University of the Philippines

Open University

Analytics Application
A Business Analytics Course

Dr. Eugene Rex Jalao

Ms. Tricia Ascan
Asst. Prof. Al Francis Librero
Course Writers
 University of the Philippines
OPEN UNIVERSITY

COMMISSION ON HIGHER EDUCATION

University of the Philippines

OPEN UNIVERSITY

Analytics Application 1
 UNIVERSITY OF THE PHILIPPINES OPEN UNIVERSITY

Analytics Application
A Business Analytics Course

The course aims to provide the student with applications that help organizations develop
insights to make better timely decisions and automate processes. It provides a solid
foundation of strategic analytics products and services to take advantage of all the data
sources, including structured and unstructured data, and ultimately get the support
needed to stay one step ahead of the competition.

COURSE OBJECTIVES

At the end of the course, you should be able to:

1. Understand the business processes as they relate to data analysis and
optimization;
2. Understand data management concepts and criticality of data availability in order
to make reliable business decisions;
3. Work on various analytics tools available in the market for various business
functions; and
4. Perform high-quality tasks required by the organization in particular and industry
in general.

COURSE OUTLINE

MODULE 1 A Review of Business Analytics Fundamentals

1.1 What is Business Analytics
1.2 Framework of Business Analytics

MODULE 2 Marketing Analytics

2.1 What is Marketing Analytics?
2.2 Examples of Marketing Analytics
2.3 Applications of Marketing Analytics

MODULE 3 Operations analytics

3.1 What is Operations Analytics?
3.2 Understanding Supply Chain Analytics

Analytics Application 2
 3.3 Application of Supply Chain Analytics

MODULE 4 Finance and Accounting Analytics

4.1 What is Finance and Accounting Analytics?
4.2 Examples of Finance and Accounting Analytics
4.3 Application of Finance and Accounting Analytics

MODULE 5 Internal Control Analytics

5.1 Internal Controls
5.2 Audit Analytics
5.3 Risk Management and Data Analytics
5.4 Fraud Management and Data Analytics

MODULE 6 People analytics

6.1 What is People Analytics?
6.2 People Analytics: Application through Case Studies

COURSE MATERIALS

Module Materials/Resources
1 Video on Introduction to Big Data and Business Analytics by: Erik Paolo
Capistrano

Video on Framework for Business Analytics by: Dominic Ligot

2 Video on Application of Analytics to Marketing
by: Michelle Alarcon

Video on Application of Analytics to Marketing:

Improving Customer Satisfaction
by Michelle Alarcon

Video on Applications for Business Analytics (7:20 - 9:07)

by Dominic Ligot

Powerpoint Presentation:
Introduction to Linear Programming Transportation Problem (pp 4-55)
by Dr. Wen-Kai Wang, NUK

What is Marketing Analytics?

https://www.sas.com/en_us/insights/marketing/marketing-analytics.html

Analytics Application 3
 Marketing Analytics: A Retail Case Study
http://ucanalytics.com/blogs/marketing-analytics-retail-case-study-part-1/

3 What is Operations Management?

https://www.youtube.com/watch?v=Hn7V0lclJfQ&list=PLwcu5sBq_fM4RkvjDo
EOAHPmwCRppS4jX

What is Supply Chain Analytics?

https://www.youtube.com/watch?v=KTVhn3aAWBw

Understanding the Basics of Supply Chain Analytics

https://blogs.opentext.com/understanding-basics-supply-chain-analytics/

Analytics for Supply Chain and Operations

http://cdn2.hubspot.net/hub/153059/file-1347479975-
pdf/pdfs/Analytics_for_supply_chain_and_operations_7-2014_

The Story of iPhone: Analytics in Supply Chain Decisions

https://www.youtube.com/watch?v=YbM_LydRlnM

Using Analytics to Make the Most of your Supply Chain Data

https://www.youtube.com/watch?v=-R51ksx4oSY

How to Activate Big data for optimal supply chain planning

https://www.youtube.com/watch?v=btH-Xq6ciXs

4 Video on Applications for Business Analytics (4:19 – 5:47)

by Dominic Ligot

Powerpoint Presentation:
Introduction to Linear Programming
Part 7 An Application in Finance: Investment Problem (pp 69-75)
by Dr. Wen-Kai Wang, NUK

