Introduction to Data Analytics

Course Introduction
 What Is Data Analytics?

Data analytics is the science of extracting trends, patterns, and relevant information
from raw data to draw conclusions.
 Data Analytics: Benefits

Cost Reduction Improved efficiency

DATA
ANALYTICS

Good resource
Effective decision
utilization
making

Good market
insights
 Data Analytics: Domains

Education Healthcare
Industry Industry

Government
Media and Organizations
Entertainment
Industry

Retail
E-Commerce Industry
Industry

Data Analytics Domains

 Course Outline

Course
Introduction Data Analytics,
Data Science, and
Machine Learning

5
Evolution
2
of Data
Data
Analytics
4 Visualization
for Decision Data Science
Making 6
Methodology

Dealing with Different

Types of Data Data Analytics in
7
Different Sectors Analytics Framework,
Case Study, and
Upcoming Trends

8
 Learning Outcomes

By the end of this course, you will be able to:

● Analyze the triggers that led to the evolution of

analytics

● Develop an analytical approach to a business problem

● Compare data science, data analytics, and machine

learning and understand their business application

● Explain the significance of data visualization in

analytical modeling to drive meaningful business
decisions

● Identify business use cases that can leverage data

analytics
 Course Features

Number of case studies: 11

Number of research studies: 2

 Course Features

Few case studies discussed in this course:

Amazon uses data analytics to improve efficiency and reduce cost.

LinkedIn employs data analytics to revamp its job listings, track

user profiles, and posts.

Netflix gathers data from its subscribers to decide on customer

preferences.
 Course Features

Research Studies

According to McKinsey, companies that use customer analytics

outsmart their competitors in terms of profit.

According to a survey conducted by the Business Application

Research Center (BARC) on the BI trends, Master Data and Data
Quality Management are the most important trend in 2020.
Happy Learning
Introduction to Data Analytics
Evolution of Data Analytics
 Learning Objectives

By the end of this lesson, you will be able to:

Explain the impact of data analytics on accounting

Explain data analytics and its life cycle

Describe the various stages of data analytics

Outline the benefits of data analytics

Importance of Data Analytics
 Data Analytics

● Data analytics is the science of extracting trends,

patterns, and relevant information from raw
data to draw conclusions.

● It has multiple approaches, multiple dimensions,

and diverse techniques.
Why Data Analytics?

Data analytics helps in:

● Scientific decision making and effective business

operations.

● Analyzing data, gaining profits, making better use of

resources, and improving managerial operations.
Problems with Traditional Accounting Methods
 Problems with Traditional Accounting Methods

● Accounting was done in the form of

notebooks. This was cumbersome and
tedious.

● Use of excel sheets simplified accounting

but did not solve all problems.
Problems with Traditional Accounting Methods

● SMBs and start-ups face issues in managing and tracking

cash flow.

● A highly accurate and dependable solution is required

for financial management in business.
 Problems with Traditional Accounting Methods

● Difficulty in tracking small expenses such as

one-time government tax and regular taxes.

● Requirement of a dedicated financial expert

by SMBs and start-ups.

● Small business owners managing the role of

an HR and payroll expert due to lack of
resources or money.
Problems with Traditional Accounting Methods

● Interpreting and analyzing financial

reports with traditional accounting
methods was difficult.

● The available excel-based macros and

pivot tables did not provide sufficient
insight into the data.
Challenges in Traditional Accounting Methods

● How much inventory must be held?

● How many invoices are overdue?

● How much cash is tied up at work?

● How long does it take to get cash from the customers?

Data Analytics: Impact on Accounting
 Impact of Analytics on Accounting

Uncovers valuable insights Identifies process improvements

Helps in managing risks Adds value to the decision-

making process
 How Accountants Use Data Analytics

Auditors Tax accountants Investment advisors

• Deploy continuous • Use data science to • Use big data to find

monitoring analyze complex behavioral patterns
taxations
• Analyze and verify large • Identify investment
data sets • Helps in faster opportunities
investment
• Few errors and precise decisions • Generate higher profit
recommendations margins
Data Analytics: Overview and Process Flow
 Data Analytics: Definition

Data analytics is the process of examining and analyzing raw data sets to:

● Draw conclusions

● Derive more information

● Improve businesses,
products, and services

In addition to making business decisions, it is used by data scientists and

researchers to verify scientific models and theories.
 Data Analytics: Process Flow

1. Define goals

2. Identify measurable metrics

3. List, collect, and extract data from sources

4. Explore and analyze data

5. Interpret and visualize data

6. Infer data for decision-making

 Data Analytics Life Cycle

Operationalize Discovery
Deliver final reports, briefs, Learn about business
codes, and technical domain and assess
documents. available resources.

6 1

Communicate Results Data Preparation

Identify key findings, business 5 Data Analytics 2
Execute ELT (extract, load, and
values, and develop narratives transform).
for stakeholders.

4 3

Model Building Model Planning

Develop data sets for testing, Identify techniques and data

training, and production. to understand variables
relationship.
Types of Data Analytics
 Types of Data Analytics

The four main types of analytics based on the workflow and requirements of data analytics:

Why did this happen? How can we make it happen?

Descriptive Diagnostic Predictive Prescriptive

Analytics Analytics Analytics Analytics

What happened? What will happen?

Descriptive Analytics
 Descriptive Analytics

● Descriptive analytics is
● It is the conventional form
designed to access information
of analytics.
about the past.

● It focuses on the summarized ● Its purpose is to

view of facts. summarize the findings.

 Descriptive Analytics

Data Techniques of Data

Aggregation Descriptive Mining
Analytics

• Data aggregation is the process of gathering and expressing

information in a summarized form.

• Tools used for data aggregation include MS Excel, MATLAB, SPSS, and
STATA.

• Company report is an example of descriptive analytics.

Diagnostic Analytics
Diagnostic Analytics

● Diagnostic analytics helps you identify why

something happened in the past.

● It takes a deeper look at data to understand the

root cause of events.

● It has a limited ability to provide actionable

insights.

● It provides an understanding of causal

relationships and sequences.
Diagnostic Analytics Techniques

Drill-down Data Discovery

Data Mining Correlation

Diagnostic Analytics Techniques

● They can be used to discover a causal relationship between two

or more data sets.

● Diagnostic analytics is helpful for those concerned with day-to-

day operations.

● For example, It helps identify why a sales representative has

sold fewer items than usual.
Predictive Analytics
 Predictive Analytics

Predictive analytics is used in:

● Predicting future outcomes in terms of probability of

an event to occur

● Analyzing sentiments where all opinions posted on

social media are collected to predict a person’s
sentiment

● Identifying target audience for a promotional

campaign

● Forecasting weather, plan-failure prediction, and

travel products recommender system

A predictive model is built on the preliminary descriptive analytics stage.

 Predictive Analytics Tools

Machine learning algorithms such

as random forests, SVM and
statistics.

Trained data scientists and

machine learning experts building
these models

Popular tools for predictive

analytics: Python, R and
RapidMiner.
Prescriptive Analytics
 Prescriptive Analytics

Prescriptive analytics provides the It creates and updates the

solution for a prediction in the future. relationship between action and
1 2 outcome using a feedback system.

It is used by recommendation It helps in making optimal

engines in companies. 7 3
recommendations during the
decision-making process.

It is the final frontier of 6 4

It helps in mitigating the possible
advanced analytics. risks based on the available
predictive analytics.
5

It has the power to suggest favorable solutions

and ease the decision-making process.
 Prescriptive Analytics

● Predictive analytics is at the budding stage of

implementation and firms have not used its full
potential.

