CHAPTER 1 Flashcards
is used to refer to the overall practice of data analysis in a business context
Business Intelligence
is the use of data information technology, statistical analysis, quantitative methods and mathematical or computer-based models to help managers gain improved insight about their business operations and make better fact-based decisions
Business Analytics
refers to the deeper, more advanced methods of analyzing data
Analytics
it is a process that involves data, the tools to gather and interpret it
Analytics
Business analytics is primarily a decision-making tool. some common decisions include:
Pricing Decisions
Decisions to target consumer segments
Merchandising Decisions
Location Decisions
is used to gather data and churn it into actionable items to create strategic and tactical decisions
Business Analytics
are measures of quantitative assesment commonly used for assessing,comparing, and tracking performance or production
Metrics
are the raw numerical data
Measures
one of the most universal basic metrics. it simply shows the difference between actual sales numbers against the target figure.
Sales Vs. Targets
used as a measure of sales over various periods of time
Current period sales vs. previous period sales
when a product that has been sold is returned at an unsellable state. This metric will allow the company to monitor how much of the products sold actually get delivered without issue to its customers.
sales vs returns
for large companies, the sales process is more than just the face-to face exchange of money and goods between two parties.
Sales vs. Invoice
distribution companies deliver products from their warehouse to their clients
Truck Utilization
knowing the customer is one of the quickest ways to expand a business earning potential. This metric will enable the business to know which of their customers make up the bulk of sale
Customer Segmentations
hiring managers and staff are usually evaluated at the rate they are able to process applicants from initial interview to final contratsigning
Hiring Rates
Measures the rate at which rooms are reserved in hotels
Occupancy Rate
are used in IT support organization to keep track of support tickets and team utilization
Service level agreement
a marketing campaign will have different ways to generate leads when trying to drum up interest on a product and brand awareness.
Lead Summary
three types of analytics
Descriptive Analytics
Predictive Analytics
Prescriptive Analytics
the starting point of doing analytics for businesses. it uses data to understand the past and current business performance and make informed decisions
Descriptive Analytics
Uses already-existing data from the enterprise. It collects and consolidates data and transforms them into meaningful information displayed as charts and tables to monitor performance
Descriptive Analytics
answers the Question/Activity: “What has happened?”
Descriptive Analytics
can be considered as the “next step”
Diagnostic Analytics
Analyzes past performance in an effort to predict the future by examining historical data
Predictive Analytics
are used extensively for data exploration in prescriptive analytics.
Statistical Methods
aims to answer the question “ what will happen? “
Predictive Analytics
uses optimization to identify the best alternatives to minimize or maximize some objective
Prescriptive Analytics
aims to answer the question “ out of all these alternatives, what should we do?”
Prescriptive Analytics
the biggest issue facing the use of business analytics in an enterprise
Adaption
these measurable and quantifiable items are called
metrics
