Fundamentals of Big Data & Business

Analytics
Ans 1
In business, analytics is the systematic computational analysis of data or statistics to
gain insights into business performance. It is the application of statistical methods and tools
to business data to identify trends and patterns. Analytics can be used to support decision
making in a variety of business areas, such as marketing, finance, operations, and human
resources. Business analytics is a relatively new field that is constantly evolving. The advent
of big data and powerful data analytics tools has made it possible to analyse large data sets
and uncover hidden insights. Business analytics is used in a variety of industries, including
retail, healthcare, banking, and manufacturing. Business analytics can be used to identify
trends and patterns in data, understand customer behaviour, and make better decisions
about how to run a business. When used effectively, business analytics can help a company
improve its bottom line by making better decisions about pricing, marketing, product
development, and operations.

• Descriptive Analysis
In marketing research, descriptive analysis is the process of organizing and summarize data
that has been collected. This type of analysis is used to provide a snapshot of what is
happening in a market and can be used to identify trends. Descriptive analysis is typically
used to understand the characteristics of a target market and can be used to segment a
market. This type of analysis can also be used to understand the relationships between
different variables, and to identify any patterns that may exist. Descriptive analysis is a
powerful tool that can be used to improve marketing strategies and make better decisions
about product development, pricing, and promotion.
Use case: - A bank would use a descriptive analysis to understand its customers
better in order to create or add value. The bank would want to know things like the
customer's age, gender, income, spending habits, etc. This information would help the bank
design products and services that better meet the needs of its customers. For example, let's
say the bank notices that its customer base is getting older. The bank might then create new
products and services that are geared towards seniors, such as retirement planning services
or special discounts. By understanding its customers better, the bank can create value for
them and itself.

• Diagnostic Analysis
A diagnostic analysis is the process of identifying and diagnosing problems within an
organization. It is often used to troubleshoot issues or identify areas in need of
improvement. The process generally involves collecting data, analysing the data, and then
making recommendations based on the findings. There are a variety of methods that can be
used to collect data for a diagnostic analysis. Some common methods include interviews,

Fundamentals of Big Data & Business Analytics

surveys, focus groups, and observation. Once the data has been collected, it is then
analysed to identify patterns and trends. Based on the findings, recommendations are then
made to improve the organization. A diagnostic analysis can be an extremely beneficial tool
for organizations. It can help identify problems that may not be apparent and can also
provide insights into areas that may need improvement. Additionally, it can help
organizations avoid potential problems in the future.
Use case: - A bank may want to use diagnostic analytics to help identify areas where
it can improve its operations. For example, the bank may want to compare its customer
satisfaction levels to those of other banks. If the bank finds that it has lower customer
satisfaction levels, it can then take steps to improve its operations. Additionally, the bank
may want to use diagnostic analytics to help identify areas where it can save money. For
example, the bank may want to compare its operational costs to those of other banks. If the
bank finds that it has higher operational costs, it can then take steps to reduce its costs.

• Predictive Analysis
Predictive analysis is the process of using historical data and statistical models to identify
patterns and predict future outcomes. This type of analysis can be used to make predictions
about everything from individual behaviour to economic trends. Predictive analytics is not
about making specific predictions, but rather about identifying trends and patterns. This
information can then be used to make informed decisions about what might happen in the
future. For example, if a company sees that sales of a certain product are increasing, they
may use predictive analytics to forecast future demand and make production plans
accordingly. Predictive analytics is a powerful tool, but it is important to remember that it is
not perfect. The models and algorithms used are always based on past data, so they can
only make predictions about what is likely to happen, not what will definitely happen.
Use case: - A predictive analytic model can help a bank to identify potential risk
factors for loan defaults. By understanding which factors are most predictive of loan
defaults, the bank can make more informed lending decisions and better manage its loan
portfolio. Additionally, a predictive analytic model can help the bank to target marketing
efforts at customers who are most likely to be interested in taking out a loan. By doing so,
the bank can more efficiently use its marketing resources and better serve the needs of its
customers.