● Advancements in predictive analytics is paving the

way for its development.
Types of Analytics: Example
 Types of Analytics: Amazon Example

● Amazon’s revenue increased in the West Coast

Diagnostic
Analytics during the past one year
● Increased spending on sales training

Predictive ● Purchase factors: price, time, weather, and festive

Analytics seasons
● Predicted 10–12 percent increase in revenue
 Types of Analytics: Amazon Example

Descriptive
● Spent $20M in different sales training the
Analytics previous year

● Sales trainings fetched good ROI

Prescriptive
Analytics ● Implemented a suitable optimization plan to
maximize revenue
Data Analytics Benefits: Decision-Making
Data Analytics Benefits: Decision-Making

● Companies use business analytics to enable

faster and facts-based decision making.

● Data-driven organizations make better

strategic decisions.

● Companies enjoy high operational efficiency,

improved customer satisfaction, robust profit
and revenue level.
Data Analytics Benefits: Decision-Making

Data analytics helps you define your target

audience based on:

● Customer age group

● Customer preferences

● Location-based purchases

● Popular brands or products people seek

 Data Analytics Benefits: Decision-Making

Data analytics in e-commerce helps:

● Manage inventory

● Forecast demands

● Identify shopping seasons

● Analyze customer sentiment

● Decide optimum prices

Data Analytics Benefits: Cost Reduction
Data Analytics Benefits: Cost Reduction

● Data analytics helps understand shopper

behavior by monitoring their browsing
interest.

● Seller identifies shopping pattern and

customer demand.

● Customer data helps companies minimize

failed campaigns and reduce cost
associated with them.
 Data Analytics Benefits: Cost Reduction

Data analytics helps in reducing

marketing and logistics cost.

Marketers use technologies to Marketing campaigns use

evaluate customer behavior measured activities to
and make strategic decisions. plan campaigns.

Predictive analytics is used for better

performance, higher ROI, and faster
success.
 Use of Predictive Analytics for Logistics Management

Predictive analytics helps companies in logistics management by:

● Analyzing current and historical facts to make predictions

● Procuring products based on purchase history

● Organizing customers from shopping patterns and demographic details

● Planning inventory and offloading excess stock

 Factors to Consider in Logistics Planning

Seasons Economic conditions

Weather

Data provides several insights such as identifying products that people tend to buy in a particular season.
 Data Analytics Benefits: Case Study

According to a study by IHL group, footwear and clothing worth $642.6 billion are returned
to stores every year.

● Products are returned as consumers miss important information during the purchase.

● Critical information provided through a detailed product specification or product video

can reduce the return rate.

● Data analytics help companies assess the possibility of reducing product return rate.
Case Study: Amazon
 Case Study: Amazon

Amazon uses data analytics to improve efficiency and reduce cost.

Predictive analytics helps to:

Predict what you buy Anticipate shipping

Such predictions help increase sales and reduce shipping, inventory, and
supply chain costs.
 Case Study: Amazon

● Amazon has more than 200 fulfillment centers

worldwide.

● Supply chain and logistics optimization help

companies reduce cost and improve
performance.

● Amazon uses data analytics for choosing the

warehouse closest to the customer and reduces
shipping costs by 10–40 percent.
Case Study: Amazon

● Amazon uses data analytics to attract customers and

increase profits by an average of 25 percent annually.

● Prices are set based on customer activity on a

website, competitors’ pricing, and product availability.

● Product prices typically change every 10 minutes as

data is updated and analyzed.

● Amazon typically offers discounts on the best-selling

items and earns larger profits on less popular items.
Data Analytics: Other Benefits
 Data Visualization Tools

Power BI

Data
Tableau Visualization
Tools

Logi

Visualization allows decision makers to see connections between multidimensional

data.
It provides new ways to interpret data through graphical representations.
Other Benefits of Data Analytics

● Data analytics helps in Identifying potential

opportunities to streamline operations.

● It identifies potential problems and gives time

to take actions.

● It allows companies to identify operations that

yield the best results.

● It identifies and improves error-prone

operational areas.
Other Benefits of Data Analytics

● Organizations implement data analytics in product

or service development.

● Data analytics helps in understanding current state

of business.

● It provides valuable insights to predict future

outcomes.

● It helps businesses align new process or products

with market needs.

● Data analytics tools are capable of handling

heterogeneous data and providing insights.
 Key Takeaways

Data analytics is the process of examining and analyzing raw

data sets to derive information and improve business.

Discovery, data preparation, model planning, model building,

communicate results, and operationalize are the six steps of
data analytics life cycle.

The four stages of data analytics are descriptive analytics,

diagnostic analytics, predictive analytics, and prescriptive
analytics.
Introduction to Data Analytics
Dealing with Different Types of Data
 Learning Objectives

By the end of this lesson, you will be able to:

List the terminologies used in data analytics

Describe the types of data

Explain the levels of measurement

Terminologies in Data Analytics
Terminologies in Data Analytics

Data Sampling

Observation

Dataset

Prediction
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

● Observation is a single row or a record

of data from the database.

● Any data can be assumed as a set of

observations.
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

Database Table

Age Height Nationality Gender

Variables
Rows

Observation is the unit of analysis on which the measurements are taken.

It is also known as a case, record, pattern, or row.
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

● Data sampling is a statistical analysis

technique used to select, manipulate,
and analyze a representative subset of
data points.

● Data sampling identifies patterns and

trends in the larger data set.
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

● If a sample is randomly selected with 1 or n

observations, then n is the sample size.

● The chart explains the sampling process where a few

people are randomly sampled from a group of
population.

● Data sampling is cost effective and surveys only the

representative sample.

● It enables data scientists, predictive modelers, and

data analysts to produce accurate findings.
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

● Data set is a collection of data or the total

data captured about a particular use case.

● It can hold information such as medical,

insurance, and loan approval records.

● It is not limited to numbers and texts and

may include collections of images or videos.
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

The table represents loan data with attributes such as loan ID, borrower’s gender,
education, employment status, credit history, loan amount, and property details.
 Terminologies in Data Analytics

Observation Data Sampling Data Set Prediction

● The goal of prediction is to move from

what has happened to providing the best
assessment of what will happen.

● In the graph, linear prediction technique is

used to predict the number of children
within different education levels.
Types of Data
 Types of Data

Structured Data Unstructured Data Semi-Structured Data

It is the data that is processed, It is the type of data that lacks It is the data type containing
stored, and retrieved in a fixed any specific form or structure. both structured and
format. unstructured data.
Example: Email
Example: Employee details, Example: CSV and JSON
job positions, and salaries. documents
 Analyzing Unstructured Data

Unstructured information is
About 80% of business data is text-heavy and contains data
unstructured. such as dates, numbers, and
facts.

Internally generated information Unstructured data is primarily

is considered unstructured as the used for BI and analytics but
intelligence doesn’t fit neatly into not for transaction processing
a database. applications.
 Analyzing Unstructured Data

Retailers and manufacturers analyze unstructured data to:

● Improve customer relationship management processes

● Enable targeted marketing

● Perform sentiment analysis on product reviews

The line between unstructured and semi-structured data is not clearly defined.
Unstructured data has some level of structure in it.
Qualitative and Quantitative Data
 Qualitative and Quantitative Data

Qualitative Data

Data in which classification of objects

is based on attributes and properties.
Example: Softness of skin etc.

