Midterm Flashcards
Ch 1-4
Analytics uses..
- Data
- Information Technology
- Statistical Analysis
- Quantitative Methods
- Mathematical or Computer based models
Analytics Purpose
to help managers gain improved insight about their business operations and make better, fact- based decisions
Analytics Applications
- Pricing
- Customer Segmentation
- Merchandising
- Location
- Social Media
BA has strong relationship with…
- profitability
- revenue
- shareholder return
3 Kinds of Analytics
- Descriptive Analytics
- Predictive Analytics
- Prescriptive Analytics
Descriptive Analytics
- Uses data to understand past and present
- Metrics and measures
Predictive Analytics
- Analyzes past performance in an effort to predict the future
- Forecasting, Simulation
Prescriptive Analytics
- Uses optimization techniques to identify the best alternative to maximize or minimize some objective
- operations research or management science.
Data
collected fact and figures
Database
- collection of computer files containing data
- data are interlinked by fields or attributes that are common across files
Information
comes from analyzing, organizing, and transforming data
Big Data
Massive amounts of business data from a wide variety of sources
- most available in real time
- can be uncertain or unpredictable
Big Data datasets generated by
web applications, social networks, click streams, sensors, and cards
Big Data helps
organizations better understand and predict customer behavior and improve customer service
Big Data Characteristics
- Volume
- Variety
- Velocity
- Veracity
Volume
- amount of data increases
- Big today, Bigger tomorrow
Variety
- Many sources
- Unstructured and messy
Velocity
Captured in real time and quickly incorporated into decisions
Veracity
- How reliable is the data?
- Need high-quality data and understanding
Metrics
are used to quantify performance
Measures
are numerical value of metrics
2 types of Descriptive Analytics Metrics
- Discrete Metrics
2. Continuous Metrics
Discrete Metrics
- Involves counting
- Ex) Number or proportion of on time deliveries, incorrect or incomplete orders, # of errors in an invoice
Continuous Metrics
- measured on a contunuum
- ex) Delivery time, package weight, purchase price