BUSINESS ANALYTICS

MBA: Semester II

FACULTY : Aarti Mehta Sharma

 What is Business Analytics ?

Business Analytics is the combination of skills, technologies,

applications and processes used by organizations to gain
insight into their business based on data and statistics driving
business planning.
Business Analytics is used to evaluate organization-wide
operations and can be implemented in any department from
sales, product development, customer service and finance.
Business Analytics solutions typically use data, statistical and
quantitative analysis and fact-based data to measure past
performance and influence an organization's business plan.
 Analytics
Analytics is the science of examining raw data with the
purpose of drawing conclusions about that information.
It is used in many industries to make better business
decisions.
Business Intelligence or BI, is an umbrella term that
refers to a variety of software applications used to
analyze an organization's raw data. It is made up of
several related activities, including data mining.
 BI vs BA
BI vs BA Business Intelligence Business Analytics
What happened? Why did it happen?
Will it happen again?
Answers the questions: When? What will happen if we
changex?
Who?
What else does the data
How many? tell us that never thought
to ask?

Includes: Reporting (KPIs, metrics) Statistical/Quantitative

Automated Analysis
Monitoring/Alerting
(thresholds) Data Mining
Dashboards
Scorecards Predictive Modeling
Ad hoc query
Multivariate Testing
 Believers

With an online user base of around 100 million in 2016,

the e-retail business in India is expected to touch the
$100 billion revenue mark by 2020. As per an Assocham
survey, consumer demand is witnessing a market growth
of as much as 40 percent in the ongoing festival season,
as compared to 2015
Capital One : to differentiate among customers based on
credit risk, usage and other characteristics and then to
match customer characteristics with appropriate product
offerings
 Types of Analytics

Descriptive analytics: gains insight from historical data

with reporting, scorecards, clustering etc.
Predictive analytics : employs predictive modeling using
statistical and machine learning techniques
Prescriptive analytics : recommends decisions using
optimization, simulation, etc
 Visualization

Data visualization is a general term that describes any

effort to help people understand the significance of data
by placing it in a visual context.
Patterns, trends and correlations that might go
undetected in text-based data can be exposed and
recognized easier with data visualization software.
For exploration, discovery, insight
It looks like a swirl. There are smaller swirls
at the edges. It has different shades of red
at the outside, and is mostly green at the
inside. The smaller swirls have purple
highlights. The green has also different
shades. Each small swirl is composed of even
smaller ones. The swirls go clockwise. Inside
the object, there are also red highlights.
Those have different shades of red also. The
green shades vary in a fan, while the purple
ones are more uni-color. The green shades
get darker towards the outside of the fan......
 Early Representation
The Cave of Lascaux, France

~15,000 years old

- Tells a story
 Planetary Orbits

Tenth century
Inclinations of the planetary orbits as a function of time.
Oldest known attempt to show changing values
graphically.
 Visualization
better understanding
 Set A
X Y
Set A
10 8.04 12

8 6.95
13 7.58 10
f(x) = 0.5x + 3
9 8.81
11 8.33 8
14 9.96
6 7.24
4 4.26 6

12 10.84
7 4.82 4

5 5.68
Mean 9.000 7.501 2

Standard
Deviation 3.162 1.937
0
Correlation 2 4 6 8 10 12 14 16

Coefficient 0.816
 Set B
X Y
10 9.14
8 8.14
13 8.74
9 8.77
11 9.26
14 8.10
6 6.13
4 3.10
12 9.11
7 7.26
5 4.74
Mean 9.000 7.499
Standard
Deviation 3.162 1.936
Correlation
Coefficient 0.816
 Set C
X Y
10 7.46
8 6.77
13 12.74
9 7.11
11 7.81
14 8.84
6 6.08
4 5.39
12 8.15
7 6.42
5 5.73
Mean 9.000 7.500
Standard
Deviation 3.162 1.936
Correlation
Coefficient 0.816
 Set D
X Y
8 6.58
8 5.76
8 7.71
8 8.84
8 8.47
8 7.04
8 5.25
19 12.5
8 5.56
8 7.91
8 6.89
Mean 9.000 7.501
Standard
Deviation 3.162 1.936
Correlatio
 Set A Set B
14 14