Quantitative Data
Data can be measured and expressed
numerically.
Example: Your height and shoe size.
 Qualitative and Quantitative Data

Qualitative Data Quantitative Data

● Data collection is unstructured. ● Data collection is structured.

● It asks why. ● It is all about how much or how many.

● It cannot be computed as it is non- ● It is statistical and is about numbers.

statistical.
● It recommends the final course of
● It develops initial understanding and action.
defines the problem.
 Subgroups of Qualitative Data

Qualitative
Nominal data Ordinal data
Data
Unordered data to which an order is Ordered data that is assigned to
assigned in relation to other named categories in a ranked fashion
categories
Example: Grade classification like pass or Example: Feedback to a product with 1–5
fail for student's test results. ranking.
 Subgroups of Quantitative Data

Discrete data Quantitative Continuous data

Data

It can only take certain values. It can take any value within a
specified range.
Example: The number of students
Example: Share price of a company
in a class
Data Levels of Measurement
 Data Levels of Measurement

It is a classification that describes the nature of information within the values assigned to variables.

Ratio

Interval

Ordinal

Nominal
 Data Levels of Measurement

Nominal Ordinal Interval Ratio

● In nominal level of measurement, numbers in the variable

are used to classify data.

● At this level, words, letters, and alphanumeric symbols can

be used.
M F
● Example: People in female gender category are classified
as F and those in male gender are category classified as M.
 Data Levels of Measurement

Nominal Ordinal Interval Ratio

● Ordinal level of measurement depicts ordered

relationship among the variable’s observations.

● It indicates an order of the measurements.

● Example: A student with 100% score is assigned the

first rank, another student with 95% score would be
assigned the second rank, and so on.
 Data Levels of Measurement

Nominal Ordinal Interval Ratio

● The interval level of measurement classifies Temperature in centigrade

and orders the measurements.

● It also specifies that the distances between

each interval on the scale are equivalent.

● Example: Temperature in centigrade where the

distance between 80 degrees and 100 degrees
is same as the distance between 1000 degrees
80°C - 100°C = 1000°C - 1020°C
and 1020 degrees.
 Data Levels of Measurement

Nominal Ordinal Interval Ratio

● In the ratio level of measurement, observations can have a value of zero.

● Although properties of ratio measurement are similar to the interval level of measurement, the zero in
scale makes it different from the other levels of measurement.

Note: The nominal level classifies data, while the ordinal level indicates an order of measurements.
The interval level and the ratio level of measurements provide the same level of measurement.
Normal Distribution of Data
 Normal Distribution of Data

● Normal distribution is also known as ● It is the most important probability

Gaussian distribution or Bell curve. distribution in statistics.

● It is a perfectly symmetric bell-

● Most of the natural phenomena and
shaped distribution curve with only
occurrences follow Bell curve.
one peak.

● It is denser at the center and has

● It is continuous and have tails that
equal mean, median, and mode
are asymptotic.
values.
Statistical Parameters
 Basic Statistical Parameters

Mean Variance
Variance Standard Deviation

● Mean is the average of all data ● Variance is the sum of the squares ● Standard deviation is the square
points for a given set of data. of differences between all root of variance and shows the
numbers and means divided by extent to which data varies from
● It is used to derive the central the number of data points. the mean.
tendency of the data.
● It gives a measure of how the data ● It shows how tightly data points
● It is measured by adding all distributes itself about the mean. are clustered around the mean.
data points and dividing the
sum by the number of data ● It looks at all the data points and ● It is more concrete and gives the
points. then determines their distribution. exact distances from the mean.
 Basic Statistical Parameters: Example

Dataset x = {1;2;3;4;5;6}

Mean = (1+2+3+4+5+6)/6 = 3.5

Variance = [(1-3.5)2+(2-3.5) 2+(3-3.5) 2+(4-3.5) 2+(5-3.5) 2+(6-3.5) 2]/6 = 2.917

Standard deviation = √2.917 = 1.708

 Key Takeaways

Structured data, unstructured data, and semi-structured data

are the three types of data.

Nominal, ordinal, interval, and ratio are four data levels of

measurement.

Normal distribution of data is the most important probability

distribution in statistics.

Mean, variance and standard deviation are the basic statistical

parameters.
Introduction to Data Analytics
Data Visualization for Decision-Making
 Learning Objectives

By the end of this lesson, you will be able to:

Explain data visualization

Describe the importance of data visualization

List various tools of data visualization

Data Visualization
Data Visualization

● Data visualization is the graphical representation of

data using charts, graphs, and maps.

● Our eyes are drawn to colors and patterns.

● Data visualization is a form of visual art that grabs

our interest and keeps our eyes on the message.
 Data Visualization

Visualized data is more effective and consumable than a massive

spreadsheet of data.
Data Visualization

● The table shows the total sale of products

corresponding with each year.

● The adjacent graph is the visualization

of the sale data points using a
visualization tool.
Understanding Data Visualization
 Understanding Data Visualization

Data analytics allows decision makers and executives to weigh the alternatives of different outcomes of
their decisions.

Helps decision makers strategize Provides answers to key

the best business outcomes Data Visualization business questions

Provides simplicity, clarity, intuitiveness, insightfulness, pattern,

and trending capability to help executives take decisions
 Benefits of Data Visualization

● Sales reports are formal documents or

PowerPoint slides with many tables and charts.

● They are elaborate and the real point is lost in

the data.

● Data visualization helps by making information

crisp, clear, and memorable.

 Benefits of Data Visualization: Example

● From a bar chart, a sales director can

identify that the sales of their flagship
product in the southwest region is going
down by eight percent.

● The director can spot the occurrence of

variances and start formulating a plan to
improve the sale.

● Data visualization allows executives to

spot problems and act on them.
 Data Visualization: Uber

In October 2018, Uber released a visualization product that provides insights on mobility for JUMP
bikes.

This data is helpful in urban areas to evaluate the success of their shared bike program.
It can also help in planning infrastructure investments in cities to promote safety and smooth mobility.
Commonly Used Visualizations
 Commonly Used Visualizations

Frequency
Heat map Distribution Swarm Plot
Plot
Heat map
 Heat map

● A heat map is a type of graph that uses a warm-

to-cool color spectrum to visualize the data.

● It measures the relationship between multiple

variables and shows the strength of
relationships with colors.

● It helps in creating a visually impactful view of

correlation.
 Heat map: Use Case

1 10 11 12 12 14 15 100
● All the rows are one category and all the 16 17 18 19 20 21
columns are another category. 2

● Individual rows and columns are divided 3 50

into subcategories.
4
● Cells either contain color-coded
categorical data or numerical data. 5 0
Row A B C D E F
name

Column name
 Heat map: Use Case

1 10 11 12 12 14 15 100
● Data in a cell is based on the relationship
16 17 18 19 20 21
between two variables in the connecting 2
row and column.
3 50
● Multiple value ranges can be
represented by a selection of solid 4
colors, while a single range can be shown
by a gradient scale. 0
5
Row A B C D E F
name

Column name
 Heat map: Case Study

This heat map shows the sales data across

months and year.

● It is observed that during 1949–1950,

sales were in range of 0–200.

● Sales crossed the 200 mark in 1951 and

increased every year.

● In 1956, sales were between 300 to 500

and the maximum sale was in July.

● Over the years, July had the maximum

sales and it peaked in 1960.
Frequency Distribution Plot
 Frequency Distribution Plot

Frequency distribution plot measures the frequency of occurrence for a given value or range.

