Dr. Mandaar B.

Pande
Business Analytics and
Dr. Tamal Mondal
Course Content

Business Analytics BA Technology BA - Roles and

BA Approach BA Tools BA Best Practices
(BA) Overview Enabler Responsibilities
• Definition, • Strategy and • OLAP vs OLTP • System Integrator • Features, • Lessons learnt,
• Need, Planning, • Data mining, Data Perspective, Dashboards, • Optimization
• Application, • Methodology, Preprocessing • Tool Vendor • KPIs, viewpoint,
Complexity • Architecture, • Text mining Perspective and • Scorecards, • BA Trends
Gradient, Framework • Frequent pattern • Customer • Forecast, • 4 dimensions
• Role of Business mining Perspective • Measurement (organize,
Analytics in • Clustering Framework measure, impact,
creating business • Time Series innovate),
benefits, Analysis, • Advanced
• How business Predictive data analytics,
analytics meets mining • Social
enterprise intelligence
operation

Business Analytics Sem 2 ITBM 23-25 2

 Evaluations
• Mid Semester Exam: 25 marks

• Data Design Case Study: 15 marks

• Tool-based Case Study (Experiential Learning): 25

marks

3
 The Context
Consider the following problems for various industry
sectors:

1. Optimizing Supply Chain Operations for an

Indian FMCG Company

2. Improving Customer Retention and Revenue

Growth for an Indian Telecom Company

3. Improving operations and marketing

strategies for an Indian Automobile Company
to enhance its overall performance

4. Optimizing Loan Approval and Default

Prediction for an Indian Bank
Business Analytics Sem 2 ITBM 23-25 4
The Context – Case 1
A. Optimizing Supply Chain Operations for an Indian FMCG Company

Introduction
ABC Consumer Goods Pvt. Ltd. is a leading Fast-Moving Consumer Goods (FMCG) company in India.
The company manufactures and distributes a wide range of products, including food items, personal care
products, and household goods. With a vast distribution network and a diverse product portfolio, the
company faces several challenges in managing its supply chain operations efficiently.

Problem Description:
The company is experiencing issues related to inventory management, demand forecasting, transportation
logistics, and production planning. These challenges are hindering their ability to meet customer demands
while maintaining cost-effectiveness.

Business Analytics Sem 2 ITBM 23-25 5

 The Challenges

Demand Forecasting:
a. How can the company improve demand forecasting for its products,
considering factors like seasonality, market trends, and regional variations?
b. How can they use historical sales data and external factors to create more
accurate demand forecasts for various product categories and regions?

Inventory Management:
a. How can the company optimize inventory levels to reduce holding costs and
minimize the risk of stockouts while ensuring product availability for
customers?
b. What inventory control strategies and analytics models should be
implemented to strike a balance between excess inventory and stock shortages?

Business Analytics Sem 2 ITBM 23-25 6

The Challenges
Transportation Logistics:
a. What analytical methods can be applied to optimize the company's
transportation and distribution routes to reduce transportation costs
while ensuring timely deliveries to retailers and distributors?
b. How can they use real-time data to make informed decisions
regarding route selection, vehicle allocation, and order scheduling?

Production Planning:
a. How can the company enhance production planning and scheduling,
ensuring efficient utilization of manufacturing resources and reducing
production lead times?
b. What factors should be considered in optimizing the production
process, such as batch sizes, production cycles, and workforce
allocation?

Business Analytics Sem 2 ITBM 23-25 7

Case Study Deliverables

1 2 3 4 5

Students are expected to Data analysis and modeling Recommendations on the Cost-benefit analysis for This case study offers students
analyze the current supply techniques relevant to demand selection and implementation proposed improvements and the opportunity to apply
chain operations of ABC forecasting, inventory of specific business analytics their potential impact on the business analytics principles to
Consumer Goods Pvt. Ltd. and management, transportation tools and software. company's bottom line. real-world challenges,
provide a comprehensive logistics, and production demonstrating the value of
business analytics strategy to planning. data-driven decision-making in
address the challenges optimizing supply chain
mentioned in the problem operations for an Indian
statement. The deliverables FMCG company.
should include:

Business Analytics Sem 2 ITBM 23-25 8

The Context – Case 2

B. Improving Customer Retention and Revenue

Growth for an Indian Telecom Company

Background
An Indian telecom company, XYZ Telecom, is facing
a critical challenge in retaining its customer base and
ensuring sustainable revenue growth. The company
provides a range of services, including mobile and
broadband, to a diverse customer base across the
country. In recent years, XYZ Telecom has
experienced increased competition, rapidly changing
customer preferences, and rising customer churn rates.

