Maw! BUSINESS ANALYTICS MBA, SECOND SEMESTER According to the New Syllabus of ‘Anna University, Chennai’ Dr. K. Soundararajan Ph.D, M.B.A., M.Com, M.Phil., PGDTEM., PGDCA., DMM., DCA. Professor & Head Annai Mathammal Sheela Engineering College Dr. Kadhirvel Ramasamy Ph.D., MBA Associate Professor Dhanalakshmi Srinivasan College of Engineering THAKUR PUBLICATION PVT. LTD., CHENNAI = Ahmedabad * Bhopal + Bhubaneswar * Bengaluru * Dehradun * Emakulam * Hyderabad * + Jaipur + Jalandhar * Kolkata * Lucknow * Nagpur * Patna * Pune * Raipur * Ranchi * Rohtak +Business Analytics = Dr. K.Soundararajan = Dr. Kadhirvel Ramasamy Published by: Thakur Publication Pvt. Ltd. HO: Abbishekporam, 60 Feet Road, Jankipuram, Lucknow-226021 Mob 9235318591/95/94/97/25/24/22/17/20, 895741 1424 “Dedicated Branch Office: House No. 8, Ambu Nagar, Main Road, Goverthanagiri, Avadi, Chennai-600071. ° Mob.: 9543605656, 8144126950, 9543247241, 9543247130 ‘my Father Mr. A.Kandhasamy, cee my Mother Mrs. S.Ranjithane & my Wife Mrs, BM. Mythili cand ‘my Son Mr. S, Sanjith, Mr. S. Sanjey” -Dr. KSoundararajan Second Edition 2022 | “Dedicated 0 Almighty” Printed at: Savera Printing Press Dr. Kadhirvel Ramasamy $otoconyng. Feorting or thers), hou he prior writen permission of both the copyright over and Ue below mentioned publisher of his bokPlease email ust, Website, Preface ing this book “Business Analyties’ forthe stdents of MBA, Second Semester, thakurpublication@ gmail.com worpphorgin Acknowledgement Engineering. Coimbatore provided the opportunity 10 werk under this repted institutions todo service for the students community. and well wishers for their valuable support course ofthe year ahead, -Dr. Kadhirvel RamasamySyllabus BA4206: Business Analytics Unit I: Introduction to Business Analytics (BA) 9 Business Analytics - Terminologies, Process, Importance, Relationship with Organisational Decision Making, BA for Competitive Advantage. Unit Il: Managing Resources for Business Analytics 9 Managing BA Personnel, Data and Technology. Organisational Structures Aligning BA. Managing Information Policy, Data Quality and Change in BA. Unit Il: Descriptive Analytics 9 Introduction to Descriptive analytics - Visuaising and Exploring Data ~ Desctiptive Statistics Sampling and Estimation - Probability Distribution for Descriptive Analytics - Analysis of Descriptive Analyties Unit IV: Predictive Analytics 9 Introduction to Predictive Analytics - Logic and Data Driven Models - Predictive ‘and Procedure - Data Mining for Predictive Analytics. Analysis of Predictive Analytics Unit V: Preseriptive Analytics 9 Introduction to Prescriptive Analytics - Prescriptive Modelling ~ Demonstrating Business Performance Improvement. Non Linear Optimisation - Contents Unit 1: Introduction to Business | Analytics:(HA).* Process of Business Analy Importance/Advantages of Business 21 ‘Analytics ‘Tools of Business Analytics 2 (Challenges of Business Analytics Analytics can Help patie Advantage Unit 2: Managing Resources for Business Analytics Skits Required For Business 29 ‘Analyis Personnel 243. Roles of Business Analytics 31 Personnel 214. Key Responsibilities of « Business 31 ‘Analytis Personoel ‘Tye of Busines Analytics Ratbone 1. Limitations of Secondary Data Primary Data Versus Secondary Daa Data sues Analytics Technology tion Business Analydes of 2 Techsical Business Business Analyst Management Ives ‘Managing Information Policy Pe ee Managing Change in BA Exercise355. Sundard Error 356. Types of Estimation Point Estima ” a 37 st 6 ‘Sampling Iatrodsction Characteristics of a Good Sample Computation of Normal Probability Gune “The Equation ofthe Normal Curve Normal Probability Basic Concepts of Probability 36.1. Intodvetion 3.62. Experiment Discrete Random Variables (Continuous Random Variables 333. Measures of Dispersion 426. Other Models 187 B31. Range 42.6.1. Clustering Model 188209 209 210 au 2s Data Mining for Predictive 191 ais 34. 191 215 32, 192 433, Components of Data Mining 192 2s Data Mining Methodologies 193 216 Data Mining Techniques 194 a6 Data Mining Process 196 a 216 & a0 expr of Dain se 2 png ic Selecsng and Developing an 218 ‘Analysis of Predictive Analytics 200 ee ah Hci 20s Summary of BA Procedure for the 220 ‘Manufacturer Unit 5: Prescriptive Analytics 534. Demonstating Bi Preicsgtive Analyse Performance improvement 54 Bnercise 1 Case Stes 22 Model Paper 29 S44, Benefits ofPrescipive Analytics 208 not o Bases Anica (BA) (Ui 1)[MDA Second Semen Busines Analg) AUC 8 came mote and more competitive, manage Aste rons are coin Srp sce and no PC sofware Figure 1 shows the ‘luton of Bisons A Figure Le Eotaton of Anagss 1.13, Scope of Business Analytics For example, business analytics is used to determine pricing of various products in a departmental store based pastand preset set of information. Following ae the typical business problems where business analytics are applied For example, product manufacturers may find the detail iterest Tis could include the demographic ofthe consu these consumers vie avr the demographics ofthe 2) Reputation Management: Another means resiive opinions jon campsign of 2012 between ing the social media to both put and "dil-down” Business Intelligence (BI) systems, Organisations fats (KPIs) ~ 8 small number of imporant indicators of the for the executives, ‘an provide a minimum visibility imo the losses, and some sm occurring. Algorithms have been developed to characterise companies have sophisticated software that has characterised customer typical ‘eigge an alert ifthe transaction is larger thn normal or from a store tat you do i such as buying digs at a 's home, insurance companies are able to build predictive models of Orpanisstions face risks from the extemal envionment, such as variations to thei business and from internal sources such as project delays of omes from computer attacks on an organisation's IT (information is evaluated or communicated by judgement (c lous to define isk, or evaluating it as highfmediunviow), ” omDA Second Samet (Busies Analy) AUC roughout the organisation and and abuse, and then ws the 135 provide biter retums to sented primary and secondary data 1. again influences the ‘ny format as required. 