DATA ANALYTICS

UNIT-1
Flow of Presentation
Introduction
What is Data Analytics?
It is the process of analyzing raw data in order to draw out meaningful, actionable insights. It’s
a form of business intelligence, enabling companies and organizations to make smart decisions based
on what the data is telling them.
What does a Data Analytics do?
Introduction
Need for Data Analysis
1. Data analytics replaces guesswork with data-driven insights. It
helps you make sense of the past and predict future trends and
behaviors, leaving you much better equipped to make smart
decisions.
2. Data analytics encompasses the extraction (or collection) of raw
data, the preparation and subsequent analysis of that data, and
storytelling—sharing key insights from the data, using them to
explain or predict certain scenarios and outcomes, and to inform
decisions, strategies, and next steps.
Introduction
Need for Data Analysis
3. Automate your processes : Data analytics helps companies shift from manual, time-consuming
tasks to automated, efficient systems. This often frees up valuable resources for more value-add or
strategic activities. A crucial tool used in data analysis that makes automation of processes possible is
Python. Python’s simplicity, vast ecosystem of libraries, and cross-compatibility make it a powerful
tool.
For example:
1. Pandas: A powerful library for data manipulation and analysis, providing data structures like DataFrame for
handling tabular data.
2. NumPy: A fundamental package for numerical computing, providing support for arrays and matrices, along
with a collection of mathematical functions to operate on them.
3. Matplotlib: A versatile plotting library for creating static, animated, and interactive visualizations in
Python.
Introduction
Need for Data Analysis
4. Optimise your resources : Optimizing resources is not just about cutting costs but also
maximizing value from all of an organization's assets. And data analytics offers you the tools to
elevate your operational efficiency on both fronts. Data analytics can help you identify both areas of
excess and untapped resources—from talent to inventory and beyond. Once you’ve gathered insights
from across your organization, you can then allocate resources more effectively to ensure that each
asset is used where it brings the most value.

5. Use predictive analytics for forecasting : Predictive analytics empowers businesses to anticipate
the future, rather than merely reacting to the past and present. This forward-thinking approach
enables companies to streamline their operations, minimize risks, and seize opportunities ahead of
the competition.

6. Make your data more accessible: Data analytics helps make data more accessible and a game-
changer for operational efficiency, democratizing information and empowering decision-makers at
all levels.
Introduction
Four Types of Data Analytics
1. Descriptive: what happened in the past
As the name suggests, the purpose of descriptive analytics is to simply describe what has happened;
it doesn’t try to explain why this might have happened or to establish cause-and-effect relationships.
The aim is solely to provide an easily digestible snapshot.
Example:
Google Analytics HubSpot
Introduction
There are two main techniques used in descriptive analytics: Data aggregation and data mining.
• Data aggregation
Data aggregation is the process of gathering data and presenting it in a summarized format.
• Data mining
Data mining is the analysis part. This is when the analyst explores the data in order to uncover any
patterns or trends. The outcome of descriptive analysis is a visual representation of the data—as a
bar graph, for example, or a pie chart.

So, Descriptive analytics condenses large volumes of data into a clear, simple
overview of what has happened.
Introduction
2. Diagnostic: Why did it happen?

Diagnostic analytics seeks to delve deeper in order to understand why something happened. The
main purpose of diagnostic analytics is to identify and respond to anomalies within your data. For
example: If your descriptive analysis shows that there was a 20% drop in sales for the month of
March, you’ll want to find out why. The next logical step is to perform a diagnostic analysis.
So: While descriptive analytics looks at what happened, diagnostic analytics explores why it
happened.

3. Predictive : What is likely to happen in the future?

Predictive analytics seeks to predict what is likely to happen in the future. Based on past patterns
and trends, data analysts can devise predictive models which estimate the likelihood of a future event
or outcome. This is especially useful as it enables businesses to plan ahead.
Introduction
4. Prescriptive : What’s the best course of action?

Prescriptive analytics looks at what has happened, why it happened, and what might happen in
order to determine what should be done next. In other words, prescriptive analytics shows you how
you can best take advantage of the future outcomes that have been predicted. What steps can you
take to avoid a future problem? What can you do to capitalize on an emerging trend?
Characteristics of data
What is Data?
Data can be defined as factual information used as a basis for reasoning,discussion, or calculation.
A practical approach to defining data is that data is numbers, characters, images, or other method of
recording, in a form which can be assessed to make a determination or decision about a specific
action.

