Scribd
Upload
24 views

Lecture 2

Business analytics refers to using statistical, technological and operations research techniques to analyze past data and gain insights to help decision making and problem solving. It involves integrating business context, data science, and technology. Examples of applying business analytics include using it to forecast demand, predict customer behavior, optimize processes, and inform strategic decisions. E-commerce companies like Amazon use analytics for tasks like demand forecasting, fraud detection, and recommending products. Business analytics bridges technical analysts and management to facilitate data-driven decision making.

Uploaded by

paras
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
24 views

Lecture 2

Business analytics refers to using statistical, technological and operations research techniques to analyze past data and gain insights to help decision making and problem solving. It involves integrating business context, data science, and technology. Examples of applying business analytics include using it to forecast demand, predict customer behavior, optimize processes, and inform strategic decisions. E-commerce companies like Amazon use analytics for tasks like demand forecasting, fraud detection, and recommending products. Business analytics bridges technical analysts and management to facilitate data-driven decision making.

Uploaded by

paras
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

BUSINESS ANALYTICS

Presented by:
Dr Shahbaz Khan
Assistant Professor
Institute of Business Management
GLA University Mathura
BBHC 0008
What is Analytics?
 Goal: Turning data into useful insights

Analytics refers to the tools, techniques and processes for


continuous exploration and investigation of past data to gain
insights and help in decision making and problem solving.
BBHC 0008
Business Analytics
 Business analytics is a set of statistical and operations
research techniques, artificial intelligence, information
technology and management strategies used for framing a
business problem, collecting data, and analysing the data to
create value to organizations.
 Business Analytics is an integration between
business/problem context, technology and data science that
assist data driven decision making/problem solving.

BBHC 0008
Extracting value from the data
Statistical models & Machine
Data Learning Algorithms
Science

Problems, Opportunities, Data collection, storage,


Decision Scenarios retrieval Software tools

Business
Technology
Context

BBHC 0008
Analytics in E-Commerce (Big Basket)

 Smart Basket
 Did You Forget

BBHC 0008
Application of the Business Analytics

 Forecast demand for each Stock Keeping Unit (SKU).

 Predict customer cancellations and returns.

 Predict customer contacts at the customer service.

 Predict what a customer is likely to purchase in the future?

 How to optimize the delivery system?


BBHC 0008
Scope of Business Analytics

Competitive
Strategy
Data is
everything
Decision Making
(What promotion Strategy to use)

Problem Solver
(Optimal Product Mix)

Process Improvement
(Reduce procurement cycle time)
BBHC 0008
Analytics for Process
Improvement
 Banking – Cheque clearance time

 Healthcare – Patient discharge time

 Manufacturing – Waste minimization

 Retail – Waiting time at check out counters

 E-commerce – Time to deliver the customer order


BBHC 0008
Analytics for Problem Solving
 Banking – Reduce non-performing assets, Predict Fraud

 Healthcare – Improve net promoter’s score (NPS)

 Manufacturing – Reduce inventory management cost

 Retail – Assortment planning and shelf space allocation

 E-commerce – Predict customer cancellations and Fraud


BBHC 0008
Analytics for Decision Making

• Banking – Loan approval and the interest rate

• Healthcare – Introducing new specialties

• Manufacturing – Whether to introduce a new product

• Retail – Markdown Pricing

• E-commerce – Promotions
BBHC 0008
Significance and Usage of
Business Analytics
• In fact, there is often a disconnect between the people who run
analytics (such as statisticians, data miners, and computer
scientists) and management (who may have a background in
marketing or finance but not very much technical training).
• Two groups “do not speak the same language.”
• The Business Analytics act as a bridge to connect “analytics
person” with “management”

BBHC 0008
Example: Role of Business
Analytics in E-commerce
• In 2015, Flipkart sold over 30 million products from more than
50,000 sellers through their platform.
• The number of visits to their portal was more than 10 million daily
and the number of shipments exceeded 8 million per month
(Bhansali et al., 2016).
 A few of the problems that e-commerce companies such as Amazon
and Flipkart try to address are as follows:
 Forecasting demand for products directly sold by the company
 Cancellation of orders placed by customers before their delivery.
Ability to predict cancellations and intervention can save cost incurred
on unnecessary logistics. BBHC 0008
Example: Role of Business
Analytics in E-commerce
 Fraudulent transactions resulting in financial loss to the company.
 Predicting delivery time since it is an important service level
agreement from the customer perspective.
 Predicting what a customer is likely to buy in future to create
recommender systems.

BBHC 0008
The Game Changers…

 Google
 Used Markov chains to rank pages

 Proctor and Gamble


 Analytics as competitive strategy.

 Target
 Predicts customer pregnancy.

 Capital One
 Identifies the most profitable customer.

 Hewlett Packard
 Developed “flight risk score” for 3,30,000 employees.

 Obama’s 2012 presidential campaign.


 Persuasion Modelling.
BBHC 0008
The Innovator…

 OKCupid: Predicts which online dating messages is most likely to get a response!

 Polyphonic HMI: Uses “hit song science” to predict commercial success of a song.

 Netflix: Predicts movie ratings by customers (RMSE is 1%).

 Amazon.com: 35% of sales come from product recommendations.

 Divorce360.com: Predicting success of a marriage!

BBHC 0008
Thank You

BBHC 0008

You might also like