Parul Institute of Computer Application

Faculty Of IT and Computer Science

PARUL UNIVERSITY

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Data Visualization for Business Intelligence

Unit 1

Get started with data analytics

• In this learning path, you will learn about the life and journey of a data analyst, the skills, tasks,
and processes they go through in order to tell a story with data so trusted business decisions can
be made.
• the suite of data analytics tools and services are used by a data analyst to tell a compelling story
through reports

Data Visualization for Business Intelligence : By Prof Nirmit Shah 1

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

Explain Key differences between data analytics vs data

analysis
Data analytics and data analysis are frequently used synonymously. Data analytics is a general
term for a field that includes the entire management of data and the methods and instruments
employed.

On the other hand, data analysis is the process of dissecting a given data set into its component
pieces and analyzing each one separately, as well as how the parts relate to one another. Let’s
take a look at their differences and similarities now.

Data Analytics Data Analysis

Data analytics is a traditional or generic Data analysis is a specialized type of analytics

type of analytics used in enterprises to used in businesses to evaluate data and gain
make data-driven decisions. insights.

It has one or more users and generally

It involved defining the data, looking into it,
consists of data collection, data
cleaning it up, and altering it to get a helpful
validation, and data visualization and
result.
inspection.

Here to process data, raw data must first be

It consists of numerous stages, such as
defined in a meaningful way before relevant
data collecting and business data
information can be recovered from it through
inspection.
data cleaning and conversion.

It processes data using various It analyzes data using many tools such as
technologies such as Tableau, Python, SPARK, Google Fusion tables, Node XL,
Excel, Google Analytics, and others. Excel, etc.

Data Visualization for Business Intelligence : By Prof Nirmit Shah 2

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

This does not offer itself to descriptive

This can be subjected to descriptive analysis.
analysis.

With the use of this, one might discover

This cannot be used to find unknown relations.
anonymous relationships.

Inferential analysis is not included here. Inferential analysis is supported here.

Note : Analytics is the study of previous data to make better decisions. Data
interpretation is aided by data analysis. It provides crucial historical insights that
enable us to understand what has occurred up to this point.

Data Visualization for Business Intelligence : By Prof Nirmit Shah 3

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

Ques :What Is Data Analytics?

Data analytics is defined as a set of processes, tools, and technologies that help manage
qualitative and quantitative data to enable discovery, simplify organization, support governance,
and generate insights for a business.

Data analytics is a discipline that involves analyzing data sets to get information that would help
solve problems in different sectors. It employs several disciplines like computer programming,
statistics, and mathematics, to give accurate data analysis.

The goal of data analytics can either be to describe, predict, or improve organizational
performance. They achieve this using advanced data management techniques like data
modeling, data mining, data transformation, etc., to describe, predict and solve present and
future problems.

Ques How does data analytics work?

Data analytics involves a series of steps to give an accurate analysis. While performing these
steps, data analysts include data scientists and data engineers to create data pipelines or help set
up models. We discuss the steps involved in data analytics in this article:
1. Data collection
There are two ways to practice data collection. The first approach is to identify the data you
need for the analyses and assemble it for use.
2. Adjusting data quality
The next step is finding and correcting data quality problems in the collected data. It also entails
setting up the data for the analytical model according to corporate standards. Data quality
problems include inconsistencies, errors, and duplicate entries. They are resolved by running
data profiling and data cleansing tasks.
The data analysts also manipulate and organize the data according to the requirements of the
analytical model he intends to use. The final task in data quality is implementing data
governance policies. These policies ensure the data is used correctly and is according to
corporate standards.
Data Visualization for Business Intelligence : By Prof Nirmit Shah 4
 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

3. Building an analytical model

Moving forward, the data analyst works with data scientists to build analytical models that
would run accurate analyses. These models are built using analytical software, like predictive
modeling tools, and programming languages like Python, Scala, R, and Structured Query
Language (SQL).
After building, the model is tested with an experimental data set. The results from the test are
reviewed, and changes are made to the model. The model is tested over and over until the model
works as intended. Finally, the model runs against the intended data set in production mode.
4. Presentation
The final step in data analytics is presenting the models’ results to the end-users and business
executives. It is best practice to use tools like charts and infographics for presentations. They
are easy to understand and communicate results.

