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Lecture 1

The document provides an introduction to business analytics including definitions, examples of applications, and benefits and challenges. It describes descriptive, predictive, and prescriptive analytics and provides an example of using different analytics approaches to determine optimal pricing and advertising strategies to maximize revenue for seasonal inventory.

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9 views11 pages

Lecture 1

The document provides an introduction to business analytics including definitions, examples of applications, and benefits and challenges. It describes descriptive, predictive, and prescriptive analytics and provides an example of using different analytics approaches to determine optimal pricing and advertising strategies to maximize revenue for seasonal inventory.

Uploaded by

gaclasherscoccr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INSTITUTE –University School of

Business
DEPARTMENT -AIT
M.B.A

Basics of Business Analytics


Course Code-BBO-104
Faculty Name : Dr. Syed Abou Iltaf Hussain

Lecture no. 1 : Business Analytics-Introduction


DISCOVER . LEARN . EMPOWER

UNIT-1: Introduction to Business Analytics

1
Analytics is the use of:
data,
information technology,
statistical analysis,
quantitative methods, and
mathematical or computer-based models

to help managers gain improved insight about their


business operations and make better, fact- based
decisions.
Pricing
◦ setting prices for consumer and industrial goods, government
contracts, and maintenance contracts
Customer segmentation
◦ identifying and targeting key customer groups in retail, insurance,
and credit card industries
Merchandising
◦ determining brands to buy, quantities, and allocations
Location
◦ finding the best location for bank branches and ATMs, or where to
service industrial equipment
Social Media
◦ understand trends and customer perceptions; assist marketing
managers and product designers
Benefits
◦ …reduced costs, better risk management, faster decisions,
better productivity and enhanced bottom-line performance
such as profitability and customer satisfaction.

Challenges
◦ …lack of understanding of how to use analytics, competing
business priorities, insufficient analytical skills, difficulty in
getting good data and sharing information, and not
understanding the benefits versus perceived costs of analytics
studies.

Privacy?
Descriptive analytics: the use of data to understand
past and current business performance and make informed
decisions

Predictive analytics: predict the future by examining


historical data, detecting patterns or relationships in these
data, and then extrapolating these relationships forward in
time.

Prescriptive analytics: identify the best alternatives


to minimize or maximize some objective
Most department stores clear seasonal
inventory by reducing prices.
Key question: When to reduce the price and by
how much to maximize revenue?

Potential applications of analytics:


Descriptive analytics: examine historical data for similar
products (prices, units sold, advertising, …)
Predictive analytics: predict sales based on price
Prescriptive analytics: find the best sets of pricing and
advertising to maximize sales revenue
Reference

1. Winston, W. (2016). Microsoft Excel data analysis and business modeling. Microsoft
press.
2. Knaflic, C. N. (2015). Storytelling with data: A data visualization guide for business
professionals. John Wiley & Sons.
Thank you for your attention!

Discussion
THANK YOU

For queries
Email: [email protected]

11

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