Business

Intelligence,
Business
Analytics and Big
Data
EXTENDED SPECIAL SEM 2019/2020
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Topic Outline

• Changing business environments and

computerized decision support
• Define and describe business intelligence,
business analytics and big data
• Characteristics of business intelligence and
big data

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Business Environments – the
changing landscape
• The environment in which organizations operate today is
becoming more complex
• Tough time for business, too many factors to be taken into
account.
• The complexity creates opportunities on one hand and problems
on the other.

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Business Environments – the
changing landscape
• Factors that change business environment can be divided
into FOUR major categories

1. Market
2. Consumer
3. Technology
4. Societal

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Business Environments – the
changing landscape

1. Market
• Strong competition, expanding global markets
• Blooming/booming digital markets on the Internet
• Innovative marketing methods
• Opportunities for outsourcing with IT support
• Need for real-time, on-demand transactions

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Business Environments – the
changing landscape

2. Consumer
• Desire for customization
• Desire for quality and speed of delivery
• Customer getting powerful and less loyal

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Business Environments – the
changing landscape

3. Technology
• More innovations, new products and new services
• Increasing obsolescence rate
• Increasing information overload
• Social networking

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Business Environments – the
changing landscape

4. Society
• Growing government regulation and deregulation
• Workforce more diversified, older and composed of more
women
• Concerns of homeland security and terrorist attacks
• Increasing social responsibility of companies
• Greater emphasis on sustainability

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Business Environments – the
changing landscape

• In handling the complexity of today’s business environment,

managers are expected to respond quickly and be agile
• Managers need to be
• Reactive
• Anticipative
• Adaptive
• Proactive
• Need to call for many-many informed decisions

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 Business Environments – the
changing landscape
Su
pp
l ie yers
To obtain a competitive edge within an rs Bu

industry sector, organizations must:

• Lock in suppliers and buyers
• Establish alliances Organization

Com
• Lower the possibility of substitute products

nts
tra
peti

En
by enhancing products and services

tor

w
s
• Create barriers/discourage new market

Ne
entrants Substitute

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Decision Making in Business
• Management ~ Decision Making
• Decision making means selecting the best solution from two or
more alternatives
• Management was considered an art because a variety of individual
styles could be used in addressing problems
• Often based on creativity, judgment, intuition, experience rather
than on a scientific approach.

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Decision Making in Business
• Making decision has become a complex tasks in management, due
to the rapidly changing business environments:
 IT has resulted in more and more alternatives to choose from
 Government regulation, political climate makes it difficult to predict results

• Need to make fast decisions, insufficient time to weigh decisions,

errors may cost the business negatively
• Intuition and trial-and-error approaches to managerial decision
making may not be as effective and applicable in today’s business
environment

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And we know this….
• Today’s computerized systems offer capabilities to
facilitate decision support through:
• Speedy computations
• Improved communication and collaboration
• Increased productivity of group members(automated
processes)
• Improved data management (easy retrieval of data)
• Quality support
• Ubiquity

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Structured and Unstructured
Decision Making
• Decision-making processes depends on the degree of “structuredness”

a) Structured processes are routine and typically repetitive problems–

standard solution exists.
• E.g. rule based solution, if only 70% on the seats on a flight from LA to NY
are sold three days prior to departure, offer a discount of X% to non-
business travelers.

b) Unstructured processes are complex, no fixed solution– necessary to

develop customized solutions. Such solutions will require intuition,
judgment, communication and collaboration in manpower and
technologies.
• E.g. How to decide on advertising and promotions

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 What is Business
Intelligence?

https://padlet.com/sulfeeza/27wxxwb6ay1v
 “Technology-driven process for analyzing data and presenting actionable information to
help corporate executives, business managers and other end users make more informed
business decisions. BI encompasses a variety of tools, applications and methodologies
that enable organizations to collect data from internal systems and external sources,
prepare it for analysis, develop and run queries against the data, and create reports,
dashboards and data visualizations to make the analytical results available to corporate
decision makers as well as operational workers.”

