Café On The Sea's Data Driven Decision Making
Café On The Sea's Data Driven Decision Making
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MSc Management
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Table of Contents
Task 1: Introduction and project plan..........................................................................................................3
Project Plan.............................................................................................................................................3
Semma Framework..................................................................................................................................4
Task 2: Data preparation quality issues and remedies.................................................................................5
Task 3: Data analysis and commentary.......................................................................................................7
Table A....................................................................................................................................................7
Table B....................................................................................................................................................8
Table C....................................................................................................................................................9
Task 4: Data visualisation and commentary..............................................................................................10
Chart A..................................................................................................................................................10
Chart B..................................................................................................................................................11
Chart C..................................................................................................................................................12
Conclusion and Recommendations............................................................................................................12
References.................................................................................................................................................14
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Task 1: Introduction and project plan
Data-driven decision-making (DDD) stands as a strategic approach within the realm of business,
leveraging the power of data and analytics to inform strategic and operational choices
(Brynjolfsson and McElheran, 2019). The purpose of this report is to analyze the current
business performance of Café on the Sea (COTS) and provide insights that will contribute to the
development of the 3-Year Strategic Plan. The report will address three key issues: Sales value
and volume analysis of the top three coffee shops in Poole, Plymouth, and Newquay to identify
the best candidates for future expansion; Customer analysis to identify market segments with the
highest revenue potential for targeted promotion campaigns; and Evaluation of the impact of
introducing breakfast and healthy snacks in Plymouth on sales performance. The report structure
includes an introduction and project plan. To ensure a systematic approach, SEMMA framework
will be employed. Data analytics will add value by providing evidence-based insights to guide
strategic decision-making, and assess the success of new product offerings, ultimately driving
improved business performance for COTS's coffee shops.
Project Plan
This project plan will use a structured system to analyze data. Project plan involve collecting,
processing, and interpreting the data (Schröer, Kruse and Gómez, 2021. During the data
collection stage, information on relevant sales from the Poole, Plymouth and Newquay coffee
shops will be obtained. After this, the data is further processed for accuracy and uniformity
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(Mohan et al., 2019). The analysis stage will include investigation of sales value and volume,
customer profile as well as the impact made by both new products. In the end, interpretation will
offer strategic actionable insights (Polk et al., 2019).
Semma Framework
The SEMMA framework ensures an organized and enhanced technique of data analysis with a
strong methodology (Dittert et al., 2018). Therefore, in order to answer the core business
questions that have been assigned and as a result provide COTS with informed decisions for its
expansion strategy and growth of firm use SEMMA framework. In the COTS research project,
SEMMA framework will be used as data analytics guideline (Gökalp et al., 2022). As defined by
Pradeep and Kallimani (2017) the Sample phase involves obtaining sales data of top three coffee
shops in Poole, Plymouth, Newquay. This data will include sales values and volumes which can
be used to evaluate the performance of every location. In addition, Ahmad et al., (2023) noted
that the Explore phase will involve data exploration which would help in identifying patterns,
trends and outliers affecting business performance. The Modify stage will include data cleaning
and transformation to make sure the validity of the dataset (Ridzuan and Zainon, 2019).
Second, the model phase will carry out market segments analysis and product impact using
statistical models and machine learning. Both the sales value and volume analysis can benefit
from regression models, which indicate possible performance drivers (Bohanec et al.,
2017). Segmentation analysis of the customers can be done using clustering algorithms by which
high-revenue customer segments will also be identified. Finally, testing of hypothesis or A/B
measures new product’s launch impact. The Assess phase will have result interpretation, the
generation of insights and recommendations for strategic planning (Smith, 2020).
COTS KPIs
The KPIs of COTS coffee shop can help with performance measurement and further
improvement. The key metrics are sales revenue, customer satisfaction and market share (Hristov
and Chirico, 2019). With the aid of data analytics tools, COTS can achieve an in-depth
understanding of sales trends across districts; subsequently it could place its resources effectively
and focus on targeted marketing efforts.