Business Analytics Sem 2 ITBM 23-25 9

 Problem Description:
XYZ Telecom is seeking a comprehensive solution to address the
following challenges:

Customer Churn Prediction:

a. How can XYZ Telecom identify key factors contributing to
customer churn, such as network quality, service plans, or customer
demographics?
The b. How to develop a model that accurately predicts which customers
are at a high risk of churning, allowing the company to proactively
Challenges retain them through personalized offers or improved services?

Customer Segmentation:
c. How can XYZ Telecom segment its diverse customer base
effectively to tailor marketing and service strategies for different
customer groups?
d. What are the characteristics that define these segments, and how
can the company create targeted marketing campaigns to improve
customer satisfaction and loyalty?
Business Analytics Sem 2 ITBM 23-25 10
 Revenue Optimization:
a. What pricing strategies and service bundles can be developed to
maximize revenue while maintaining customer satisfaction?
b. How can XYZ Telecom identify cross-selling and upselling
opportunities to enhance average revenue per user (ARPU)?

Network Quality Improvement:

The c. How to monitor and improve network quality, ensuring that
customers experience fewer service disruptions and higher data
Challenges d.
speeds?
Are there specific geographical areas or network towers that
require immediate attention and investment to provide better
service?

XYZ Telecom aims to take decisions that lead to improved customer

retention, enhanced customer experience, and sustainable revenue
growth.

Business Analytics Sem 2 ITBM 23-25 11

 The Context – Case 3

Problem Description:
An Indian Automobile Company (IAC) is facing several challenges in its
operations and marketing strategies. The company is looking to address these
issues and enhance its overall performance. You are tasked with analyzing the
company's data and providing insights and recommendations. The primary focus
areas are as follows:

Sales and Inventory Management:

• How can the company optimize its inventory management to reduce
overstocking and understocking issues?
• Can you identify patterns and trends in sales data that would help the company
better forecast demand and plan production schedules?

• Customer Segmentation and Targeting:

• Who are the company's most valuable customers, and what are their
demographics and preferences?
• How can the company tailor its marketing campaigns and product offerings to
different
Business Analytics Sem 2 ITBMcustomer
23-25 segments to increase sales and customer satisfaction?13
The Challenges
Quality Control and Warranty Claims:
• How can the company use analytics to identify potential quality issues early in the
manufacturing process and reduce the number of warranty claims?
• What are the most common reasons for warranty claims, and how can the company
address them to improve product quality and customer trust?

Market Expansion and Competitor Analysis:

• What are the potential market segments or geographic regions where the company can
expand its presence and increase market share?
• How does the company's performance compare to its competitors in terms of market
share, pricing, and product features?

Business Analytics Sem 2 ITBM 23-25 14

 The Context – Case 4

Problem Statement: Optimizing Loan Approval and

Default Prediction for "IndianBank"

Background:
IndianBank is one of the leading banks in India, providing
various financial services, including loans, to a diverse
customer base. The bank has been facing challenges in
managing its loan portfolio efficiently. Specifically, they are
looking to improve their loan approval process and reduce
default rates.

Problem Statement:
IndianBank seeks to enhance its loan approval and default
prediction processes. The goal is to streamline the lending
process, reduce default risks, and improve overall profitability.
The bank wants to address the following key questions: Business Analytics Sem 2 ITBM 23-25 16
The Challenges
Loan Approval Process Optimization:
a. How can IndianBank use historical data and business analytics to assess the creditworthiness of loan applicants more
accurately?
b. What factors or variables should IndianBank consider to make informed decisions while approving or rejecting loan
applications?
c. Can business analytics tools be used to automate parts of the loan approval process, making it more efficient and customer-
friendly?