Source: http://searchdatamanagement.techtarget.com/definition/business-intelligence;
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 What is Business
Analytics?

https://padlet.com/sulfeeza/roh8worgbj59
A process that involves the use of statistical techniques (measures of central tendency, graphs,
and so on), information system software (data mining, sorting routines), and operations
research methodologies (linear programming) to explore, visualize, discover and communicate
patterns or trends in data that make a measurable impact on business performance.
– Marc J. Schniederjans, Dara G. Schniederjans, Christopher M. Starkey

The combination of skills, technologies, applications and processes used by organizations to gain
insight in to their business based on data and statistics to drive business planning
– Webopedia

The study of data through statistical and operations analysis, the formation of
predictive models, application of optimization techniques, and the communication of
these results to customers, business partners, and college executives.
– Ng Data

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Characteristics Analytics Business Analytics Business Intelligence
Business Performance Planning What is happening? What is happening now? What is happening now?
Role What will be happening? What will be happening? What have we done in the past to
What is the best strategy to deal with deal with it?
it?
Use of descriptive analytics Yes Yes Yes

Use of predictive analytics Yes Yes No (only historically)

Use of prescriptive analytics Yes Yes No (only historically)

Use all three types of analytics No Yes No

Business focus Maybe Yes Yes

Focus on storing and No No Yes

maintaining data
Focus on improving business No Yes Yes
value and performance

(Source: Marc J. Schniederjans, Dara G. Schniederjans, Christopher M. Starkey) Sulfeeza Mohd

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FUTUR
E
Type of Analytics
Prescriptiv
e Analytics
What do I need to
do?
Predictive
Analytics
What will happen?
PRESE

Diagnostic
NT

Analytics
Why is it
happening?

Descriptive
Analytics
PAST

What is happening
?

LOW HIGH
VALUE VALUE
1 Descriptive Analytics

• Describe or summarize raw data and make it

something that is interpretable by humans.
• They are analytics that describe the past.
• The past refers to any point of time that an event
has occurred, whether it is one minute ago, or
one year ago.
• Descriptive analytics are useful because they
allow us to learn from past behaviors, and
understand how they might influence future
outcomes.
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2 Diagnostic Analytics

• A form of advanced analytics that examines

data or content to answer the question “Why
did it happen?”.
• It is characterized by techniques such as drill-
down, data discovery, data mining and
correlations.

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3 Predictive Analytics

• The ability to “predict” what might happen.

• These analytics are about understanding the
future. Predictive analytics provides companies
with actionable insights based on data.
• Predictive analytics provides estimates about
the likelihood of a future outcome.

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4 Prescriptive Analytics

• Attempts to quantify the effect of future

decisions in order to advise on possible
outcomes before the decisions are actually
made.
• Predicts not only what will happen, but also why
it will happen, providing recommendations
regarding actions that will take advantage of
the predictions.
• Go beyond descriptive and predictive analytics by
recommending one or more possible courses
of action. Sulfeeza Mohd Drus
Big Data Analytics Use Cases
So how are enterprises using big data today?

1. 360° View of the Customer

2. Fraud Detection
3. Recommendation Engines
4. Social Media Analysis and Response
5. Operation Analysis

https://www.datamation.com/big-data/big-data-use-cases.html

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1 360O VIEW OF CUSTOMER
• Gaining a full understanding of customer behavior, such as why
they buy, how they prefer to shop, why they switch, what they
buy next, what factors lead them to recommend a company to
others, and what they dislike, is strategic for every company.
• Organizations see big data as providing the opportunity to better
understand and predict customer behaviors, and by doing so,
engage more effectively with their existing and potential
customers and improve the customer experience.

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 O
360 VIEW OF CUSTOMER
a) Personalized Customer Engagements
• A more comprehensive understanding of each customer leads
to greater revenue and lower churn.
• Organizations expect this direct one-on-one personal
experience to accomplish the following goals:
1. Increase revenue by building comprehensive views of customer
behaviors and preferences by segment across all channels
2. Increase customer satisfaction with faster and complete insight
into the individual customer's experience and service levels
3. Improve customer retention by predicting the likelihood of a
customer's departure and delivering customer retention offers
in near real time
Source: IBM Sulfeeza Mohd
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 O
360 VIEW OF CUSTOMER
b) Micro-market Campaign Management
• Organizations increasingly find that targeted messaging to micro-
markets (that is, small segments of their customer base) achieve
higher returns than broad generalized marketing campaigns.
• To do this effectively, though, organizations must accomplish the
following tasks:
1. Capture and analyze consumer sentiment for brand and product
affinities
2. Improve clients' email campaign results through analytics on
customer data that is enriched with email content
3. Improve return on marketing spending with tailored offers and
promotions; reasonable increases in response generally correlate
with an increase in purchases Sulfeeza
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Source: IBM
2 FRAUD DETECTION
• Maintaining data security is critical
• In this era of big data, the average cost of security-related
events is estimated to cost American companies USD40m
per year.
• Worldwide, cybercrime costs people and businesses
USD388b in lost time and money.
• Identity theft is at a three-year high, affecting 12.6m US
consumers and costing more than USD21b each year.