Accounting is BIG data

https://www.youtube.com/watch?v=47KI96R4Hps

Big Data & Analytics for Finance

https://www.youtube.com/watch?v=HPvepzVTQgA

Predictive Analytics in Finance: An Executive Overview

https://www.youtube.com/watch?v=1qZKZvSNCLk

Predictive Analytics in Finance: A Description of Modeling Logic

Analytics Application 4
 https://www.youtube.com/watch?v=ZIdcW11PMlQ

An Example of the use of Financial Ratio Analysis: The Case of Motorola

http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1025&context=commpapers

5 Video on Analytics Application – Risk Management

by Claire San Juan

Video on Analytics Application – Fraud Management

by Claire San Juan

Internal Controls Explained

https://www.youtube.com/watch?v=ErB5bwjVsY0
Internal Controls
http://www.accaglobal.com/gb/en/student/exam-support-
resources/fundamentals-exams-study-resources/f1/technical-articles/internal-
controls.html

Data Analytics – the Changing use of data within internal audit

https://chapters.theiia.org/bermuda/Events/ChapterDocuments/Data%20Analy
tics%20Presentation.pdf

Best Practices for the Use of Data Analysis in Audit

http://www.dataconsulting.co.uk/Files/wp_best_practices.pdf

Detecting and Preventing Fraud with Data Analytics

https://www.acl.com/pdfs/ACL_fraud_ebook.pdf

6 Video on Applications for Business Analytics (5:48 – 7:18)

by Dominic Ligot
People Analytics: Understanding People Thru data
https://www.youtube.com/watch?v=iHWFua7gmx8

HR Reporting and Analytics

https://www.youtube.com/watch?v=8IWYERxqvQg (2:28 onwards)

Wharton People Analytics Conference 2017: Microsoft Case Study

https://www.youtube.com/watch?v=Vw9azOrfi-A

Wharton People Analytics Conference 2015: Case Studies Predicting

Employee Performance
https://www.youtube.com/watch?v=Ob7J9T5QBnM

Analytics Application 5
 STUDY SCHEDULE

You may follow the study schedule below:

Period Module Materials Activities

Week 1 Course 1. Introduce

Orientation yourself to the
class.
2. Read the
course guide.

Module 1 Video on Introduction to Big Data and 1. Watch video

Review of Business Analytics by: Erik Paolo lectures.
Business Capistrano
Analytics

Video on Framework for Business

Analytics by: Dominic Ligot
Module 2 Video on Application of Analytics to 1. Watch the
Marketing Marketing videos lectures.
Analytics by: Michelle Alarcon 2. Participate in
the online
discussion forum.
Video on Application of Analytics to 3. Take online
Marketing: quiz.
Improving Customer Satisfaction
by Michelle Alarcon

Video on Applications for Business

Analytics (7:20 - 9:07)
by Dominic Ligot

Powerpoint Presentation:
Introduction to Linear Programming
Transportation Problem (pp 4-55)
by Dr. Wen-Kai Wang, NUK

What is Marketing Analytics?

https://www.sas.com/en_us/insights/marke
ting/marketing-analytics.html

Analytics Application 6
 Marketing Analytics: A Retail Case Study
http://ucanalytics.com/blogs/marketing-
analytics-retail-case-study-part-1/

Module 3 What is Operations Management? 1. Read the

Operations https://www.youtube.com/watch?v=Hn7V0l online articles
Analytics clJfQ&list=PLwcu5sBq_fM4RkvjDoEOAH (links provided)
PmwCRppS4jX 2. Participate in
the online
discussion forum.
What is Supply Chain Analytics? 3. Take online
https://www.youtube.com/watch?v=KTVhn quiz.
3aAWBw

Understanding the Basics of Supply Chain

Analytics
https://blogs.opentext.com/understanding-
basics-supply-chain-analytics/