Default Prediction:
a. Can IndianBank leverage analytics to develop a predictive model that identifies high-risk loan applicants at the time of application
submission?
• What historical data and patterns can be analyzed to build a robust model for predicting the likelihood of a loan default?
• How can IndianBank use predictive analytics to adjust loan terms and interest rates for high-risk applicants while keeping the
lending process fair and compliant with regulations?

Business Analytics Sem 2 ITBM 23-25 17

The Challenges
Portfolio Risk Management:
a. How can IndianBank use business analytics to monitor the overall risk exposure of its loan portfolio?
b. What tools and methodologies should the bank employ to ensure a well-balanced loan portfolio that minimizes the risk of
significant losses?
c. How can IndianBank identify and address systemic issues in its loan portfolio to reduce default rates and enhance profitability?

Customer Experience Improvement:

d. How can IndianBank utilize analytics to improve the customer experience during the loan application process?
e. What data-driven insights can be used to simplify and expedite the loan application and approval process?
f. Can analytics help the bank customize its loan offerings based on individual customer profiles and preferences, ultimately
enhancing customer satisfaction and loyalty?

Business Analytics Sem 2 ITBM 23-25 18

 Business Analytics
Overview

Business Analytics is a field that focusses on

• utilizing data, statistical analysis, and advanced
quantitative methods
• to extract meaningful insights and knowledge from
a company's data assets.
• These insights are used to
• inform and support data-driven decision-making,
• solve complex business problems, optimize operations, and
• drive strategic planning and performance improvement.

IBM Perspective: https://shorturl.at/eiyL9 Business Analytics Sem 2 ITBM 23-25 20

Importance of BA in Decision Making

Competitive Advantage: Companies

Informed Decision-Making: that effectively leverage Business
Cost Reduction: By identifying areas
Business Analytics provides decision- Analytics gain a competitive
where costs can be minimized or
makers with objective, data-backed advantage. They can identify market
resources can be allocated more
insights, reducing the reliance on gut trends, consumer preferences, and
efficiently, Business Analytics helps
feelings or intuition. This leads to operational inefficiencies that others
organizations cut unnecessary
more informed and rational decision- might miss, allowing them to make
expenses and increase profitability.
making. strategic moves ahead of the
competition.

Revenue Enhancement: Through Risk Management: Analytics can

data analysis, businesses can identify help in identifying potential risks and
new revenue opportunities, optimize developing strategies to mitigate
pricing strategies, and better target them. This is especially important in
their marketing efforts, resulting in industries where compliance and risk
increased revenue. management are critical.

Business Analytics Sem 2 ITBM 23-25 21

Importance of BA in Decision Making
• Customer Insights: Businesses can use analytics to gain a deep understanding of customer behavior, preferences, and needs. This
enables them to tailor products, services, and marketing efforts to enhance customer satisfaction and loyalty.

• Operational Efficiency: Business Analytics can uncover process inefficiencies, enabling organizations to streamline operations,
reduce waste, and improve productivity.

• Strategic Planning: Data-driven insights are invaluable for long-term strategic planning. Companies can make more accurate
forecasts and set achievable objectives based on realistic data.

• Personalization: Analytics allows companies to provide highly personalized experiences for their customers, whether through
personalized product recommendations, content, or services. This personalization can lead to increased customer engagement and
satisfaction.

• Continuous Improvement: Regularly analyzing data and applying insights ensures that companies can adapt to changing market
conditions and evolving customer demands, leadingBusiness Analytics Sem 2 ITBM 23-25
to ongoing growth and adaptability. 22
BA, BI and Data Science
Point of
Business Analytics Business Intelligence Data Science
Difference
Focus Primarily concentrates on analyzing past and Focuses on reporting, data visualization, Broader field that encompasses data
present data to provide insights for making and monitoring of key performance collection, cleaning, analysis, modeling, and
informed decisions and solving immediate indicators (KPIs) using historical data. It is interpretation. It focuses on predictive
business problems. It's often about optimizing more about presenting data in a user- modeling, machine learning, and uncovering
existing processes and strategies. friendly format for easy consumption by actionable insights from data.
business users.