Source: IBM SulfeezaSulfeeza

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 FRAUD DETECTION
• Data breaches not only cost money; they can also drive
down stock prices and cause irreparable brand damage.
Protecting brand reputation and preserving customer
trust are two of the top three organizational goals that
depend on good data protection.
• Data protection is also required by law. More than 50
international laws, such as Canada's Privacy Act and
Germany's Federal Data Protection Act mandate data
protection.

Source: IBM Sulfeeza Mohd

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 FRAUD DETECTION
• To identify and protect against threats, organizations
must enhance traditional security solutions to prevent
crime by analyzing all types and sources of big data
(unstructured and streaming) and sources of under-used
data. In addition, using the associated big data
technologies to augment and enhance the security
solutions through the range of analytical techniques
improve intelligence, security, and law enforcement
insight.

Source: IBM Sulfeeza Mohd

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3 OPERATION ANALYSIS
• Operations analysis focuses on better usage of machine
data. Machine data is any information that was
automatically created from a computer process,
application, or other machine without the intervention of
a human.
• For example:
• System or application logs
• Sensor readings
• Meters
• GPS signals
• Website clickstreams
Source: IBM
• Network packet data Sulfeeza Mohd
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 OPERATION ANALYSIS
Traffic management/Predictive Maintenance
• Riders can in real time estimate the time of arrivals of the
buses at their next stops along their route, or the probability
of delays at stops or travel times at stops at different times of
the day or different days of the week from historical data.
• Travelers can predict the best time and method to travel to an
airport, such as when to leave to catch a flight at the airport
based on current traffic conditions and possible airline delays.
• Predict which equipment is most likely to fail and evaluate the
potential cost of each failure

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Source: IBM
Business Analytics in Practice
Customer Analytics

• A process by which data of customer behavior is used to help make

key business decisions via market segmentation and predictive
analytics.

• Example of applications:
1. CRM - enables measurement of and prediction from customer data to
provide a 360° view of the client
2. Retail – increasing cross-sales, managing customer attrition as well as
migrating customers to lower cost channels in a targeted manner

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Business Analytics in Practice
Human Resources Analytics

• The method of analytics that can help managers and executives

make decisions about their employees or workforce
• Also known as people analytics or talent analytics

• Example of applications:
1. Time to fill a job requisition
2. Estimated attrition for next year
3. Estimated number of candidates to have in the pipeline based on
estimated attrition

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Business Analytics in Practice
Healthcare Analytics
• Activities undertaken as a result of data collected from four areas
within healthcare; namely 1) claims and cost data, 2) pharmaceutical
and research and development (R&D) data, 3) clinical data (collected
from EMRs or EHRs), and 4) patient behavior and sentiment data
(patient behaviors and preferences, (retail purchases e.g. data
captured in running stores)

• Example of applications:
1. Diagnosing illnesses
2. Predicting success rate of new drugs
3. Managing hospital length of stay

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 What is Big
Data?

https://padlet.com/sulfeeza/b2eo6jwux4pv
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Data whose scale, distribution, diversity, and/or timeliness require the use of
new technical architectures and analytics to enable insights that unlock
new sources of business value
– EMC

Big data is high-volume, high-velocity and high-variety information assets

that demand cost-effective, innovative forms of information processing for
enhanced insight and decision making
– Gartner IT Glossary

Big data is a term that describes large volumes of high velocity, complex and
variable data that require advanced techniques and technologies to enable
the capture, storage, distribution, management, and analysis of the
information
– TechAmerica Foundation's Federal Big Data Commission, 2012

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https://www.sciencedirect.com/science/article/pii/S0268401214001066 Sulfeeza Mohd Drus
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https://timesofmalta.com/articles/view/big-data-as-graphs.738522 Sulfeeza Mohd Drus
 Volume Variety
Data Size Different
forms of Data
Sources