Analytics for Supply Chain and Operations

http://cdn2.hubspot.net/hub/153059/file-
1347479975-
pdf/pdfs/Analytics_for_supply_chain_and_
operations_7-2014_

The Story of iPhone: Analytics in Supply

Chain Decisions
https://www.youtube.com/watch?v=YbM_L
ydRlnM

Using Analytics to Make the Most of your

Supply Chain Data
https://www.youtube.com/watch?v=-
R51ksx4oSY

How to Activate Big data for optimal supply

chain planning
https://www.youtube.com/watch?v=btH-
Xq6ciXs

Analytics Application 7
 Module 4 Video on Applications for Business 1. Watch the
Finance/Acco Analytics (4:19 – 5:47) videos lectures.
unting by Dominic Ligot 2. Read the
Analytics online articles
(links provided)
Powerpoint Presentation: 3. Participate in
Introduction to Linear Programming the online
Part 7 An Application in Finance: discussion forum.
Investment Problem (pp 69-75) 4. Take online
by Dr. Wen-Kai Wang, NUK quiz.

Accounting is BIG data

https://www.youtube.com/watch?v=47KI96
R4Hps

Big Data & Analytics for Finance

https://www.youtube.com/watch?v=HPvep
zVTQgA

Predictive Analytics in Finance: An

Executive Overview
https://www.youtube.com/watch?v=1qZKZ
vSNCLk

Predictive Analytics in Finance: A

Description of Modeling Logic
https://www.youtube.com/watch?v=ZIdcW
11PMlQ

An Example of the use of Financial Ratio

Analysis: The Case of Motorola
http://ro.uow.edu.au/cgi/viewcontent.cgi?ar
ticle=1025&context=commpapers

Module 5 Video on Analytics Application – Risk 1. Watch the

Internal Management videos lectures.
control by Claire San Juan 2. Participate in
Analytics the online
discussion forum.
Video on Analytics Application – Fraud 3. Take online
Management quiz.
by Claire San Juan

Analytics Application 8
 Internal Controls Explained
https://www.youtube.com/watch?v=ErB5b
wjVsY0
Internal Controls
http://www.accaglobal.com/gb/en/student/
exam-support-resources/fundamentals-
exams-study-resources/f1/technical-
articles/internal-controls.html

Data Analytics – the Changing use of data

within internal audit
https://chapters.theiia.org/bermuda/Event
s/ChapterDocuments/Data%20Analytics%
20Presentation.pdf

Best Practices for the Use of Data Analysis

in Audit
http://www.dataconsulting.co.uk/Files/wp_
best_practices.pdf

Detecting and Preventing Fraud with Data

Analytics
https://www.acl.com/pdfs/ACL_fraud_eboo
k.pdf

Analytics Application 9
 Module 6 Video on Applications for Business 1. Watch
Human Analytics (5:48 – 7:18) the video lecture.
Resource by Dominic Ligot 2. Participate in
Analytics People Analytics: Understanding People the online
Thru data discussion forum.
https://www.youtube.com/watch?v=iHWFu 4. Take online
a7gmx8 quiz.

HR Reporting and Analytics

https://www.youtube.com/watch?v=8IWYE
RxqvQg (2:28 onwards)

Wharton People Analytics Conference

2017: Microsoft Case Study
https://www.youtube.com/watch?v=Vw9az
Orfi-A

Wharton People Analytics Conference

2015: Case Studies Predicting Employee
Performance
https://www.youtube.com/watch?v=Ob7J9
T5QBnM

Submit
Assignment

COURSE REQUIREMENTS

To pass the course, you must:

1. Participate in the online discussion forums. The online discussions will be

asynchronous so you can join anytime within the allotted period. Assessment of
your online participation will be based on a rubric that will be posted in the course
site.
2. Take all online quizzes. There will be a total of five (5) quizzes. The coverage of
each quiz is provided in the study schedule above. All quizzes will be done
online in the course site. Instructions on how to open and answer the quiz will
be posted.

