INTRODUCTION TO SESSION
BUSINESS ANALYTICS 1
DEFINITION OF BUSINESS ANALYTICS:
Business analytics refers to the skills, technologies, practices, for continuous iterative exploration, and investigation
of past business performance to gain insight and drive business planning.
It involves using data and statistical methods to make informed decisions, identify trends, patterns, and correlations,
and extract valuable insights from various sources of data.
Business analytics is a multidisciplinary field that combines aspects of statistics, data mining, predictive modeling,
and machine learning to support evidence-based decision-making in organizations.
IMPORTANCE OF BUSINESS
ANALYTICS:
The importance of business analytics lies in its ability to help organizations make more informed and strategic
decisions.
By analyzing data, businesses can gain a deeper understanding of their operations, customer behavior, market
trends, and other critical factors that impact their success.
This information allows companies to optimize their processes, identify opportunities for growth, reduce risks,
enhance customer satisfaction, and ultimately improve their overall performance and competitiveness in the
market.
KEY CONCEPTS AND TERMINOLOGY IN
BUSINESS ANALYTICS:
1.Data Collection and Integration: This involves gathering data from various sources, such as databases, spreadsheets,
sensors, websites, and social media, and integrating them into a unified format suitable for analysis.
2.Descriptive Analytics: Descriptive analytics involves summarizing historical data to understand what has happened in
the past. It includes techniques like data visualization, reporting, and dashboards to provide insights into trends and
patterns.
3. Predictive Analytics: Predictive analytics focuses on predicting future outcomes based on historical data and
statistical algorithms. It helps in forecasting trends and making informed predictions about future events.
4. Prescriptive Analytics: Prescriptive analytics goes beyond predicting future outcomes and suggests actions to
optimize decisions. It recommends the best course of action to achieve desired outcomes.
5.Data Mining: Data mining involves the process of discovering patterns and relationships in large datasets. It uses
techniques such as clustering, classification, and association to uncover valuable insights.
6. Machine Learning: Machine learning involves the use of algorithms that enable computers to learn from data and
improve their performance over time. It plays a crucial role in predictive modeling and decision-making.
7. Big Data: Big data refers to the massive volume of data that organizations generate and collect. It poses challenges
related to storage, processing, and analysis due to its size and complexity.
8. Data Visualization: Data visualization uses graphical representations to present data in a visually appealing and
understandable manner. Charts, graphs, and interactive dashboards help in communicating insights effectively.
9. KPIs (Key Performance Indicators): KPIs are measurable values that indicate the performance of a business.
They help organizations track progress toward their goals and assess their overall success.
10. Business Intelligence (BI): Business intelligence involves the use of data analysis tools and techniques to
transform raw data into actionable insights for strategic decision-making.
11.Data Cleansing and Preprocessing: This involves cleaning and preparing the data for analysis by dealing with
missing values, outliers, and inconsistencies.
12. Data Warehouse: A data warehouse is a centralized repository that stores structured and historical data from
various sources, making it easier to retrieve and analyze.
HANDLING DATA
INCONSISTENCIES
Data inconsistencies refer to variations or discrepancies within a dataset that can arise due to various factors such as
human error, data entry issues, system malfunctions, or data integration from multiple sources. These inconsistencies can
affect the accuracy and reliability of data analysis and interpretation.
1.Data profiling and analysis: Conduct a thorough analysis of the dataset to identify inconsistencies, such as inconsistent
data formats, conflicting values, or unexpected patterns.
2. Data cleaning and standardization: Clean the data by resolving inconsistencies through techniques such as data
transformation, normalization, and standardization. This may involve correcting misspelled words, merging similar
categories, or converting inconsistent formats.
3. Data validation and verification: Implement validation rules to ensure data integrity and consistency. This may involve
cross-checking data against known reference sources, applying logical checks, or using statistical methods to identify
outliers or improbable values.
4. Documentation and transparency: Document any data inconsistencies encountered and the steps taken to resolve them.
This helps ensure transparency and enables others to understand the data cleaning process.
THANK YOU