1.1.5. Components of Business Analy arching for valuble business je ore. Both processes require find exactly where the Inradeticn ones Asi (0A) U8) Components of Buln Analyt Prive Aas & forecast processes that ake place ‘demand using histrial tends, predit sae 10 technologies tat te ore pol ing is achieved: hen user knows on which variables to clasiy the data eg. age, demographics) is used to create, manage and deploy predictive scoring models. For example, Credit Scoring, predicting failure in shop flor machinery ations techniques to idenily scenarios which will produce ing optimal Inventory for maximum Falfllment alisation and sometimes dau processing chin an be done by nontechnical users who glean 2 visual data Provide tools for visual analysis (eg, Analytica, ‘query language that powers bbe extremely important for busy 1990 were loaded with charts, oducts and later to dashboardsstereoscopic displays, but wesc information, such 25 sound though speakers Types and Techniques of Business sa: secel plnon clos - nt set ri ing a new targeted marketing sale data he store computer model to study jon to model investment and used i the pharmaceutical This focus on providing decision makers with support to make onstrctively. Mey ae uid to facia the anljis and astessment of information, and o manage daseca problem complerity. Prescipve models can be obiained dough the comparion ofthe expected ard achieved ant treatments and ther results. For example, he Data mining methods ions more effectively and to think more ‘methods to oblan ther prescriptive results. When the optimisation (ea. under diferent economic assumptions). it" ly called ne while ‘Stochastic Optimisation, Prescriptive analytics helps customers » Di ‘pproaches that may not be obvious du to the ata to be analysed. ber of choicest be considered ing may impact ‘might trade-off various engin charac at prescriptive analytes indicate a best prescriptive model ea bet devision. criptve analytics. Ailines use past that recommends the best pricing strategy across ll fights for ‘Other examples of prescriptive analytic are pontflio models ‘perations, and price markdown models in retailing, to risk Supply network desig ns subject to meting the customer service requDA Second Semener Baines Amps) AUC vetaon Se ‘combines the use of probability and statisties non Optitatin: Siulaon piston nes Sewing rah opimisaion tchiges to find g00d dei Lizear Optimisation Models imelgese on apy mashn lang Bi Ds wiped tm fering ean of tte sca age onset sc ch = Dau fen ove a sno forthe pass of mu describes the act of informing a8 on ” tion. A more technical definition ‘with the goal of discovering ‘with the goal of discovering fies of tee stages in the lowed by predictive poles statistical analysis to fe action plan to improve a ion user design construct used in many software application to software application. In data applications, dashboards dyplay various visual arays, such as chars, graphs and tabular summaries. Dashboards often We data visuaistions, correctly and consistently, ‘not meet the business ware designed to extract business data from all datasources jon. Also the frst part ofa business's dat pipeline. Also called: custom busines logic to cleansed business data with ation for storage and consumption. Occurs after dt om data sets by using graphical and ober non ization include line series chats, pie chars and ved data visualization forward rapidly with the loud or on-prer) that stores data in a persistent state, typically to be rare. In analytes, eporing and analysis software read. interpret. and A study of whether the data that a company has can meet the business expectations thatthe ‘company has set for its reporting and BI, and where posible data gaps or missing data ithe care associates data with location. Iisa typeof data visualization that is often wsed (© digital maps, The data is represented a data points or data summaries of ‘metric a business measures is progress against when performing BI ‘eetng its goals. The results are reported inthe form of &dashboae! or tne: manager, and employees oases perfomance, and wheter 3 formance that observe progress and evaluate trends within an organisation. 21) Muldpolar Analyte: A dstbuted big data model where data is collected, stored, and analysed ia diferent areas ofthe company istead of being cently located and analysed amenassumptions and these are tested using hypothesis sliged and diced and different comparisons are made while indecision making. At decision wees, neural jghis and paterns that highlight es and compute the predictive errors. ode! selected based on model accuracy jtion and model based ‘ntitive recognition ofthe model coefficients tht are most stategic goa Make 2 Decision and Measure the Outcome: The analyst wil then make decisions and take action on the drive insights from the mode and the organisational goals. An appropriate pool af ine ‘ction has been taken; the outcome ofthe action ste n measured, ‘Step 7) Update the System wi ‘he new insights derived fom the sof the Decision: Finally the results ofthe decision ad action and red an 0 the database, id the eatment group investm ploaded ino the database. To database thats continuously updated as soon as new i = EE tomers are speiled for che gure 12: Basins Analyte Process tics. For example, companies can[MBA Second Sete Baie Anaycs) AUC === ve; hence meters must know how 0 ge the best methods such as A/B and C split Shen cower to leven Tahce Gane aperiace Redoce Employee Tumor ei Fs ‘Gannon, Coxe ‘ake oe Mow of Your Ivete Taproved Aten | ‘eter Prod Manageme “rl eben ‘ecco Touph Ueealny ConA Cape AS they are withthe new role, employees who will can also analyse other is not always limited to employees. Bi chain was able fo rede Bi temiascming For example, a grocery “ a é suatstca ols inspects (c.g. KXEN, Statistica) to sophisticated business intelligence vis 4 histcted busines tieligence sae sii ied for specific purposes. Here i a ing populasity. Besides these, companies develop in-house a Of elgbt most popular analytic tools used in the nies have begun. fraudulent purchases, based on the tomes ‘Toot of Wasnes Amajr stronger customer relaionshi 6) Cut Manufacturing Costs: One company that has ouranked everyone when ‘reduce manufacturing costs is Intel. lnally, this tech giant would perfor omes to using analytes 10 19,000 tests on each chip eed, which tests before thas been able to sive predictive