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Analytics
for
Decision
Making
- Sandeep Kelkar, PhD
• Business: buying and selling as a way of earning
money; commerce ( यापार, कारोबार, धंधा,
वा ण य)
• Analysis: Careful examination of the different parts
or details of something ( व लेषण)
• Business Applications: Business software is any
software or set of computer programs used by
Some basics business users to perform various business
functions.
• Business Decision: Strategic, Tactical, Operational
(any decisions that affect business operations, goals
and future activities.)
• Business Analysis: Business Analysis is the practice
of enabling change in an organizational context, by
defining needs and recommending solutions that
deliver value to stakeholders.
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• Business analytics refers to the skills,
technologies, practices and DATA
(Transactions)
• For continuous investigation of business
performance to gain insight and drive business
planning.
Analytics? • Is a set of disciplines and technologies for
solving business problems using data analysis,
statistical models and other quantitative
methods.
• Using data visualization (graphical
representation of information and data).
For a competitive advantage,
• Looking out for problems/ Issues in Business
Teaching Learning Plan
Pedagogy for Course Delivery: Microsoft Excel (solver),
Presentation, Visualisation Software (Tableau/ Power BI)
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• Introduction to Business Analytics
• Formulation of LPP
• Solving LP
• Graphical Method
• Simplex Method
Course • Sensitivity Analysis
• Transportation Problems
Content… • Assignment Problems
• Time Series Forecasting
• Moving Averages
• Single Exponential Smoothing
• Double Exponential Smoothing
• Data Visualization
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Business Intelligence (BI) and Business Analytics
(BA)
• The terms business intelligence (BI) and business analytics are often used interchangeably.
• Companies usually start with BI before implementing business analytics.
• BI analyzes business operations to determine what practices have worked and where
opportunities for improvement lie.
• BI uses descriptive analytics.
Business analytics focuses on predictive analytics, generating actionable insights for decision-
makers.
Aims to predict trends.
The data collected using BI lays the groundwork for BA.
From data collected, Businesses can choose specific areas to analyze further.
Data Analytics (DA) and Business Analytics (BA)
• Data analytics is the analysis of data sets.
• Help draw conclusions about the understanding of data sets.
• Has no relation with business goals or insights.
• Interchangeably with business analytics.
• BA involves using data analytics tools in pursuit of business insights.
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Data Science (DS) and Business Analytics (BA)
• Data science uses analytics to inform decision-making.
• Data science explore data using advanced statistical methods.
• The advanced areas of business analytics resemble data science.
• Business Analytics (BA) aims to solve a specific question or business problem using
statistical algorithms which are applied to data sets.
Requisites
of
Analytics
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Roles in Business
Analytics
• Reporting progress on business objectives.
• Understanding KPIs.
• Monitoring progress with business initiatives.
• Understanding regulatory and reporting requirements.
• Identifying data patterns for strategic opportunities/
decisions.
• Identifying potential problems facing the business and
solutions.
• Creating a budget and business forecast.
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Descriptive Analytics
Historical Data – Comparitive Strengths and
Interpretation Studies Weaknesses
Past from 10 years how the sales of the company are?
Whether the cost of production has increased when compared to the past?
• What happened and Why?
• What’s happening right now and then why?
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Predictive Analytics
What is likely to happen
and Why?
Identify customers that are likely to abandon a service or product.
Send marketing campaigns to customers who are most likely to buy.
Identify the customers who can be sanctioned with the Loan.
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Prescriptive Analytics
Use of technology to help businesses make Possible situations or scenarios, available Helps to make decisions on any time horizon,
better decisions. resources, past performance, and current from immediate to long term.
performance, and suggests a course of action
or strategy.
Answer following: What should we do? Actions we should be taking?
e.g. Air Bags in Car (Car design, Seat Belt, Force/ Speed of collision, Policy Claim)
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Applications of Prescriptive Analytics
• Prescriptive Analytics provides the optimal solution (or the best solution) to a problem.
• Traditionally Operation Research Techniques are used for finding the optimal solution to a problem.
• Many Machine Learning algorithms use optimization techniques such as simplex methods to solve a
problem.
• E.g.
• Airline industry – Flight scheduling
• Dynamic Pricing and Revenue management
• All most all industries
• Telecommunications – Queuing theory, network algorithms
• Transportation industry – Routing, logistics
• Production – Inventory theory, simulation, analytical production line models, supply chain models
• Engineering and development – Design optimization, Scheduling, resource allocation
• Finance – Portfolio optimization, Capital Budgeting
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