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Contents
Business Intelligence and Analytics Overview ........................ 3
How Data Analytics Work ....................................................... 6
Why Use Data Analytics? ........................................................ 7
Steps Towards Applying Data Analytics .................................. 9
Research – Heart of Business Intelligence and Analytics ...... 11
The Research – Revenues Pattern ........................................ 15
Major Business Analysis Paradigms ...................................... 16
About the Author .................................................................. 21

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 Business Intelligence and Analytics
Overview
Every business is involved in making decisions almost on
a daily basis. But as strategic decisions are made, how
many times do business owners and managers involve in
what data says? Before I started using data analytics and
intelligence in the day to day running of my businesses
and career, results out of the decision that were made
would be chance based. I was never certain of what the
outcome would be; whether great or unfit. I would only
just keep my fingers crossed expecting the best.
Today, it is so risky to make any move be it a decision in
business without involving findings from data; analyzing
the past, present and future possibilities. Interestingly,
data is all around us though at times we are not certain
of that. This is because practically everything we do now
results into the generation of new data.
Business analytics (BA) refers to the skills, technologies,
practices for continuous iterative exploration and
investigation of past business performance to gain
insight and drive business planning. Business analytics
focuses on developing new insights and understanding of
business performance based on data and statistical
methods. In contrast, business intelligence traditionally
focuses on using a consistent set of metrics to both

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measure past performance and guide business planning,
which is also based on data and statistical methods.1
Business intelligence (BI) comprises the strategies and
technologies used by enterprises for the data analysis of
business information. BI technologies provide historical,
current and predictive views of business operations.
Common functions of business intelligence technologies
include reporting, online analytical processing, analytics,
data mining, process mining, complex event processing,
business performance management, benchmarking, text
mining, predictive analytics and prescriptive analytics. BI
technologies can handle large amounts of structured and
sometimes unstructured data to help identify, develop
and otherwise create new strategic business
opportunities. They aim to allow for the easy
interpretation of these big data. Identifying new
opportunities and implementing an effective strategy
based on insights can provide businesses with a
competitive market advantage and long-term stability.2
Data analytics remains a big game changer for most of
the top companies in the world. I believe those that are
still unable to thrive, they most likely haven’t yet
incorporated analytics in business and their day to day
running.

1
https://en.wikipedia.org/wiki/Business_analytics
2
https://en.wikipedia.org/wiki/Business_intelligence

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Here is evidence of the results from some of the top
companies that have yielded greatly from analytics and
business intelligence.
Coca-Cola. A real example of a company that uses big
data analytics to drive customer retention is Coca-Cola.
In the year 2015, Coca-Cola managed to strengthen its
data strategy by building a digital-led loyalty program.
The director of data strategy revealed; “Data plays an
increasingly important role in marketing and product
development. Consumers do a great job of sharing their
opinions with us – either by phone, email or social
networks – that allow us to hear their voice and adjust
our approach. We often talk about why we have two ears
and one mouth – it’s better to listen more than we speak.
This holds true with our approach on consumer input.
Data is also helping us create more relevant content for
different audiences. We want to focus on creating
advertising content that speaks differently to different
audiences. Some people love music. Other people watch
every sport no matter what time of year. Our brands are
already visible in those spaces, and we’re working hard
to use data to bring branded content that aligns with
people’s passions.”3
Netflix is a good example of a big brand that uses big data
analytics for targeted advertising. With over 100 million

3
https://www.mentionlytics.com/blog/5-real-world-examples-of-
how-brands-are-using-big-data-analytics/

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subscribers, the company collects huge data, which is the
key to achieving the industry status Netflix boosts. If you
are a subscriber, you are familiar to how they send you
suggestions of the next movie you should watch.
Basically, this is done using your past search and watch
data. This data is used to give them insights on what
interests the subscriber most.
Amazon. The online retail giant has access to a massive
amount of data on its customers; names, addresses,
payments and search histories are all filed away in its
data bank. While this information is obviously put to use
in advertising algorithms, Amazon also uses the
information to improve customer relations, an area that
many big data users overlook.
The list above is just representative of several great
companies that have used analytics pretty well to turn
themselves into world giants.