analysis, Intel was able to determine whi yy Using the data collected from all of that tet ion. 17) Make The Most Of Your Investment: Eater, business people would rely on traitional marketing techniques io gain and resin customers. However, the [Now search marketing has become the most efficient using busines intelligence, marketers can craft perfect campaigns and st . ‘chances of higher ROL, rare has wide ranging capobi find leads. By | 2) Fo‘ Ggrumonly used software inthe Indian analyics market despit its monopole pricing isthe ing lites from data management o advanced analytics, eeePy MBA Secon Sener Busiss Amie) AUC | 4) SESS Modeler (Clementine): SPSS Modeler is a data mining software tol by SPSS tac. an IBM com Tc snally named SPSS Clemeatine. Thi tool has an intuitive GUL and is point-and-click pabilities are very comprebensie. | J: It provides a host of predictive analytes and data mining tools for busineses, The ce products are easy 10 use, fact that KXEN works like & resuls, , MATLAB allows matrix igoithms and creation of ges of Business Analytics 8) Investment of staf time in implementation of BA. and 9) Lack ofa proper strategy 1 implement BA. rei Car Conis 1) Finance: BA is of uumost importance to the finance sector. Data Scientists are in high demand in lansing, budgeting forecasting, jon BAS can 3m whether to retain it | decisions. Busnes antics gaan understanding of the organises osuomat and opie tc: procession the plobal maket With the help of dat ands, an and understand data to discover new pattern aisle, a alters and analyse the relationships amoag data using Busines analytics provide supporto companies'for making prowstve and eciions. Business Anayes males t polo sont Uen making pects sothat ican Sued nea. the process of 4 decison process is an approach taken byhaa semtsmennieaniia) ave | man rae Do ang Pose? Gy Rept a Donan Genes eae AT =] o-oo? paca pre rorya) aces, | TET Tagen Rear Aap © sand var Te Innively this mikes sense: Smarr organisations tha at on thet insigis tnd to be moe sess ca |-——-P Sea ‘Organations tht tet understand ter casomerpefernces ad eng their procs ut wil easly Tnathet lasses tat hive beter awareness of the cost of isk ill cary lower ‘exponure than those that do no i ) Fren Saoeee GC ant ae sw we] Thescremive |__|” feaepernntan oan pat neces ‘Soares Adi Fow Figen Eg 9707p. 1 ‘Figure 1.3 Comparisoa of business analytes and organisation decision-making processes segic advantage” and “competitive advantage’ can be used synonymously Its a superiority of a ie competiive area, With tbe help of this supremacy, the fms are able to find a favourble “This supremacy can be developed in any of the Fanectons or areas that frm deals in. Therefore his implies that there are many ways ough which the firm can acquire the competive edge The fivestep ODMP begins with the perception of that needs a decison. Similarly. in the Business dutsbases may contain information tht could both solve protl business performance. ‘Then ia Step 2 of the ODMP, an exploration ofthe problem ha an access tothe supesio quality resources with some mployees, latest echnolopes, atural resources, et. All hese antage bythe frm, 1.23. Ways Business Analytics can Help Achieve a Competitive Advantage “Typet ‘Ways HA Can Help Achieve the Compeiive ‘Competiive Advantage ‘Advantage es 1) Pelee CPM ay ‘ip Soa mas Saqhinps) fim can keep lowest co profile shie ‘mantining and geasanng prot roman.Unit 2 Managing Resources for Business Analytics 13.1. Short Answer Type Questions 1) Whatdo you mean by business alice? 2), Whatis aa mining? 3) Expun descriptive analysis 4) Whatisbig dau? 5) What do you mean by gap analysis? 6) What is SAS? 7) Whats MATLAB? 8) What do you mean by KPI? 1.32. Long Answer Type Questions 1, Discuss the ned and scope of busines anal 2). Explain tbe component of sine aati 3) Describe the types of business analytics, 9) Discus the terminologies of business analytics. 5) api te proces of business analy 1 Whats ibe imporane of busines analytic? Explain the vrou tol of burns arabes, 7) What isl busins analytics indecision making?” 8) How bane rls isinponant for competive avenge? Operation] taprove ie Tneral since operations aod Mantiog Resouces or Bases An Eicieney | sctvider ver competios, lesening the cost W Service Ettectiveess improvement 3) tnsovalion (isin aod validte customer ear and surgeons on new produce or emanceme a Intunea prods break ovough product rings Monitee casiomer reacons and suggest refinements a new product re roe’ 0 somes. Moat pecormance on new products and report rest 6) Product Provide cstomers witha vatey of produc, | Idealy new product act offred by Diterenaton | services, or features that competion: are ot | competion, suggest new services 10 ff Yee orare unable woe. Fereewtpolenial of new product for profiel measurement PRBB nse Sara 15 these needs change. They and collaborate with sakebolders to design and implement the problem. ‘Otpanisatons employ business analysis forthe following reasons: 1) Toundersand the structure andthe dynamics ofthe organisation in which a system is to be deployed. 2) ‘Tounderstand cureat problems in the tape organisation and identify improvement potetials 3) To ensue that the customer, end user, and developers have 8 common undersunding of the target crzanisation phase of a project, when te requirements are being interpreted by the solution and design teams, Business analyst isto review the soltions documents, werk elosely with the solutions designers Ps large-size TT orgaisaion, especially in a development eaviroumest, you can find On- cotfshore delivery teams having the above-mentioned roles. You can find a "Business Analy ley person who has to link both the teams. 