BUMA L1

Key Players in Analytics Lifestyle

1. Business Manager

2. IT Systems/Management

3. Data Analyst

4. Data Miner

Analytics

• focuses on developing new insights and understanding business performance based on data and statistical methods

• use of quantitative methods for diagnosing the past to predict the future for better business decision making

• to supply information for decision makers

• using statistics

3 Analytics

1. Descriptive Analytics

2. Predictive Analytics

3. Prescriptive Analytics - highest

Applications of Analytics

1. customer acquisition

2. cross-sell/up-sell

3. retention/attrition

4. credit risk

5. customer segmentation

6. market basket analysis

7. fraud detection

8. social network analysis

9. forecasting & optimization

Careers in Business Analytics

Software Tools in Business Analytics

Data Collection

• data is foundation of effective business analytics

• accurate, relevant data leads to better insights and decisions

• understanding data collection methods is crucial for success

• systematic process

Data Collection Preliminaries

measurement is important because of:

• Analysis

• Modeling

• Prediction

• Optimization Management

Primary Data

• going straight to the source

• collected directly from the source for the specific purpose

• data collected at source

• highly relevant, tailored to needs

• costly, time-consuming

Secondary Data

• use of what’s already there

• already exist

• collected for a different purpose

• readily available, inexpensive

• may not be perfect suited to current needs

Data Collection Methods

• Designed Experiment

Designed Experiment

• data is generated through controlled experiments

• data is not readily available to the scientist

• he desig