As mentioned by Fesko (2023), the effect of customer segmentation analysis on KPIs is
associated with a focus on high-revenue market segments and targeted marketing campaigns
aimed at specific target groups. The analysis of the new product ranges in terms of their
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influence through analytics determines whether menu diversification strategies resulted in
revenue and customer satisfaction KPIs (Ingaldi Ulewicz, 2019).
Mariappan et al., (2023) said that analytics-driven insights can help optimize inventory
management, minimize wastage and improve resource utilization which directly affects cost
related KPIs. By conducting a sentiment analysis of customer feedback, COTS can improve
some specific KPIs related to the satisfaction levels by addressing particular concerns and
preferences.
Better analysis enables COTS to tweak its operations strategies effectively, analyze customer
patterns suitably and anticipate market changes actively. In turn, this results in increases to key
performance indicators and contributes towards promoting a data-driven culture associated with
COTS objective of achieving strategic decision making for sustainable growth being an entity
operating under competitive coffee shop market (Bharadiya, 2023).
KPI Description Aim
Sales Volume Total quantity of products sold over a Increase by 10% to signify
specific period market growth
Revenue Total income generated from sales Achieve a 15% increase for
financial growth
Customer Measurement of customer contentment Maintain or increase by 5%
Satisfaction with products/services for loyalty
Market Share Percentage of the total market captured Increase by 2% to signify
by COTS expansion
Segment Revenue Revenue contribution from different Optimize by 10% through
customer segments targeted promotions
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combining data may actually have a significant effect on the validity of any further analysis
performed with such datasets. Additionally, according to Smiti (2020), outlier or abnormal data
points can significantly bias analytical results. Following this, Wada (2020) suggested
identifying and dealing with outliers to avoid biases in the results. The need for consistency of
data was pointed out by Li, Higgins and Deeks (2019) because naming conventions, formats or
units might differ in different sources. Leng et al., (2023) outlined the missing data problem,
which leads to unstable results of analysis and skewed findings. In this regard, Blazek et al.,
(2021) noted that missing values should be imputed or eliminated according to the context. In
addition, Krishnamurthi et al., (2020) emphasized the importance of proper data processing and
retrieval facilities. As Habeeb et al., (2019) pointed out; real-time data analysis brings up even
more difficulties requiring fast processing and analysing capacity.
In the context of a specific project, several issues compromising data quality for the Corporate
Strategy team's analysis were identified:
1. Analysis of the data showed many missing or blank rows and columns that could impact
on analysis. To deal with this, the missing data was removed from the appropriate
columns and rows.
2. In the data validation assessing process, negative figures such as two for sale volume and
three of sales value were found. These values were filtered to address the challenge.
3. An unexpected zero value in the Sale Value column was discovered, possibly during
summary statistics or data profiling.
4. In the course of data visualization, variations in the presentation of sales values, such as
the presence of symbols like '£' and negative values, were likely observed. To rectify this,
standardization of formatting was implemented by eliminating symbols and ensuring
consistency, such as using only positive sales values.
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Task 3: Data analysis and commentary
Table A
Column Labels
Sum of Sales Volume Sum of Sales Value Total Sum of Sales Volume Total Sum of Sales Value
Row Labels 2020 2021 2022 2020 2021 2022
1 1218.5 1313 1300 3992.25 4181.25 4244.75 3831.5 12418.25
2 1322.5 1401.5 1456 3269.5 4484.25 4628.25 4180 12382
3 1537 1537 1629.5 4915.75 5010.25 5320.75 4703.5 15246.75
4 1726.5 1915 2023.5 5473.5 6127 6370.75 5665 17971.25
5 1498 1456 1653 4843.75 4236.25 5342.25 4607 14422.25
6 1590.5 1710.5 1819.456 5120.75 5458.75 5558.194 5120.456 16137.694
7 1763 1771 2131.458 5765.5 5708 6724.642 5665.458 18198.142
8 1823.5 1935 2410.606 5906.25 6275.5 7833.294 6169.106 20015.044
9 1502 1591 1871.81 4783 5140.25 5946.85 4964.81 15870.1
10 1519 1650.5 1880.732 4929.25 5364 5963.346 5050.232 16256.596
11 1482 1671.5 1948.802 4638.25 5366 6239.862 5102.302 16244.112
12 1620 1706.5 1863.328 5193.5 4860.75 5879.672 5189.828 15933.922
Grand Total 18602.5 19658.5 21988.192 58831.25 62212.25 70052.61 60249.192 191096.11
The table presents sales volume and value data for Café On The Sea (COTS) coffee shops,
categorized by month and year over a three-year period (2020-2022).