2.1.2, Skills Required For Business Analytics Personnel nse thatthe right soltion is delivered by cee tbe realized through people mibte tthe sucess ofthe BA. Among these fe oral writen anewe Andie Ave | ‘Shi ate that are important fora BA is Tapa ioe eaeMBA Second Smee (sine Analy) AUC 2) Planaing Phase: This phase will involve gathering the requirements and planning, how the project wil be proposed ‘Create beta tests sept for inal esting ope changes and gain agreement Sharing the developing modules wth stakeholders and Following deadline and manage stakcholder's expecta ing rete responsibilities wil include: solution wo be developed with the projet team, 44) Monitoring and Controlling Phase: In this phase, the project is measured nd controlled for any det plans. Ths phase run simuitaneouny to the exceuton pase following are the 1) Monitor the development of the change requests and vetify thir implementation as per the project's objective, » pete projet to the iv) Create Final product documentations, document ase marks the closure of the project. Felling re the responsibilities wil include: abl gain hee acceptance, ‘material and other instructional guides. caution environment, project lessons leaed. 2.1.5. ‘Types of Business Analytics Personnel Following are te types of business analyst: "Type Dain An ‘Das Beinn Ar Tercoal Baies Arak ‘Basics Reareens Arle Managing Revues or aes Anais 7 a tion of "asked with dhe performance of the entirety of this wansformation: thei kil all short, es (oF, ss. A business analyst is also responsible for desire In ms tured query language, ‘ich larger databases. Or even from lstibuied ‘collections of Tocations within he unetional analysts, wing to their expertise ie field. For Example ihe human resource who can esi in developing or recommending sms analyst possesses proficiency in both the domains business al baving strong business domain knowledge and good grasp over technical, aspects of th ‘echnology domains i a worthy candidate forthe bustaces systems analyst ile Ths ole seate the technical design ofa software system but may not do actual Coding. However, unlike a re business analy roe, tis person needs to havea ail deep and sometimes fairy ‘road understanding of technology ©) Musiness Requirements Analyt ny project Is o create 3 nique product service oF ‘esul and in this endeavour alot uhered. Thereafe, these requirments have to for the business and the person is work icalled the "Business Requirements Analyst". ‘7. Reporting Business Analyst: As Re 1) "Define the repocting busines, Model ays, following ae the main asks to: ‘with invoice processing purchaseto-pay Core the most adequate salaton in fine with core model reporting jn with SAP business analy, in SAP Business objects nfo view environment, available frend users Define, develop and execute operational KP reporting dats ‘Support internal clients on the right use of the tool including documentation and wining sessions for end ucts, ‘Business Intelligence Analyst: The advent of Data Sclence and Artficia Intelligence has created anether of Business Analyst.rateges are working or not. To do $0. improve productivity and prove 10 be 1), Modern Requirements: This tool has been recognised a5 a leading business analytics too! because it [provides a colsborative definition and analysis. Requirements are defined both through test and visually ‘Smart Docs, Trace Analysis, and other elicitation tools ae supported by Modem Requirements. Here are (Online document authoring in pre-defined templates. ‘Customisable generation of documents Alinspired BA assistance. Test ease automation and user story generation Suppons organisational transformation 1) Easy-to-use dashboards and rich tools used for reporting. 3) MS Visio: A modelling tool used by Business Analysts to effectively capture and present stakeholdr’s in the form of business funetions and user interactions. Here are the main uses of MS Visio ‘Allows business analyst to foad and save o local XML files. ‘Can export and view-png files. '5) Trello: A collaboration tol that helps communicate between various teams and in sharing information in & ‘analyse business data The maln features of Tell are boards, iv) Associates and organises boards with collections, agement problems. A requirements management ‘sult and wl itl a to management challenges Beas of the ti res reui ramones of practice so that Business Analytics can Jean from their ir project best practices so they can form networks. As soon a8 a person ge “When he willbe able to to break something down this typeof estiating but Kecp snes Anat to OverAnalye Mat Buses Arle r snes Ansys evry dled one people hand cama helps dee en towards pretend, Nive ete eee ee any BAS ge sek In analysts pay” heese ae gnment, people sat asking about How long iv it going to ke ‘atortinatly, is hada esate how mach tine is going to ake is the worse thing that will, ling process before he move hem fo understand that thete are some risks that & person and theMa Second Somer Buss Ayes) AUC | toe absolutely complete mind them that a wodel or ast of requirement will never be pefe lee jh. Tell them that people (and thee stakeholders) are not looking f data can be ealed as processed primary data. Based on the purpose ear study, researchers choose the primary or secondary data to find relevant solutions, The methods for collect primary and secondary data are different Manning Reouces fe Suess Asi (ai 2) » nthe Sources being wild, any statistical data canbe divided into two categories, which ae as ategobng Date H aro 2.23. Primary Sources of Data Pray Sorte ls, researchers should collect primary data as it ‘One ofthe m 22341. Sources of Primary Data Collection Some important methods are as follows: common and widely used techniques for collecting primary dats. cthods such a using mails telephones, interac facetovface te, spon various factors such asthe nature of population tobe sadied, located budget ets ee are recorded and compiled to get a beter acted through various methods such as pe data collection to the respondents and collects ier respon participants, enumerators help in easy uaderstanding ofthe researchMBA Second Semen (Bases ArayS9)AUC | Maupng Rear Buses Ansys (Ut 2) eto cae! ry ans experinention In exermetton be) ed bern ‘Experimentation is carried-out with the | wine ene ne dependent ale For | ave, i ics ea ‘to guidelines and in primary ates his efons on potential sources of data which provide reliable Cher methods for collection of data are described below: 1) Warranty Cards: Warranty cards are generally sed by the dea feedback of products from thee consumes. These ae the postal ‘redvet. These cards contain various questions regarding the ‘of consumers. Customers ae requested to fill and mail t bac ‘manufacturer 2) Auditing: Auditing i a technique fr assess Aiferent activites tke selecting is also wied for understanding the als for collecting information ot be