How Data Analytics Work

Companies collect data that they have gathered from
their customers, other businesses, the economy and
other sources that affect them. The collected data is then
processed and categorized depending on what the
organization needs the data for.

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Data is not collected necessarily for a specific purpose or
goal. It can also be gathered to build a historical record
to look at annually. Or, in case something in future pops
up that require some data to be analyzed, such data is
retrieved and analyzed to achieve the objective.
Sometimes it is difficult to get data in a short time for
immediate analysis. Hence, it’s a great practice to always
have exiting data bases where data is stored so that you
can easily access it when urgent data is needed. One of
the most fundamental tricks to use is to always collect
extra data on other variables which might not be of
interest whenever data is collected such that the data is
stored for future use. This is an important practice
because data collection processes can be a bit expensive
sometimes.

Why Use Data Analytics?

Better Understanding of the Market
Before employing analytics, most of the knowledge
concerning your market doesn’t really depict what’s on
ground. Though most business owners find it hard to
collect data about their market audience, with the
advent of modern computing power, and the
development of certain algorithms, it has become

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possible. Though at times, data is collected in a raw form
of which it must be refined to be of use to us.
Hence, data can be collected from very large numbers of
people, far more than we could ever hope to reach when
collecting ‘by hand’. This data reveals information about
entire markets, groups far too large for us to have gained
in-depth knowledge of by other means.
Looking into The Future
Business Analytics is an extremely important area for
predicting the future trends of business. Here is an
example; if you know in advance, which of the customers
are likely to leave you, you can take measures to retain
such customers maybe through campaigns.
Stay on Top of the Game
Most of the global markets are getting opened for
businesses, creating a fierce competition within
companies to market their products, increase their
revenues, grab most of the customers. No industry is now
dominated by one company. Even world-class companies
that are on top of their game spend sleepless nights
wondering what next to do because they know it’s easy
to hit rock-bottom because of the fierce competition.
Almost everyone can access the best technology ever
and hence analytics remaining the piece to complete the
puzzle.

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 Steps Towards Applying Data Analytics
Define your Goal/Objective
This is the biggest step in data analytics. Before you even
start looking at the data, figure out what it is you think
the data could tell you. Imagine what the results could
be. Failure to pay attention to this will lead to collection
of vague data or data that would yield meaningful results
when analyzed. Make sure that you clearly state the
questions whose answers you are looking for first before
embarking on the next stage. It is also critical to involve
the data analyst at this stage so that he advises soundly.
Define Your Data Source clearly
This helps to gain certainty of what to measure and how
exactly to measure it. Knowing your data source enables
you to prepare in advance of data collection processes
that you need to employ. Sometimes it’s hard to
ascertain tools you need to use and this is possible to
know if you firstly understand your data sources(s)
Collect Data
It is possible to have an ongoing data collection process
where for example data is retrieved and analyzed only
when need arises. Though in most instances, data is only
collected at a certain point in time when it is needed. In
case you need to gather data via observation or

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interviews, then develop an interview template ahead of
time to ensure consistency and save time.
Prepare Your Data
Data preparation of course precedes analysis. When I
had just started out to do data analysis on a higher level,
I used to catch myself rushing through the processes
because I needed to see those figures from the survey.
Little didn’t I know that the preparation stage should
actually be allocated more time than analysis itself. This
is so because it saves you time when you get to analysis.
It’s true you either spend time preparing or you will
waste it repairing.
Analyze Data
This is the stage that will give you the statistics or
parameters that you need. It could also be other findings
that aren’t necessarily quantitative. Any mess made at
this stage will turn all the efforts and resources invested
in the previous stages invalid. So utmost care needs to be
well-thought-out here. Though speed is desirable as an
example, one needs to also know that accuracy is more
looked-for. Though there are dozens of known statistical
packages out there, I personally recommend using those
which you can program yourself so that you are in control
of the results that you are looking for. Remember the
idea of beginning with an end in mind.