Both sales volume and value have shown a consistent upward trend over the three-year
period, indicating overall business growth.
2022 stands out as the highest-performing year in both sales volume (21,988.192) and
value (£70,052.61), showcasing a significant increase compared to 2020 (Sales Volume:
18,602.5, Sales Value: £58,831.25).
2022 with a total sales value of £70,052.61 is the top performing year.
2020 has the least sales value of £58,831.25.
November 2022 with sales volume 2,410.606 and sales value £7,833.294 was the best
performing month.
The average monthly sales value in 2022 is approximately £5,837.72.
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Table B
Column Labels
Sum of Sales Volume Sum of Sales Value Total Sum of Sales Volume Total Sum of Sales Value
Row Labels 2020 2021 2022 2020 2021 2022
Q1 4078 4251.5 4385.5 12177.5 13675.75 14193.75 12715 40047
Families with children 370 405.5 409 1862 1990.5 2011 1184.5 5863.5
Married young couples 809 947.5 846.5 2013.5 2324.25 2094.75 2603 6432.5
Retired people 809.5 680 920.5 1578 1331 1893 2410 4802
Single professional people 560 679.5 589 1160 1387 1155 1828.5 3702
Tourists 238 263.5 265 1413 1497 1617 766.5 4527
Young people 1291.5 1275.5 1355.5 4151 5146 5423 3922.5 14720
Q2 4815 5081.5 5495.956 15438 15822 17271.194 15392.456 48531.194
Families with children 447 429 504.992 2260 2143 2482.96 1380.992 6885.96
Married young couples 992 920 1129.532 2450 1893 2819.33 3041.532 7162.33
Retired people 845.5 1082 1156.06 1388 2108 2303.12 3083.56 5799.12
Single professional people 715 764.5 844.012 1456 1524 1705.024 2323.512 4685.024
Tourists 298 282.5 299.16 1775 1759 1762.96 879.66 5296.96
Young people 1517.5 1603.5 1562.2 6109 6395 6197.8 4683.2 18701.8
Q3 5088.5 5297 6413.874 16454.75 17123.75 20504.786 16799.374 54083.286
Families with children 462 510 553.598 2333 2537 2686.99 1525.598 7556.99
Married young couples 974.5 1082.5 1353.848 2428.75 2730.75 3408.62 3410.848 8568.12
Retired people 1007.5 995 1319.868 2006 1974 2684.736 3322.368 6664.736
Single professional people 764 788 893.492 1565 1561 1805.984 2445.492 4931.984
Tourists 317 335.5 378.592 1849 1966 2252.552 1031.092 6067.552
Young people 1563.5 1586 1914.476 6273 6355 7665.904 5063.976 20293.904
Q4 4621 5028.5 5692.862 14761 15590.75 18082.88 15342.362 48434.63
Families with children 424.5 435.5 506.4 2158.5 2139.5 2519 1366.4 6817
Married young couples 897 983.5 1123.712 2246.5 1910.25 2714.78 3004.212 6871.53
Retired people 1006 1048.5 1193.434 2021 2100 2365.868 3247.934 6486.868
Single professional people 688 709 866.408 1333 1389 1720.816 2263.408 4442.816
Tourists 277.5 280.5 332.392 1584 1787 2068.352 890.392 5439.352
Young people 1328 1571.5 1670.516 5418 6265 6694.064 4570.016 18377.064
Grand Total 18602.5 19658.5 21988.192 58831.25 62212.25 70052.61 60249.192 191096.11
The table presents benchmark comparisons of market segment performance, covering sales
volume and value by quarter, for the years 2020, 2021, and 2022. The data is categorized into
two main columns: "Sum of Sales Volume" and "Sum of Sales Value," and each year is further
divided into quarters and specific market segments.