reliable source of information, but, asthe soures of information may not be inthe Primary sources are in huge quant Infomation. The processing and an do not cooperate in data collection by showing tion. These factors act as hurdles in primary data parti help in exploring the hidden thoughts, very productive in data collection. Her, respondents unconsc panicular behaviour ofthis data may be used for current research problem. It should be kept in mind that, tbe processed before applying in esearch, a the contents of data may have changed and Primary Data sat in research dv to following easons: 1) Reliability: As te primary data is collected criginally by the researche ‘more reliable than seconds ferent sectors tothe GDP are published by the government or sone trade rary data source for analysing the currest masket position of @ parcular Particular industy. That published data may provide the required information oF imary data canbe cllected though various techniques, There are nue and techniques avalabl to record and analyse primary da ierviews, questionnaires, audi, et. allows the researchers to explore effect 3) Wide Coverage Inlaing Special Cases: Prima ‘cases Sometimes, researchers want information seve th cpa se ne ‘ot available, Collecting primary data isthe msec complied these cass, primary data isthe only sou 4) Complete Control over Process: Sometimes specifi are rather than in broader perspective. the data of their concern and represent itn ways that can benefit the th as, generating new ideas, analysing the techniques used for similar cases, save the ime, et structured layout suchas por of various (On the other hand. informal data are not periodically generated such as decide the length of study location in which research is to be cared jon, etc. as per the) conceptual Booklets, new policy frameworks, ee. requirement and convenience eeSend emote anes Anien AC | ne ™ | nie Recreate Anges Us?) a com felling major sues ne Formal ine a canbe eed om ig MS ss operant suet ton soot te sles pater and Hstations in market Peel in drawing the solution of related problems, oes of an orgaisaion also acl a5 a second ‘and purchase patter of or rough the invoice Summ: : customer ean be obtained with th chat tbe oansion, Tess 1) Storage Data: Various costs associated the important data that are genera analysing various pros and con widely available and hence easily accessible, Secondary data are helpful gare coment "These periodical contain ult to collet primary dat. Majority of secondary data is available which which ean be used by researchers in tet ed fora particular research, Data ested by oer researchers for ote purposes, veer. tee data ; ser vac ek Te a ey ae such a, measurement and sang, sampling fected analy tel time duration, etc. vn : “ ani transport, agsculure, eteMBA Second Semen (Busines Azalys) ALC ecu of century dat qusionble due o many reasons sich swing inappropriate a a Sacer anes epopi sampling eee du 1 Which Secondary Oeste any tines tend dna eouin Sot infornaon wich nt pple Haan eeese eet acuding ch daca beak othe ffectiveness of research work 4) Non-Disclosure of Research Findings: It is not always easy to have acces ‘aricular esearch, Some organisations or researc 5) Ditneulty im Tracing-Out Sources: Sometimes researcher of individuals are notable to identify the appropiate sources of secondary data. Due to this limitation, the validity of secondary data remains ‘ub the Findings of a tutions may not allow its disclosu 22.8. Primary Data Versus Secondary Data ‘Primary Data vera ols and techies 1) Sours iris rectly callesied fom vesponden [or Sciesie fe selection of secondary dats fe mara. I Method elect scoring to the content ofthe soul land the coment research ope. ) Precatlon [a ot of presaion fs aken Inthe selection of |econday daa ) Format [Secondary data we already procened daa ta Date leeds to be analysed and studied wo use ia research ey. (5) Accuracy [Pimary datas orginal and accor, ast is veloped Tne secondary daa vot comple acorn oe nee, twas developed for sme ther purpose 2.2.6. Data Issues Regardless of te source of data, thas to be put into a structure that makes it usable by BA personnel, Let's focus on a couple of data issues that are critical to the usability of any database or dat file, Those issues are data quality and data privacy. 1) Data Quality can be defined as data that serves the purpose for which iis things for diferent applications, but there ae some commonalities of high-quality dat These qualities usually include accurately representing reality, measuring what itis supposed to measure, being timeless, and having completeness. When data is of high quality, it helps ensure competitiveness, aids customer ‘an comp ‘on the part of data managers to cleanse data of erroneous information in confidence. To avoid these issues, firm needs to abide by the jon regading customer privacy and develop program devoted to data privacy. Collecting and retrieving data and computing analytics requ technology. A large part of what BA personnel do re, and etreve dai from various sources, related to managing information systems to collect, 23.1. Introduction ‘echnology systems with business operations by analysing and ‘ware solutions. Their duties include providing intemal IT suppor and ‘managing web-based services and customer suppor. They are also required to regulaty repo ‘overseeing the implementation of technical business projects with stakeholders and technical team members to map, ness processes snd projects ‘cfinitions of what a business analyst really is and so does the Intemational BA). Some of the functions stated insist ‘Technology Fis ee re steht oppor peonrel ine cond of thi il ‘business operations are elemental needs for business analytics of fener epreme stom rexel elon Comm i hysical equipment used for On system. Hardware can include computers of ¥ devices: and telecommmusicaions devices that link computers 2) Computer Software: These ae the hardware components in processing, and output sctvities in an sizes; various input. outpot, and storage ing mobile handheld reprogrammed in ms that contol and coordinate the computer include system-wide software like ERP and soller corporate networks based” on Internet inthe frm), and exranets (private intranets extended[an ad ia = newspaper ty acined