Methods Commonly uses statistical analysis, data mining, Typically involves data collection, data Data Science employs a wide range of
and quantitative modeling techniques to extract warehousing, dashboard creation, and techniques, from statistical analysis to
insights from structured data. report generation. It does not delve deeply machine learning and deep learning, to
into predictive or prescriptive analysis. discover patterns and trends in data. It also
involves data engineering to manage and
prepare data for analysis.
Purpose It is primarily used for making data-driven Provides a snapshot of the current state of Data Science is about understanding the
decisions in areas such as marketing, finance, the business. It helps answer questions like underlying patterns and making predictions
operations, and strategy. It helps answer "What is happening right now?" and "How for the future. It helps answer questions like
questions like "What happened?" and "Why did it are we doing compared to our goals?" "What is likely to happen in the future?" and
happen?" "What actions can we take to achieve specific
outcomes?"
Tools Common tools include Excel, statistical software Tools include platforms like Tableau, Common tools include Python, R, and
like R and SAS, and data visualization tools like Power BI, and QlikView. libraries like TensorFlow and scikit-learn.
Tableau.

Business Analytics Sem 2 ITBM 23-25 23

Business Analytics over the years - Changing Paradigm

As a student of IT Business Management, it is important for you to understand that knowledge of IT

is extremely important for you to become a successful manager and a leader

In the recent past there has been a significant increase in organizations stressing on business analytics
(BA).

However, before we get into the thick of things as far as BA is concerned it is important to
understand the journey that information systems have taken from merely a transaction processing
system (TPS) to providing cutting edge competitive advantage by applying the BA concepts.

Business Analytics Sem 2 ITBM 23-25 24

Journey of Information Systems
• As the organizations grew in scale, the role of managers started becoming increasingly complex and demanding.

• Organizations felt the need for a specialized system which could provide relevant information to the mangers for
them to take critical decisions at the right time.

• Thus, came Management Information Systems (MIS)

• In MIS, input is data and output is information.
• Implementation of MIS was the first step towards BA

• For the first time, organizations started realizing the true potential of information systems

Data Processing Data Data Processing Information

Transaction Processing System Business Analytics Sem 2 ITBM 23-25 Management Information System 25
 • By applying MIS, managers were able to take the right
decisions based on the right information provided at the
right time.

Journey of • With time, organizations felt the need for proper

Information segmentation of core business processes

Systems • Hence, organizations were split based on core business

processes, such as
• Marketing
• Finance
• HR
• Production

Business Analytics Sem 2 ITBM 23-25 26

Journey of Information Systems
• With such clear segregations organizations appointed functional managers in
each such area (marketing manger, finance manager etc.)
• Thus, the MIS became more specialized.

Information of
Data Processing marketing
related activities

Marketing specific
Management Information System

• To facilitate the functional manager, organizations started implementing various

functional information systems such as
• Marketing Information Systems
• Finance Information Systems
Business Analytics Sem 2 ITBM 23-25 27
Journey of Information Systems

Though the functional information systems provided Thus, came the ERP that is Enterprise Resource Planning,
specific information to all the functional heads, there was which helped to integrate all the key functional areas.
no integration of the functional heads with each other

Business Analytics Sem 2 ITBM 23-25 28

Journey of Information Systems

Marketing

Production
ER Finance
P

HR

Business Analytics Sem 2 ITBM 23-25 29

Journey of Information Systems
While ERP helped in integrating all key functional areas in an organization,

The information systems next took another excellent leap when organizations started implementing
Decision Support Systems (DSS).

The need for DSS emerged from the fact that mangers were working in a highly dynamic and
unpredictable environment.

Decision making under certainty

Thus, there was a need to analyze scenarios from Decision making under uncertainty
different perspectives, including: Decision making under risk

DSS provided the facility of What If analysis that is DSS is interactive in nature.

Business Analytics Sem 2 ITBM 23-25 30

Journey of Information Systems
• DSS has three sub-systems
• Model Base Subsystem (MBSS)
• Database Subsystem (DBSS)
• User Interface Subsystem (UISS)
• MBSS: Helps managers to relate a specific problem to the relevant scenario and
automatically a specific model is referred to for answering the query of a manager
• For example, if the problem deals with
• decision making under certainty, then automatically Linear Programming Models (LPP) will
be referred to for fetching the results
• decision making under uncertainty, game theory models are referred and
• decision making under risk, the PERT/CPM (Program Evaluation and Review
Technique/Critical Path Method) models are referred.
Business Analytics Sem 2 ITBM 23-25 31
Journey of Information Systems
• DBSS: The DBSS provides the facility of proper storage of data. DBSS stores the data by
selecting proper database models such as
• Hierarchical model
• Network model
• Relational model
• UISS: The manager interacts with DSS using UISS
• The UISS can be
• Speech based
• Menu based
• Icon based
• Command based

