BUSINESS ANALYTICS Flashcards
Business analytics
- process of developing actionable decisions or recommendations
- Based on insights generated from historical data
•Multi-disciplinary approach
•an iterative, methodical exploration of an organization’s data • to drive decision-making
Business problem
- understanding customers
- product decreasing
- employees leaving
Descriptive analytics
Statistical procedure
- descriptive statistics
- affinity analysis
- OLAP
- DSS
- data mining
Predictive analytics
Statistical producers
- data mining
- linear regression
- multiply regression
- logistic regression
Prescriptive analytics
What should we do
Statistical procedures
- optimization
- simulation
- decision trees
Categories of BA applications - applications for DtA analysis
Decision support system
OLAP
Data mining
Categories of BA applications - applications for data visualization
Dashboard
Geographical information systems
Data Warehouse and OLAP
• OLAP (Online analytical processing):
“slicing & dicing” data stored in a dimensional format (i.e., multi- dimensional model)
also called multidimensional analysis Drills down in the data to greater detail Drill up to aggregate the data
Slicing
Extract subset
Drill up
Dimensions merging = consolidating data
Drill down
Digging deeper, finding more data
Data mining
Identifying previously unknown patterns
- for example, using clustering algorithms to segment customers
Predicting trends and behaviours (predictive analytics)
- Using regression algorithms to predict the likelihood of any purchase
- Using association rule discovery algorithms (i.e., market basket analysis) to make online recommendation
Implement models
simplified representations, or abstractions, of reality
Sensitivity analysis
the impact that changes in one or more parts of a decision-making model have on other parts
Goal seek
calculating the value of the inputs necessary to achieve a desired level of output.
Presenentation tools
- Reports
- Visualization: charts, graphs
Geographical information systems
Geocoding - latitudinal and longitudinal