Analytics Application 10
 3. Submit assignments. There will be one assignment which will serve as the
culminating project for this course. You will be provided with an assignment guide
that includes the particular tasks to be done, instructions on how it should be
answered, the evaluation criteria, and the due date. Submission of your
assignments will also be through the course site.

The requirements and their corresponding weights are summarized as follows:

Course Requirements Weight

Quizzes (5) 50
Assignment 40
Discussion Forums 10
Total 100

GRADING SYSTEM

The following grading system will be used:

96%- 1.0 71%- 2.2

100% 0 75% 5
91%-95% 1.2 66%- 2.5
5 70% 0
86%-90% 1.5 61%- 2.7
0 65% 5
81%-85% 1.7 60% 3.0
5 0
76%-80% 2.0 <60% 5.0
0 0

GENERAL GUIDELINES

1. Check the course site regularly for announcements, updates and reminders.
2. Please take note of the dates of the quizzes and the deadline of the assignment.
3. Assignment must be uploaded in the submission bin via MyPortal.

Analytics Application 11
 4. Practice academic integrity and intellectual honesty at all times. Cheating in any
form will not be tolerated.
5. Uphold honor and excellence. Simply give your best, your 110% if you can.
6. LEARN. Learn from this course, learn from yourself, learn from you and your
classmates.

Analytics Application 12
 MODULE 1: REVIEW OF BUSINESS ANALYTICS
FUNDAMENTALS

Introduction

Before we dive into the application of big data and business analytics in different
organizations and business situations, let’s have a review of the basic concepts of
business analytics.

Learning Objectives

After completing this module, you should be able to:

1. Have a basic understanding of the concepts of big data and business analytics;
and
2. Recognize the framework for business analytics.

1.1. Big Data and Business Analytics

According to technopedia, business analytics includes methods and techniques used by

an organization to measure its performance. These methods and techniques include
statistical tools used to evaluate an organization, predict its performance, and prescribe
ways to enhance its productivity and profitability.

Activity 1-1
Read and watch the following learning resources:

Video on Introduction to Big Data and Business Analytics by Erik Paolo Capistrano

1.2. Framework for Business Analytics

Let’s us now review the framework for business analytics.

Analytics Application 13
 Activity 1-2
Watch and read the following learning resources:

Video on Framework for Business Analytics by Dominic Ligot.

References

https://www.techopedia.com/definition/344/business-analytics-ba

Analytics Application 14
 MODULE 2: MARKETING APPLICATION/MARKETING
ANALYTICS

Introduction

In today’s business environment, it is critical to use technologies that will make the
business competitive. Data analytics is a tool which is transforming how businesses use,
measure, and optimize available data. In this module, we take a look at marketing analytics
and how it impacts business decisions.

Learning Objectives

After completing this module, you should be able to:

1. Define marketing analytics and describe how analytics can improve marketing;
2. Identify examples of marketing analytics; and
3. Demonstrate and interpret an analytics model for customer satisfaction and
transportation problem.

2.1. What is Marketing Analytics?

Marketing analytics is the practice of managing and studying metrics data in order to
determine the ROI of marketing efforts, as well as the act of identifying opportunities for
improvement. (https://www.marketo.com/marketing-analytics/). The first learning
resource provides a description of marketing analytics, its importance, and how this tool
can be used effectively. The next resource is a video which provides an overview of
marketing, its challenges, and how analytics can improve the marketing function of the
business.

Activity 2-1

Read and watch the following learning resources:

1. https://www.sas.com/en_us/insights/marketing/marketing-analytics.html
2. “Applications of Analytics to Marketing” by Michelle Alarcon

Analytics Application 15
 Study Question
1. What data relevant to marketing can be derived from:
a. Customers
b. Competitors
c. Organizations
d. General public

2. What data should be included when trying to determine customers spending habits?

2.2. Examples of Marketing Analytics

Let’s look at more specific examples of analytics in marketing. The video provides
examples of descriptive, predictive, and prescriptive types of analytics used in
marketing. To get a feel of how marketing analytics works in business, a retail case study
is used as an example.
Activity 2-2
Watch and read the following learning resources:

1. Applications for Business Analytics” by Dominic Ligot (7:20-9:07)

2. http://ucanalytics.com/blogs/marketing-analytics-retail-case-study-part-1/

Study Questions

Why is establishing the marketing objective important in marketing analytics?