Business Analytics Sem 2 ITBM 23-25 32

Journey of
Information Systems

• Similarly, more specialized DSS were developed, such as

the executive information systems EIS.
• EIS were designed specifically for the top executives in an
organization
• It helps them to drill down the vast information. It has a
slice and dice facility to do an in-depth analysis
considering various scenarios.
• Expert Systems was another system developed during the
same time.
• Expert Systems has various sub-systems including
• Knowledge Base
• Inference Base
• User base
• Updating facility

Business Analytics Sem 2 ITBM 23-25 33

Journey of Information Systems

• In the next phase, organizations realized the importance of knowledge for

solving the problems
• They felt the need for developing a system where the managers can share their
experience of handling specific problems so that in future other managers can
take help from the experiences recorded in the information systems which can be
referred to for similar future scenarios.
• Therefore, knowledge management systems came into being such as
• Online Community Forums
• Learning Management Systems (LMS)
• Customer Service Knowledge Bases
• Research and Insights Libraries
Business Analytics Sem 2 ITBM 23-25 34
Journey of Information Systems

Business Analytics Sem 2 ITBM 23-25 35

Journey of Information Systems – Present
Scenario
• In the current scenario of VUCA (Volatility, Uncertainty, Complexity and Ambiguity) there is a huge
amount of pressure on managers

• Though the end goal for all managers are the same that is higher profits or lower costs, the VUCA
conditions make it extremely challenging to achieve the given targets for increased profitability and
lowering costs

• For example, the marketing manager needs to be proactive in deciding which products should come to
the market at what time, how to market that product, which products to market online and which ones
offline

• Finance manager needs to access the financial volatility in the environment to gauge the credit risk.

Business Analytics Sem 2 ITBM 23-25 36

Journey of Information Systems – Present
Scenario
• The HR manager needs to recruit the right person and even must predict when a person
may leave the organization in the future.

• The operations manager needs to store minimum inventory which depends on the fact
how he forecasts the future trend, which again is highly volatile and dynamic.

• In today’s world unlike the scarcity of data in the past, there is a deluge of data.

• Organizations are collecting not only huge amount of structured data, but also semi-
structured and unstructured data

Business Analytics Sem 2 ITBM 23-25 37

Journey of Information Systems – Present Scenario

Managers cannot take rational and informed decisions just based on information.

Traditional information systems only process data so that relevant information can
be furnished to the managers.

However, considering the VUCA environment under which most organizations

currently operate, managers need to have insight knowledge of the data.

Applying traditional information systems, the only thing managers can do is

prepare and share reports with the senior management.
Business Analytics Sem 2 ITBM 23-25 38
 Journey of Information Systems
– Present Scenario
• These traditional information systems give information about the current
scenario but do not provide solutions such as
• Why something happened in the past, that is reporting not only
past events, but the reasons behind the issues
• The best possible solution so that the present situation can be better
handled
• What are the favorable and unfavorable scenarios in future, that is
not only an extrapolation of events, but also prediction of future
events based on proper data analysis

• Thus, considering the above facts, organizations need to focus on only on

data processing, but also data analysis thoroughly so that managers can
predict the future.

• This is achieved through business analytics which helps managers to

analyze voluminous data so that in-depth knowledge can be gained to
counter
Business Analytics Sem the23-25
2 ITBM dynamic environment and intense competition 39
Journey of Information
Systems – Present
Scenario

• Business Analytics therefore is a combination of

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

• The focus of BA is on multi-dimensional data analysis

for predicting the future appropriately for managers to
take informed decisions.

• For such data analysis there are various

applications/products/tools such as multi-dimensional
modeling, ETL, data warehouse and data mining.
Business Analytics Sem 2 ITBM 23-25 40
Applications of
Analytics

Analytics has wide applications in various

fields including
• Banking
• Marketing
• Customer Relationship Management
• HR
• Manufacturing (Production and
Inventory)
• Finance
Business Analytics Sem 2 ITBM 23-25 41
Applications of Analytics
• Banking
• Credit and debit cards are an everyday part of consumer spending, and they are an ideal way of gathering information about a
purchaser’s spending habits, financial situation, behavior trends, demographics, and lifestyle preferences.

