Mid-Term Study Flashcards
Pass the Mid-term
Essential components of modern business decision making
- Give business a competitive advantage
- Greater Revenue
- Improved efficiency/ lower production cost
Business analytics
Helps organizations make quicker and better decisions and take action with greater confidence
What makes Big Data possible
High level processors make big data possible
What is Big Data
a large data set commonly used by the larger companies while being larger than a gigabyte (terabyte)
Why do we need Business Analytics
Information: Data analytics provides information on every aspect of business
Bias: we have a capacity for taking in information and our shortcuts hold us back
People misunderstand randomness
Expect independent trials to not exhibit “streakiness”
Confirmation Bias
A bias where we place a greater weight on additional information that supports our bias
Business Analytics
Data analytics being applied to business decisions-creates foundation of information and insights for business managers
Descriptive Analytics
Serves as the foundation and answers the question “What Happened”
-uses current and historical data to find trends
-effective for communicating change over time
Diagnostic Analytics
Addresses “Why did this happen?” It helps determine root problems of/in trends
Predictive Analytics
“What might happen in the future?”
Utilizes past data to forecast scenarios, trends, and events and inform business strategies
Perspective Analytics
“What should we do next?”
Consider all relevant data to chart optimal path forward
If you don’t use data you will…
FALL BEHIND
Data Science
Focused on making sense of raw data using algorithms statistical methods, models, and computer programming
Examples of “actionable business decisions”
- Open a new market
- Hire additional salesperson
- Invest in new products
- Close down a factory
