What is the buzz?

so let's get started

what you see written here on the slide are some of the common terms that are being
used very frequently these days especially if you are a part of the corporate world
and if you are looking for say different job portals and all you would know that these
are the terms which are commonly used and more frequently used these days

1. business analytics
2. business intelligence
3. data analytics and
4. data science
it's not important for us to get into a debate as to how these vary
but for a starter there is a good overlap between all of these so there is a starting
point and when you develop your career in a particular direction you can become
more specific about what you want to pursue but just for a quick introduction sake
let me tell you
1. business analytics is the use of analytics focus to business that's that's for
decision making primarily for managers or stakeholders in the business
2. data analytics is an overarching term which you can say supersedes the
scenario of business and goes into the field of healthcare but could go into a
customer research, could go into education so data analytics is an overall
term business analytics can be a subset of it
3. business intelligence would be a mix of analytics and a lot of analysis which
might come from your understanding of the processes and the way your
processes flow so this is more to do with analytics plus your subject matter
expertise and
4. data science is is I would say the vastest term among all thing is and it's very
popular these days this is a mix of multiple skills and we'll talk about that as
we move one later

parallel to these terms there is another term which is quite popular and as is being
used very frequently by people it is big data

any data that's beyond the capacity of your system to process could be a
big data for your system
when we talk about big data there are certain weeds which are important v as in
velocity so it is getting generated at a very high speed, V as in volume so there is a
large volume of data that's getting stored, there is variety of data so it's getting
generated to multiple sources the data may not be in a given specific file format or
structure all the time it could be from n number of resources and there is something
to do with the veracity or you can refer to the accuracy of the data that's been
captured

so big data is more technical I would say and technical owing to the aspects
associated with its storage and the processing speed so the techniques the
underlying techniques to work on the big data and approach from the analytic
side of it would be the same but yes there are certain technical elements that get
associated
what's the burden what is it that people are talking about
so for example Gartner says that in 2018 data and analytics can't be ignored
analytics will drive major innovation and disrupt established business models in the
coming years

technical professionals need to adapt their data and analytics architecture from end
to end to meet the demand of analytics everywhere and

McKinsey says there will be a shortage of talent necessary for organizations to

take advantage of big data by 2018 the United States alone could face a shortage of
140 thousand two hundred and ninety thousand people with deep analytic skills as
well as 1.5 million managers and analysts with the know how to use the analysis of
big data to make effective decisions

now these are some reported names in the field of consulting and research and if
they feel that there is going to be a change in the way the businesses have been
operating so far of course the businesses will need to hire for the right skill set and
that we're a shortage of the right manpower in the industry is anticipated

in fact if you talk about Howard Business Review it is clearly called out that sexiest
job of the 21st century is data analytics

so you can imagine that this is going to be there this is going to be the demand and
the future there for those of us who have not yet taken their first step in this direction
should definitely consider doing that now

let's try to understand why the entire scenario has changed so much one is that
yes we know there is a demand that has come up but what has led to that demand of
course you all know that there is a good increase or explosion in the digital footprint
there is more and more social media that has come up every other person has
access to a smartphone the digital devices tablets and computers and all of this and
in the arena of social media is somewhere or the other getting recorded and and
some people refer to it as a digital trace
so our access to the Internet of Things and social media all of these put together
have led to a complete explosion in the availability of data and to put it in precise
numbers this is how the stats looked like

so 0.79 zettabytes of data was generated til about 2009 between 2009 to 2011 you
can say there is one point two zero bytes of data that's been generated and it
continues to increase in fact it's anticipated that by the year 2020 who will have 35
zettabytes of data and those of you were not familiar with zettabytes just assume
that it's a lot and lot of data but you can look at almost an explosion here several
hundred times compared to what it was there earlier and and no wonder why the
availability of data that's being generated would definitely encourage the businesses
and their enterprises to understand and extract the value of the data

but where we might be lacking the fact that our education system didn't get modified
in most of the countries the education system did not change as for the enormous
amount of data that's going to be available
so people continue to study what they were traditionally studying for years and

at the same point in time the businesses where the management was slow to react
to the huge availability of data they did not do sufficient investments in their
employees to equip them with the right skills and prepare them for the upcoming
demand having said that

some of you watching this video might be students now there's nothing that you've
lost you can still go ahead and build a skill set in the field of data science and there is
a long way to go

there would be people watching this video who are already working and maybe they
have decent years of work experience irrespective of that you can definitely find a
place for yourself in the data analytics arena

and we'll talk about it in the following slides so no matter where you are in your
career if you're a working professional point is that you can always take that first step
and gain something out of it provided you are willing to take that first step now if you
say that you're in the middle of your career and you want to survive for next 20 years
without acquiring these skills the times could be really challenging for you

is all that I can say right now so far we've only talked about how the business
scenario has changed and where the challenges could be anticipated if the
businesses do not adapt to the understanding of data

