ECONOMICS,COMMERCE AND MANAGEMENT: MEANING AND APPLICATION OF BUSINESS ANALYTICS

BUSINESS ANALYTICS
MEANING
TYPES
APPLICATION
CHALLENGES
MEANING OF BUSINESS ANALYTICS
REFERS TO ALL METHODS AND TECHNIQUES USED BY THE ORGANIZATION TO MEASURE THE PERFORMANCE
USE OF STATISTICAL METHODS
CAN ALSO BE USED FOR EVALUATING THE ORGANIZATION
IT IDENTIFIES THE WEAKNESSES IN EXISTING PROCESSES AND HELP IN HIGHLIGHTING THE MEANINGFUL DATA THAT IS HELPFUL IN MAKING THE ORGANIZATION FOR FUTURE AND FACING CHALLENGES
DEFINITION OF BUSINESS ANALYTICS
IS THE ITERATIVE METHODICAL EXPLORATION OF AN ORGANIZATION DATA WITH EMPHASIS ON STATISTICAL ANALYSIS AND IT IS USED BY COMPANIES THAT ARE COMMITTED TO MAKING DATA DRIVEN DECISIONS
BUSINESS ANALYTICS REFERS TO THE SKILLS ,TECHNOLOGIES,PRACTISES FOR CONTINUOUS ITERATIVE EXPLORATION AND INVESTIGATION OF PAST BUSINESS PERFORMANCE TO GAIN INSIGHT AND DRIVE BUSINESS PLANNING
BUSINESS ANALYTICS FOCUSES ON DEVELOPING NEW INSIGHTS AND UNDERSTANDING OF BUSINESS PERFORMANCE BASED ON DATA AND STATISTICAL METHOD.
BUSINESS ANALYTICS MAKE USE :

DIFFERENCE BETWEEN BA AND BI
BA MOSTLY FOCUSES ON CREATING NOVEL INSIGHT AND UNDERSTANDING OF BUSINESS PERFORMANCE BASED ON STATISTICAL METHOD,DATA,QUANTITITATIVE ANALYSIS,,EXPLANATORY AND PREDICTIVE MODELLING AND FACT BASED MANAGEMENT TO DRIVE DECISION DECISION MAKING
BUSINESS INTELLIGENCE ALSO USES DATA AND STATISTICAL METHODS AND BUT FOCUSES ON USING A SET OF METRICS TO MEASURE PAST PERFORMANCE AND GUIDES BUSINESS PLANNING. IT LOOKS AT QUERYING,REPORTING AND OLAP AND ALERTS
BUSINESS ANALYTICS : WHY IS THIS HAPPENING,WHAT IF TREND AND WHAT WILL HAPPEN NEXT.WHAT IS OPTIMAL OUTCOME
BUSINESS INTELLIGENCE :-WHAT HAPPENED,HOW MANY TIMES IT HAPPENED AND WHERE IS THE PROBLEM AND WHAT ARE THE SOLUTIONS

INTUITIVE INTERFACE : :ALLOW THE USERS TO PERFORM ANALYTICAL OPERATIONS WITHOUT CODING OR PROGRAMMING
DATA BLENDING CAPABILITIES :-AS THE DATA IS COLLECTED FROM MANY SOURCES,TOOLS SHOULD HAVE ADVANCE DATA BLENDING AND ENRICHMENT CAPABILITIES
READY TO CONSUMER INSIGHTS :-ABLE OT DELIVER READY TO CONSUME BUSINESS INTELLIGENCE
EASY TO SHARE :-
SCALABLE TO ENABLE CUSTOMIZED ANALYTICS AND NEW MODULES DEVELOPMENT FOR CHANGING BUSINESS NEEDS
SUPPORT INTEGRATION TO OTHER MAJOR BUSINESS INTELLIGENCE,ANALYTICS AND DATA VISUALIZATION

DESCRIPTIVE ANALYTICS : BY USING EXISTING BUSINESS INTELLIGENCE TOOLS EXISTING DATA IS SUMMARIZED OR DESCRIBED TO GET INSIGHT WHAT IS GOING ON OR WHAT HAS HAPPENED
DIAGNOSTIC ANALYTICS :- FOCUS ON PAST PERFORMANCE TO DETERMINE WHAT HAPPENED AND WHY. THE RESULT OF ANALYSIS IS ANALYTIC DASH BOARD
PREDICTIVE ANALYSIS :-BY USING STATISTICAL MODELS AND MACHINE LEARNING FUTURE IS PREDICTED
PRESCRIPTIVE ANALYSIS :- TYPE OF PREDICTIVE ANALYTICS THAT IS USED TO RECOMMEND ONE OR MORE COURSE OF ACTION ON ANALYZING THE DATA