12 12

10 10

8 8
Y
6 6

4 4

2 2

0 0

A picture is worth more than a thousand numbers

2 4 6 8 10 12 14 16 2 4 6 8 10 12 14 16

Set C 14
Set D
14

12 12

10 10

8 8
Y
6 6

4 4

2 2

0 0
2 4 6 8 10 12 14 16 6 8 10 12 14 16 18 20
X X
 MDS

Multidimensional scaling (MDS) is a set of data analysis

techniques that display the structure of distance-like
data as a geometrical picture.

MDS pictures the structure of a set of objects from data

that approximate the distances between pairs of the
objects. The data, which are called similarities measure
dissimilarities, distances, or proximities, must reflect the
amount of dissimilarity between pairs.
MDS - Single Malt
Multi Dimensional Scaling
 Definition

Data visualization is the presentation of data in a pictorial or graphical

format.

It enables decision makers to see analytics presented visually, so they can

grasp difficult concepts or identify new patterns

It helps people to understand the significance of data by placing it in a

visual context.

Patterns, trends and correlations that might go undetected in text-based

data can be exposed and recognized easier with data visualization software.
Comparison
 About Tableau

Is a data visualization tool

Is simple to use
Seamlessly connects to a large number of
sources
Handle large datasets
To download .www.tableau.com/products

1. Desktop : individual users (personal / professional)

2. Server : multiple users, mainly used by organisations
3. Online : saved on the cloud
4. Public : can only save to Tableau Server / data saved to
the cloud / data is for everyone's use
Connect to :
Excel
Access File Types

Statistical files Tableau workbook (.twb) Stores a visualization without a data source
Tableau datasource (.tds) - Stores the server address, password etc. required to access a

Other data datasource.

Tableau Bookmark (.tbm) Stores a connection to a worksheet in another workbook
Tableau data extract (.tde) Stores tableau data as a filtered and aggregated extract.
Tableau packaged workbook (.twbx) Stores extracted data and visualizations for viewing in
Tableau or Tableau Reader
 Getting Started
SOURCE FILES

HELP

VIDEOS

OPEN
Interface.t
wb
Pane Cards
ls
 Interface.twb

1. Examine the spreadsheet & menu bar & tool bar

2. It is a tree map of different quantities of a product
ordered in different states of the US. Hover the mouse
over different states to get info.
3. Go to Show me on top extreme right. Examine the
different types of charts available.
4. Look at the data panel
Abc Nominal data
# - numerical data and geographical data
 Data Types

Tableau divides the data in two main types:

Dimensionsare those fields that cannot beaggregated;
Measures are those fields that can be
measured,aggregated, or used for mathematical
operations.
Connecting to an external data
source

1. Examine the excel file customer orders(File > Open

>)
2. Make a viz of states wrt the quantities ordered
3. Open file in Tableau
Join related data sources

4. Create a new file, by joining the two worksheets.

Concatenate customer number and customer ID
Find the quantity ordered in each state use a tree map &
table
Use Quantity & state
 Data Interpreter

Helps to clean up data

Examine file monthly data in excel ; year 2014 written
on the left
Open file monthly data in Tableau; year 2014 looks odd
Turn on data interpreter; year 2014 disappears
Can now work in tableau
Make a pie chart of monthly sales
Add title, caption and summary
 Making a simple visualization

1. Open the file fieldOrder.twb

2. Note the dimensions and measures
3. Create a table for the different price of products
ordered wrt states
4. Try two different visualizations
5. Use Price, Productcategory, States
6. What is the price for the state of Alabama for all
product categories?
On the next sheet make a viz for Alabama, Price,
Productcategory.
Use the filter card. Push state to filter, click, select
Alabama.
7. Make a comparison of each product category
separately
8. Add title, caption and summary
 CombinedData.xls

What is the average price of goods in each category ?

