Unit 1 Introduction to Data Analytics
Unit 1 Introduction to Data Analytics
Structured Data:
Definition: Structured data is data that
follows a highly organized and predefined
format or schema. It is typically stored in
relational databases or structured files.
Characteristics:
Organized in tables or matrices with rows
and columns.
Has a clear and well-defined schema, with
reporting.
Challenges:
Limited flexibility for accommodating new
nesting.
Examples:
XML documents with tags and attributes.
hierarchical structures.
Commonly used in web applications and
APIs.
Challenges:
Querying and analysis can be more
challenging to organize.
Includes free-form text, multimedia
sentiments.
Widely available from sources like social
traditional methods.
Requires specialized tools and techniques
necessary.
Applications:
Structured data is commonly used in business
databases for tasks like customer
management and financial analysis.
Semi-structured data is prevalent in web
applications and APIs where data formats may
evolve over time.
Unstructured data is valuable for sentiment
analysis, natural language processing, and
image recognition in applications such as
social media monitoring and healthcare.
Characteristics of Data:
1. Volume:
Data is generated and collected in vast
quantities, often referred to as "big data."
The sheer volume of data can range from
terabytes to petabytes and beyond.
2. Velocity:
Data is generated at a rapid pace,
sometimes in real-time or near-real-time.
Streaming data from sources like sensors,
social media, and IoT devices requires
quick processing.
3. Variety:
Data comes in various formats and types,
including structured, semi-structured, and
unstructured data.
Examples include text, numerical data,
images, audio, and video.
4. Veracity:
Data quality and accuracy can vary,
leading to noise, errors, and
inconsistencies.
Cleaning and validation processes are
needed to ensure data reliability.
5. Value:
Not all data is equally valuable; its
importance depends on its relevance to
specific goals.
Valuable insights can be derived from data
when properly analyzed.
Introduction to Big Data Platforms:
Big Data platforms are specialized software
and hardware environments designed to
store, process, and analyze large volumes of
data.
Key components of Big Data platforms include
distributed storage systems (e.g., Hadoop
Distributed File System), distributed
computing frameworks (e.g., Apache Hadoop,
Apache Spark), and data processing tools
(e.g., Hive, Pig).
These platforms enable parallel and
distributed processing, fault tolerance, and
scalability to handle massive datasets and
complex data processing tasks.
Need for Data Analytics:
1. Informed Decision-Making:
Data analytics provides actionable insights
that help organizations make informed
decisions.
Businesses can optimize processes,
identify trends, and tailor strategies to
customer needs.
2. Competitive Advantage:
Data-driven organizations gain a
competitive edge by leveraging data for
market insights, customer retention, and
product development.
3. Cost Reduction:
Analytics can uncover inefficiencies and
cost-saving opportunities within an
organization.
Predictive maintenance, for example,
reduces downtime and maintenance costs.
4. Personalization:
Data analytics enables personalized
customer experiences through
recommendations and targeted
marketing.
5. Risk Management:
Analytics helps in identifying and
mitigating risks by assessing patterns and
anomalies in data.
Evolution of Analytic Scalability:
Analytic scalability has evolved significantly
over time:
1. Traditional Analytics: Initially, analytics
were limited to small datasets processed on
single machines. SQL databases were
common tools.
2. Parallel Processing: With the advent of
distributed computing, parallel processing
frameworks like Hadoop allowed for the
analysis of larger datasets across clusters of
machines.
3. In-Memory Processing: Technologies
like Apache Spark introduced in-memory
processing, speeding up analytics by reducing
data movement between storage and
processing.
4. Real-time Analytics: The need for real-
time insights led to technologies like Apache
Kafka and Apache Flink, which handle data
streams for immediate analysis.
5. Cloud-Based Analytics: Cloud platforms
like AWS, Azure, and Google Cloud offer
scalable, managed analytic services, making
it easier for organizations to scale their
analytics infrastructure.
6. AI and Machine Learning: Advanced
analytics now include machine learning and AI
techniques for predictive and prescriptive
analytics, enabling deeper insights and
automation.
Analytic Process and Tools:
The analytic process is a structured approach
to extracting insights and knowledge from
data. It involves several key steps:
1. Problem Definition: Clearly define
the problem or question you want to
address through data analysis.
Understanding the problem's context is
crucial.
2. Data Collection: Gather relevant data
from diverse sources, which may include
databases, APIs, external datasets, and
internal records. The quality and quantity
of data matter.
3. Data Preprocessing: Before analysis,
clean and preprocess the data. This
involves handling missing values, outliers,
and formatting issues. It ensures data
quality and consistency.
4. Exploratory Data Analysis (EDA):
Explore the data visually and statistically.
EDA helps identify trends, relationships,
patterns, and anomalies. Visualization
tools play a significant role in this step.
5. Feature Engineering: Select or
create meaningful features (variables)
from the data that are relevant to your
analysis or modeling task. This can involve
transforming, scaling, or encoding data.
6. Modeling: Apply various analytical
techniques, such as statistical methods or
machine learning algorithms, to build
predictive or descriptive models. The
choice of the model depends on the
problem at hand.
7. Evaluation: Assess the model's
performance using appropriate metrics
and cross-validation techniques. This step
helps ensure the model's reliability.
