Business analytics and Big DataAuthor: Abhishek kapoorTwitter: @kapoorsunny
What is Business analytics(BA)Quantitative processes for a business to arrive at optimaldecisions and to perform business knowledge discovery.
Types of Business analytics• Statistics Statistics is the study of the collection, organization, analysis, interpretation, and presentation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments.• Prediction Analysis on patterns found in historical and transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision making.• Optimization Process using statistical information and tools provided to fine tune the process. Includes a mathematical modeling, an easy-to-use development and visualization environment, and a state-of-the-art set of optimization algorithms.
Whoa !!!!Every day, we create 2.5 quintillion bytes of data
What is Big dataAccording to wikipediaBig data is a collection of data sets.Larger data sets is due to the additional information derivablefrom analysis of a single large set of related data, as comparedto separate smaller sets with the same total amount of data.Any information provided by any thing is when consolidated is apart of Big Data.
Business optimization and Big Data• Big data inspires new ways to transform processes, organizations, entire industries. creating unique predictive capabilities for intelligent decisions.• Big data can fine tune the business process with the help of tools it provides
Example of Business optimization and Big Data• A large financial institution took separate data warehouses from multiple departments and combined them into a single global repository in Hadoop for analysis.• The bank used the Hadoop cluster to construct a new and more accurate score of the risk in its customer portfolios. The more accurate score allowed the bank to manage its exposure better and to offer each customer better products and advice.
Business Statistics and Big DataTerabyte to Petabyte, structured to unstructured , big datatechnology allows to store and process the data in an businessefficient way. And provide best possible information from data inorder to aid decision making.This includes everything from planning for the collection of dataand subsequent data management to end-of-the-line activitiessuch as drawing inferences from data and presentation ofresults.
Example of Business Statistics and Big DataTechnologies like HDFS (Hadoop filesystem, HBASE, Neo4j)provide ability to store data of any form in a secure and faulttolerant manner.Map Reduce technology can interpret the domain specific dataWith the help of interpreted data, business can make variousdecisions.
Business Prediction and Big DataBig data Tools and application programming interfaces can beused to estimate or predict future patterns using business data.Predictive analytic techniques generally take large amounts ofhistorical big data and detect patterns in said data that can beused to predict the future, often by assigning a probability tohow likely something is to occur. A wide variety of techniquescan be used to build predictive analytic models
Examples Business Prediction and Big DataForecasting estimating quarterly sales, product demand.Neural networks can assess how likely it is that a credit cardtransaction is being performed by the cardholder.Response models can predict how likely a particular person is torespond to a particular marketing offer, based on the success orfailure of offers made in the past.Predictive scorecards can determine the likelihood that someonewill fail to make payments on his or her loan in the coming year.