Applications of Analytics
BM4086 Data Science Fundamentals and Analytics
Business Analytics in Practice
Business Analytics in Practice
Customer Supply-Chain
Relationship and Operations
Finance and
Human Resources
Accounting
Business Analytics in Practice
Customer Relationship
• Customer Segmentation
• Analytics are used to segment customers and identify the best ones
• Identify the high risk customers and help intervene appropriately (e.g. to keep them)
• Marketing and promotion targeting
• Data is analysed to understand customer behaviour, predict their wants and needs
and offer relevant products and promotion priced at levels and timing they know
customers will be willing to pay
• Market Basket Analysis
• Determine which products customers buy together, and how an organization can use
this information to cross-sell more products or services
Example: Wal-Mart customers stock up on certain products in the days leading up to
predicted hurricanes; Pop-tarts sales spike seven fold before storms hit; Pre-hurricane top-
selling item was beer!
Business Analytics in Practice
Customer Relationship
Walmart
View the video then answer the following
• Why Walmart did BA?
• Where did they collect data from?
• Who are in their BA team?
• What was a practical application of BA in Walmart?
Walmart Global Customer Insights and Analytics
https://www.youtube.com/watch?v=rqP5k4DGfqo
Business Analytics in Practice
Supply-Chain and Operations
Effective supply chain organizations apply analytics to:
• Optimize inventory levels and delivery routes
• Segment inventory items by cost and velocity
• Build key facilities in most suitable locations
• Ensure right products are available in the right locations
Example:
Using analytics, carmaker Toyota helped cut down waiting times for the
Food Bank in New York City; In Harlem, waiting time was cut down
from 90 mins to 18 mins – a factor of 5
Business Analytics in Practice
Supply-Chain and Operations
Toyota & Food Bank NYC
View the video then answer the following
• What were the food items Food Bank was trying to distribute
• What were the main challenges
Meals Per Hour
https://www.youtube.com/watch?v=EedMmMedj3M
Business Analytics in Practice
Human Resources
Firms are using analytics to:
• Hiring and promotion
• Identifying characteristics consistent with employee success in the firm’s various
roles.
• Employee retention
• Select valuable employees and identify who are most likely to depart.
Example
Google has analysed substantial data on their own employees to
determine the characteristics of great leaders, to assess factors that
contribute to productivity, and to evaluate potential new hires.
Google also uses predictive analytics to continually update their
forecast of future employee turnover and retention.
Business Analytics in Practice
Human Resources
OCBC
View the video then answer the following
• Where did they collect data from?
• What was a practical application of BA in OCBC?
OCBC HR Analytics Journey
https://www.youtube.com/watch?time_continue=2&v=
6xeyZo9gxNw&feature=emb_logo
Business Analytics in Practice
Finance and Accounting
Firms are using analytics to:
• Determine which factors truly drive financial performance
• Monitor and reduce risk
• Fraud detection
• uncovering patterns consistent with criminal activity.
• Financial modelling
• building trading systems to capitalize on historical trends.
Example
Using SAS Fraud Management, the global financial leader HSBC has achieved
significantly lower incidence of fraud across tens of millions of debit and
credit card accounts, significantly exceeding aggressive objectives.
Business Analytics in Practice
Finance and Accounting
DBS
View the video then answer the following
• What are the 3 ways to prepare for the future of business?
• What advantages did DBS get after leveraging on analytics?
The Future of Business
https://www.youtube.com/watch?v=aty
QTTvFoj0&t=58s