Q3 2022 had the highest sales volume of 6,413.874 units and sales value £20,504.786.
Young people had the highest sales volume of 1,914.476 units and sales value
£7,665.904.
Q1 2022 had the lowest sales volume of 4,385.5 units and sales value £14,193.75.
Families with children had the lowest sales volume of 409 units and sales value of
£2,011.
Young people consistently performed well across all quarters, maintaining the highest
sales volume and value.
Quarterly fluctuations in sales volume and value indicate potential seasonality or external
factors affecting consumer behavior.
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Table C
Column Labels
Newquay Plymouth Poole Total Sum of Sales Volume Total Sum of Sales Value
Row Labels Sum of Sales Volume Sum of Sales Value Sum of Sales Volume Sum of Sales Value Sum of Sales Volume Sum of Sales Value
Q1 4046 12178.5 5772 18478 2897 9390.5 12715 40047
2020 1373 3416.5 1848 5891 857 2870 4078 12177.5
2021 1228.5 4076.75 2021 6402 1002 3197 4251.5 13675.75
2022 1444.5 4685.25 1903 6185 1038 3323.5 4385.5 14193.75
Q2 5142 16326 6756.456 21140.694 3494 11064.5 15392.456 48531.194
2020 1646 5316.5 2082 6588 1087 3533.5 4815 15438
2021 1733.5 5387 2184 6707 1164 3728 5081.5 15822
2022 1762.5 5622.5 2490.456 7845.694 1243 3803 5495.956 17271.194
Q3 5377.5 17323.75 7835.874 25062.036 3586 11697.5 16799.374 54083.286
2020 1602.5 5234.25 2315 7438 1171 3782.5 5088.5 16454.75
2021 1824 5846.75 2318 7469 1155 3808 5297 17123.75
2022 1951 6242.75 3202.874 10155.036 1260 4107 6413.874 20504.786
Q4 4852 14895 7164.362 22859.63 3326 10680 15342.362 48434.63
2020 1452 4611.5 2077 6636 1092 3513.5 4621 14761
2021 1697.5 4860.25 2228 7094 1103 3636.5 5028.5 15590.75
2022 1702.5 5423.25 2859.362 9129.63 1131 3530 5692.862 18082.88
Grand Total 19417.5 60723.25 27528.692 87540.36 13303 42832.5 60249.192 191096.11
The table provides a benchmark comparison of sales volume and value between three coffee
shops (Newquay, Plymouth, and Poole) by quarter, for the years 2020, 2021, and 2022. The data
is presented in two main columns: "Sum of Sales Volume" and "Sum of Sales Value," and each
year is further divided into quarters.
Q3 2022 had the highest sales volume (7,835.874 units) and sales value (£25,062.036).
Plymouth consistently had the highest sales volume and value in Q3 2022.
Q1 2022 had the lowest sales volume (4,385.5 units) and sales value (£14,193.75).
Poole had the lowest sales volume and value in Q1 2022.
Plymouth led in both sales volume (9,223.5 units) and sales value (£29,999).
Newquay Coffee Shop had the Total Sales Volume of 19,417.5 units across years.
Plymouth Coffee Shop had the Total Sales Volume of 60,723.25 units across years.
Poole Coffee Shop had the Total Sales Volume of 27,528.692 units across years.
Newquay Coffee Shop had the Total Sales Value of £60,540.36 across years.
Plymouth Coffee Shop had the Total Sales Value of £42,832.50 across years.
Poole Coffee Shop had the Total Sales Value of £60,249.192 across years.
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Task 4: Data visualisation and commentary
Chart A
This graph shows the sum of sales values for a coffee shop located in three different cities:
Poole, Plymouth, and Newquay over the years 2020 to 2022. Each city's annual sales are
represented by differently shaded bars. The Y-axis represents years while the X-axis shows the
sum of sales value ranging from 0 to about 35000. The data suggests that while all locations are
performing well and improving yearly, strategic efforts could be focused on understanding the
factors contributing to Poole’s exceptional growth to replicate this success in Plymouth and
Newquay.