2.3. Application of Marketing Analytics

We now delve into more specific applications of marketing analytics.

The first video shows one of the specific components of marketing which is customer
satisfaction. What is customer satisfaction, why is it important in marketing, and how can
analytics improve it?

Analytics Application 16
The second video (not yet available) is another specific application of prescriptive analytics
to marketing. Transportation problem uses a linear programming model to determine the
most cost effective way of delivering goods.

Activity 2-3

Watch the following learning resources:

1. “Application of Analytics to Marketing: Improving Customer Satisfaction” by
Michelle Alarcon
2. “Introduction to Linear Programming Transportation Problem” by Dr. Wen-Kai
Wang, NUK
(powerpoint presentation pp4-55)

Study Questions

How does marketing analytics assist in improving customer satisfaction?

References

https://www.marketo.com/marketing-analytics/

Analytics Application 17
 MODULE 3: OPERATIONS ANALYTICS

Introduction

In the last module, you learned about marketing analytics, its importance in business, and
some examples and applications. In this module, you will gain a deeper understanding of
operations analytics and its role in operations management particularly in the supply chain.

Learning Objectives

After completing this module, you should be able to:

1. Describe operations analytics and operations management;
2. Understand the basics of supply chain analytics and its role in manufacturing
operations; and
3. Give examples of big data applications in supply chain and operations
management.

3.1. What is Operations Analytics?

Operations analytics deals with data mining, data aggregation, and analytical models
geared towards improving existing operations and company profitability. In manufacturing
companies, these could mean demand and supply matching, demand forecasting and
planning, inventory optimization, procurement forecasting and planning, etc.

To gain a better understanding of what operations analytics can do for business, you need
to understand first what operations management is. The following video gives a brief
description of operations management.

Activity 3-1

Watch the following learning resources:

https://www.youtube.com/watch?v=Hn7V0lclJfQ&list=PLwcu5sBq_fM4RkvjDoEOAHPm
wCRppS4jX
This video gives an overview of what operations management is and why it is important
in an organization.

Analytics Application 18
 Study Question
What makes operations management an important business function in
an organization?

3.2. Understanding Supply Chain Analytics

Now that you have an idea of what operations management is, we will now look at a more
specific process in operations—supply chain. The following resource materials will give
you an overview of the basics of supply chain analytics as applied to different operational
scenarios.

Activity 3-2

Watch and read the following learning resources:

1. https://www.youtube.com/watch?v=KTVhn3aAWBw
A video lecture explaining the basics of supply chain analytics.

2. https://blogs.opentext.com/understanding-basics-supply-chain-analytics/
Understanding the Basics of Supply Chain Analytics

3. http://cdn2.hubspot.net/hub/153059/file-1347479975-
pdf/pdfs/Analytics_for_supply_chain_and_operations_7-2014_
Analytics for Supply Chain and Operations. (starting page 7 – examples of
implementing analytics at different levels from manufacturing operations to
end-to-end supply chain).

Study Questions
What can supply chain analytics do at different levels of manufacturing
operations?

Analytics Application 19
 3.3. Application of Supply Chain Analytics

The following learning resources will show you different applications of supply chain
analytics.

Activity 3-3

Watch the following learning resources:

1. https://www.youtube.com/watch?v=YbM_LydRlnM
The Story of iPhone: Analytics in supply chain decisions. A simple presentation on how
supply chain data are aggregated from raw material acquisition to the actual
purchase of an iPhone.

2. https://www.youtube.com/watch?v=-R51ksx4oSY
This video discusses how supply chain data are used to maximize procurement
activities.

3. https://www.youtube.com/watch?v=btH-Xq6ciXs
This video explores big data in optimizing supply chain planning.