A normalized frequency distribution normalizes total frequency to one.

The frequency of an event is the number of times the event occurs in an observation.

Observations within a given interval are in graphical or tabular format.

 Frequency Distribution Plot

Frequency distributions can be displayed in these formats:

Table Histogram Line graph

Dot plot Pie chart

Analysts use the frequency distribution plot to check or illustrate the data collected in a
sample.
 Frequency Distribution Plot: Use Case

This conditional frequency distribution graph shows the usage of two specific words in public
speeches over a period of time.

The graph indicates that the use of America has increased, while the use of citizen has reduced
gradually in speeches.
Swarm Plot
 Swarm Plot

● A swarm plot gives a good representation of

the distributions but works well only for small
data sets.

● It is useful to examine individuals, places, or

things in your data.

● It allows you to plot all of your points in a

single space.

● It is a one-dimensional scatter plot as it plots

the data on a single axis and then offsets in
the other direction to show volume.
 Swarm Plot

A swarm plot enables you to separate all overlapping points, making each point visible.

Beeswarm plot
It is also called a beeswarm plot as the graphical representation is similar to a group of bees.
 Swarm Plot: Use Case

In this swarm plot:

● The X-axis denotes time and the Y-axis denotes

the tip amount

● The blue graph represents lunch and the

orange graph represents dinner

● Tips are higher during dinner and most tips are

$2 and $3

● The maximum tip is $10, which was given for

dinner.
Importance of Data Visualization
 Importance of Data Visualization in Analytics

● Data visualization tools provide access to

trends, outliers, and patterns in data.

● They help organize and present important

findings from the data.

● Data in user-friendly charts help businesses

gain insights to make right decisions.
Importance of Data Visualization in Analytics

● Data analytics tool allows a user to present

massive data intuitively.

● Decision makers see patterns, trends, and

correlations in the data being analyzed.

● It help decision makers in cutting costs or

improving operational processes.
Exploratory Data Analytics
 Exploratory Data Analytics

● Exploratory data analytics is an approach to

analyze data sets to summarize their main
characteristics.

● Data visualization in exploratory data analytics

is the first step towards modeling.

● EDA primarily helps analyze data beyond the

formal modeling.
Exploratory Data Analytics

The steps involved in EDA are:

● Get detailed insights into the dataset

● Understand critical impact variables that

influence the dataset

● Detect if any outliers are present in the

dataset

● Test the underlying assumptions of the

dataset
Data Visualization Tools
 Data Visualization Tools

● Tableau is the most widely used data

visualization tool due to its simplicity and
ability to produce interactive visualizations.

● It has a large customer base of more than

50,000 accounts across many industries.

● FusionCharts is a JavaScript-based visualization

package that can produce and integrate 90
different chart types.

● It has a range of live example templates so that

you can simply plug in your data sources as
required.
 Data Visualization Tools

● Highcharts is often chosen when a fast and

flexible solution has to be rolled out.

● Its cross-browser support feature helps users

view and run interactive visualizations.

● Datawrapper has a simple interface that makes

it easy to upload CSV data, create charts, and
maps.

● It is becoming popular among media

organizations to create charts and present
statistics.
 Data Visualization Tools

● Plotly enables complex and sophisticated

visualizations.

● It is integrated with analytics-oriented

programming languages such as Python, R, and
Matlab.

● Sisense provides a full stack analytics platform

and simple-to-use drag and drop interface.

● It helps in creating charts and complex graphics

with minimum hassle and provides a repository
for gathering multiple sources of data.
Other Visualization Tools
 Other Visualization Tools

● Power BI is a powerful suite of business analytics

tools and has intuitive UI for users familiar with
Microsoft products.

● It can create customized, user-defined

visualizations as well as sophisticated 3D maps.
Power BI

● The Looker BI tool provides extensive

visualization abilities, along with real-time
analysis.

● Users can either use templates from the Looker

library or create a custom visualization.
 Other Visualization Tools

● Domo is self-service business intelligence

that focuses on social collaboration.

● It provides real-time data and uses creative

data displays such as multi-part widgets
and sparklines.

● Board is a full-featured business

intelligence system.

● It serves midsize and enterprise-level

companies in different industry segments.
 Other Visualization Tools

● Qlik Sense has a clean and clutter-free user

interface and a highly customizable setup.

● Qlik Sense is Tableau’s biggest competitor.

● It has over 40,000 customer accounts in more

than 100 countries.
Languages and Libraries for Data Visualization
 Languages for Data Visualization

Few languages and libraries leveraged by

data visualization:

● Scala

● R

● Python

● Javascript

● Java
 Languages for Data Visualization

Python has two exclusive libraries for

data visualizations that are
Matplotlib and Seaborn.

Scala is a compiled language and

the code written in Scala gets
executed much faster.
 Languages for Data Visualization

Base graphics, lattice graphics, grid

graphics, and ggplot2 are the four
graphic systems supported by R.

Inbuilt libraries available in Java such

as Java 2D, Java 3D, and Java
advanced imaging makes data
visualization simple with Java.
Java
Java 2D Java 3D
Advanced
 Data Visualization Libraries

Shiny is an R Matplotlib is the Seaborn is a Python Bokeh is native of

package and it is first data data visualization Python and helps to
easy to build visualization library library and provides create interactive,
interactive web and has 2D and 3D an interface for web-ready plots by
apps straight from graphics support. drawing statistical supporting
R. graphics. streaming and real-
time data.
Dashboard-Based Visualization
 Dashboard-Based Visualization

Provides a visual real-time representation Displays data in the form of tables, line
of a company’s data. charts, bar charts, and gauges.

Business
Dashboard

Monitors business health by visually

Helps businesses generate business
tracking, analyzing, and displaying key
insights.
data points.
 Dashboard-Based Visualization

This dashboard has parameters such as daily target, sales pattern, and
other business insights from different charts.

Characteristics of effective dashboards:

● Highly interactive

● Customizable interface

● Pulls real-time data from multiple

sources
 Steps for Dashboard-Based Visualization

● Analyze your target audience

● Identify Key business parameters

● Identify the end goal of the dashboard

● Get hands-on in developing the dashboard

● Continuous process of improvement

 Steps for Dashboard-Based Visualization

Analyze your target

audience Know who will use the data to make decisions.

Identify key business

Identify KRAs and KPIs for each Key Process Area (KPA) and
parameters
Service Level Agreement (SLA) parameters.

Identify end goal of the

Define a target dashboard outline.
dashboard

Get hands-on in Help data scientists develop the dashboard by selecting

developing dashboard convenient languages and libraries.

Continuous process of Improve the dashboard based on real-time inputs and customer
improvement feedback.
BI and Visualization Trends
BI and Visualization Trends

● The development of BI to analyze and

extract value from various sources
introduced many errors and low-
quality reports.

● Companies choose to implement the

Data Quality Management (DQM)
policy as it is a key factor to efficient
data analytics.
 BARC Research Study

A survey was conducted by the Business

Application Research Center (BARC) on the BI
trends.
Users
Users, consultants, and vendors were among
the 2865 participants for the survey.
2865
Master data/Data quality management was Consultants
participants
stated as the most important trend in 2020.

Vendors
BARC Research Study

● BI practitioners identified Master

data/DQ management, Data discovery,
and Data-driven culture as the three
most important trends in their work.