• Prescriptive analysis
Prescriptive analytics is a branch of data science that uses data, statistical and machine
learning models, and artificial intelligence to make recommendations about what actions to
take to achieve desired outcomes. Prescriptive analytics goes beyond the descriptive and
predictive analytics that are commonly used in business. Where descriptive analytics
answers the question “What happened?” and predictive analytics answers the question
“What will happen?” prescriptive analytics answers the question “What should we do?”
Prescriptive analytics can be used in a wide variety of applications, from personalizing
consumer experiences to optimizing industrial processes. In each case, the goal is to use
data and analytics to find the best possible course of action.

Fundamentals of Big Data & Business Analytics

Use case: - A prescriptive analytics approach can help banks improve their customer use
case example by providing insight into how customers interact with the bank, what products
they are interested in, and what services they are using. This information can be used to
improve customer service, target new products and services, and identify areas of potential
customer attrition. In addition, prescriptive analytics can help banks optimize their
operations, such as by identifying inefficiencies in the loan approval process or improving
fraud detection.

Fundamentals of Big Data & Business Analytics

Ans 2
Big data is a term that refers to the large volume of data that organizations create
and store every day. Big data analytics is the process of analysing this data to find trends,
patterns, and insights that can help organizations make better decisions. Big data analytics
can be used for a variety of purposes, including marketing, product development, customer
service, and operations. For example, a company might use big data analytics to better
understand customer behaviour, develop more targeted marketing campaigns, or improve
its manufacturing process. Big data analytics requires the use of special software and
hardware to store and process the large amount of data. It also requires skilled personnel
who know how to use the software and interpret the results. Despite the challenges, big
data analytics can offer a number of benefits, including the ability to make better and more
informed decisions, improve efficiency and productivity, and gain a competitive advantage.
There are a number of advantages that big data analytics can bring to a health
insurance company. Perhaps the most obvious is the ability to better assess risk and identify
potential issues before they become problems. By analysing large amounts of data, insurers
can more accurately predict which customers are likely to experience problems and take
steps to mitigate those risks. In addition, big data analytics can help insurers to better
understand customer behaviour and preferences. This information can be used to develop
targeted marketing campaigns and product offerings that are more likely to appeal to
specific segments of the market. Additionally, understanding customer behaviour can help
insurers to design better policies and procedures that make it easier for customers to do
business with the company. Finally, big data analytics can also help insurers to improve their
operational efficiency. By understanding where inefficiencies exist, companies can take
steps to streamline their processes and remove bottlenecks. This can lead to significant cost
savings over time, which can be passed on to customers in the form of lower premiums.
Fraudulent health insurance claims cost the industry billions of dollars each year. Big
data analytics can help health insurance companies detect and prevent fraudulent claims.
Big data analytics provides health insurance companies with a powerful tool to detect and
prevent fraud. By using big data analytics, health insurance companies can save billions of
dollars each year.
The insurance industry has been struggling with the issue of fraud for many years. In
the past, the industry has relied on traditional methods to detect and prevent fraud, such as
manual reviews of claims and customer data. However, these methods are no longer
effective in today's digital world. The insurance industry is now turning to big data to help
detect and prevent fraud. Big data is a term used to describe the large volume of data that is
generated by insurance companies every day. This data includes customer data, claims data,
and policy data.
Big data can be used to identify patterns of fraud that would not be detectable using
traditional methods. For example, big data can be used to identify claims that are submitted
for the same service within a short period of time. This is known as multi-claim fraud.Big
data can also be used to identify customers who are submitting a high volume of claims.