Study Question

What are the different applications of supply chain analytics in manufacturing

operations?

Analytics Application 20
 MODULE 4: FINANCE AND ACCOUNTING ANALYTICS

Introduction

In the previous modules, you learned how data analytics can transform marketing and
operational functions of the business by creating new value and insights to the company
which could help improve its strategies and operations. In today’s competitive business
environment, more and more data are needed to be managed, analyzed, and interpreted
such as transaction activities, vendor payments, revenue measurement, trend analyses,
etc. In this module, we will look at how analytics is applied to finance and accounting
functions, and how it supports companies to make better decisions not just by looking at
what happened in the past, but by being able to predict what may happen in the future.

Learning Objectives

After completing this module, you should be able to:

1. Describe finance and accounting analytics;
2. Discuss examples of decisions that can be answered by finance and
accounting analytics; and
3. Discuss some of the applications of finance and accounting analytics.

4.1. What is Finance and Accounting Analytics?

Most companies already have a sound accounting system which provides accurate and
timely financial reports. However, this is no longer adequate in terms of delivering a better
insight in the companies’ future performance. More and more companies combine
financial data with non-financial metrics to gain insight on the drivers of financial
performance and forecast future financial scenarios. This is where finance and accounting
analytics could help. To gain a better understanding, the following resources are provided.

Activity 4-1

Watch the following learning resources:

1. https://www.youtube.com/watch?v=47KI96R4Hps
This video explains how accounting is transformed by data analytics.

Analytics Application 21
2. https://www.youtube.com/watch?v=HPvepzVTQgA
Big Data and Analytics for Finance

Study Question
Why is accounting considered big data?

4.2. Examples of Finance and Accounting Analytics

Financial ratios and variance analysis are the more common examples of descriptive
analytics in finance and accounting as they deal with what happened and why it happened
in the past. Employing predictive and prescriptive analytics can add value and insights to
the business as these tools can provide answers to such questions as:
a. Is the company investing in the right opportunities based on available capital?
b. How profitable are company’s products and services across channels and
customers?
c. What events could affect the price of the stock?
d. Is the expansion feasible or not?
e. Would it be better to outsource the labor and materials?
f. What drives company’s profitability?
g. When will the customers pay the company?

These are just some of the questions that can be answered by utilizing data analytics in
finance and accounting. The following materials show additional examples.

Activity 4-2

Watch the following learning resources:

1. Video on Applications for Business Analytics by Dominic Ligot (4:19 – 5:47)

2. http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1025&context=commpapers
This paper is an example on the use of financial ratio analysis, a descriptive analytics in
finance and accounting.

3. https://www.youtube.com/watch?v=1qZKZvSNCLk

Analytics Application 22
This video provides an overview of predictive analytics in finance.

4.3. Application of Finance and Accounting Analytics

A more in-depth application of finance and accounting analytics is presented in the

following videos.

Activity 4-3

Watch the following learning resources:

1. Video and Powerpoint Presentation: Introduction to Linear Programming by Dr.

Wen-Kai Wang, NUK
Part 7 An Application in Finance: Investment Problem (pp69-75)

2. https://www.youtube.com/watch?v=ZIdcW11PMlQ
This video shows a modeling logic for predictive analytics in finance.

Analytics Application 23
 MODULE 5: INTERNAL CONTROL ANALYTICS

Introduction
Internal control is a key component in ensuring the achievement of organization’s
objectives. It ensures integrity of financial information and policy compliance, safeguards
assets and prevents fraud, and promotes efficiency and effectiveness in operations.
Incorporating data analytics in internal control increases the leverage of company in the
form of providing insights for the company by adding value in terms of being predictive
rather than merely looking at the past data.

Learning Objectives

After completing this module, you should be able to:

1. Understand internal control in an organization; and
2. Describe ways to apply analytics in audit, risk management, and fraud
management.

5.1. Internal Controls

To be able to identify the data relevant to internal controls and perform analytics, an
overview of what it is, its purpose and objectives, the categories and common control
procedures must be understood. The following resources provide an overview of internal
controls in organizations.