● Cloud BI/data management, Data catalogs,

and Process mining were voted as the
least important trends.
BARC Research Study

● Master Data and Data Quality

Management build a strong foundation
for handling data.

● Data Discovery describes how

businesses collect data from various
sources and then apply it to generate
real business value.
BARC Research Study

● The significance of Data discovery

shows a strong trend in business
users empowerment.

● Data-driven culture depends on

greater inclusion of various business
departments.

● Data governance is an important

trend due to the GDPR and increase
in data security awareness.
BARC Research Study

Trends that have increased in importance

compared to the last year are:

● Data-driven culture

● Real-time analytics

● Integrated platforms for BI and PM

● Embedded BI

● Analytics Team/Data labs

BARC Research Study

● In Data-driven culture, all decisions and

processes are based on data and simple
key figures like revenue.

● Real-time analytics is about capturing

new data immediately after their
occurrence and processing them for
display or analysis.

● Embedding intelligence is growing its

popularity in operational applications.
BARC Research Study

● Mobile BI has grown by only 20 percent

in last eight years as the adoption was
very slow.

● Data catalogs and Process mining trends

are a little new in the market and has
only recently been attracting more
interest.
BI Software Challenges
 BI Software Challenges

● A survey by BI_Survey.com indicated that

data quality is the top most problem for
BI software users since 2002.

● BI software output is largely and highly

impacted if the input data quality is not
good.
 BI Software Challenges

Poor quality input data leads to bad output results provided by any BI tool.

BI companies compile data in a usable system without affecting the validity

of the original source.
 Key Takeaways

Data visualization refers to the graphical representation of data

using charts, graphs, and maps.

Heat map, frequency distribution plot, and swarm plot are

commonly used visualizations.

Tableau, PowerBI, Datawrapper, and Sisense are some of the

data visualization tools.
Introduction to Data Analytics
Data Analytics, Data Science, and
Machine Learning
 Learning Objectives

By the end of this lesson, you will be able to:

Define data science and machine learning

Differentiate between data science, machine learning, and

data analytics
Introduction to Data Science
 Data Science

Data science is the study of data, which involves gathering, storing, analyzing, and
plotting data, to effectively extract useful information.

Aim: Gain meaningful insights from both structured and unstructured data.
 Data Science

Preparation and
Data cleansing analysis

Trend forecast Machine learning

and data analytics
 Types of Data Science

Data Science

Data Analytics Machine Learning Data Mining

 Data Analytics

Data analytics is the process of examining and analyzing raw data sets to:

Draw conclusion Derive information

Derive insights from raw data

sources
 Machine Learning

Learns from patterns in the past Predicts outcomes

using a set of algorithms accurately
Data Mining

● Data mining is the process of analyzing data from

different perspectives.

● It summarizes data into useful information.

● It helps increase revenue and cut costs.

Data Science, Data Analytics, and Machine Learning
 Data Science and Data Analytics

Forecasts the future

based on past patterns

Data Scientist

Extracts meaningful insights

from various data sources

Data Analyst
 Machine Learning

Machine learning creates systems that can learn from the data.

It is the ability of machines to predict outcomes based on patterns in the past.

 Machine Learning

Leverages various algorithms to

train the machine

ML Engineer
 Data Science and Machine Learning

Extracts useful information from

collected data sets Understands data from a
business point of view

Gathers data from various

sources
Provides accurate predictions to
improve key business decisions

Data Scientist
Understanding Data Science
 Understanding Data Science

A data scientist combines both domain and technology perspectives.

 Understanding Data Science

Works with data from video and

Knows multiple analytical
social media sources
functions

Data Scientist

Has a sound knowledge of technologies such as Python,

SAS, R, Scala, visualization libraries, SQL database, and
machine learning
 Data Science: Process Flow

How car insurance costs less if

you pay bills on time?

Data scientists found that the people who

pay bill promptly are less prone to the
accidents
 Data Science: Process Flow

Step 1: Data acquisition

Data scientists work with existing data

sets or gather them from various
sources.

Data acquisition

The most important part of the whole process is to have the correct data.
 Data Science: Process Flow

Step 2: Data wrangling

● Choose the right tools from

Python, R, and SQL

● Derive a clean data set

Data acquisition
● Apply pick-and-shovel
algorithms

● Obtain meaningful data

Data wrangling
 Data Science: Process Flow

Step 3: Machine learning

● Validate the model
● Perform necessary statistical analysis
Data acquisition ● Apply machine learning or recursive
analysis
● Run regression testing
● Compare results against other
techniques or sources

Machine learning
Data wrangling
 Challenge of a Data Scientist

The most challenging part of being a data scientist is taking the results and presenting them to the
stakeholders in an easy and consumable manner.
Data Science and Business Strategy
 Data Science and Business Strategy

Business owners used to measure their success based only on the Profit and Loss Statement.

Current era of technology leverages data science for efficient prediction on what will work.
 Data Science and Business Strategy

The process flow of a data-driven decision-making process:

Define business Build a team of data

goals scientists
1 2

4 3
Identify data sources and
Design business
dashboards to track goals enable new sources of data
capture
 Data Scientist: Asset to the Business

Empowers management Identifies and refines

the target audience
to make better decisions

Provides insights on
Identifies areas of
various KPIs and
improvement
parameters

Enables strategic changes Identifies opportunities

for better results

Data Scientist
Companies Using Data Science
Successful Companies Using Data Science

Few successful companies that use data science

Google Search Engine
 Google Search Engine

Google uses data science to provide relevant search recommendations.

The influencing factors include:

● Query volume: unique and verifiable users
● Geographical locations
● Keyword or phrase matches on the web
● Scrubbing for inappropriate content
Facebook Tags
 Facebook Tags

Facebook uses machine learning in every aspect including:

Scrolling the news feed Browsing images or videos

 Facebook Tags

Uses clustering algorithm to:

Find mutual friends Send friend

suggestions
Alibaba
 Alibaba’s Aliloan

Aliloan is an automated online system that provides flexible microloans to entrepreneurial

online vendors.
 Alibaba’s Aliloan

Analyzes trading records Uses predictive models to

and evaluates risk analyze transaction records

Aliloan

Collects data from e- Determines merchants’

commerce platforms creditworthiness
Travel Industry
 Travel Industry

Travel companies use datasets from social media, itineraries, predictive analytics, and location tracking
to arrive at the 360-degree view.

The sensors from different modes of transport provide real-time data on various parameters to predict
and prevent problems.
 Travel Industry

Integrates historical data to Offers deals based on the user’s

ensure maximum yield preferences or recommended
local attractions

Predictive algorithms help drivers predict fuel needs, ETAs, and delays.
Retail
 Retail

RFM analysis is a marketing technique that leverages data to determine the target customer.

Recency Frequency Monetary

Retailers use data science to segment customers into RFM groups and target marketing and
promotions.
E-Commerce
 E-Commerce

Amazon is an e-commerce giant that leverages data science to the fullest extent.

Amazon prefers an everything under one roof model.

 E-Commerce

E-commerce companies use data science to upsell through their websites.

Amazon’s People who viewed that product, also liked this functionality uses
sophisticated mining techniques and boosts business.
Crime Agencies
Crime Agencies

Analytics keeps crime in check by:

● Using identified patterns to derive

prediction techniques

● Analyzing previous data to prevent future

burglaries
 Crime Agencies

● Data mining can help identify pattern in from

domestic violence to terrorism.