wil} Jreter alex. (Casication —|Recopiis patrns tat desrbe the propldenaly caxiomeny who we Waly wee eng (ciastering isan when gro been deine helps to: acon se nspelopea is pesentdin Table 2.1 OF Inogoge bol included in DMS. Te ‘An example is Structure Query testion of queries and responses scout ink between a erin who bays a ‘ous and subsequently will buy 2 new fa within 90 dys Used to extract hey elements from unstructured data sets, text and summarise the information. Given that the the form of unstructured data (e-mails, pictures 0.00), the need 10 explore and find useful the fate, (Listatase Content tem tomer behaviour from utes of the Web. discussed eal, there ae focused software applications ree steps ofthe BA procest ‘moliple dimensions.4 variety of formats the BA process aon wil entail gnc informaion seeded to sppont 2 BA programmes in ny orga ns fase mane yc nd rogers own technology, because BA is 2.3.3. Skills of a Technical Business Analyst wedge to come up wih 30 improved model whenever e . to be able to design the models themselves. Al yslem efficiency and functionality by 3) Repowting to Management and obtaining approval 2.4. ALIGN RESOURCES TO SUPPORT BUSINESS CUP Wud Manag Resouces fr Busines Anis (Ut?) * ‘of information into and through the BA ope formation to desired wsers throughout the orga tion flow objective requires consideration of ing organisational structures and manogerial issues that help align BA resources to best serve an orga 2A.11, Organisation Structures ‘Bosiness analytics in most organisations ae hierarchical, with senior managers making the strategic planaing decisions, middledevel managers making. actial planning, ad lower-level managers making operational planning decisions. Within the hierarchy, other ofgansational stnitures exist to suppor the evelopment and existence of groupings of resources like those needed for BA. structures include programmes, projet, and teams, 1) A programme in this context isthe proces that seks to create an outcome and usually involves maraging Several elated projects with the intention of improving organisational performance. A program ean alse be alae project. 2) A project ends to deliver outcomes and can be defined as having temporary rater than permanent social ‘ystems within or across organisations to accomplish particular and clearly defined tarts, usualy undet time constaints Projects are fen composed of teams 3) A team consists of a group of people with skills to achieve a common purpose. Teams are especially ‘ppropriate for conducting complex tasks that have many interdependent subtasks, ‘The relationship of programmes, projects, and teams witha bo ‘With this hierarchy, the organisation's senor managers estab BA grouping within the firm Mi boicrarchy is presented in Figure 21. 1A programme initiative 19 mandate the egic goal. A BA programme does not always have an end oF break down the strategic BA program goals into doable BA fixed period of time. blsh & BA. grouping) and others, depending on the organisation stevture, have muhiple BA projects requitig the creation of muliple BA groupings. Projets usually have oe end-time date in which to judge the suecezafulnes of the project ‘The projects in some cases are further reorganised into smaller assignments, called BA team init perationalise the broader strategy of the BA program. BA teams may have a long-standing dane 5, to (e810 intiss for an entre organisation) or have a fixed period (eg. 10 work wa a specific product quality problem and then end), tS mango Ey | [perme = ri igure 2s Hlerachal Reston Program, Project and Team PanagMA Second Serer (anne Alten) AUC i nt Reese ea 2) a ovew it ab» posesion of signed tim ; semary. one way 19 lok atthe alignment of BA resources is seen ‘An aliematve organisational stacture commonly found in lage organisations aligns resources by projector Wega BA psec, and eventual © BA ens fr mplemenatn. As sown [roduc und seed «mati eran, corr tata rice 2 wa to examine bow Ss aig planing sed desson- making Ines conol ever he ‘workload wo fit sirategie needs und requiremen's. ‘control by the project or product manager sn inittve that recognises the need 10 use and develop some question then becomes is stati, ates, and operation objectives onl strstr of fir it Wrethciasy | [VetFemce oo be at of resources fm wants invest The : . al wo compote analytes for a Cm. ind opera — bas am organisa fei bee ing BA resus fins ately sea project seucture oe | Operations Scns es asa projet (or product) and align their resources pho ai rctre often necessitates multiple BA teams to dea) Free sa fsrcams to] [Spies tl omaios | that decide oexablish a whole BA. ses, me 5 fk di en hough some fms create BA : " pee owe 3: Aa Orlane ‘The erature suggests thatthe organisational structure tht best aligns BA resources is one in which a parent, projec, or tam is formed in a staff structure where access to and from the BA grouping of resources pets access tall reas within a firm, a hustrted in Figure 24 nto align its BA resources to seve strategic striet hierarchy, separate BA ted in Figure 2.2. plans. In on Separments or teams have to be allocated o each cates asa (oot line management relationship. This cenralised BA organisation structre costs by avoiding duplications found in both the functional and the matrix syles of is osionl aniston ats may hav bene Seton io ttn functional contol by the VPs of a2 ‘specialised area. On the i suggested as a citcal an mises information flow between and across funcional areas in logical structure fora BA group in its advisory role to the organisation. Bartlett centralised structure lke the one in Figure 2.4, [| i tering of informtion traveling upward throu akdown of the siloed functional area communi ‘group decision-making efor, separation ofthe line management leaders yement leadership from fhe of mashing wuld nt rsely come etien te BA group wring on cusoer seis Taunenaa”| selamemadoee ae ‘issues fora department within marketing) and beter connectivity between BA and. wit et Mtstein || vPot toma weet oxat rane y all personel within the MrctingBA | [rman ems BA Opi igute 22 Funcnal Organon Strate wid BA for BA sometimes dictate postoning BA within existing organisation funciona areas. i ts tel ee ee Peace pre chrom Senedak ene[Boanate expenence the wea ot Oe (problem o