Additional Notes BADS

Challenges of
Business Analytics
privacy invasion
Data privacy, sometimes also referred to as information privacy, is an

area of data protection that concerns the proper handling of sensitive
data including, notably, personal data but also other confidential data,
such as certain financial data and intellectual property data, to meet
regulatory requirements as well as protecting the confidentiality and
immutability of the data.
Greater financial exposure in fast-moving markets

Since in fast moving markets, products get launched in a very short
span of time .Any business analytics project could lead to huge
investment on such product which could be obsolete after some time.
The benefits of project could not be materialized.
greater potential for mistaking noise for true insight

It does not matter how modern and advanced our technologies are or
how accurate our approach to information analysis is – the incorrect
initial data will always make us go back to the drawing board. Being in
a rush, data science (DS) project managers often tend to collect any
data first and analyze it later. In such projects, take the lead those who
analyze the right data but not the ones who have more data.
risk of spending lots of money and time chasing poorly defined

problems or opportunities.
Data analysis is the most important thing in such projects. One tiny
mistake made during processing of a received information can ruin
the whole project. That is why project managers have to monitor and
control the correctness of data analysis. Estimate carefully every
incoming insight so you can implement the best practices and
procedures in your development process.
Features of Data Analysis
More scientific decision making.
Scientific decision-making involves the use of: Data mining and big

data to source relevant data to inform decisions. Application of
software logic and predictive models to analyse scenarios. Forecasts
to consider the possible implications of business decisions.
Helping businesses operate more effectively.
Gaining insight into the behavior patterns of consumer groups,

accuracy in customer segmentation, the optimum analysis of
macroeconomic trends, enhancements in service delivery methods
and customization of services are some of the factors leading to better
operational efficiency.
Involvement of Statistics include govt. planning activities.
The power of official statistics is used to show policy analysts how to

gain better value and make evidence based decisions.
Statistics provide the quantitative evidence supporting Government
decision making.
Exploratory data analysis and Confirmatory data analysis.
Exploratory Data Analysis (EDA) and Confirmatory Data Analysis

(CDA) are two statistical methods widely used in scientific research.
They are typically applied in sequence: first, EDA helps form a model
or a hypothesis to be tested, and then CDA provides the tools to
confirm if that model or hypothesis holds true.
Data Analysis
Process
1. Defining the question
Defining your objective means coming up with a hypothesis and
figuring how to test it. Start by asking: What business problem
am I trying to solve? While this might sound straightforward, it
can be trickier than it seems. For instance, your organization’s
senior management might pose an issue, such as: “Why are we
losing customers?” It’s possible, though, that this doesn’t get to
the core of the problem. A data analyst’s job is to understand the
business and its goals in enough depth that they can frame the
problem the right way.
2.Collecting the data
Once you’ve established your objective, you’ll need to
create a strategy for collecting and aggregating the appropriate
data. A key part of this is determining which data you need. This
might be quantitative (numeric) data, e.g. sales figures, or
qualitative (descriptive) data, such as customer reviews.
3. Cleaning the data
Once you’ve collected your data, the next step is to get it ready for
analysis. This means cleaning, or ‘scrubbing’ it, and is crucial in
making sure that you’re working with high-quality data. Key data
cleaning tasks include:
 Removing major errors, duplicates, and outliers—all of which