● Advanced analytics helps prevent crime by using

information from social media.
 Crime Agencies

Crime prevention agencies use data science in

deciding:

● Where to deploy police manpower?

● Who to search at a border crossing?

● Which intelligence to consider in

counter-terrorism activities?
Analytical Platforms across Industries
 Analytical Platforms across Industries

Data storage Tools

Algorithms Architectures
platforms
 Analytical Platforms across Industries

Machine
Architectures Data storage Tools
learning
platforms
algorithms

Forecasting

Regression

Bayesian network

Vector autoregression
 Analytical Platforms across Industries

Machine learning Deep learning Data storage Tools

algorithms architectures platforms

Deep Belief Network (DBN)

Convolutional Neural Network (CNN)

Recurrent Neural Network (RNN)

 Analytical Platforms across Industries

Machine learning Deep learning Cloud storage Tools

algorithms architectures platforms

Amazon AWS

Microsoft Azure

Lambda
 Analytical Platforms across Industries

Machine learning Deep learning Cloud storage

architectures platforms Tools
algorithms

Analytics tools
● Spark
● Python
● R
Reporting tools ● Apache Pig
● Tableau
● Splunk
● Power BI
● Kibana
 Key Takeaways

Data science is the study of data, which involves gathering,

storing, analyzing, and plotting data, to effectively extract
useful information.

Data science is an umbrella that contains data analytics,

data mining, and machine learning.

Data science is used by many successful companies such as

Google, Facebook, and Alibaba.

Analytical platforms across industries include algorithms,

architecture, data storage platforms, and tools.
Introduction to Data Analytics
Data Science Methodology
 Learning Objectives

By the end of this lesson, you will be able to:

Explain data science methodology

Describe the various stages of data science methodology

Data Science Methodology: Overview
 Data Science Methodology

● A methodology is a process with a defined

input to achieve a defined output.

● It drives activities within a given domain and

does not depend on technologies or tools.

● Data science methodology is an iterative

methodology leveraged to produce repeatable
and successful results.
Stages of Data Science Methodology
Stages of Data Science Methodology

Source: https://www.ibmbigdatahub.com/blog/why-we-need-methodology-data-science
 Stages of Data Science Methodology

Business understanding is the first stage of the data science methodology and lays the
foundation for a successful end result.

● This stage identifies key business sponsors, steering

committee, and internal sponsors.

Business
● It helps understand business and customer needs and Understanding
identify who needs the analytical solution.

● It includes defining the problem, project objectives, and

solution requirements from a business perspective.
 Stages of Data Science Methodology

● The analytic approach determines business

requirements as well as data requirements.

Analytic Approach
● It identifies the analytic methods, hardware and
software, data content, formats, and representations to
be used.
 Stages of Data Science Methodology

● The requirement stage is specific to identifying

necessary data with its initial source and appropriate
format.
Data
Requirements
● This stage has multiple sub-stages including data
acquisition, data wrangling, data analysis and data
modeling.
 Stages of Data Science Methodology

● In collection stage, data scientists identify and gather

the available relevant data as a good quality input data
is required for a great output.

● Data scientists evaluate the volume and properties of

Data Collection
the data and understand the distribution of each
attribute.

● High-performance platforms and in-database analytic

functionality enable data scientists to use large data
sets.
 Stages of Data Science Methodology

Data scientists use descriptive statistics and visualization

techniques to:

Data
● Understand data content Understanding

● Assess data quality

● Discover initial insights about the data

 Stages of Data Science Methodology

● The data preparation stage includes activities to

construct a data set for data modeling.

● This stage includes cleaning of data, eliminating

duplicates, formatting data from multiple sources, and Data Preparation

transforming data into more useful variables.

● Data scientists are capable of creating explanatory

variables through a combination of domain knowledge

and existing structured variables.

 Stages of Data Science Methodology

● The modeling stage applies predictive model on

historical data to obtain the outcome.

● This stage helps organizations gain intermediate

insights and future trends, leading to strategic
Modeling
improvements.

● Using exploratory data analytics, data scientists

attempt multiple algorithms to find the best model for
the available data set.
 Stages of Data Science Methodology

● Once the model is developed, data scientists evaluate

the model to understand its quality and ensure that it
addresses the business problem.

● In model evaluation, diagnostic measures are

Evaluation
computed and outputs such as tables and graphs are
evaluated.

● During the evaluation phase, data mining result is

evaluated for novelty and usefulness.
 Stages of Data Science Methodology

Review the whole evaluation process with the following steps:

Summarize activities that are missed

Ensure that the model is correctly built

Evaluation
Identify failures and misleading steps

Determine the plan of action based on findings

Analyze and estimate the potential for improvement

 Stages of Data Science Methodology

● In the deployment stage, a satisfactory model should

be deployed into the production environment.

● It involves multiple groups, skills, and technologies. Deployment

● It requires planning on how knowledge can be

propagated to users.
 Stages of Data Science Methodology

In this maintenance phase, identify: Deployment

● What could change in the environment?

● How will the accuracy be monitored?

● When should the data mining model not be used?

● Will business objectives change over time?

● What kind of report is required?

● Were initial data mining goals met?

Maintenance
● Who will be target groups for reports?
 Stages of Data Science Methodology

In this last stage of feedback, review the whole framework by:

● Interviewing people involved in the project

● Interviewing end users and identifying improvement areas Feedback

● Summarizing the feedback and documenting the experience

 Key Takeaways

Data science methodology is the process that drives

activities within a given domain.

The different stages of methodology: Business understanding,

analytical approach, data requirements, data collection, data
understanding, data preparation, modeling, evaluation,
deployment, and feedback.
Introduction to Data Analytics
Data Analytics in Different Sectors
 Learning Objectives

By the end of this lesson, you will be able to:

Explain how top companies use analytics

Describe how Netflix uses analytics to drive engagement

Explain how analytics changed different sectors

Analytics for Products or Services
 Analytics for Products or Services

Develop products Know how

customers want users engage
Product
Analytics
Analyze users’ likes Track users’ digital
and dislikes footprints

Highlights revealed behaviors to

help predict consumer demands
 McKinsey: Research Study

“Companies that use customer analytics comprehensively report outstripping their competition
in terms of profit almost twice as often as companies that do not.”
Benefits of Analytics on Products or Services

● Customers buy more when they get what they

are looking for.

● Analytics helps product teams to dig deeper

and identify user needs that might not have
been captured otherwise.

● Example: Details associated with a shirt size,

how it will look on a customer, and which jeans
can be bought along with the shirt do make a
lot of sense for the buyer.
How Google Uses Analytics
 How Google Uses Analytics

Google uses tools and techniques of data analytics to understand requirements based on several
parameters.

Frequency of Search phrases

sites visited used

Data
Timings
downloaded

It uses the collected data to streamline search

results.
 How Google Uses Analytics

Businesses use data analytics while advertising through Google Ads.

Google Ads learns user’s preferences, likes, dislikes, and inclinations.

Based on the preferences, Google shows users tailored

advertisements.
 How Google Uses Analytics

Self-driving cars comprehend situations and make educated

choices using data analytics.
 How Google Uses Analytics

Google shows millions of results for a question ranked in a perfect

order.

It runs complex algorithms to match the query with all the available data and ranks the
results.
 How Google Uses Analytics

Google uses data analytics to refine its core search and ad-serving algorithms and consider these
factors:

Words of Location and

search query settings

Relevance Expertise of
sources
Usability of pages
 How Google Uses Analytics

Google Google Tag Manager

Analytics

Google Analytics 360

Google BigQuery
 How Google Uses Analytics

Google Analytics 360 and Google Analytics enable you to collect data from
websites, mobile apps for iOS and Android, and from the custom data source.