Fundamentals of Big Data & Business Analytics

This is known as frequent flier fraud. Big data can be used to identify both of these types of
fraud, and many more. By using big data, insurance companies can save millions of dollars
every year.
There are several ways in which big data analytics can be used to detect fraud in
insurance companies. For example, analysts can look for patterns in customer behaviour
that may indicate fraud. For example, a customer who suddenly begins filing many claims
may be trying to defraud the company. Another way that big data analytics can be used to
detect fraud is by looking for patterns in the data that may indicate that a particular claim is
fraudulent. For example, if many claims are filed in a short period of time from the same
address, this may be an indication that the claims are fraudulent. Big data analytics can also
be used to identify trends in fraud. For example, if there is a sudden increase in the number
of claims being filed for a particular type of insurance, this may be an indication that
fraudsters are targeting that insurance. Big data analytics can also be used to help insurance
companies identify which customers are more likely to commit fraud. For example,
customers who have a history of filing fraudulent claims may be more likely to do so in the
future. By using big data analytics, insurance companies can more effectively identify and
prevent fraud. This can help to save the company money and protect its customers from
fraudulent activity.
There are a number of ways to leverage big data analytics to detect fraud and other
insurance crimes. Insurance companies can use data mining techniques to identify patterns
of fraud and other insurance crimes. Data mining is a process of extracting valuable
information from large data sets. Insurance companies need to first identify and collect the
relevant data sets. Insurance companies can then use a variety of analytical techniques to
examine the data for patterns that may indicate fraudulent activity. Some of the techniques
that could be used include data mining, machine learning, and statistical analysis. By
identifying suspicious activities, insurance companies can take steps to prevent fraud and
protect their customers.
Lets discuss the other ways to through which Insurance company can prove to
investors that the growth potential and the vision of the company is strong and in right
direction.

• Insurance companies can also use machine learning algorithms to detect fraud and
other insurance crimes. Machine learning is a process of teaching computers to learn from
data. Another way to leverage big data analytics to detect fraud and other insurance crimes
is to use social media data. Social media data can be used to identify patterns of fraud and
other insurance crimes.

• Insurance companies can also use text analytics to detect fraud and other insurance
crimes. Text analytics is a process of extracting valuable information from text data. Big data
analytics can be used to detect fraud and other insurance crimes in a number of ways.

• Insurance companies can use data mining techniques to identify patterns of fraud

Fundamentals of Big Data & Business Analytics

and other insurance crimes. Data mining is a process of extracting valuable information
from large data sets. Insurance companies can also use machine learning algorithms to
detect fraud and other insurance crimes.

• Social media data can be used to identify patterns of fraud and other insurance
crimes. Insurance companies can also use text analytics to detect fraud and other insurance
crimes.

Fundamentals of Big Data & Business Analytics

And 3a
Business analytics is the application of statistical analysis and machine learning
techniques to data to help organizations make better decisions. Business analytics can be
used to predict future outcomes, such as sales or customer satisfaction, and to identify
trends or patterns in data, such as customer behaviour. Analytics can also be used to
optimize processes, such as marketing campaigns or manufacturing operations.
There are four main types of business analytics:
1. Descriptive Analytics: Descriptive analytics answers the question, “What
happened?” It uses data to generate reports and simulations that describe past events. This
type of analytics can help identify patterns and trends.
3. Prescriptive Analytics: Prescriptive analytics takes predictive analytics one step
further by not only making predictions, but also suggesting actions that should be taken to
achieve specific goals.
4. Cognitive Analytics: Cognitive analytics is a relatively new field that uses artificial
intelligence and machine learning to analyse data. It can help identify patterns and
relationships that humans might not be able to see.
2. Predictive Analytics: Predictive analytics uses data to make predictions about
future events. It can help answer questions such as, “What happened? Why that happened?
What is happening now? and What is likely to happen next?” which can help to take the
decision of action to be taken

So as per described above, predictive analytics is best suited option for this problem
and can be applied to this case. Let’s discuss more about Predictive analytics.