opponunity [Dia modcling or warchowing, experienc] [Keck of Callboration Across Al (Oreantational Groups jtack ef Skiled and Homan Resources inabiiy vo Delegate Responsibly Lack of integrated Processes “Toe organisational structure dat a frm may selec within an existing organistinalstrocture. or the BA iduals shouldbe praised for performance in aterm. While idle level managers build ork nd monitor ter performance, senor management shuld establish collaboration os, BA tans somtimes fal. Ther ae any reason fois bt an hep manages Nod tet. Soe of ore common eso fr representa in Table 93, Tey ale tepattbsust can euse BA popes to igned and unproductive. ” = 2412. Teams ‘nen it comes to geting the BA job done it tends to fall to a BA team. For firms that employ BA teams, the parcipants ean be the team effort. Some of the roles BA team paricipans Underake and their typical background ae presen "Tle or Function Boke Desepiion jackground or Skills of Parelpant Reasoa or Faure naltce Modeler [Develop and maintain predictive and) forsl (Caaf Communication [Fliare to Deiver beable wo daliver valved lformation Iie eam lacks be nseded answers and information. The gree’ the numer of BA er arth chances th he wan wil be isteMA Se Semester Baines Anyi) AC TBA ans que eure allocations. The a i pony meet fem BA cones, Wi ie oe of BA mdi rs nme pn oe olen 9 Wea Without Sea to Provide aloe [Fait vo Provide mdisanding of ale fo potent IBA teams oved io documest and mcaore te impact of thie cay and suggeions | |wout tht poo, prenl users mip na supper future BA eto } ‘Soares Adsped from Fy (2008) pp 99-106, an Sabbs O11), 89. Inability Prove Somes Management Issues cana Ben owes a management Genon, Tee ae general manage euiing,standarasing, cl cfc procedres. and evs pn to gut and ensure ta information poly, data adinisain, nd data govemance must be n plac to guard = ee a an Pos tesa pat be enon hed and hc support of BA tks 242.2. Outsourcing Business Analytics ‘Outsourcing canbe defined as a strategy by which an organisation chooses to allocate som tnd responsbilies from an intemal see to an extemal source. Outsourcing business ope that an organisation can use to implement a BA programme, run BA projecs, and ope Outsourcing is an important BA management activity in planning an investment in any BA programme agement tasks, such a8 running a warchous agement needs to balance the advantages ‘outsourcing with its disadvantages. ‘Advantages of Outsourciog BA ening BA department when analytics might only be wel 1) Less Expen periodically may be more expensive than occasionally hiring aa outside consulting BA firm solve a problem, intaning a fully 3) More Staffing is easier and le than hing | reduce BA services as nee 4) New Knowledge: Experienced BA co bring a varity of knowledge and experience from having ‘worked with many oer firms. That type of experience may be of grea compete advantage. Disadvantages of Outsourcing BA ‘There are disadvantages of outsourcing BA, Some of the disadvantages to outsourcing are 1) Lass of Control: Once outsourced. the contol of & BA. project is under the control of the ‘outsourcing firm. The client fim might lose not only contol, but also opportunites for new and unique information, which the outsouring frm may not share with the client. Difhiculles fn Managing the Relationship: 2 3) Weakens Innovation: Hating outsourced the firm's pesonnel is redvced, and tht collaboration, sk the remaining collaboration within ‘opportunity for innovation efforts through shared Information are exposed to client proprietary information, including ld be shared with ether competing Gems, placing the client Worthtess Analytics: Sometimes outsourcing partners are Iss eapable than intemal analyst, wasting time and money Managig owsourig of BA dot nat hae to nove teenie department, Mos fms outsource projet of ‘asks found to be too costly to assign internally. = For example, firms cutsource cloud computing services to outside vendors, and other firms outsource software evelopment or maintenance of legacy programmes to offshore firms in low-wage areas of the world to cuteosts. Outsourcing BA can aso be used as a strategy to bring BA into an or te aBA programme, proj firm ean then lean from the tthe lint firm ean form its 24.23, Ensuring Data Quality” tid. Bosiness analytics, if relevant, is based on data assumed to be of high quality. Data quality refers to accuracy, ion, and completevess of data. High-quality data is considered to correctly reflect the real world in which trated, Poor-qulity data caused by data entry emors,pootly mntaned databases, out-of date data and plete data usually leads wo bad decisions and undermines BA within afm. Organisationally, the database management systems personnel are managerally responsible for ensuring data ‘quality. Because of its importance and the posible leation of the BA department ouside the management Information systems department (which usually boss the DB! rogram should seek to ensure data quality efforts ar undertake;“ saa sectsne Dies iA | ‘An organisation needs to identify and ine database. The analysis of data quality Inspection of accuracy and level of completeness ‘Change Taret [Catore “Table 26: Quality Data Inspection tems and Recommendations ‘Description and Clansing/Scrubbig Recommendation [Organisation Sirwstare [ereoanel {ob designs, specifi. and deseipions ta i objectives and goals changed t achieve ise ison the unique characteristics of that ‘computed using standard financial methods, sful change management programs, returned by profit) or Retum on Invest ‘When intangible conuibuions are a major coaVbenefit analysis, which include int he = 1 leader for change can champion the change ange. The champion also lps direct efforts, motivate 4, including what the changes ae, and how they affect technology. This on wack. to anything that is new), iis useful tive and repeated communications, to the launch of change can be used to measure 3 of employees. Change m (individeas, teams, projects, departments) (0 a changed and desired furure state. Change management is 4 a Meceesenmesnmennnnsnsie[MBA Second Sees Bascess Anti) AUC | PEP EXERCISE 25.1. Short Answer Type Questions 1) Whatdo you can by busines analytics personel? 2), What you understand by FT busines analyst? 4) What business ineligence analy? 