Google Analytics 360 Google Analytics

 How Google Uses Analytics

Google Cloud Service, which lets developers and businesses conduct interactive
analysis, uses Google BigQuery to become faster and cost-efficient.

Google BigQuery Google Tag Manager

Google Tag Manager is a simple, reliable, and easy to integrate tag management
solution that allows management of website tags without editing the code.
How LinkedIn Uses Analytics
 How LinkedIn Applies Analytics

LinkedIn employs data analytics to revamp its job listings, who’s viewed your profile,
and who’s viewed your posts.

Analytics helps to bring and retain millions of new customers.

 How LinkedIn Applies Analytics

LinkedIn identifies the connections, job postings, and skill sets for a user.

CONNECT

POST A JOB

SKILLS

50% of LinkedIn engagement comes from the Jobs you may be interested feature.
How Amazon Uses Analytics
 How Amazon Uses Analytics

Gathers customer Tracks what they buy Compares products

data while they use and their shipping they browsed
the site address

1 2 3

Recommends Builds your profile with Suggests products

products based on available data bought by similar
needs customers

6 5 4
 How Amazon Uses Analytics

Decides what you want to Offers you what similar

buy based on your profile profiles have purchased

Recommendation technology

Amazon regularly fine-tunes the recommendation engine by

collecting data from customers while they browse.
Disney’s Success Story
 Disney’s Success

Disney uses data analytics in innovative ways to improve the customer

experience.

Technology improves customers’ experience and helps to retain them.

 Disney’s Success

Disney World launched its MyMagicPlus program in 2013 where

each guest got a MagicBand equipped with RFID technology.

As guests swiped their bands at a ride, this info shipped real-time to the operations team which
allowed decisions to be made about adding staff or incentivizing guests to head to another ride or
attraction.
Netflix: Using Analytics to Drive Engagement
 Netflix: Using Analytics to Drive Engagement

Netflix has 130 million+ worldwide streaming

subscribers.

It gathers a tremendous amount of data from these subscribers to make better

decisions on its streaming services.

Data analytics helps decide which programs will be of interest and the
recommendation system influences 80% of the content on Netflix.
 Netflix: Using Analytics to Drive Engagement

Netflix ensures it has accurate algorithms for predicting and recommending

content.

In 2009, the company offered a $1 million prize to the group who came up with the
best algorithm for predicting how customers would like a movie based on previous
ratings.
Netflix: Using Analytics to Drive Success
 Netflix: Using Analytics to Drive Success

Data analytics has helped Netflix massively in becoming the best online streaming
platform.
Netflix tracks these factors to identify user
preference:

● Ratings and watched movies

● Pause, rewind, and fast forward

● Day, date, and time

● Devices used

● Searches, browsing history, and scrolling behavior

● Volume, color, and scenery

Netflix: Using Analytics to Drive Success

If a user watch Fast and Furious on Friday, then a similar genre

movie will be displayed as a personalized recommendation for
Saturday.

Orange is the New Black and House of Cards are two examples
of how data analytics is used to understand its subscribers and
cater to their needs.

Netflix spent $100 million to buy House of Cards as it was

confident that the show would be a hit.
Netflix: Using Analytics to Drive Success

By analyzing its data for House of Cards, Netflix

realized:

● A significant percentage of its subscribers had

streamed director David Fincher’s work The Social
Network

● Films featuring Kevin Spacey were always

successful with its audience

● A successful show in Britain starring Kevin Spacey

and directed by David Fincher, for an American
audience, will be a big hit.
 Netflix: Using Analytics to Drive Success

● Netflix has a Personal recommender system

that orders the entire collection in a
personalized way.

● It has a video-video similarity algorithm that

provides an estimate of what a user would like
to watch.

● Netflix is a perfect case study for those who

require an engaged audience to survive.

● Netflix’s approach to content is highly

successful as it renews 93 percent of its
original series.
Media and Entertainment Industry
 Media and Entertainment Industry

Media and entertainment companies are in a unique position to leverage their data assets
for profitable customer engagement.

Data sources that help syndicate content

closely aligned to viewer preferences:

● Viewing history

● Searches, reviews, and ratings

● Location and device data

● Clickstreams and log files

● Social media sentiment

 Media and Entertainment Industry

Gets insights into Provides personalized

audience behavior advertising

Pinpoints customer Makes useful

drawbacks recommendations

Data Analytics
Education Industry
Education Industry

● Data analytics is used from kindergarten

to doctoral level.

● Teachers monitor pupils’ performance

using data analytics and get real-time
information on what has been learned.
 Education Industry

Schools use data analytics to:

Meet education capability Analyze educational need and

and requirements place them at right level

Create tuition Incorporate

system adaptive learning

Frame course material Improve curriculum using

software programs

Quiz the student and

receive immediate
feedback
Education Industry

Data analytics system helps:

● Detect and match grades

● Compare a student’s score with field

requirement

● Pull academic, attendance, financial,

disciplinary, and engagement data

● Enhance student experience by changing the

course of student’s learning
 Education Industry

It is important to have a system that can advise students for best career
paths based on their strengths and weaknesses.

“Everybody is a genius. But if you judge a fish

by its ability to climb a tree, it will live its
whole life believing that it is stupid.”
—Albert Einstein
 Education Industry

IBM has its own project that has been using analytics and helping schools
succeed.

These universities use data analytics to help students by extracting data to

monitor and predict their performance.
Healthcare Industry
 Healthcare Industry

Healthcare industry is one of the most promising areas where data analytics can be
applied.

Reduces costs of Predicts outbreaks

treatment of epidemics

Avoids preventable Improves quality of

Data Analytics
diseases life
 Healthcare Industry

Healthcare business intelligence helps doctors make data-driven decisions and improve patients’
treatment

Example: Data analytics tools can predict potential diabetes patients and can advise preventive
measures.
Healthcare Industry

● Doctors use data analytics to understand the

health issues of a patient as early as possible.

● This helps them identify warning signs of

serious illness and reduce the treatment cost.
Healthcare Industry

● Clinical Decision System software analyzes

medical data and provides advice to doctors
on prescriptive decisions.

● Healthcare wearables help collect patients’

data continuously and stores this data on
cloud.

● In case of any abnormality in health data,

system sends an alert to the doctor in real
time.
Government
Government

● Government makes vital decisions based

on the information received.

● It is difficult to verify the information and

faulty data can have negative
consequences.

● Government use data analytics to help in

welfare schemes & cybersecurity.
Government: Welfare Schemes

● Government accesses information

relevant to their programs and policies.

● Data analytics platform allows

government to pinpoint areas that need
attention.

● It allows the government to make

decisions faster, monitor those decisions,
and quickly enact changes.
 Government: Welfare Schemes

Data analytics helps track and monitor land and livestock in a country to manage
and support farmers and their resources.

Online talent platforms fill traditional jobs quickly by finding the right candidates
for jobs and shorten the duration of unemployment.
Government: Cybersecurity

● Government uses data analytics in

real-time crime mapping, predictive
policing, and catching tax evaders.

● Data analytics is used in

cybersecurity for deceit recognition.

● It helps cyber analysts predict and

avoid the possibility of intrusion and
invasion.
 Government: Cybersecurity

A program called Project Insight tracks social media profiles of people and
expenditure patterns through photographs and videos uploaded on social media.

