Analytics – it is the process of analyzing information from
particular domain, such as website analytics.
- It is applying the breadth of BI capabilities to a specific
content area (example: sales, service, supply chain, etc.)
- It describe statistical and mathematical data analysis
that clusters, segments, scores, and predicts what
scenarios are most likely to happen.
Gartner, IT Glossary > Analytics
- Analytics – it facilitates realization of business
objectives through the reporting of data to analyze
trends, creating predictive models for forecasting and
optimizing business processes for enhanced
performance.
“Institute for Operations Research and Management
Science (INFORMS)”
- It uses data and math to answer business questions,
discover relationships, predict unknown outcomes and
automate decisions.
- It is used to find meaningful patterns in data and uncover
new knowledge based on applied mathematics, statistics,
predictive modeling and machine learning techniques.
Analytics – Five Key Areas of Customer Needs
Business analytics centers around
five key areas of customer needs:
1. Information access
2. Insight
3. Foresight
4. Business agility
5. Strategic assignment
BIG DATA – these are large amounts of information in various
forms and frequencies that are being collected from multiple
sources.
- It describes a large volume of structured, semi-structured, and
unstructured data that has the potential to be mined for
information and used in machine learning projects and other
advanced analytics applications to be analyzed for insights that
lead to better decisions and strategic business moves.
.
Data. Increase the
productivity and speed of
your analytics resources by
enhancing data quality and
putting the proper controls in
place.
Discovery. Explore, visualize and build models with SAS,
Python, R or Lua. Use whatever language you want while
benefiting from the computational power of SAS.
Deployment. Reap value from your data faster with a
transparent, governed deployment process. Save time with
model management and a unified code base.
Why Is Big Data Important?
- cost reductions, time reductions, new product development and
optimized offerings, and mart decision making.
1) Determining root causes of failures, issues and defects in near-
real time.
2) Generating coupons at the point of sale based on the customer’s
buying habits.
3) Recalculating entire risk portfolios in minutes.
4) Detecting fraudulent behavior before it affects your organization.
Uses of Big Data in Business
1. More data means more opportunities to assess current
performance, recalibrate medium and long term business
strategies, and ultimately improve profitability and
competitiveness.
Examples:
- Gather useful insights on demand trends, supply chain
constraints, emerging market opportunities
- Analyze data from the digital trails in mobile apps, search
engines, and social media platforms to improve product
design and service delivery.
- Collect real-time feedbacks and reviews from socail meida
to come up with timely and well-targeted business solutions
anchored on consumer behavior, public sentiments, and
social interactions.
Role of Big Data in Public Policy
• The World Bank (2017) identified three major areas where
there are vast opportunities for big data to revolutionize
governments:
o Big data analytics can be used to evaluate and enhance
the quality and targeting of existing public services
o Governments may use big data platforms such as social
networking websites to learn about public sentiments and
encourage civic participation in policy and social debates.
o Big data should usher a new era of smart and fact-based
policy making.
Public Administrative Data as Big Data
Big data is often associated with large, complex and
unstructured “found” data from the internet (ex. Google
searches and web browsing history, social media posts, and
online commercial transactional).
But large scale found data can also be generated from record
of various transactions in banks, supermarkets, hospitals
schools, trains, ports and government offices.
Example of administrative data collected by government: tax
records, SEC and business registries, health and school
records.
Public Administrative Data as Big Data
Hand (2018) describes public administrative data
using the following OECD criteria:
- The subject of the data and the agent that provides
the data to the statistical authority are often different.
- The purpose of the data collection was originally non-
statistical;
- Data collection usually aims for a complete coverage
of the target population; and
- The administrative unit controls the methods by
which the data are collected and processed.
Public Administrative Data as Big Data
Advantages of big public administrative data
-Large and semi systematics data based on sample sizes
much larger than surveys
Provides aggregate analyses based on complete
knowledge of the population
May be used to formulate tailor-made policies for specific
groups or observations
May serve as basis for doing a more targeted survey of
interesting groups or observations
Issues in analyzing big administrative data
- How do we arrange or repurpose the information according to
a particular analytical framework?
- What research and policy questions can be answered using
the data?
- How do we process and analyze these data?
- Does it require novel statistical and computing methods?
- What potential quality issues may arise from suing
administrative data given that these are primarily collected by
a non-statistical agency?
- To what extent do confidentiality issues restrict the access
and use of these data?
