Embed Size (px)
DESCRIPTION
Citation preview
What is Analytics?
Regi MathewXavier Institute of Management & Entrepreneurship
Bangalore
2Oct/2012 Regi MathewOct/2012 Regi Mathew
What is Analytics?
The term ‘analytics’ is being used inappropriately to mean any type of data analysis. It could mean marketing research, business intelligence, statistical techniques or data mining.
However, analytics doesn’t mean a collective term of all types of data analysis. There are specific reasons why the term was originated and in use.
In general the difference between these terms can be assessed based on source of data, whether statistics (or OR) is applied, and the size of data.
3Oct/2012 Regi MathewOct/2012 Regi Mathew
What is Analytics?
Criteria:-Statistics/Operations Research:- Whether the analysis involves application of Statistics or Operations Research. Analytics involve application of these techniques.
Source of data:- Data could be collected manually through surveys or collected from secondary sources. The size of this data will be limited. Business also collect data as part of its regular operation. This is less prone to error and large. Analytics involves analysis of this data.
Size of data:- This is related to previous point. Since Analytics use business process data, the size of data is large.
4Oct/2012 Regi MathewOct/2012 Regi Mathew
TechTerm
Stat/ OR
Source of Data
Size of data
Typical Softwares
Data Analysis May be ManualUsuallySmall
SPSS, SYSTAT etc.
Business Intelligence
NoBusiness process
UsuallyLarge
Business Objects, Microstrategy, Pentaho etc.
Data Mining May beBusiness process
Very Large
Clementine, e-miner etc.
Analytics YesBusiness process
Large SAS, R etc.
-Hence, a hallmark of Analytics is application of statistics/OR in industry setting using business process data.
-SAS is the widely used tool. R (open source) is FAST growing.
What is Analytics?
5Oct/2012 Regi Mathew
What is Analytics?
Most importantly, Analytics is not a task but a process. It starts with understanding business problem, data pull & treatment, application of statistics/ OR, presentation of insight/model and implementation.
6Oct/2012 Regi Mathew
What is Analytics?
Some of the existing definitions:- (http://en.wikipedia.org/wiki/Business_analytics)
Business analytics (BA) refers to the skills, technologies, applications and practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning (Beller, Michael J.; Alan Barnett (2009-06-18). "Next Generation Business Analytics". Lightship Partners LLC).
Business analytics can answer questions like why is this happening, what if these trends continue, what will happen next (that is, predict), what is the best that can happen (that is, optimize) (Davenport, Thomas H.; Harris, Jeanne G. (2007). Competing on analytics : the new science of winning. Boston, Mass.: Harvard Business School Press).