Types of Data Analytics

1. Descriptive data analytics

This type of data analytics examines past data to explain what had happened. It is the most
straightforward data analytics technique. Depending on the scenario, some data analysts use
descriptive analytics as a summary to support investigations and analysis from other types of
analytics. This can be tagged as “best practice” because it explains the results from other
analytics regarding historical data.
Companies use statistical analysis techniques to perform descriptive data analysis. This type of
data analytics helps them compare past results, identify anomalies, distinguish strengths and
weaknesses, etc. Companies use descriptive analysis to identify a problem.

2. Diagnostic data analytics

Diagnostic data analytics examines past data to explain the cause of an anomaly. This type of
analytics aims to answer “why did this happen?” from a descriptive analytics result.
The techniques used for diagnostic data analytics are drill-down, data discovery, data mining,
and correlations. Data analysts use the data discovery technique to find sources that might help
them deduce reasons from a result. Data mining involves getting information from a large set

Data Visualization for Business Intelligence : By Prof Nirmit Shah 5

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

of raw data by automated processes. Results from diagnostic analytics are obtained by finding
correlations or patterns between different data.
Results from this type of analytics help companies draft accurate solutions to problems instead
of relying on guesswork.

3. Predictive data analytics

Predictive data analytics involves using current or historical data to predict future actions.
Individuals and companies conduct predictive analysis by combining historical data with
machine learning, data mining techniques, and statistical modeling. These help them to quickly
locate patterns and predict risks and opportunities in the future.
This type of analytics works with algorithms and methodologies (like a linear or logistic
regression model). Different algorithms exist for different scenarios, and a mismatch would
result in erroneous results. The chunks of data derived from customers and external sources are
useless until they are used to solve a problem. Without predictive analysis, companies would be
prone to making mistakes in the future that they might never recover from.

4. Prescriptive data analytics

Prescriptive data analytics involves selecting the best solution for a problem from available
options. This type of data analytics examines results from other analytics and gives guidance on
how to reach a specific answer.
Prescriptive data analytics is used in recommendation engines, loan approval engines, dynamic
pricing models, machine repair scheduling, and similar tools to examine any decision options
and to personalize the process. These options could be in a yes/no or a list. These tools illustrate
the consequence of every option, and also provide better options. Companies can use
prescriptive analysis to automate decision-making and hasten complex approvals.

5. Real-time data analytics

Real-time data analytics involves using data immediately when entered into the database. Unlike
other types of data analytics that use data from past events (historical data), this type analyses
new data from customers or external sources on the go.
Some technologies employed in real-time data analytics include edge computing, in-database
analytics, in-memory analytics, data warehouse appliances, parallel programming, etc. This type
Data Visualization for Business Intelligence : By Prof Nirmit Shah 6
 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

of data analytics would be most helpful if it is used in high availability and low-response time
applications. Companies use it to identify trends and benchmarks faster than their competitors.
They can also track and analyze their competitor’s operations instantaneously.

6. Augmented data analytics

Augmented analytics uses machine language (ML) and natural language processing (NLP) to
analyze data. Incorporating machine learning into analytics helps automate the tedious task of
code-based data exploration and make it available to business users. This reduces the chances
of errors and enables the data analyst more time to do other actionable tasks. Most analytics
software integrates augmented data analytics tools to leverage the machine language and other
outstanding features.
Companies include this type of data analytics in their analysis process to interact with data
organically – i.e., through English or any other natural language – and identify trends.
See More: What Is Deep Learning? Definition, Techniques, and Use Cases

Importance of Data Analytics

1. Reduce the cost of operation

Although paying a data analyst might be expensive, it is cheaper in the long run compared to its
benefits. With good data analysis, you can prevent financial risk, ensure data security, and
perform other actions that might save you a fortune.

