Introduction to

Business Analytics
 Business Analytics

Data

Data refers to raw, unorganized

facts that can be processed to
derive meaningful information.
Data can be qualitative
(descriptive) or quantitative
(numerical).
Business Analytics

TYPES OF DATA

Unstructured Data
Structured Data

Organized in rows and columns (e.g., Excel Data without a predefined format (e.g., videos, social
spreadsheets, databases).Example: media posts).Example: Comments on a YouTube video
Customer details in a bank database, or images uploaded to Instagram.
including account numbers, names, and
balances.
 Business Analytics

Data Science

Data Science is an
interdisciplinary field that
extracts knowledge and insights
from structured and
unstructured data using
scientific methods, algorithms,
and systems.
Business Analytics

Components of Data Science

1. Data Collection: Gathering data from various sources (e.g., surveys, IoT devices, social media).
2. Data Cleaning: Removing inconsistencies or errors in data
3. .Data Analysis: Identifying patterns and trends using statistical tools.
4. Model Building: Developing algorithms to predict or prescribe outcomes.
5. Visualization: Presenting findings in a clear and interpretable manner.
 Business Analytics

Data Analytics
and Data
Analysis
 Data Analytics is a broader term
encompassing techniques and
tools used to examine datasets,
identify patterns, and predict
future trends. It includes
predictive and prescriptive
analytics.
 Data Analysis, on the other hand,
focuses on understanding
historical data to uncover trends
and patterns.
 For example, Amazon analyzes
customer purchase history (data
analysis) to predict future buying
 Data Analytics & Data Analysis
Business Analytics

(difference)
ASPECT Data Analytics Data Analysis
Definition Broader approach, focusing Focus on historical data to
on tools and future trends identify patterns

Purpose Forecasting, decision- Understanding, explanation

making

Scope Includes predictive, Often restricted to

diagnostic, and prescriptive descriptive analysis
analytics
Example Predicting customer churn Analyzing customer
using ML models feedback trends over six
months
Business Analytics

Classification of Analytics

[Link] Analytics: Summarizes past data (e.g., sales

reports)
[Link] Analytics: Explains why something happened (e.g.,
root cause analysis for a sales dip)
[Link] Analytics: Forecasts future outcomes (e.g., weather
predictions)
[Link] Analytics: Recommends actions based on
predictions (e.g., inventory optimization).
 Application of Analytics in
Business Analytics

Applications
Business
Description Example

Marketing Analytics Customer segmentation, Google Ads targeting

campaign success

Financial Analytics Fraud detection, risk Credit card fraud detection

management
Operations Analytics Optimizing supply chains Amazon's inventory
Amazon's inventory systems
systems
HR Analytics Employee performance Recruitment trend analysis
evaluation
Flow Diagram
Business Analytics Exercise

Imagine you are a data analyst at a retail

clothing store, "Style Hub," which sells
fashion products both online and in-store.
The store collects various types of data,
such as customer demographics (age,
gender, location), purchase history, website
traffic, social media interactions, and
Let's inventory levels.
The store wants to improve its sales,
customer service, and marketing strategies
Solve using data analytics.

Together
 Look at these
Problems
Part 1: Classifying Analytics Types
Business Analytics

Identify the type of analytics for the following situations :

Question 1 Question 2 Question 3

a. What type of analytics is b. What type of analytics is c. What type of analytics is

being used to analyze past being used to predict sales being used to recommend
purchases and identify popular for the next quarter based actions like discounts and
products and trends? on past data? marketing strategies?
.

Answer 1 Answer 2 Answer 3

 Look at these
Problems
Part2: Data Science in Action
Business Analytics

Scenario: The store wants to improve customer experience by analyzing customer

feedback, such as ratings, reviews, and survey responses.

Question 1 Question 2

a. What type of data analytics b. How can the store use the
would the store use to analyze insights from customer feedback
customer reviews and feedback to to improve their business?
identify common concerns or
suggestions?.

Answer 1 Answer 2
 Look at these
Problems
Part 3:Business Application and Decision
Making
Business Analytics

Scenario: The store is running a discount promotion. They want to analyze

how the promotion. is affecting sales.

Question 1 Question 2

a. What type of data analysis would b. If the store wants to know the
the store use to track sales before, effect of the promotion on
during, and after the promotion to different customer groups (e.g.,
determine its impact? frequent shoppers vs. occasional
buyers), what kind of analytics
should they apply?
Answer 1 Answer 2
Look at these
Problems
Part 4: Discussion
Business Analytics

Worksheet
.

Question 1

Why is it important for businesses like "Style Hub" to use a

combination of Descriptive, Predictive, and Prescriptive analytics in
different stages of decision-making? How can these types of
analytics improve business performance, especially in a competitive
retail market?