Big
Data
Velocity Veracity
Speed of Uncertainty
Change of Data

Value
Business
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1 Volume of Big Data

https://whatsthebigdata.com/2015/08/13/on-brontobyte-data-and-other-big-words// Sulfeeza Mohd Drus

2 Variety of Big Data - type
Structured Semi-structured Unstructured
Data Data Data

• Organized data format • Partial organized data format • Unorganized data

• Data schema is fixed • Lacks of formal structure of a • Unknown schema
• Example: data model • Example:
RDBMS data • Example: Text, audio, video files
XML, JSON files

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2 Variety of Big Data - source

https://www.scnsoft.com/blog/what-is-big-data Sulfeeza Mohd Drus

3 Velocity of Big Data - state

Data
DataIn
Data InMotion
At Use
Rest

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 Velocity of Big Data – speed of growth
3 and accessibility

https://www.linkedin.com/pulse/real-time-stream-processing-big-data-platform-birendra-kumar-sahu
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4 Veracity of Big Data

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 5 Value of Big Data
Volume

Variety

Velocity
Value
Validity

https://blogs.sap.com/2015/09/25/the-value-big-data-in-professional-services-organizations/ Sulfeeza Mohd Drus

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Big Data in business

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Source: http://berkeleysciencereview.com/how-to-become-a-data-scientist-before-you-graduate/ Sulfeeza Mohd Drus
 Data
Analyst
Who are they?
Tasks:
• Data Analysts deliver value to their
• Cleaning and organizing raw data. companies by taking data, using it to
• Using descriptive statistics to get answer questions, and
a big-picture view of their data. communicating the results to help
make business decisions.
• Analyzing interesting trends
found in the data.
• Creating visualizations and
dashboards to help the company Other titles that they go
interpret and make decisions
with the data.
by?
• Depending on the industry, the data
• Presenting the results of a
analyst could go by a different title
technical analysis to business (e.g. Business Analyst, Business
clients or internal teams. Intelligence Analyst, Operations
Analyst, Database Analyst)

Source: https://www.dataquest.io/blog/data-analyst-data-scientist-data-engineer/ Sulfeeza Mohd Drus

 Data
Scientist
Who are they?
Tasks:
• A data scientist is a specialist that
• Evaluating statistical models to applies their expertise in statistics
determine the validity of and building machine learning
analyses. models to make predictions and
• Using machine learning to build answer key business questions.
better predictive algorithms. • The data scientist will uncover hidden
• Testing and continuously insights by leveraging both
improving the accuracy of supervised and unsupervised learning
machine learning models. methods toward their machine
learning models.
• Building data visualizations to
summarize the conclusion of an Other titles that they go
advanced analysis.
by?
• None

Source: https://www.dataquest.io/blog/data-analyst-data-scientist-data-engineer/ Sulfeeza Mohd Drus

 Data
Engineer
Who are they?
Tasks:
• Data engineers build and optimize
• Building APIs for data the systems that allow data scientists
consumption. and analysts to perform their work.
• Integrating external or new • Data engineer ensures that any data
datasets into existing data is properly received, transformed,
pipelines. stored, and made accessible to other
• Applying feature transformations users.
for machine learning models on
new data.
• Continuously monitoring and Other titles that they go
testing the system to ensure
optimized performance. by?
• None

Source: https://www.dataquest.io/blog/data-analyst-data-scientist-data-engineer/ Sulfeeza Mohd Drus

 Required Skillsets

Source: https://www.quora.com/What-is-the-difference-between-a-data-analyst-and-a-data-scientist-1 Sulfeeza Mohd Drus

 Job Prospects

Source: http://www.kdnuggets.com/2015/10/infographic-data-scientist-business-analyst-difference.html Sulfeeza Mohd Drus

Source: https://bigdata-argonauta.it/bigdata-il-data-scientist-e-la-crescita-professionale/ Sulfeeza Mohd Drus
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ADDITIONAL READING
MATERIALS
• http://www.dataversity.net/distinguishing-analytics-business-intellig
ence-data-science
/
• http
://www.itproportal.com/2016/08/18/10-differences-between-data-
science-and-business-intelligence
/

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 CLASS Discussion

1. Discuss how business analytics may assist or have assisted Wal-

Mart.

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Tha
nk