CASE STUDY

(ELECTIVE)

Business analytics
Title : Exploring the Four Types of

Analytics: Practical Applications and Real-

World Use Cases.

BY

GROUP – 17C

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2129-22-672-190

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“Data are just summaries of thousands of stories — tell a few

of those stories to help make the data meaningful.”

~ Dan Heath, bestselling author

Understanding the many sorts of analytics is essential in the

era of data-driven decision-making if you want to fully utilize

the power of data. Businesses that properly employ analytics

can gain useful insights to improve operations, make wise

decisions, and drive growth.

In this article, we will look at the five primary categories of

analytics and I will also try to explain them in simple words

using examples:

● Descriptive Analytics
● Diagnostic Analytics

● Predictive Analytics

● Prescriptive Analytics

● Cognitive Analytic
QUESTIONS:

Let’s analyze each type, understand their functions, and learn how to use them

to their full potential.

● Descriptive Analytics

● Diagnostic Analytics

● Predictive Analytics

● Prescriptive Analytics

● Cognitive Analytics
 INTRODUCTION

Analytics is the systematic computational analysis of data or statistics. It

involves discovering meaningful patterns, drawing conclusions, and making

informed decisions based on the interpretation of data. Analytics can be applied

in various fields, including business, finance, healthcare, sports, and more. The

primary goal of analytics is to gain insights that can guide better decision-

making and improve overall performance.

Analytics can be broadly categorized into two main approaches:

1. Quantitative Analytics: Involves the use of mathematical and statistical

techniques to analyze and interpret data. This approach is prevalent in fields

such as finance, economics, and scientific research.

2. Qualitative Analytics: Involves the analysis of non-numeric data, focusing on

qualities such as patterns, behaviors, and perceptions. Qualitative analytics is

common in fields like social sciences, market research, and customer feedback

analysis.
 BACKGROUND
1. Introduction to the Organization/Industry:

 Provide a brief overview of the company or industry under consideration.

 Highlight key aspects, such as the size, scope, and nature of operations.

2. Business Objectives:

 Clearly outline the primary goals and objectives of the organization.

 Identify any challenges or opportunities that the company is facing.

3. Relevant Industry Trends:

 Discuss current trends and dynamics within the industry.

 Highlight factors that may impact the organization's performance.

4. Historical Context:

 Provide a historical perspective, especially if the case study involves

analyzing trends over time.

 Mention any significant events or changes that have occurred in the past.
 1.Descriptive Analytics

Introduction

Descriptive analytics is a branch of analytics that focuses on summarizing and presenting

historical data to gain insights into patterns, trends, and characteristics of a given dataset. It

involves the use of various statistical and visualization techniques to transform raw data into

meaningful information. Descriptive analytics serves as the foundation for more advanced

forms of analytics, such as predictive and prescriptive analytics.

Descriptive analytics primarily deals with answering the question "What happened?"

Functions :

1. Data Summarization: Descriptive analytics involves summarizing large volumes of data

into more manageable and understandable formats. This can include aggregating data,

calculating averages, identifying central tendencies, and creating summary statistics.

2. Pattern Recognition: By using visualization tools and statistical methods, descriptive

analytics helps identify patterns, trends, and anomalies within the data. This can provide

valuable insights into the factors influencing business performance.

3. Comparative Analysis: Descriptive analytics enables the comparison of different datasets or

time periods. This helps in understanding changes over time, benchmarking against industry

standards, or comparing the performance of different business units.

4. Data Visualization: Visualization tools, such as charts, graphs, and dashboards, are

commonly used in descriptive analytics to present information in a visually compelling way.

This aids in better communication and understanding of complex data.

Uses Of Descriptive Analytics To Its Full Potential

1. Define Objectives: Clearly define the objectives of your analysis. Understand the specific

questions you want to answer and the insights you seek from the data.

2. Data Collection and Cleaning: Ensure that you have access to clean and relevant data. This

involves data cleaning, handling missing values, and addressing any inconsistencies in the

dataset.

3. Choose Appropriate Methods: Select the appropriate statistical methods and visualization

techniques based on the nature of your data and the objectives of your analysis. Common

methods include mean, median, mode, standard deviation, histograms, and scatter plots.

4. Utilize Visualization Tools: Leverage data visualization tools like charts, graphs, and

dashboards to present your findings in a visually appealing and easily understandable

manner. This enhances communication and facilitates decision-making.

 2)Diagnostic Analytics

Introduction:
Diagnostic analytics is a branch of business intelligence that focuses on

examining historical data to understand what happened in the past and why it

happened. This type of analytics is crucial for identifying trends, patterns, and

anomalies in data, allowing organizations to gain insights into their performance

and make informed decisions. Diagnostic analytics provides a deeper

understanding of the root causes behind specific outcomes, helping businesses

learn from past experiences and improve future strategies.

Functions:

1. Identifying Trends and Patterns: Diagnostic analytics helps in uncovering

trends and patterns in historical data, providing valuable insights into how

different factors have influenced outcomes over time.