In 2020, the sales values for Poole, Plymouth, and Newquay were $10,000, $9,500 and
$10,500 respectively.
In 2021, the sales values for Poole, Plymouth, and Newquay were $18,000, $15,000 and
$16,000 respectively.
In 2022, the sales values for Poole, Plymouth, and Newquay were $33,000, $22,000 and
$24,000 respectively.
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Chart B
This bar graph compares the sales values of different market segments at City Coffee Shop
locations in Newquay, Plymouth, and Poole. The Y-axis represents the sum of sales values
ranging from zero up to forty thousand while each city's name is labeled on the X-axis. Different
colors represent various market segments including retired people (green), married young
couples (orange), families with children (red), single professional people (purple), tourists (blue),
and young people (yellow).
In Newquay retired people contributed to the highest sales value of $7,902.
Married young couples followed with a sales value of $908 in Newquay.
Families with children had a sales value of $5,867 in Newquay.
In Newquay single professional people contributed to a lower sales value of $70.
In Plymouth retired people again led with a significant sales value of $33,385.7.
Married young couples had a substantial increase compared to Newquay with a value of
$10,607.2 in Plymouth.
Families with children also increased their contribution to the total sales to reach a value
of $13,117.2 in Plymouth.
In Poole the retired segment decreased but still led with a total sale value of $16,595.
Married young couples had the lowest contribution among the three cities at just over half
that amount at around approximately $6,805.5.
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Chart C
This pie chart represents the sales value count of a City Coffee Shop in Plymouth, divided
among six different customer categories: young people, tourists, single professional people, and
families with children, married young couples, and retired people.
Total Sales Value Count of all market segments across Plymouth collectively contributed
216 to the grand total.
Each market segment in Plymouth contributed equally with a count of 36.
The grand total represents the cumulative count of sales value across all market segments
in Plymouth.
The identical count for each segment implies that the impact of the new product ranges is
consistent across various demographics, catering to diverse customer preferences.
A count of 36 in each segment signifies a widespread acceptance of the new products,
demonstrating their popularity among different customer groups.
Conclusion and Recommendations
The analysis of the current business performance and strategic reflections pertaining to Café On
The Sea (COTS) is helpful in formulating a 3-Year Strategic Plan. The analysis of the leading
coffee shops in Poole, Plymouth and Newquay showed favorable tendencies concerning sales
volumes and values thus confirming general developments for the entire business. The
segmentation analysis identified key market segments driving significant amount of revenue,
leading to effective marketing strategy concerning promotional initiatives.
The introduction of new product categories in Plymouth highlighted an improvement on sales
performance that was equally accepted by all the market groups. Such success indicates an
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avenue for this strategy to be replicated in other areas, which coincides with COTS’s mission of
attracting a wider customer base.
Benchmark comparisons of market segments and coffee shops revealed quarterly performance
differences across quarters and locations. In this regard, the Plymouth coffee shop was
consistently rated as a high performer, thus reflecting on its success factors that deserve study.
The quarterly review pointed out changes that would necessitate the development of adaptive
strategies based on market trends and seasonal tendencies.
Recommendations
As COTS incorporates these recommendations in the 3-Year Strategic Plan, it will achieve a
sustainable growth; strengthen its market position and continue to offer relaxing coastal café
experience for customers across UK. Introduce the successful breakfast and healthy snacks menu
used in Plymouth to other coffee shops. This can further contribute to diversifying supply,
attracting new clients and improving overall profitability. Use insights from customer
segmentation to customize marketing efforts. Target optimal market segments for promotional
campaigns to further optimize investment ROI. Introduce regular performance monitoring in all
coffee shops, with Plymouth being one of the examples to follow. Use data analytics to find
patterns, trends and improvement opportunities. Recognize and plan for the seasonal nature of
sales. Seasonal preferences should shape tailored promotions and product offerings aimed at
maximizing revenue throughout the year. To identify the key success factors of Plymouth, it is
necessary to run a thorough analysis. Apply good practices to other locations in order to have a
more homogeneous and successful chain. Use social media and customer feedback analysis to
increase engagement. Promote user-generated content and interactively engage with customer
responses to support the online presence of a brand.
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