but what is it that's in store for people who are working are the individuals so
IBM predicts the demand for data scientists will soar 28 percent by 2020 and that's a
huge demand by all standards now let's have a look kind of salaries that different
jobs and the field of data analytics are offered

so of course there is a category of data scientists and advanced analytics the one
that you see it kind of framed in green here

what is the data scientist I just like to touch upon that so data scientist is basically an
amalgamation of three skills number one a coder a person who can write codes
knows programming languages and has a comfort
with the second would be the statisticians are the people with skills in the area of
mathematics
and third would be the business acumen so data scientist is not just one skill it's an
amalgamation of three skills the coders the mathematicians and the business people
so you see that a data scientist is a balance between these three skills now it is quite
possible that some of us do not have a background into coding can we still make a
career into data analytics yes very well if you are really high on your business
acumen and you know what you want in mathematical terms you can still go ahead
and ask your coders to work for you and they will take care of it so it is not necessary
that you need to balance all three you can start from where you are just leverage on
your strengths that you have moving on as for a report published by Christ water
Coopers companies will look mostly for business people with analytics skills and not
just analysts
what does it mean well again it points out towards the fact that no matter how
good you are with your data but there are certain practical aspects related to a
business that you need to understand in order to be able to leverage the information
that your data has given you

so again re-emphasize in wherever you are in your career if you've made certain
progresses in the direction of business you can very well adapt the edge through
analytics and then take your business goals forward you can see there multiple
categories of jobs so there are data-driven decision makers of course they are highly
paid compared to the data analysts and

there are analytics managers if you see the last row here these people will always
have an edge compared to a plain vanila data
analyst

let's look at the future so once you enter the data analytics field how does the salary
progress you can see the enormous amount of increase as the experience in the
field grows and by all standards if you study how the salaries are distributed across
different industries and sectors by all standards this is a very comfortable paycheck
that we are talking about here

and then this is pretty much applicable to the global scenario so irrespective of which
country you are in sooner or later this is going to catch up

so let's understand what is analytics and like I showed you I will try to keep
everything jog and free

so first of all the word analytics came into existence from Greece they had a word
called analytic O's which meant involving analysis what is the difference between
analysis and analytics it's very simple

analytics always has an element of data associated with it and

analysis has more to do with the procedures and darren's to the procedures in very
simple terms

definitions of analytics so there are two definitions that I like and we've mentioned
the names of the persons who
have quoted these definitions

the
analysis of data typically large sets of
data by the use of mathematics
statistics and computer software

it's
important to note here that most of the
work that you'll be doing in the field
of analytics would be supported by some
of the other computer software, a
programming language or a tool it is
almost impossible to work on those large
sets of data and do all the
calculations manually

the other
definition of data analytics which is
more application-oriented is that
analytics is the science of using data
to build models that lead to better
decisions that in turn add value to
individuals’ companies and institutions

so, this is a more practical definition

and if you just pay attention towards
the words mentioned in bold this kind of
sums up everything that you need to know
and what an analyst does

let's get into

different types of analytics so there
are three types of analytics

1. first one
is descriptive this describes what has
already occurred it helps the business
understand how things are going so this
is a path data and you're just preparing
a summary of that data and trying to
understand this is more reactive in
nature and it has mostly to do with the
past

2. predictive which is the most

popular when we talk about of all types
of analytics tells us what will probably
happen in the future as a
result of something that's already
happened
so now you're leveraging on the
information that's available to you from
the past data and trying to make
decisions for the future they help the
business forecast future behavior and
results it is proactive
so bases what
has happened we want to make certain
proactive measures for what's going to
happen in future
 3. the last one which
is closely relative to predictive is
prescriptive analytics
it helps the
business prescribe right course of
action they not only tell us what
probably will happen but also what
should be done if it happens and
it is
again a proactive measures so

predictive
tells us what's going to happen

prescriptive is our action that we

should take when we know something's
going to materialize

so these are three

simple forms of analytic talking about
the languages and the tools initially
the tools to perform advanced analytics
were only available while licensing and
and the companies used to bear a hefty
cost for these the axis was always
limited to implies of some large size
corporations but now they're ample open
source solutions supported by large
communities across the globe that are
constantly working on these open source
solutions and these come quite handy for
all data enthusiasts’

two most popular

languages are R and Python
both offer integrated Suites of software facilities
for data manipulation, calculation and graphical display

now you'd see there's a lot of debate available on these when

you go online which one is better whether we should use R or we should use
Python
the simple response without wasting any time on that debate is that
both are good choose one and move on

we've now been looking at some of the

use cases of analytics and let me
tell you even if you're not directly
involved in the business of doing
analytics yourself you can be assured
that your buying behavior your data your
presence on social media and through a
lot of other channels is definitely
being analyzed by the people who you do your business with

nobody at this point in time in the

digital age is untouched when it comes
to analytic our use cases will only
emphasize that further