If purchases and travel expenses are disproportionate to the declared income, IT

officials would be informed of the mismatch and actions would follow.
Weather Forecasting
Weather Forecasting

● Data analytics predicts natural calamity

and helps take actions in advance.

● Data needed for weather forecasting:

○ Barometric pressure
○ Wind speed
○ Precipitation
○ Temperature
○ Humidity

● Experts use predictive analytics to

strategize and help combat global
warming.
Weather Forecasting

● Data analytics helps identify natural

disaster patterns by collecting data on
road condition and rainfall in a year.

● Local authorities use analytics tools to

better anticipate problems caused by
weather.

● It helps make plans to upgrade existing

facilities and predict the availability of
usable water around the world.
 IBM Deep Thunder

IBM Deep Thunder is a research project

that:

● Provides weather forecasting

● Differs from other weather forecasting

systems

● Provides forecasts for extremely specific

locations

IBM is assisting Tokyo with improved forecasting for natural disasters to plan a successful 2020
Olympics.
IBM Deep Thunder

Deep Thunder can provide information

about:

● Severe flood areas

● Tropical storm directions

● Snow or rainfall areas

● Downed power line locations

● Windy areas

● Damaged bridges and roads

● Cancelled flights at specific airports

 Key Takeaways

Data analytics helps businesses uncover valuable insights

and increase efficiency.

Data analytics helped companies like EY, Google, LinkedIn,

Amazon, Disney, and Netflix grow their businesses.

Data analytics is used in different sectors such as media,

education, healthcare, government, and weather
forecasting.
Introduction to Data Analytics
Analytics Framework Case Study and
Upcoming Trends
 Learning Objectives

By the end of this lesson, you will be able to:

Explain the customer analytics framework

Explain the phases of customer analytics framework

List the latest trends in data analytics

Case Study: Ernst & Young
 Customer Analytics Framework

An analytics framework helps perform data analysis in an organized manner.

The framework allows you to focus on the business outcome.

 Case Study: EY

EY created a customer analytics framework for personalized customer experiences

to win more business and drive loyalty in a digital world.
Case Study: EY

To create the customer analytics

framework, company considered
these factors:

● Who are your customers?

● What do they do?

● What do they want?

● How and when to reach them?

Customer Analytics Framework
 Phases of Customer Analytics framework

Data
Modeling
understanding

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Business Data Model

needs preparation monitoring
Business Needs
 Business Needs

Grow Optimize Protect

● Acquire new customers ● Optimize pricing and ● Understand how to

cost to enhance retain customers
● Understand product life customer satisfaction
cycle ● Perform sentiment
analysis
● Develop new products
Data Understanding
 Data Understanding

Data understanding is the second stage in the customer analytics framework.

This stage helps to draw patterns by gaining insight from the data.
 Data Understanding

Data understanding is highly investigative and diagnostic.

Companies look at customer They identify the most valuable

needs and priorities to attract customers who aid their
potential customers. growth.
 Data Understanding

Perform market segmentation for effective marketing and customer engagement by

dividing customers into groups based on:

Age Gender

Interests Availability

Spending habits
 Data Understanding

Sentiment analysis is important to identify the sentiments of the customer through

social media.

Influence score measures the degree of influence of each user.

It can be combined with sentiment measure to identify disgruntled customers.
Data Preparation
 Data Preparation

Take transformation Determine the data

steps

Collect and consolidate Improve data quality

data and completeness

Standardize data
structure
Data Preparation

Perform data mining

Work with structured and unstructured data

Use various tools and software to transform data.

Integrate data from various sources

Modeling
 Modeling

Modeling stage focuses on developing models and can be based on:

Predictive Prescriptive
analytics analytics
 Modeling

Predictive Prescriptive
analytics analytics

It helps understand the It helps predict possible

future and answer What outcomes and answer
could happen? What should we do?

As this phase is iterative, revisiting data preparation phase to refine the data is needed.
 Modeling

Price
Attrition
Optimization
Model
Model

● Helps calculate how demand varies ● Is created through predictive

at different price levels algorithms

● Uses data to recommend prices for ● Helps companies gain better

improving profits understanding and take preventive
measures for employee attrition

Models can also be made for web analytics and sentiment analysis.
 Modeling

Types of training models

Static Dynamic

This model is trained offline This model is trained online

as the model is trained once as the data is fed into the
and used for a while. model to train continuously.
 Modeling

Types of predictions from trained models:

Online Batch

It is also called HTTP It is used for processing

prediction and is used accumulated data when
when timely inference is immediate results are
needed. not needed.
Model Monitoring
 Model Monitoring

Model monitoring is the final stage where you need to establish, monitor, and meet
service-level agreements.

Example: SLAs for analytics might be the maximum time taken to create or deploy a
model.
Model Monitoring

● Data scientists monitor machine learning

models for drift.

● Drift means the data is no longer relevant

or useful as data is always changing.

● Data scientists ensure that the model

inputs look similar to those used in
training.
 Factors in Model Monitoring

Cost Latency Throughput

Model cost needs to It is the delay between the It is the amount of data
analyzed to check whether data transfer instruction successfully moved from
the value generated from and the actual data transfer. one place to another in a
the model is worth the cost. given time period.
Latest Trends in Data Analytics
 Latest Trends in Data Analytics

Cognitive Augmented Graph

Computing Reality Analytics

Automated Open
Machine Learning Source AI
Cognitive Computing
 Cognitive Computing

Cognitive computing is an advanced type of artificial intelligence in the

cybersecurity domain.

It uses machine learning algorithms and deep learning networks to learn from
human interactions and provides actionable insights.
Augmented Reality
 Augmented Reality

According to Gartner Inc., augmented analytics will be the dominant driver of new
purchases of business intelligence and analytics by 2020.
 Augmented Reality

Preparing data

Building models

Augmented Analyzing data

analytics
Graph Analytics
 Graph Analytics

Graph analytics is also known as network analytics and uses graphs to analyze data.

It is used for detecting crimes, spotting frauds, and applying influencer analysis in
social network communities.
 Graph Analytics

Graph analytics highlights dominant edges.

Example: A large number of payments between bank accounts may indicate a

money laundering activity.
Automated Machine Learning
 Automated Machine Learning

Machine
Learning Model

Domain knowledge Computer science Skills

Mathematical expertise

It involves a lot of tasks and it is prone to human errors and bias.

 Automated Machine Learning

Automated Machine Learning

Enables organizations Helps improve return Reduces the amount of

to use existing on investment time taken to capture
knowledge value
 Automated Machine Learning

Automated Machine Learning

Accelerates the Gives power to Delivers the right Exposes the

process of evolving a business users level of same degree of
trained model customization flexibility
Open Source AI
 Open Source AI

Open source software has produced iconic innovations like the Firefox web browser,
Apache server software, and the Linux OS.

In open source AI, AI software libraries and algorithms are freely available to developers
and entrepreneurs.
 Open Source AI

Many cloud-based technologies have their roots in open-source projects.

AI is expected to follow the trend as companies seek collaboration and knowledge sharing.
 Key Takeaways

Customer analytics framework helps perform data analysis

in an organized way and allows to focus on the business
outcome.

Business needs, data understanding, data preparation,

modeling, and model monitoring are the different phases of
the analytics framework.

Cognitive computing, augmented reality, graph analytics,

automated machine learning, and open source AI are some
of the latest trends.