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Descriptive Analytics (What Happened?)

The document discusses different types of analytics including descriptive, diagnostic, predictive, and prescriptive analytics. It also covers basics of decision making, types of decisions, and uses of analytics including customer acquisition, operational analytics, fraud detection, and data-driven product development.

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Raljon Silverio
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54 views

Descriptive Analytics (What Happened?)

The document discusses different types of analytics including descriptive, diagnostic, predictive, and prescriptive analytics. It also covers basics of decision making, types of decisions, and uses of analytics including customer acquisition, operational analytics, fraud detection, and data-driven product development.

Uploaded by

Raljon Silverio
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Types of Analytics

1. Descriptive Analytics (What Happened?)


- Interpretation of historical data to better understand changes that have occurred in a
business.
2. Diagnostic Analytics (Why did it Happen?)
- Is a form of advanced analytics that examines data or content to answer the question,
“Why did it happen?” It is characterized by techniques such as drill-down, data
discovery, data mining and correlations.
3. Predictive Analytics (What will Happen?)
- Encompasses a variety of statistical techniques from data mining, predictive modelling,
and machine learning, that analyze current and historical facts to make predictions
about future or otherwise unknown events.
4. Prescriptive Analytics (How can we make it Happen?)
- Makes use of machine learning to help businesses decide a course of action based on
a computer program's predictions. Prescriptive analytics works with predictive analytics,
which uses data to determine near-term outcomes

Basic of Decision
1. Instinct
2. Facts
3. Policy
4. Experience
5. Opinion
6. Logic and reasoning
7. Discernment

Types of Decision
1. Programmed and Non-Programmed
- Programmed decision is basically of a routine type for which systematic
procedures have been devised so that the problem may not be treated as a unique case
each time it crops up.
- Non-programmed decisions are complex and deserve a specific treatment. In
the above example, if all the professors in a department stop their teaching work the
problem cannot be solved by set procedural rules.
2. Major and Minor
3. Routine and Strategic
- Routine decisions are of repetitive nature and hence, require relatively little
consideration. It may be seen that basic decisions generally relate to strategic aspects,
while routine decisions are related to tactical aspects of an organization.
- Strategic decisions on the other hand are relatively more difficult. They
influence the future of the business and involve the entire organization. Decisions
pertaining to objective of the business, capital expenditure, plant layout, production etc.,
are examples of strategic decisions.
4. Tactical (policy) and Operational
- Tactical decisions are those which a manager makes over and over again
adhering to certain established rules, policies and procedures. They are of repetitive
nature and related to general functioning. Authority for taking tactical decisions is
usually delegated to lower levels in the organization.
- Operating decisions are those which are taken by lower management for the
purpose of executing policy decisions. Operating decisions relate mostly to the decision
marker's own work and behavior while policy decisions influence work or behavior
pattern of subordinates.
5. Individual and Groups
6. Organizational and Personal
- Organizational decisions are those which an executive take in his official
capacity and which can be delegated to others
- personal decisions are those which an executive take in his individual capacity
but not as a member of organization.

Uses of Analytics
1. Customer Acquisition
- Cross Selling - identifies products that satisfy additional, complementary needs
that are unfulfilled by the original item. prevalent in every type of commerce, including
banks and insurance agencies. Credit cards are cross-sold to people registering a
savings account, while life insurance is commonly suggested to customers buying car
coverage.
- Up Selling - often employs comparison charts to market higher-end products to
customers. Showing visitors that other versions or models may better fulfill their needs
can increase AOV and help users walk away more satisfied with their purchase.
Companies that excel at upselling are effective at helping customers visualize the value
they will get by ordering a higher-priced item.
2. Operational Analytics
- PREDICTIVE AND PRESCRIPTIVE OPERATIONAL; ANALYTICS
PROVIDES ANSWERS TO QUESTIONS SUCH AS:
- CAN THE ORGANIZATION PREDICT OUTRAGES WITH DATA FROM
CONNECTED DEVICES,
- IS IT POSSIBLE TO IDENTIFY AREAS THAT NEED MAINTENANCE
BEFORE A PROBLEM OCCURS,
- WHAT IS THE BEST APPROACH TO A NETWORK FAILURES
- OPERATIONAL ANALYTICS EMPOWERS EXECUTIVES TO MAKE
STRATEGIC DECISIONS THAT IMPROVES THE ORGANIZATION'S
PERFORMANCE.
3. Fraud Detection and Compliance Analytics
4. Data Driven Product and Service Development
- Analyzes Data from multiple sources
- Use advance analytics and statistics to find hidden patterns in large data sets
- Disseminate information to relevant stakeholders through interactive dashboard
and reports
- Monitors KPI’s and react to changing trends in real time
5. Credit Card Analytics
6. Customer Relationship Management
7. Finance
8. Human Resource
9. Manufacturing
10. Marketing
11. Management
12. Social Media
13. Sports
- Player and team performances
14. Politics
- Voting
15. Accounting
Basic Comparison Business Intelligence Business Analytics
Analyzes Past and present
Analyzes past data to drive
Definition to drive current business
current data
ends
To change business
To run current business
Usage operations and improve
operations
productivity
For current business For future business
Ease of Operation
operations operations
SAP, Business Objects, Word Processing, Google
Tools QLIK Sense, TIBCO, docs, MS Vision, MS office
Power Bi etc. tools etc.
Apply to large scale Applies to companies
Applications companies to run current where future growth and
business operations productivity as it goals
Comes under business Contains data warehouse,
Field
analytics information management
Strategic Tactical

Factors Artificial Intelligence Business Intelligence


Concept/Definition Human like Decision making
Machine learning and Principles of statistical
Focus
deep learning algorithm analysis
Robotics, image
Data extraction and data
Application recognition, virtual gaming,
warehousing techniques
fuzzy, logic
Associated with events of What has happened in the
Scope
the future past
Contributes to subjects like Contributes to OLAP,
Contributions biology and computer enterprise reporting and
science data analysis
BFS (Breadth First
Algorithm Algorithm) Follows FIFO Linear regression
principle
Threat to privacy and Improper technology and
Drawback
security/safety misuse of data
Develop machine capable Analyzing past data and
Intention of working like human predicting the future from
brain past data
It uses spreadsheets,
Tools It uses complex algorithm query software, data
mining, tools for analytics
Levels of maturity of analytics
1. Chaos – Organization dependent on ad hoc processes and data. Reporting from
financial applications. Spreadsheets rule.
2. Developing – Organization stablishes reporting within departments. Reports are
tactical and used for operations management.
3. Alignment – Organization sets standards for data and reporting. Data used to
understand why situations occurs.
4. Integration – Organization adopts data into the enterprise. Data used for predictions
and improvement.
5. Optimized – Organization adopts data-driven strategy. Data used to create
performance culture.

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