SIMPLEST FORM OF ANALYTICS
FIRST STAGE INVOLVES CRUNCHING THE DATA INTO UNDERSTANDABLE CHUNKS
THE OBJECTIVE IS TO KNOW WHAT IS HAPPENING IN THE ORGANIZATION
HERS DESCRIPTIVE STATISTICS IS USED
GENERALLY 80% OF BUSINESS ANALYTICS MAINLY INVOLVE DESCRIPTION BASED ON AGGREGATION OF PAST PERFORMANCE
TO MAKE RAW DATA UNDERSTANDABLE TO INVESTORS ,SHAREHOLDERS AND MANAGERS
HELPS IN IDENTIFYING THE STRONG AND WEAK AREAS

TECHNIQUES :
DATA AGGREGATION AND DATA MINING
BY MINING HISTORICAL DATA COMPANIES CAN ANALYZE THE CONSUMER BEHAVIOUR AND ENGAGEMENTS WITH THE BUSINESS THAT COULD BE HELPFUL IN TAPPING TARGET MARKETING
THE TOOLS USED :
MS EXCEL
MATLAB
SPSS
STATA
DIAGNOSTIC ANALYSIS
USED TO DETERMINE THE REASON FOR HAPPENING IN THE PAST
TAKES DEEPER LOOK TO UNDERSTAND THE ROOT CAUSE OF THE EVENTS
DRILL DOWN,DATA DISCOVERY,DATA MINING AND CORRELATIONS ARE USED
MOSTLY USES PROBABILITIES,LIKELIHOOD AND THE DISTRIBUTION OF OUTCOME FOR THE ANALYSIS
IN TIME SERIES DATA, DIAGNOSTIC ANALYSIS HELPS IN UNDERSTANDING THE TREND AND REASONS FOR INCREASE OR DECREASE IN SALE
A FEW TECHNIQUES THAT USES DIAGNOSTIC ANALYTIC INCLUDE ATTRIBUTE IMPORTANCE,SENSITIVITY ANALYSIS,PRINCIPLE COMPONENT ANALYSIS
PREDICTIVE ANALYSIS
USED FOR FORECASTING THE FUTURE OUTCOME
JUST INDICATE THE PROBABILITY OF OCCURRENCE
BUILDS ON THE PRELIMINARY DESCRIPTIVE ANALYTICS STAGE TO DERIVE THE POSSIBILITY OF OUTCOME
HERE THE FUTURE IS EXTRAPOLATED
SENTIMENT ANALYSIS ON THE BASIS OF DATA HELPS IN PREDICTING THE SENTIMENT OF PEOPLE ON PARTICULAR TOPIC
RELIES ON MACHINE LEARNING AND MOST POPULAR TOOLS INCLUDE PHYTHON,R AND RAPIDMINER

PRESCRIPTIVE ANALYTICS
BASIS IS PREDICTIVE ANALYSIS
GOES BEYOND THE THREE
SUGGEST FUTURE SOLUTIONS
SUGGEST ALL FAVOURABLE OUTCOMES ACCORDING TO SPECIFIED COURSE OF ACTIONS
USING STRONG FEEDBACK
INCLUDE OPTIMIZATION OF SOME FUNCTION THAT ARE RELATED TO DESIRED OUTCOME
LIKE WHEN WE BOOK A CAB ON LINE, THE APPLICATION GPS CONNECT US TO CORRECT DRIVER
ALSO INCLUDES SIMULATION : KEY PERFORMANCE AREAS ARE COMBINED TO DESIGN THE CORRECT SOLUTION
MERITS

APPLICATION OF BUSINESS ANALYTICS
CRITICAL PRODUCT ANALYSIS :- WHAT ARE THE CHANGES ARE TO BE MADE TO A LOCATION SPECIFIC PRODUCT
IMPROVED CUSTOMER SERVICE :-KEEPS TRACK OF FREQUENT CUSTOMER QUERIES AND IMPROVES CUSTOMER SATISFACTION
UPSELLING OPPORTUNITIES :-IDENTIFICATION OF PROMINENT NEEDS OF A BUSINESS CUSTOMER BASE
SIMPLIFIED INVENTORY MANAGEMENT :- WHAT PRODUCTS ARE MOST NEEDED AND WHAT ARE GOING TO OUTDATED
COMPETITIVE PRICE INSIGHT :- MAKING THEIR PRICES COMPETITIVE
CHALLENGES

LACK OF TECHNICAL SKILLS IN EMPLOYEES
DATA SECURITY AND MAINTENANCE
QUALITY OF DATA
DIFFICULTY IN INTEGRATING AND RECONCILING DATA ACROSS DIFFERENT SYSTEMS AND
DELIVERING RELEVANT INFORMATION IN THE GIVEN TIME
INABILITY TO ADDRESS COMPLEX ISSUES
HUGE COST INVOLVED
LACK OF PROPER STRATEGY
DATA WAREHOUSING IS REQUIRED : MORE STORAGE STORAGE SPACE MUST REACT EXTREMELY FAST TO PROVIDE NECESSARY DATA IN REAL TIME

ECONOMICS,COMMERCE AND MANAGEMENT