Examples of big data
The different branches of information found in big data
include:
1. Comparative analysis - This includes the cross
examination of user behavior metrics and the observation
of real time customer engagement in order to compare
one company's products, services and brand authority
with those of its competition.
Customer engagement is the means by which a company
creates a relationship with its customer base to foster
brand loyalty and awareness.
2. Social Media Listening – also known as social media
monitoring, is the process of identifying and assessing what is
being said about a company, individual, product or brand on the
Internet.
- This is information about what people are saying on social
media about a specific business or product that goes
beyond what can be delivered in a poll or survey. This data
can be used to help identify target audiences for marketing
campaigns by observing the activity surrounding specific
topics across various sources.
3. Market analysis - This includes information that can
be used to make the promotion of new products,
services and initiatives more informed and innovative.
Marketing Analytics is the act of tracking, collecting
and analyzing data to evaluate marketing effectiveness
and guiding future marketing decisions.
4. Customer satisfaction(CSAT) - it is a measure of the
degree to which a product or service meets the
customer's expectations.
All of the information gathered can reveal how
customers are feeling about the brand, if any potential
issues may arise, how brand loyalty might be preserved
and how customer service efforts might be improved.
Five V’s of BIG DATA
Volume. Organizations collect data from a variety of
sources, including business transactions, social media and
information from sensor or machine-to-machine data. In the
past, storing it would’ve been a problem – but new
technologies (such as Hadoop) have eased the burden.
Velocity. Data streams in at an unprecedented speed and
must be dealt with in a timely manner. RFID tags, sensors
and smart metering are driving the need to deal with torrents
of data in near-real time.
Variety. Data comes in all types of formats – from structured,
numeric data in traditional databases to unstructured text
documents, email, video, audio, stock ticker data and
financial transactions.
Variability. In addition to the increasing velocities and
varieties of data, data flows can be highly inconsistent with
periodic peaks. Is something trending in social media? Daily,
seasonal and event-triggered peak data loads can be
challenging to manage. Even more so with unstructured data.
Complexity. Today's data comes from multiple sources, which
makes it difficult to link, match, cleanse and transform data
across systems. However, it’s necessary to connect and
correlate relationships, hierarchies and multiple data linkages
or your data can quickly spiral out of control.
DATA TYPES of BIG DATA
1. Structured data in Structured Query Language (SQL)
databases, data lakes and data warehouses;
Data warehouses – it stores data in files or folders.
Data lake – it uses a flat architecture to store data.
2. Unstructured data -- such as text and document files
held in Hadoop clusters or NoSQL systems
3. Semi-structured data -- such as web server logs or
streaming data from sensors.
The Rise of “BIG DATA”
• “Too big” means databases or data flows in petabytes
• “Too unstructured” means that the data is not easily put
into the traditional rows and columns of conventional
databases.
Business Analytics
Descriptive Predictive Prescriptive
Questions
What happened? What will happen? What should I do?
What is happening? What will it happen? Why should I do it?
• Business Reporting • Data mining • Optimization
Enablers
• Dashboards • Text mining • Simulation
• Scorecards • Web/media mining • Decision modeling
• Data warehousing • Forecasting • Expert systems
Best possible business
Outcomes
Well defined business Accurate projections of
problems and the future states and decisions and
opportunities conditions transactions
Analytics-Three Categories
1. Foundational : What happened? Where and when?
How much?
2. Advanced, Predictive: What will happen? What will be
the impact?
3. Prescriptive: What are the potential scenarios? What is
the best course? How can we pre-empt and mitigate the
crisis?
Analytics-Three Categories
Transaction Reporting Decision support analytics
• Basic reporting • Enterprise analytics
• spreadsheets • Evidence-based medicine
• Outcomes analytics
Data integration/Data Predictive analytics
warehouse • Personalized healthcare
• DASHBOARDS • Consumer engagement
• Clinical data repositories • Patient/population
• Departmental data marts behavior
Descriptive Analytics
• It is referred to as business intelligence.
• It provides a clear understanding of what has
happened in the past through:
- Visualization of key performance metrics, or
- Data in a report or dashboard
• Today, the past can be as recent as just a millesecond
ago.
“INTUITION needed and ability to INTERPRET the data”
Descriptive Analytics – Three Categories
1. Analysis/Query Drill-down
2. Standard Report and Dashboarding
3. Adhoc Reporting