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Report on Results
This is the last bit of the process that makes
dissemination possible. It should be designed in a way
that makes it user friendly. “Precise to the point” should
be highly considered. Lengthy tables with multiple
figures should not be included in the main body of any
report. This can go to the appendix. Diagrams or graphs
are mostly preferred. But keep in mind that it’s not just
about using any figure but one that is fit. As an example,
if you are comparing more than 5 variables or groups,
avoid using a pie chart. Using the knowledge of data
visualization will not only make your report look great, it
will also make it user friendly; enabling users to quickly
and easily get to appreciate the big picture you are trying
to put out there.

Research – The Heart of Business

Intelligence and Analytics
I came to this conclusion after a rigorous investigation
into the brains of the top world’s companies. These are
corporations that make the most monies. But it all
started when I came across statistics that Africa as a
continent generates less than 1% of the world’s research
according to Charon Duermeijer, PhD (March 2018).

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What made it more interesting was the fact that in 2002,
Africa’s Total GDP was only $1.3 trillion (2.5% of world’s
$54trn). I realized that there is a link between research
and GDP. Going further, it was found out that the top 6
countries in the world that had the highest GDP figures
appeared on the list among the top 7 counties with the
highest expenditure on research as indicated in the table
below.
Research Expenditure Vs GDP Rankings

Research Expenditure GDP

1. USA 1. USA

2. China 2. China

3. Japan 3. Japan

4. Germany 4. Germany

5. South Korea 5. UK

6. India 6. India

7. UK
Source: Wikipedia
The next step I took was to analyze how the world’s top
companies performed businesswise in relation to
expenditure on research. The results were similar to the

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former findings. Companies that spent most on research
in 2017 had the highest proportions of revenue growth
in 2018.
Ranking of the 20 companies with the highest Revenue
(2018) according to Wikipedia

Walmart didn’t even appear on the list of top 20

companies in the world that spent most on research and
was still considered to be in the first position as far as
revenue was concerned. But it’s evident that its revenue
growth was way below average. Meaning, if the trend
continues, it may get knocked off its position as time goes
by.
Special attention was given to 2 competing companies in
the same industry to explore the importance of research

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in business; Apple and Samsung. The two are considered
giants as far as mobile phone manufacture is concerned.

Expenditure on Research in USD Billion

(2017)

14
12
10
8
Apple
6
4 Samsung
2
0
Apple Samsung
USD Billion 10 12.7

Revenue Growth in Percentages (2018)

25.00%

20.00%

15.00%

10.00% Apple

5.00% Samsung

0.00%
Apple Samsung
Revenue Growth 6.30% 21.80%

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It’s evident from the 2 figures above that as a result of
Samsung’s immense expenditure on research as
compared to Apple, more growth was seen in Samsung’s
revenue compared to Apple.
Similarly, if this same trend continues, Samsung is most
likely to come before Apple when listing countries with
the highest revenue base in the world.

The Research – Revenue Pattern

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 Major Business Analysis Paradigms
SWOT Analysis
It’s analysis of four crucial elements of a business'
planning process: Strengths, Weaknesses, Opportunities,
Threats. The mnemonic could be TOWS; there is no
hierarchy of elements, though there is a difference
between those that are “internal” and those that are
“external”.

Internal External
Elements Elements

Strengths Opportunities

Weaknesses Threats

A company has considerable influence over its internal

strengths and weaknesses. If it knows it makes good
products but that its marketing is poor, it can build on (or
simply maintain) the former while improving the latter. It
has less control over external opportunities and threats.
Opportunities have to be identified before they can be
exploited. These are both factors within a company's
control but they depend on what the competition is