2. Root Cause Analysis: It helps in determining the underlying causes of specific

events or outcomes, allowing organizations to address issues at their source

rather than just treating symptoms.

3. Performance Analysis: Organizations can assess the performance of various

departments, processes, or individuals by analyzing historical data. This helps in

identifying areas of improvement or efficiency.

4. Comparative Analysis: Diagnostic analytics enables the comparison of

different time periods, regions, products, or any other relevant variables. This

helps in understanding variations and making informed decisions based on

comparisons.

Uses Of Diagnostic Analytics To Its Full Potential

1. Define Clear Objectives: Clearly define the objectives and questions you want

to address through diagnostic analytics. Knowing what you want to achieve will

guide the analysis process.

2. Data Quality: Ensure that the data used for analysis is accurate, complete, and

reliable. Poor-quality data can lead to incorrect conclusions.

3. Use the Right Tools: Employ appropriate analytics tools and software that

support diagnostic analysis. Common tools include SQL, business intelligence

platforms, and data visualization tools.

4. Visualizations: Utilize data visualization techniques to represent findings

effectively. Graphs, charts, and dashboards can make complex data more

understandable and actionable.

 3)Predictive Analytics:

Introduction:

Predictive analytics is a branch of advanced analytics that uses statistical

algorithms, machine learning, and data mining techniques to identify the

likelihood of future outcomes based on historical data. It involves analyzing

patterns and trends within datasets to make predictions about future events or

behaviors.

Functions:

1. Data Collection:

 Gather relevant data from various sources, including historical records,

databases, and external datasets.

2. Data Preprocessing:

 Cleanse and preprocess data to ensure accuracy and reliability. This

involves handling missing values, removing outliers, and transforming

data into a suitable format.

3. Feature Selection:

 Identify and select the most relevant features (variables) that contribute

significantly to the predictive model.

4. Model Building:

 Utilize statistical and machine learning algorithms to build predictive

models. Common techniques include regression analysis, decision trees,

neural networks, and ensemble methods.

Uses Of Predictive Analytics to Its Full Potential:

1. Define Clear Objectives:

 Clearly define the goals and objectives of your predictive analytics

initiative. Understand what specific outcomes or insights you aim to

achieve.

2. Quality Data:

 Ensure that the data used for predictive analytics is accurate, relevant, and

representative of the problem at hand. Data quality is crucial for the

success of predictive models.

3. Choose Appropriate Models:

 Select the right predictive modeling techniques based on the nature of

your data and the problem you are trying to solve. Experiment with

different algorithms to find the most suitable one.

4. Regular Model Updates:

 Predictive models should be updated regularly to adapt to changing

patterns and trends in the data. A stagnant model may lose its predictive

power over time.

 4)Prescriptive Analytics

Introduction:

Prescriptive analytics is an advanced form of analytics that utilizes data,

mathematical algorithms, and machine learning techniques to suggest actions

that can optimize desired outcomes. Unlike descriptive analytics, which focuses

on understanding historical data, and predictive analytics, which predicts future

trends, prescriptive analytics goes a step further by recommending specific

actions to achieve desired goals.

Prescriptive analytics is particularly valuable in decision-making processes

where there are multiple possible courses of action and where the consequences

of each action can be predicted. It helps organizations make informed choices

by considering various constraints, objectives, and possible scenarios.

Functions:

1. Optimization: Prescriptive analytics aims to find the best possible decision or

action that will lead to the most favorable outcome. It considers constraints,

resources, and goals to optimize processes and maximize efficiency.

2. Simulation: It involves running simulations based on different scenarios to

predict the potential outcomes of various decisions. This allows decision-

makers to understand the potential impacts and risks associated with each

choice.

3. Recommendation: Prescriptive analytics provides actionable

recommendations, helping decision-makers make well-informed choices. These

recommendations are based on the analysis of historical and real-time data, as

well as the identification of patterns and trends.

4. Decision Support: It serves as a decision support system by offering insights

into the potential consequences of different decisions. This empowers decision-

makers to choose the course of action that aligns with organizational goals.

Uses Of Prescriptive Analytics to Its Full Potential:

1. Define Clear Objectives: Clearly define the objectives you want to achieve

through prescriptive analytics. Whether it's optimizing supply chain operations,

maximizing profits, or minimizing risks, having clear goals will guide the

analytics process.

2. Data Quality and Integration: Ensure that your data is accurate, relevant, and

up-to-date. Integrate data from various sources to provide a comprehensive

 view. Quality data is crucial for accurate analysis and reliable prescriptive

recommendations.

3. Advanced Analytics Tools: Invest in advanced analytics tools that support

prescriptive analytics. These tools should have capabilities for optimization,

simulation, and recommendation engines. Popular platforms include IBM

Decision Optimization, SAS Prescriptive Analytics, and open-source tools like

Python with optimization libraries.

4. Machine Learning Models: Utilize machine learning models to analyze

historical data and identify patterns. These models can help in predicting

outcomes and understanding the relationships between different variables.

THANK YOU