Answer 1
ANSWER KEYS:

Part 1: Classifying Analytics Types

a. The store is using Descriptive Analytics to
summarize historical purchase data and identify
popular products and trends.
b. The store is using Predictive Analytics to
forecast future sales based on historical data,
weather patterns, and seasonality.
c. The store is using Prescriptive Analytics to
recommend the best actions (e.g., discounts and
marketing strategies) to optimize sales during the
holiday season.
 ANSWER KEYS:

Part 2: Data Science in Action

a. The store would use Descriptive Analytics to
analyze customer reviews and feedback, identifying
recurring themes or issues, such as product quality
or delivery time.
b. The store can use this feedback to improve
customer service, optimize product offerings, adjust
marketing strategies, or address common concerns
(e.g., better stock management, faster shipping).
 ANSWER KEYS:

Part 3: Business Application and Decision Making

a. The store would use Descriptive Analytics to track
and compare sales data before, during, and after
the promotion to assess its effectiveness.

b. To evaluate the effect on different customer

groups, the store should apply Segmentation Analysis
(a form of Descriptive Analytics) to categorize
customers into groups (e.g., frequent buyers,
occasional buyers) and assess the promotion's impact
on each group.
 ANSWER KEYS:

Part 4: Discussion

For businesses like "Style Hub," using Descriptive Analytics to

understand past customer behavior, Predictive Analytics to
forecast future trends and sales, and Prescriptive Analytics to
recommend strategies for optimal decision-making is crucial for
maintaining competitiveness. Descriptive Analytics helps in
identifying trends, while Predictive Analytics helps in anticipating
future customer needs and market conditions. Prescriptive
Analytics guides businesses in implementing the best actions to
achieve desired outcomes, whether it’s optimizing marketing
efforts or inventory management. Combining these analytics
methods helps businesses stay ahead in a competitive retail
market by making data-driven decisions that improve effi ciency,
customer satisfaction, and profitability.
:
Case Study: Walmart and Data Analytics

Company Overview: Walmart, the world’s largest retailer, operates over 10,500 stores in 24
countries. The company heavily relies on data to optimize operations, enhance customer
experience, and drive sales.

1. Data and Data Science Definition :Data refers to raw facts and figures, while data science
involves using these data points to extract insights and inform decision-making through
statistical analysis, machine learning, and data visualization.

• Application at Walmart: Walmart employs data scientists to analyze vast amounts of transaction
data and customer behavior insights. They leverage predictive analytics to forecast demand and
optimize inventory levels.

1. 2. Data Analytics and Data Analysis

• Data Analytics: This encompasses the techniques used to analyze data sets to draw conclusions
about the information
. they contain.

• Data Analysis :Data analysis is a component of data analytics that focuses specifically on
cleaning, transforming, and modeling data to discover useful information.
Case Study: Walmart and Data Analytics:

Walmart’s Approach:

• Data Analytics: Utilizing advanced techniques, Walmart tracks purchasing patterns across
all its stores. They analyze customer data to tailor marketing campaigns and improve
customer experience.

• Data Analysis: The company performs real-time analysis of sales data to adjust stock levels
and ensure popular items are in stock while reducing excess inventory.

3. Classification of Analytics

• Descriptive Analytics: Used to describe historical data and trends. Walmart uses this to
review past sales and inventory levels.

• Diagnostic Analytics: Analyzes past performance to understand why certain results

occurred. For instance,
. analyzing a dip in sales to identify causes such as stockouts or store
layout issues.
Case Study: Walmart and Data Analytics

• Predictive Analytics: Forecasts future outcomes based on historical data. Walmart uses
predictive analytics to anticipate demand during holiday seasons and special promotions.

• Prescriptive Analytics: Provides recommendations for actions. Walmart uses prescriptive

analytics to optimize supply chain logistics and delivery routes.

4. Applications of Analytics in Business

• Inventory Management:Walmart uses data analytics to maintain optimal stock levels, thus
reducing holding costs and minimizing stockouts. The company employs an AI-driven
inventory management system that analyzes regional sales trends to predict inventory needs.

• Customer Insights: Utilizing customer purchase data, Walmart personalizes offers and
promotions, improving customer satisfaction and loyalty.

• Supply Chain Optimization: Walmart’s use of data analytics in logistics has allowed it to
.
reduce costs significantly. By analyzing delivery routes and times, Walmart has minimized
transportation costs and improved delivery efficiency.
Case Study: Walmart and Data Analytics

• Actual Facts and OutcomesReduction in Inventory Costs: Walmart has managed to keep
its inventory turnover rate above 8, which is significantly higher than the industry
average, leading to reduced inventory holding costs.

• Customer Experience: Personalized marketing initiatives driven by analytics increased

customer engagement, leading to a notable rise in sales during targeted
[Link] Chain Efficiency: By implementing real-time analytics, Walmart has
cut delivery times significantly, achieving a 70% reduction in delivery route planning
time.

.
Case Study: Walmart and Data Analytics

Conclusion:

Walmart exemplifies the strategic use of data and analytics to drive business growth.
Through meticulous data analysis and adoption of various analytical classifications, Walmart
continues to optimize its business processes, ensuring a competitive edge in the retail
marketplace. This comprehensive approach not only enhances operational efficiency but also
improves customer satisfaction, showcasing the power of data in driving actionable insights
in business.

.
Business Analytics

Thank YOU !!