BUSINESS ANALYTICS

Most people use statistics the way a drunkard

uses a lamppost…. More for support than
illumination
------- Mark Twain
Journey of information
systems
 Transaction processing systems

Data Processing Data

 Management information systems

Data Processing Information

 Organizations segmented the business
processes and as such, it split into core business
areas of functional areas.
 To facilitate the managers in each of these
functional areas, functional information system
were built
 Marketing information system
 Finance information system
 Production information system
 HR information system
Enterprise systems

FINANCE MARKETING

ERP
HR PRODUCTION
 Decision support systems (DSS)
 Model base subsystem (MBSS)
 Decision making under certainty
 Decision making under uncertainty
 Decision making under risk
 Database subsystem (DBSS)
 Hierarchical model/ network model/ relational model
 User interface subsystem (UISS)
 Speech based/menu based/ icon based/ command
based
 Expert system
 Knowledge base
 Inference base
 User base
 Updating facility
 Executive information systems
 Dashboards
 Balanced scorecard….
Present scenario

 Traditional information systems fail to answer:

 Why????? (causes of past events)
 Optimal solution (going beyond awareness and aid in
decision making)
 Which are the favorable and unfavorable scenarios in
future?

 Shift is therefore towards not just processing of

data into information but also analysing it to aid
in future prediction
Business Analytics

 Is the combination of various applications

which are applied by the organisations to
analyse the voluminous data so that
managers can get in-depth knowledge from
data to understand the current situation and
also for prediction of future events.

Every dollar a company spends on analytics, it

gets back more than 10 dollars…… (Nucleus
Research)
Difference between MIS and
Business Analytics
 MIS

Data Processing Information

 Business Analytics

In-Depth
Data Analysis
Knowledge
Effective implementation of
analytics
 Constant monitoring
 Analytics methods or models should be consistent
with current organisational strategy
 Competition analysis
As per competitive analytical capability model,
there are four types of competitors:
 Back benchers
 Followers
 Threats
 Stars
 Based on this analysis, organisations build a
competition analysis matrix depicting the
present and future type of competing
organisations
Key to success

 Data
 Method
 Involvement
 Training
 Plan
 Sharing