Draw excel file into tableau.
Look at column headed Category Name
Split Category name into two (use arrows)
Name new columns
Visualize (box and whisker/column?)
Using larger datasets
Data about a superstore
SS.xls
 Exercise : Superstore

1. Open the file and understand the data.

2. Create a bar chart for sales by
date(year), shipping modes and regions
3. Filter for western region
4. Give titles, captions and summary.
5. Change colour of bars
6. Add totals to the top of the bars
1. Open the excel file SS.xls
2. There are three sheets : orders, users and returns. Join the
sheets.
3. Make a line and then bar chart for Year(orderdate) and sales
4. Introduce ship modes(drag to color), region (left of sales)
5. Examine data for only the western region (use filter)
6. Give titles, captions and summary.
7. Change colour of bars
8. Add totals to the top of the bars (Analytics - reference line cell,
Alignment
 Tableau Operators and Built In
Functions

Mathematical Operators

For eg. If there are dates and we want to add 10 days,

then the date + 10 is used
OR
To join two string values together
 Exercise
Create a viz for the value of products ordered by states
i.e Create new field called Value by multiplying price * quantity
Use the file fieldorder.twb
Add row totals and column totals
FieldOrder.twb Calculated Field

Pull ProductCategory to columns

Pull state to rows
Click on the arrow next to Dimensions, select add
calculated field
 In the box give the heading value
Type in the formula Price * Quantity
 Add totals
Analysis Add totals
Pivot tables
 Exercise : Pivot / Cross Tabs / Text table

Make a cross tab for sales using year,

subcategory and then region, add percentages
Use the file SS.xls
Also, What is the average sales for each
subcategory, region wise and thus row wise ?
1. Make a text table of orderdate(year) and product subcategory.
2. Pull sales into the table
3. Put region to the left of product sub category
4. Now add percentages by regions and orderdates
To create a table calculation to show percentages, right-click
theSUM(Sales)field on theMarkscard, and then selectAdd Table
Calculation.
For the Calculation definition, selectpercent of total & Pane
(Down), and then close the Table Calculation dialog box.
Now we see percentages calculated within each sub-category,
duplicated for each year within each region. The numbers within
each highlighted area add up to 100%.
 For averages, Create another sheet :
Find grand totals ---- Analysis Totals Show Grand Totals

Convert to averages
Analysis Totals Total all using - Averages

Change title
Rt Click on the heading Grand Total Format pane appears on the
left side At the bottom is Grand totals label change the label
 Sorting

Sales by State
Option 1 : Use the options in the toolbar ascending /
descending
Option 2 : Hover the mouse over the state pill
Examine the other options available :
Change Quantity to Number of records
Give Title
Filtering
 Types of Filters (Field Order)

The viz is for the sales in different states by product category.

Pull states under filter
1. General : (include or exclude certain states)
2. Wildcard : (match values)
3. Condition: (if quantity < 100)
4. Top : (for the top/bottom 5)
For clearing remove states from filter
or
Worksheet clear clear filter
 Story Telling in Tableau

The Simpsons Vizipedia

https://public.tableau.com/profile/andy.kriebel#!/vizhome
/ElectoralCollege_0/ElectoralCollege
 Story Telling

Communicate stories effectively; Open stories.twb

Create stories with story points with successive
worksheets
There are 3 worksheets
- Product state
- State tree map
- Sales by state
 Click on New Story at the bottom for story telling

Drag ProductState into empty space

Add title Product category by state
Add caption Tree Map
Add By state
Change Story Title
Format .story
First story is ready
 More functions

Change tab color : right click on tab - color - select

Hide / remove worksheets elements go to worksheet