15) What o you mean by peimary source of ta? 2.5.2. Long Answer Type Questions 1) What are the sills required fr busines analytes personne? 6) Explain business nays technology and is types. 12) How orgaistonsetues align to business analyst? 8) Wee anat on: ‘Managing information plicy Dasa quay Manazig change in BA Doseiine Ana (Un) Unit 3 Descriptive Analytics 3.1.1. Introduction sndational stating point used to inform ot prepare data for the most common and fundamental form of analytes that companies use. Every past of tis 10 Keep tabs on operational performance and monior tends. analytes include KPIs such as year-on-year percentage sales growih, revenue per and the average time customers tke to pay bills. The products of descriptive analytics appear in atements, tier repos, dashboards and presentations. such as average revenue er customer —to get ‘Once companies idealy ends, they can use delve depen hecauesandconsequencet * Busines's Historical Trends: Descriptive analytics others information over long. periods, and that ‘sccumulated information can be used 19 wack the company’s progres by comparing the metrics foe different periods, For exampl from other businesies. These comparisons help companies see where they're doing wel need to improve 3.1.3. Types of Descriptive Anal 's essential to know how frequently a certain event or rime purpose of measures of frequen accessible by measuring how many times a certain IPL team was selected. Imre[MBA Second Semester Busines Analy) AUC ings, for example, we naturally tend the use of different techniques. Often, information hat describes relationships this analysis very real and close fo eabife bebaviour of the data, ‘eve hypotheses which can be futher snalyzed through red useful beeanse the margin for error is very lest as we ata properties, Aeibilty to use both quantitative and quaiaive data inorder to Fesearchers can use both casestudies which rea qualitative analysis and correlation analysis ibe phenomena in its own way. Using the case studies for describing people, events, and institutions fenables the researcher to understand the behavior and pattem of the ‘concemed. act tO” is hich consist of one ofthe main types of Descriptive Analysis, the researcher tends from a 1.7. Disadvantages of Descriptive Analy! Following are the disadvan ‘and lack of truthfulness of the respondents is one of the main shortcomings of the analysis:ss ie te Examples of Descriptive Analytics eee er ey st" bss, om ae psn Fe ac mene cn anti csp ee ie clude that 2 ers een Kat eget cpr ne Tt ee Ce be peg ae ms root oy Sarl teem: epi iene Se aa es marae mabe ocean mae ue nf a tle he return on social feta specific soca nalytics ive and reseipive amas, als and analyzes trends to predict What could happen. Ws a valuable forecasting ‘advanced pivot tables and macros that val the work of TT programmers, escipive Ample (Ui 3) ommunicate the message. Figure 3.1 shows the some frequen used ‘sraphs and chart. To present a data in an easy and understanding form, this feature is very useful. " OPeoad™ igure Line Graph, Bar Chart and Pe Chat Excel proves the aiyby which users an create achat sheet. Tey can even present and show ispartly from is associated data User ean aso lasen the cha on the data page teal In exc, evesy chat vith the chart daa, when user wan to update te daa values, Uen linked char gets the OK button, Char will appear on the excel page or sreen. datasheet, First, we slet the dataset and then for creating a char, select Figure shows the char, which is created using the above data sheet.DA Second Semen (Bsiess Az) AUC ata items, This char is organized in ategories by using vertical bars. To Step ) Select the range Step 2) Oa the Insert Result: escpve Amie (i)MBA Second Semen Busines Ana) AUC ie of various items. It works on and shows only the proportional s ant the conbution ofeach vale (Sie 10 tt (i). Pie Chart: Pie charts used o eo te no display the con tne data series. Pie chars Result: \Wildife Population in 2017 | charts are often used to find out if ‘Step 2: On the Insert ta, inthe Charts group, choose Scatter, and select Scatter with Straight Lines escpliv Amps (st) ‘ (eS PT Fe fess Je] Ve fe Fre 33: Sete Cha i Sir Lies range ALBIO, ‘Step 2:On the Insert tb, in the Charts group, choose Scatter, and select Scatter with only Markers[MBA Second Sees Business Anyi) AUC | escive Anyi (i) Result: Below you can find the conesponding line chart to arming lento i. ‘Step 3:Change the chan’ subtype to Stacked Area (te one next to Area). ? te various pans but the storage capacity is more hing ofthe doughnut chart.‘Step 2:Click Insert > Jou like, here we select Radar with Markers: rested with the axis labels. [Now the radar chart is Chart: To get the best sited combin raphe map, where same range A category ofthe XY (sc the data marke, The d ‘other Charts > Radar, an select the radar chart fyPe MBA Second Semester (Baines Anais) AUC [sels ie Destine Ani Ue) this dialog: oe EEEEEEEE Step 4:Then select P 4: Then select the elative cells forthe text bots in he Et Seresdislog, and then click OK to close~ MBA Seco Semener (Business Arlyn) AUC 1) Stock Chart: Stock chans in Excel belp present your stock's data in @ much simpler and easy to read manne. There are 4 types of stock chats that you can create in Excel: ther axis is forthe stock prices. ‘Steps to create the stock char areas follows: = = | ‘Step I: Seleet the data (gure 3.4), —4 12) Cone, Cylinder and Pyramid Chart: To lend a dramati bar and 3D column chars, the 3D column charts, the eylinder data markers are wed, To lend a dramatic eff chars, the pyramid dataStep2: Since AuoFier isan stoma proces soit canot receive any specifi iting erera It wil ne ee tgcace of daa assovation losses acoss the rows and/or columns. So, select all the ‘stato perform filtering. ‘Step 3: Click Fite command onthe Data tb. I will sow the dropdown arrows besides the each column Deading | seca i ta AE - oe Following are the methods of summarizing data: Scmmarng at ease Faasesy (Ga Tetaaion 3251, Frequency ‘A frequency distribution is a summary table that shows the numberof occurrences of each value ina range. lest the Clear Filter From *Category” Excel fferea few ways frequency disvibutions ‘The filter arrows that appears besides the 3) The Analysis ToolPak add-in ae 4) APivorTable