Chapter 1_.pptx

Practical Analytics Chapter 1: Data Analytics Overview  What is Data Analytics?  Data Analytics can answer these and other questions:  What has happened in the past?  Why did it happen?  What could happen in the future? With wh...

Practical Analytics Chapter 1: Data Analytics Overview  What is Data Analytics?  Data Analytics can answer these and other questions:  What has happened in the past?  Why did it happen?  What could happen in the future? With what certainty?  What actions can we take now to support or prevent certain events from happening in the future?  Can some of the actions resulting from our discoveries be automated?  Can the analytics process by automated? ? © 2020 Epistemy Press All rights reserved. / Page 2  What is Data Analytics?  It is a process that involves  Gathering data that are sometimes not in a usable form  Cleaning up the data to make them usable  Loading the data into storage models  Manipulating them to discover the information © 2020 Epistemy Press All rights reserved. / Page 3  Data Analytics Takes Us from Data to Decision © 2020 Epistemy Press All rights reserved. / Page 4  Data Analytics – The Convergence of Vocabulary  Statistics is used in data analytics  Computer science improves capabilities to perform data analytics  Domain knowledge in every area has its unique vocabulary and analytical applications  Examples:  Medicine and each area within medicine  Public services  Sports and Entertainment  Business  By line of business  By functional area within a business  By geographical location, and so on… © 2020 Epistemy Press All rights reserved. / Page 5  Data Science © 2020 Epistemy Press All rights reserved. / Page 6  Why Study Analytics?  Demand for employees who understand and can analyze data  Huge growth in the amount of data available  Analytics can provide strategic advantages to an organization © 2020 Epistemy Press All rights reserved. / Page 7  Who Uses Analytics?  Data analysis is performed at many levels in the organization  Analytics is performed and used by individuals who may not have formal training © 2020 Epistemy Press All rights reserved. / Page 8  Examples of Business Analytics Examples  Retail – pricing, timing or pricing strategies, discounts, product placement, up-selling and cross-selling of products  Manufacturing – demand forecasting, production planning  Marketing – targeted marketing  Supply chain – vendor selection, optimizing distribution costs  Customer service/help desk – customized service  Forecasting and budgeting  Audit and analysis of internal controls – risk assessment  Governments – resource allocations, tax compliance  Utilities – demand forecasting, management of power supplies  Investors – determine which investments are acceptable © 2020 Epistemy Press All rights reserved. / Page 9  Other Examples of Data Analytics Applications  Science – in just about every area of science, analytics are important for interpretation of data  Medicine – many applications: risk factor identification, treatment plans, disease prevention and control  Sports – player acquisitions, analysis of player performance  Fraud Prevention – credit card fraud  Law Enforcement – criminal activity patterns, resource allocation  Social Media Platforms – identification of “fake news” and falsehoods. © 2020 Epistemy Press All rights reserved. / Page 10  Analytics Methodology within a Framework © 2020 Epistemy Press All rights reserved. / Page 11  Global Bike Company (GB)  Company History  John Davis and Peter Weiss are co-CEOs  Operations in the United States (US) and Germany (DE)  The Business  Professional and prosumer cyclist market  GB sells high quality bicycles and cycling accessories  Sells to retailer partners, not to the consumer directly © 2020 Epistemy Press All rights reserved. / Page 12  GB Business Structure © 2020 Epistemy Press All rights reserved. / Page 13  GB Products © 2020 Epistemy Press All rights reserved. / Page 14  GB – Sample Business Process © 2020 Epistemy Press All rights reserved. / Page 15  Master Data and Transactional Data at GB  Master data are business entities  Customers, vendors, products, employees, fixed assets…  Transactional data are data about an event  Sales, purchases, pay employees, collect payments…  GB uses an integrated system (ERP) for managing operations © 2020 Epistemy Press All rights reserved. / Page 16  Some GBI Employees and Their Business Questions Nina Kane – U.S. Sales Manager  How do I anticipate and compete with new competitors for market share in the prosumer bike market?  What data do I need to evaluate sales, discover trends, and identify opportunities?  How can I motivate my sales team?  Is there value in organizing invitation-only promotional events for our loyal customers?  Are there any delays in our supply chain that have led to lost sales? Donna Vasant – Business Analyst  Are there new markets for GBI products?  Are there new products that GBI could bring to the market? How about bike-integrated video cameras, body-monitoring devices, and a bike trolley to carry pets, babies, and groceries, especially in urban areas?  Is an electric bike a viable and profitable new product?  Are internet sales the future for high-end bikes (instead of or in addition to retail stores)? Will internet sales compete with our loyal customers (distributors)? © 2020 Epistemy Press All rights reserved. / Page 17  Some GBI Employees and Their Business Questions Jessi Mard – Controller  Are profit margins in line with expectations?  Are operational efficiencies affecting profitability?  How can we encourage customers to pay more quickly?  How well can we forecast cash flows and other key accounting indicators?  Are our internal accounting controls effective? Peter Pollard – Production Manager  How can we become more efficient in the manufacturing processes?  Is the quality of raw materials affecting production?  Can the manufacturing plant meet sales demand?  Is the manufacturing facility set up to reduce unnecessary material movements and encourage efficiency in the production process? © 2020 Epistemy Press All rights reserved. / Page 18  Some GBI Employees and Their Business Questions Tony Liu – Shipping Personnel  What percentage of orders are shipping within 24 hours of order receipt? Bruce Hewlett – Shipping Manager  How many orders have not shipped within 24 hours of receipt and why?  How many products were damaged during the packing and shipping process?  Did any orders ship to the incorrect customer or address?  How many orders were damaged by the shipping company?  How many orders did not arrive at the customer’s site on time due to shipping problems and how can those problems be avoided in the future? © 2020 Epistemy Press All rights reserved. / Page 19