2. Predict future trends

Organizations can predict future trends and innovations with data analytics. Using predictive
analysis tools, organizations can develop future-focused products and services and stay at the
top of their market.

3. Monitor product performance

Data analytics is used in tracking customers’ behavior towards products or services. You can
use it to identify why sales are low, what products people buy, why they are buying them, how
much they are spending on these products, how you can sell your products better, and many
other queries..

Data Visualization for Business Intelligence : By Prof Nirmit Shah 7

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

4. Strengthen security
Businesses use data analytics to examine past security breaches and diagnose
the vulnerabilities that led to these breaches. Analytics applications help IT experts to parse,
process, and visualize audit logs to discern the origin and path of security breaches. They can
also prevent future attacks using analytical models that detect unusual or abnormal behavioral
patterns. These models can be set up with monitoring and alerting systems to identify breach
attempts and notify security pros.

5. Manage risks
Risks in business range from theft by customers or employees to legal liability or an excessively
high number of inventory goods. Data analytics help organizations prevent and manage risks.
For example, a retail chain can use a propensity model to determine which stores are more liable
to theft.

6. Improve decision-making
Organizations can use data analytics to prevent financial losses. Predictive analysis can detect
future actions of customers if a change is made, and prescriptive analysis would suggest how to
react to these changes to maximize profit. For instance, let us say a company wishes to increase
the prices of its products. They can build a model to determine whether this change would affect
customer demand. Results from this model can be confirmed by testing. This would prevent
terrible financial decisions.

7. Improved business performance

Collecting and examining data about the supply chain can help detect production delays,
bottlenecks, and future problems. In the case of inventory levels, data analytics can help in
defining optimal supply for all products of an enterprise. This makes it easy for businesses to
identify and resolve issues quickly.

Data Visualization for Business Intelligence : By Prof Nirmit Shah 8

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

Ques :Explain new and innovative applications for data analytics.

1. Transportation
One can use data analytics to solve traffic congestion and improve travel by improving
transportation systems and intelligence. It works by obtaining enormous volumes of data to
build alternative routes to solve traffic congestion. This would reduce traffic congestion and, in
turn, reduce road accidents.

2. Education
Policymakers can use data analytics to improve learning curricula and management decisions.
These applications would improve both learning experiences and administrative management.

3. Internet web search results

Search engines like Google, Amazon e-commerce search, Bing, etc., use analytics to arrange
data and deliver the best search results. This implies that data analytics is used in most search
engine operations. When storing web data, data analytics gathers massive volumes of data
submitted by different pages and groups them according to keywords. In each group, analytics
also helps rank web pages according to relevance.

4. Marketing and digital advertising

Marketers use data analytics to understand the audience and get high conversion rates. There
are different activities in these two sub-applications, which are done using data analytics. To
understand the audience, digital ad experts use analytics to know the intended audience’s likes,
dislikes, age, race, gender, and other features. They also use this technology to segment their
audience according to behaviors and preferences.

5. Logistics and delivery

Data analytics is used for productive workflow and better delivery processes in the logistics
industry.

7. Fraud detection
Many organizations in different industries use data analytics to detect fraudulent activities.
These industries include pharmaceutical, banking, finance, tax, retail, etc. When identifying tax

Data Visualization for Business Intelligence : By Prof Nirmit Shah 9

 Parul Institute of Computer Application
Faculty Of IT and Computer Science
PARUL UNIVERSITY

fraud, predictive analysis is used to assess the reliability of tax returns for individuals. The
Internal Revenue Service (IRS) uses this type of analytics to predict future fraudulent activities.

Que: Give name of Data Analytics Tools

Data Visualization for Business Intelligence : By Prof Nirmit Shah 10