Activity 5-1

Watch the following learning resources:

1. https://www.youtube.com/watch?v=ErB5bwjVsY0
A brief and simple overview of internal controls in organizations.

2. http://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-
exams-study-resources/f1/technical-articles/internal-controls.html
This article provides a much detailed overview of internal controls and its importance in
an organization.

Analytics Application 24
 Study Question
What is the importance of internal controls in an organization?

5.2. Audit Analytics

The following resources provide information about audit analytics.
.
Activity 5-2

Read the following learning resources:

1. https://chapters.theiia.org/bermuda/Events/ChapterDocuments/Data%20Analytic
s%20Presentation.pdf
This presentation discusses the changing use of data within internal audit.

2. http://www.dataconsulting.co.uk/Files/wp_best_practices.pdf
This white paper presents best practices in the application of audit analytics.

Study Question
What are the benefits of performing audit analytics?

5.3. Risk Management and Data Analytics

In general, risk management is involved in the identification, analysis, and mitigation of

investment decisions. The following video explains the role of data analytics in risk
management.

Analytics Application 25
 Activity 5-3

Watch the following learning resources:

Analytics Application – Risk Management by Claire San Juan

Study Question
What are some of the applications of analytics in risk management?

5.4. Fraud Management and Data Analytics

Fraud involves the use of deception for one’s gain. It can include activities such as theft,
bribery, extortion, money laundering and the like. The following resources provide an
overview of fraud and how to detect and prevent it using data analytics.

Activity 5-3

Watch and read the following learning resources:

1. Analytics Application – Fraud Management by Claire San Juan

2. https://www.acl.com/pdfs/ACL_fraud_ebook.pdf
Detecting and Preventing Fraud with Data Analytics

Study Question
What are some techniques used in fraud detection?

Analytics Application 26
 References
http://www.cimaglobal.com/Documents/ImportedDocuments/cid_techguide_fraud_ris
k_management_feb09.pdf.pdf

https://www.investopedia.com/terms/r/riskmanagement.asp

Analytics Application 27
 MODULE 6: PEOPLE ANALYTICS

Introduction

Another growing area in the field of business analytics is people analytics also known as
HR analytics. From recruitment to performance measurement, compensation to retention,
and even employee behaviors – analytics is now being applied to these workforce
challenges. In this module, you will learn what people analytics is and how is it being
applied in business organizations to maximize people talent and engagement.

Learning Objectives
After completing this module, you should be able to:
1. Describe what people analytics is; and
2. Recognize the applications of people analytics in the business.

6.1. What is People Analytics?

People analytics applies data science, and statistical models to be able to help
organizations make better decisions in terms of their investment in their workforce. It helps
companies make smarter and more strategic decisions when it comes to hiring people,
and increasing employee performance and retention. The following resources give an
overview of what people analytics can do for an organization.

Activity 6-1

Watch the following learning resources:

1. Applications on Business Analytics (5:48 – 7:18) by Dominic Ligot

2. 2. https://www.youtube.com/watch?v=iHWFua7gmx8

A very simple description of people analytics.

3. https://www.youtube.com/watch?v=8IWYERxqvQg (2:28 onwards)

This video provides more detailed information on how employees data create
value to an organization.

Analytics Application 28
 Study Question
What is people analytics?

6.2. People Analytics: Application through Case Studies

To be able to understand fully how people analytics can help transform how organizations
make decisions about their employees or workforce, the following case studies show how
data are used in managing people.

Activity 6-1

Watch the following learning resources:

1. https://www.youtube.com/watch?v=Vw9azOrfi-A
This video is taken from the Wharton People Analytics Conference in 2017 and
it features Microsoft as its case study.

2. https://www.youtube.com/watch?v=Ob7J9T5QBnM (0:01 – 27:25)

This video is from Wharton People Analytics Conference in 2015 and it tackles
three different applications of people analytics: hiring process, predicting grit in
people, and predicting what makes meaningful work.

Study Question
How can people analytics assist business in determining the best people
to hire?

Analytics Application 29