are inevitable problems when aggregating data from numerous
sources.
 Removing unwanted data points—extracting irrelevant
observations that have no bearing on your intended analysis.
 Bringing structure to your data—general ‘housekeeping’, i.e.
fixing typos or layout issues, which will help you map and
manipulate your data more easily.
 Filling in major gaps—as you’re tidying up, you might notice
that important data are missing. Once you’ve identified gaps, you
can go about filling them.
4. Analyzing the data
Finally, you’ve cleaned your data. Now comes the fun bit—
analyzing it! The type of data analysis you carry out largely
depends on what your goal is. But there are many techniques
available. Univariate or bivariate analysis, time-series analysis,
and regression analysis are just a few you might have heard of.
More important than the different types, though, is how you apply
them. This depends on what insights you’re hoping to gain.
Broadly speaking, all types of data analysis fit into one of the
following four categories.
1. Descriptive analysis
Descriptive analysis identifies what has already happened. It
is a common first step that companies carry out before
proceeding with deeper explorations. As an example, let’s refer
back to our fictional learning provider once more. TopNotch
Learning might use descriptive analytics to analyze course
completion rates for their customers. Or they might identify how
many users access their products during a particular period.
Perhaps they’ll use it to measure sales figures over the last five
years. While the company might not draw firm conclusions from
any of these insights, summarizing and describing the data will
help them to determine how to proceed.
2. Diagnostic analysis
Diagnostic analytics focuses on understanding why
something has happened. It is literally the diagnosis of a
problem, just as a doctor uses a patient’s symptoms to diagnose
a disease. Remember TopNotch Learning’s business problem?
‘Which factors are negatively impacting the customer
experience?’ A diagnostic analysis would help answer this. For
instance, it could help the company draw correlations between
the issue (struggling to gain repeat business) and factors that
might be causing it (e.g. project costs, speed of delivery,
customer sector, etc.) Let’s imagine that, using diagnostic
analytics, Top management realizes its clients in the retail sector
are departing at a faster rate than other clients. This might
suggest that they’re losing customers because they lack
expertise in this sector and that’s a useful insight.
3. Predictive analysis
Predictive analysis allows you to identify future trends
based on historical data. In business, predictive analysis is
commonly used to forecast future growth, for example. But it
doesn’t stop there. Predictive analysis has grown increasingly
sophisticated in recent years. The speedy evolution of machine
learning allows organizations to make surprisingly accurate
forecasts. Take the insurance industry. Insurance providers
commonly use past data to predict which customer groups are
more likely to get into accidents. As a result, they’ll hike up
customer insurance premiums for those groups. Likewise, the
retail industry often uses transaction data to predict where future
trends lie, or to determine seasonal buying habits to inform their
strategies. These are just a few simple examples, but the
untapped potential of predictive analysis is pretty compelling.
4. Prescriptive analysis
Prescriptive analysis allows you to make recommendations
for the future. This is the final step in the analytics part of the
process. It’s also the most complex. This is because it
incorporates aspects of all the other analyses we’ve described. A
great example of prescriptive analytics is the algorithms that
guide Google’s self-driving cars. Every second, these algorithms
make countless decisions based on past and present data,
ensuring a smooth, safe ride. Prescriptive analytics also helps
companies decide on new products or areas of business to
invest in.
5. Visualize and share your findings:

You’ve finished carrying out your analyses. You have your insights.
The final step of the data analytics process is to share these insights
with the wider world (or at least with your organization’s stakeholders!)
This is more complex than simply sharing the raw results of your work
—it involves interpreting the outcomes, and presenting them in a
manner that’s digestible for all types of audiences. Since you’ll often
present information to decision-makers, it’s very important that the
insights you present are 100% clear and unambiguous. For this
reason, data analysts commonly use reports, dashboards, and
interactive visualizations to support their findings.

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Challenges of

Data privacy, sometimes also referred to as information privacy, is an

Greater financial exposure in fast-moving markets

greater potential for mistaking noise for true insight

risk of spending lots of money and time chasing poorly defined

Features of Data Analysis

More scientific decision making.

Scientific decision-making involves the use of: Data mining and big

Helping businesses operate more effectively.

Gaining insight into the behavior patterns of consumer groups,

Involvement of Statistics include govt. planning activities.

The power of official statistics is used to show policy analysts how to

Exploratory data analysis and Confirmatory data analysis.

Exploratory Data Analysis (EDA) and Confirmatory Data Analysis

3. Cleaning the data

 Removing major errors, duplicates, and outliers—all of which

5. Visualize and share your findings:

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