Fundamentals of Big Data & Business Analytics

 Predictive analytics uses many techniques from data mining, statistics, modelling,
machine learning, and artificial intelligence to analyse current data and make predictions
about future. The goal of predictive analytics is to take actionable insights from the data and
use them to make predictions about future events. The predictions made by predictive
analytics can be used to improve decision-making and take actions that can lead to
improved outcomes. In retail, predictive analytics can be used to identify customer buying
patterns, predict demand, and optimize inventory.
Predictive analytics typically requires a large amount of data in order to be effective.
The more data that is available, the more accurate the predictions will be. For this reason,
predictive analytics is often used in fields such as marketing, where companies have access
to a large amount of customer data.
Predictive analytics can be used to answer a variety of questions, including:

• What is the likelihood of a customer buying a product?

• What is the likelihood of a customer churning?
• What is the likelihood of a customer clicking on an ad?
• What is the likelihood of a customer completing a purchase?
• What is the likelihood of a customer taking a specific action?

Predictive analytics can be used to make decisions about pricing, product

development, customer segmentation, and marketing campaigns. It can also be used to
improve the customer experience by providing personalized recommendations and targeted
content. To be successful, predictive analytics requires access to high-quality data. Data
must be accurate, complete, and timely for predictions to be accurate. Additionally, data
must be gathered from a variety of sources in order to be effective. Predictive analytics is a
powerful tool that can be used to improve decision-making and drive business growth.
However, it is important to remember that predictive analytics is only as good as the data
that is used to create the models. To be successful, organizations must have access to high-
quality data.

Fundamentals of Big Data & Business Analytics

Ans 3b
The relationship between BA and BI is a complex one, with BA often being seen as a
subset of BI. BI typically includes data analysis, reporting and visualization, while BA includes
the use of modelling techniques to help organizations make better decisions. In many cases,
BA and BI are used together to provide a complete picture of an organization’s
performance. Both types of tools are essential for creating a successful business.
The roles of business intelligence (BI) and business analytics (BA) have evolved
significantly over the past few years. The two terms are often used interchangeably, but
there is a difference between the two.BI is focused on the past and present, using data to
generate insights that help businesses make better decisions. BA, on the other hand, is
focused on the future, using predictive analytics to help businesses make decisions that will
improve outcomes.
The roles of BI and BA have become more blurred as the technology and techniques
used for both have become more sophisticated. However, the fundamental difference
between the two remains: BI looks backward to identify trends and optimize current
processes, while BA looks forward to identify opportunities and improve future outcomes.

Business Intelligence Business Analytics

BI is a technology-driven process for BA use their skills in problem solving and
analysing data and presenting it in a way stakeholder communication to help
that helps businesses make better organizations make informed decisions
decisions. about their business strategies and
operations.
BI tools and processes are typically used to BA methods and tools are used to
generate reports and dashboards that understand how businesses operate,
provide insights into past and present identify opportunities and risks, and
business performance. recommend solutions that help
organizations achieve their goals.
BI is focused on generating insights from BA is focused on understanding the
data. business and its stakeholders.
BI relies heavily on technology. BA relies more on human analysis.
BI is typically used to support decision BA is typically used to support decision
making at the strategic level. making at the operational level.

BI Use Case: -
An important application of business intelligence in supply chain management is in
demand planning. By analysing past sales data, businesses can develop more accurate
predictions of future demand. This information can be used to optimize stock levels,
production planning, and distribution to minimize the cost of inventory and maximize
customer satisfaction. Other applications of business intelligence in supply chain
management include supplier performance management, warehouse and transportation
management, and fraud detection. In each of these areas, BI can be used to collect and
analyse data to improve decision-making and operational efficiency.

Fundamentals of Big Data & Business Analytics

BA Use Case: -
The goal of business analytics in supply chain management is to optimize the flow of
goods and materials throughout the supply chain to reduce costs and improve efficiency. By
analysing data collected from various points in the supply chain, businesses can identify
bottlenecks, optimize routes, and improve inventory management. Business analytics can
also be used to predict demand, forecast trends, and identify opportunities for cost savings.

Fundamentals of Big Data & Business Analytics