
collection • Perform data
• Define Business • Determine data analysis
problems or set
opportunities • Collect &
• Formulate research validate data
questions
• Plan data analytics
approach

Use results to
influence decision
making
Interpret &
visualize
• Recommend action
• Derive Insights • Develop
from data Implementation
• Communicate plan
findings • Manage change
 SKILL & KNOWLEDGE
BUSINESS ANALYTICS

• EDA (Exploratory data analysis) process

• Data wrapping/ mining
• Database management & processing tool
(Excel, SQL…)
• Business domain: Industry &
Business domain Technical data • Big data tools (Spark, Apache Hadoop…)
Department
• Analytics skill expertise management skills • Visualization tool (PowerPoint, BI tool
(Power BI, Tableau…)
• Critical thinking
• Advanced data analysis tool (Python/ R…)
• Problem solving skill
• Storytelling/ Presentation skill

• Descriptive statistics
• Inferential statistics (hypothesis testing…)
Applied Statistics • Regression (Logistics, Linear regression,
& Math Multivariate Regression…)
• Forecasting (Time series forecasting, E.T.S (Error,
Trend, Seasonality), [Link] models…)
• Decision tree, K-means, KNN, Naive Bayes
classifier….
 SKILL & KNOWLEDGE
BUSINESS INTELLIGENCE

• EDA (Exploratory data analysis) process

• Data wrapping/ mining
• Database management & processing tool
(Excel, SQL…)
• Business domain: Industry &
Business domain Technical data • Big data tools (Spark, Apache Hadoop…)
Department
• Analytics skill expertise management skills • Visualization tool (PowerPoint, BI tool
(Power BI, Tableau…)
• Critical thinking
• Advanced data analysis tool (Python/ R…)
• Problem solving skill
• Storytelling/ Presentation skill

• Descriptive statistics
• Inferential statistics (hypothesis testing…)
Applied Statistics • Regression (Logistics, Linear regression,
& Math Multivariate Regression…)
• Forecasting (Time series forecasting, E.T.S (Error,
Trend, Seasonality), [Link] models…)
• Decision tree, K-means, KNN, Naive Bayes
classifier….
 SKILL & KNOWLEDGE
DATA ANALYTICS

• EDA (Exploratory data analysis) process

• Data wrapping/ mining
• Database management & processing tool
(Excel, SQL…)
• Business domain: Industry &
Business domain Technical data • Big data tools (Spark, Apache Hadoop…)
Department
• Analytics skill expertise management skills • Visualization tool (PowerPoint, BI tool
(Power BI, Tableau…)
• Critical thinking
• Advanced data analysis tool (Python/ R…)
• Problem solving skill
• Storytelling/ Presentation skill

• Descriptive statistics
• Inferential statistics (hypothesis testing…)
Applied Statistics • Regression (Logistics, Linear regression,
& Math Multivariate Regression…)
• Forecasting (Time series forecasting, E.T.S (Error,
Trend, Seasonality), [Link] models…)
• Decision tree, K-means, KNN, Naive Bayes
classifier….
MEET NATASHA

• Love data & analysis

• High self-learning spirit
• Can-do attitude
• Patience and Perseverance