Types of Data
1. Qualitative data : Data that is represented either in a verbal or narrative format is qualitative data. These
types of data are collected through focus groups, interviews, opened ended questionnaire items, and other
less structured situations. A simple way to look at qualitative data is to think of qualitative data in the form
of words.

2. Quantitative data : Quantitative data is data that is expressed in numerical terms, in which the numeric
values could be large or small. Numerical values may correspond to a specific category or label.
Characteristics of data
Data Strategies
Different strategies provide data analysts with an organized approach to working with data; they
enable the analyst to create a “logical sequence” for the use of different procedures .
For Quantitative Data Analysis, there are four strategies involved:
Characteristics of data
Classification of Data
Classification of Data
Structured Data
• Structured data is generally tabular data that is represented by columns and rows in a database.
• Databases that hold tables in this form are called relational databases.
• The mathematical term “relation” specifies a formed set of data held as a table.
• In structured data, all row in a table has the same set of columns.
• SQL (Structured Query Language) programming language used for structured data.
Classification of Data
Semi-Structured Data
• Semi-structured data is information that doesn’t consist of Structured data (relational database)
but still has some structure to it.
• Semi-structured data consists of documents held in JavaScript Object Notation (JSON) format.
It also includes key-value stores and graph databases.
 Classification of Data

Unstructured Data
•Unstructured data is information that either is not organized in a pre-defined manner or does not have a
pre-defined data model.
•Unstructured information is a set of text-heavy but may contain data such as numbers, dates, and facts as
well.
•Videos, audio, and binary data files might not have a specific structure. They’re assigned
to unstructured data.
Classification of Data
Pros and Cons of Structured Data

Pros Cons

Requires less processing in

Limited usability because of its pre-
comparison to unstructured data and
defined structure/format
is easier to manage.

Structured data is stored in data

Machine algorithms can easily crawl
warehouses which are built for space
and use structured data which
saving but are difficult to change and
simplifies querying
not very scalable/flexible.

As an older format of data, there are

several tools available for structured
data that simplify usage,
management, and analysis
Classification of Data
Pros and Cons of Unstructured Data
Pros Cons
A variety of native formats facilitates a The greater number of formats makes it
greater number of use cases and equally challenging to analyze and
applications leverage unstructured data.

As there is no need to predefine data, The large volume and undefined formats
unstructured data is collected quickly and make data management a challenge and
easily. specialized tools a necessity.

Unstructured data is stored in on-

premises or cloud data lakes which are
highly scalable.

Although challenging, the greater volume

of unstructured data provides better
insights and more opportunities to turn
your data into a competitive advantage.
 Classification of Data

Characteristics Of Structured (Relational) and Unstructured (Non-Relational) Data

Relational Data
• Relational databases provide undoubtedly the most well-understood model for holding data.
• The simplest structure of columns and tables makes them very easy to use initially, but the inflexible
structure can cause some problems.
• We can communicate with relational databases using Structured Query Language (SQL).
• SQL allows the joining of tables using a few lines of code, with a structure most beginner employees can
learn very fast.
• Examples of relational databases:
• MySQL
• PostgreSQL
• Db2
 Classification of Data
Characteristics Of Structured (Relational) and Unstructured (Non-Relational) Data
Non Relational Data
• Non-relational databases permit us to store data in a format that more closely meets the original structure.
• A non-relational database is a database that does not use the tabular schema of columns and rows found in most traditional
database systems.
• It uses a storage model that is enhanced for the specific requirements of the type of data being stored.
• In a non-relational database the data may be stored as JSON documents, as simple key/value pairs, or as a graph
consisting of edges and vertices.
• Examples of non-relational databases:
• Redis
• JanusGraph
• MongoDB
• RabbitMQ
Business Intelligence
Business Intelligence Main Objectives
Business Intelligence
Comparing Business Intelligence with Data Science
Examples of Business Analytics
Three examples of Big Data Analytics in different areas: retail, IT infrastructure, and social media.
An example of this is the U.S. retailer Target
• An example of this is the U.S. retailerTarget. CharlesDuhigg’s book The
Power of Habit[4] discusses how Target used Big Data and advanced
analytical methods to drive new revenue.
• After analyzing consumer- purchasing behavior, Target’s statisticians
determined that the retailer made a great deal of money from three
main life event situations.
• Marriage, when people tend tobuy many new products.
• Divorce, when people buy new products and change their spending
habits.
• Pregnancy, when people have many new things to buy and have an
urgency to buy them.
Retail
IT Infrastructure
Social Media