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doing: the opportunities rival companies have identified
and are exploiting, and therefore the threat they pose.
However, threats and opportunities do not depend solely
on the behavior of competing companies; legislation,
consumer trends, new technology are among the other
factors that should be considered.
SWOT analysis is a catchy term for basic common sense.
Its potential usefulness depends on how accurate and
intelligent the analysis is. Its actual usefulness depends
on what is done as a result of the analysis. Ultimately it
derives from the investigation of a wide range of factors
that include, among other things, labor output,
distribution, sales, the size of the market, and so on.
If the data produced as a result of the investigation is of
good quality, the value of SWOT analysis then depends
on the judgements made and actions taken on the basis
of the analysis. A company that concludes it is stronger
than it is may underestimate the real threats to it. A
company that fails to take advantage of an opportunity
may find itself weaker as a result.
Risk Analysis
In business, this entails evaluation of the risk involved in
a course of action. Most business decisions involve
uncertainty or risk. It is therefore important to assess the
risk of, say, an investment in an expansion project, before
making a decision to go ahead with it.

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The two crucial elements of the analysis are the
identification and quantification of the risks.
Identification depends to a large extent on information;
for example, the real costs of following a course of action.
Quantification depends on a combination of
mathematics and judgement. Calculating the maximum
and minimum risk is relatively easy; what matters is the
accurate judgement of the real risk: the boundaries
within which the likely outcome will fall. In quantifying
risks, it is important for a company to determine what
control (if any) it has over them.
The quality of information a company has can be
improved by spending money on research; for example,
conducting a survey to determine the probable market
share of a new retail outlet in a specific location. Of
course, money spent on getting more and more perfect
information adds to the cost (and therefore reduces the
pay-off) of following the course of action to which the
information relates. Therefore, another judgement often
has to be made that balances the desirability of having as
perfect information as possible against the cost of
obtaining it.
Risk analysis is not a static process. Assessments need to
be revised as new information becomes available; for
example, changes in costs or the level of competition.
Often several options are analyzed and their risks and
pay-offs compared; for example, the risks and expected

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pay-offs of opening a big shop compared with opening a
smaller one. One of the options that always exists is to
do nothing, and put the money in the bank where it will
earn interest.
The process of risk analysis is all about calculating
probabilities. The ultimate decision will depend on how
risk-averse those responsible for it are. Optimists will
choose the option with the highest possible pay-off.
Pessimists will favor the one with the lowest possible
loss.
Cost-Benefit Analysis
This is evaluation of all the costs and benefits of a project.
It can also be used to decide whether to keep or scrap
something in existence. This is of great importance to
your business in that the analysis can also take into
account not only conventional income and costs but also
social benefits and costs.
It can be an extremely complex and difficult exercise, as
there is no market price that can be used as a yardstick
when measuring social effects. How should increased
safety risks, the diminution of an area of natural beauty,
the loss of a habitat of a rare species of wildlife, or higher
noise and air pollution levels be evaluated against, say,
the convenience of, and the economic benefits that will
result from, a new road?

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Cost-benefit analysis is often employed in evaluating the
options for, say a new motorway or airport, but, because
there will always be disagreement over the price put on
the social “costs”, the final decision is just as likely to be
taken on political grounds than on the basis of the cost-
benefit analysis.
Companies also use cost-benefit analysis. In addition to
carrying out a normal investment appraisal that will take
into account the viability of a project should the forecasts
prove wrong, less easily measured factors might include
how the workforce will react to moving to a new factory.
Cost-benefit analysis may also take into account the
opportunity costs of alternative courses of action; for
example, the income lost by not going ahead with a new
project and the income lost by not leaving the money in
the bank to earn interest.

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 About the Author
Charles Natuhamya is a
statistician by profession and a
data analysis and research
expert. He holds a Bachelor of
Statistics from Makerere
University and is a candidate of
Master of Biostatistics at the
same institution where he is a
research fellow.

Over the years, he has not only

momentously contributed to the world of research but has
also dedicated his life to enhancing knowledge through
writing. Charles has worked on several projects with different
organizations both locally and globally for over four years
mainly as a Data Analyst, Researcher and Writer.

In case of any information, suggestions, queries or criticisms,

kindly use natuhamyac@gmail.com or call +256 704 157594
or +256 784 157594. Your feedback is invaluable.

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