80% of the data

that's available today is not in a
structured format that as the data does
not naturally come into texts and
columns

it could be a free expression

written on internet like a Facebook post

text analytics is used to analyze

customers sentiments let's say we're in
the business of providing technical
support to the customers and we provide
the technical support through a chat
based medium where the customers type
their concerns and we immediately on a
real-time basis try to cater to their
requirements

now if say a customer is repeatedly

using these words repair, not working,
slow and there could be another set of
words trouble, frustrating, waste, refund,
return, escalation

now if you see that

most of these words have a negative
connotation now and there could be
exceptions here and there but but
overall a customer who's initiating a
chat and talking about repairs of course
he's facing some or the other problem
and so is the case with similar words

now looking at this you can very well

imagine the sentiment of a customer so
in this case you can very well imagine
what would be the sentiment of the
customer on the other end he would be a
customer who is almost given up on you
if say for example he's a new customer
and he must face all of this you can
very well imagine that even if he
survives with your product he is not
going to talk positively about you
that's guaranteed right

so what can we
do to to prevent these things from
happening and can we take charge of
the situation immediately and do a
course kawrench

HR analytics now
employee attrition if you know is big problem for the companies and they spend
roughly about 20 percent of the CTC
the cost to company of a churn resource
to find his or her back fill and not
only that this is just to get the back
fill when a back fill takes up that
position he needs a learning curve to be
able to come to the same level of
performance so it's about
money that you spend
and the patience that you have to bear with the new employee till the
time he catches up

data scientists have

developed algorithm powered by key
indicators that taken together can
dramatically predict and employees
intent to stay with or leave the company

so let's say there are about 25 to 30

attributes that are critical when it
comes to predicting implies attrition
and if a company constantly keeps an eye
on those, it would be able to address the
employees’ issues in a more proactive way
rather than waiting for the day when an employee comes and submits his
resignation and then you try to do an
exit interview and then try to retain
that employee, that's almost too
late he's already made up his mind to
move out

another case could be a

customer lifetime value and I often ask
this too while I was teaching people why do you
think the companies provide you a
loyalty card and a lot of responses come
a mixed set of responses people will say
that they want to make me feel good, I
earn some loyalty points and invest
those points are there so they get more
business out of me of course it's in a
way to pay you respect that you are a
valued customer, but the real model is to
be able to track what you're doing

see it's easy in terms of an online

transaction to figure out that you
logged in and you used a particular user
ID and password to make a purchase say
on an online portal so they know who's
purchasing water and they keep a track
of it
but in a brick-and-mortar store
where people just walk in and pick a
number of products that they want to buy
I say it's a supermarket
how would you track what's my lifetime
value if you do not have a loyalty card

so if I have a particular number

associated with the final billing that I
do at the counter you know that I've
logged in after two months and these
are the items that I purchased

this
could be a good way to track the
outcomes of different promotional
campaigns that the supermarkets run
from time to time

so say for example if

I gave a very good offer a huge discount
on a consumable that is in regular use
of my customers I will be able to see if
they have been able to take advantage

this is a very interesting case and then

let's understand that these while these
are specific examples they can be
generalized across industries and
scenarios here
we are talking about
India and we are talking about a problem
of Tiger what happens is there are
a lot of groups that are into this
business of Tiger poaching and they
assume that there's some superstitions
or beliefs that exist the tigers’ bones
can be used for making certain medicines
which are a solution to certain
incurable diseases

now this has been

happening for years and these people
who are poachers are pretty smart so
they know the jungles really well at
times better than the forest officers
themselves and that's why there is a
chase between the two all the time

so
over the past few years computer codes
were written and about twenty-five
thousand data points have been analyzed
since 1972
across six hundred and five districts on
vine life poaching crimes

using this
data and applying appropriate techniques
the wild lifesavers could narrow down on
certain hot spots where the tiger crime
was more likely to happen and this
helped them prevent and control Tiger
poaching

now talking about healthcare

analytics and this is a very important and well-known study called
Framingham Heart Study it was performed
in the United States so it's the name of
a town where the people participated in
the study, it originated in 1948 when the
scientists and participants embarked on
an ambitious project to identify risk
factors now for heart disease today the
study remains a world-class epicentre
for cutting-edge heart brain bone and
sleep research

what it enables you to do

is that there when you go to the site
you'll be able to see that putting your
characteristics you can very well figure
out what is your risk score to acquire a
cardiovascular disease say in a
timeframe of ten years

so you can
generate a Framingham risk score that
tells you that you are prone to have a
heart disease given the kind of habits
that you have right now and it's an
interesting area

so you can see that

it's not just in terms of business
applications that we talk about
analytics it is not just about targeting
the right customer for a promotion

it
goes on to prevent crimes

it goes on to
save your life ensure that you live a
longer and healthier life

it can be
applied to almost all the industries and
sectors

that's why it's fair to say that

the world around us is changing and we
need to equip ourselves with the right
set of skills

it's a short video we

tried to put together to ensure that you
get a sneak peek into what is an analytics

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