8. Deployment: Implement the model in
a production environment so that it can be
used to make real-time or periodic
decisions. Integration with business
processes is essential.
9. Monitoring and Maintenance:
Continuously monitor the model's
performance and retrain it as necessary.
Models can degrade over time due to
changes in data or business conditions.
Analytic tools provide the means to carry out
these steps effectively. They include
programming languages (Python, R), data
visualization tools (Tableau, Power BI), and
machine learning libraries (Scikit-Learn,
TensorFlow). The choice of tools depends on
the specific requirements of the project.
Analysis vs. Reporting:
Analysis involves a deeper exploration of
data to discover hidden insights, patterns,
and relationships. It requires analytical
thinking, hypothesis testing, and the
application of statistical or machine learning
methods. Analysis is typically used for
decision support and problem-solving.
Reporting, on the other hand, is about
presenting data in a structured and
comprehensible format. It provides a
summary of key metrics, trends, and
performance indicators. Reporting often
includes charts, graphs, and dashboards,
making it easier for stakeholders to track
progress and make informed decisions.
Reporting focuses on descriptive information
rather than in-depth analysis.
Modern Data Analytic Tools:
Python: Python is a versatile programming
language with numerous libraries and
frameworks for data analysis, including
Pandas for data manipulation, Matplotlib and
Seaborn for data visualization, and Scikit-
Learn for machine learning.
R: R is a statistical programming language
that is particularly well-suited for data
analysis and visualization. It has a wide range
of packages for statistical modeling and data
manipulation.
Jupyter Notebooks: Jupyter notebooks
provide an interactive environment for data
exploration and analysis. They combine code,
visualizations, and narrative text in a single
document, making it easy to document and
share analysis workflows.
Tableau: Tableau is a powerful data
visualization tool that enables users to create
interactive and shareable dashboards. It
connects to various data sources and is
widely used for reporting and data
presentation.
Power BI: Microsoft's Power BI is another
popular data visualization and business
analytics tool. It offers features for data
modeling, transformation, and interactive
reporting.
Apache Spark: Apache Spark is a distributed
data processing framework that is well-suited
for big data analytics. It provides APIs for
batch processing, streaming, machine
learning, and graph processing.
Applications of Data Analytics:
Business Analytics: Businesses use data
analytics to gain insights into customer
behavior, optimize supply chains, forecast
sales, and improve marketing strategies.
Healthcare Analytics: In healthcare, data
analytics helps with patient diagnosis,
treatment optimization, and predicting
disease outbreaks. It can also assist in clinical
research.
Finance and Fraud Detection: Financial
institutions use analytics to assess investment
risks, detect fraudulent transactions, and
optimize trading strategies.
Manufacturing and Supply Chain:
Manufacturers use analytics to improve
production efficiency, quality control, and
inventory management. Supply chain
analytics helps optimize logistics and reduce
costs.
Retail: Retailers use analytics for inventory
management, demand forecasting, and
personalized marketing. Recommender
systems enhance the customer shopping
experience.
Social Media and Marketing: Data
analytics is crucial for measuring the impact
of marketing campaigns, analyzing sentiment
in social media, and understanding customer
preferences.
Key Roles for Successful Analytic
Projects:
1. Data Analysts: Data analysts are
responsible for collecting, cleaning, and
exploring data. They play a critical role in
data preprocessing and initial analysis.
2. Data Scientists: Data scientists are
skilled in advanced analytics and modeling.
They build predictive and prescriptive models
using machine learning and statistical
techniques.
3. Business Analysts: Business analysts
bridge the gap between data analysis and
business goals. They understand the
organization's needs and translate them into
actionable insights.
4. Data Engineers: Data engineers are
responsible for building and maintaining data
pipelines. They ensure data availability,
quality, and reliability for analysis.
5. Project Managers: Project managers
oversee the entire analytics project. They
coordinate resources, set timelines, and
ensure that the project aligns with
organizational goals.
6. Domain Experts: Domain experts
possess specialized knowledge about the
industry or field in which analytics is being
applied. Their expertise helps guide analysis
and interpret results in context.
Data Analytics Lifecycle:
1. Data Collection: In this initial phase,
relevant data is collected from various
sources, which may include databases,
sensors, external APIs, and more.
2. Data Preparation: Data is cleaned,
transformed, and formatted to ensure quality
and consistency. This step involves handling
missing values, outliers, and data validation.
3. Exploratory Data Analysis (EDA): EDA
involves visualizing and exploring data to
uncover patterns, relationships, and outliers.
Summary statistics, charts, and graphs are
often used.
4. Feature Engineering: Feature
engineering is the process of selecting,
creating, or transforming variables (features)
that are relevant to the analysis or modeling
task.
5. Modeling: In this phase, statistical or
machine learning models are built and trained
on the prepared data to address the specific
analytical objectives.
6. Evaluation: Model performance is
assessed using appropriate evaluation
metrics. Cross-validation techniques may be
employed to validate results and avoid
overfitting.
7. Deployment: Deploying the model means
implementing it in a production environment
where it can make real-time or periodic
decisions. Integration with business processes
is crucial.
8. Monitoring and Maintenance: After
deployment, the model is continuously
monitored for performance. Updates and
retraining are performed as needed to ensure
that the model remains effective over time.