• Marketing
• Which advertising campaigns are the most effective? How much social media penetration should a business attempt? What
sort of things do viewers like/dislike in commercials? Business analysts help answer these questions and so many more, by
measuring marketing and advertising metrics, identifying consumer behavior and the target audience, and analyzing market
trends.

• Customer Relationship Management

• Excellent customer relations is critical for any company that wants to retain customer loyalty to stay in business for the long
haul. CRM systems analyze important performance indicators such as demographics, buying patterns, socio-economic
information, and lifestyle.

Business Analytics Sem 2 ITBM 23-25 42

 Applications of Analytics

HR Manufacturing (Production and Finance

Inventory)
Although HR is often the punchline of many office Business analysts work with data to help The financial world is a volatile place, and business
jokes, its value in keeping a company successful is stakeholders understand the things that affect analytics helps to extract insights that help
not to be underestimated. Great businesses are operations and the bottom line. Identifying things organizations maneuver their way through tricky
composed of a great staff, and it’s HR’s job to not like equipment downtime, inventory levels, and terrain. Corporations turn to business analysts to
only find the ideal candidates but keep them on maintenance costs help companies streamline optimize budgeting, banking, financial planning,
board. Business analysts help the process by pouring inventory management, risks, and supply-chain forecasting, and portfolio management.
through data that characterizes high performing management to create maximum efficiency.
candidates, such as educational background, attrition
rate, the average length of employment, etc. By
working with this information, business analysts help
HR by forecasting the best fits between the company
and candidates.

Business Analytics Sem 2 ITBM 23-25 43

 Business Analytics – Specific Applications
• Customer Segmentation
• Predictive Analytics
• Supply Chain Optimization
• Fraud Detection
• Market Basket Analysis
• Churn Analysis
• A/B Testing
• Employee Performance Analytics
• Quality Control and Process Improvement
• Sentiment Analysis

These business analytics applications collectively empower organizations to make data-driven decisions, improve operations, enhance
customer experiences, and stay competitive in today's data-centric business landscape.
Business Analytics Sem 2 ITBM 23-25 44
https://www.simplilearn.com/business-analytics-applications-and-use-cases-article
 Business Analytics – Specific Applications
• Customer Segmentation
• Customer segmentation is a vital business analytics application that helps companies group their customers based on shared characteristics
such as demographics, buying behavior, and preferences. By analyzing customer data, businesses can tailor their marketing strategies,
product offerings, and customer service to target specific segments effectively, increasing customer satisfaction and overall profitability.

• Predictive Analytics
• Predictive analytics leverages historical and real-time data to forecast future trends and events. This application is used extensively in
industries like finance, healthcare, and e-commerce for tasks such as predicting stock prices, patient outcomes, and product demand. It
enables proactive decision-making, risk mitigation, and optimization of business operations.

• Supply Chain Optimization

• Businesses utilize analytics to optimize their supply chains by analyzing data related to inventory levels, supplier performance,
transportation logistics, and demand forecasting. By identifying inefficiencies and bottlenecks in the supply chain, companies can reduce
costs, improve product availability, and enhance overall operational efficiency.

Business Analytics Sem 2 ITBM 23-25 45

https://www.simplilearn.com/business-analytics-applications-and-use-cases-article
Business Analytics – Specific Applications
• Fraud Detection
• Fraud detection analytics employs advanced algorithms and machine learning models to identify and prevent
fraudulent activities, such as credit card fraud, insurance fraud, and cyberattacks. By analyzing transactional data
patterns and anomalies, organizations can minimize financial losses and maintain the trust of their customers

• Market Basket Analysis

• Market basket analysis involves examining customer purchase history to discover patterns in product co-purchases.
Retailers use this application to optimize product placement, cross-selling, and promotional strategies. By
understanding which products are frequently bought together, businesses can increase sales and enhance the customer
shopping experience.

• Churn Analysis
• Churn analysis focuses on identifying and reducing customer churn, which is the rate at which customers stop using a
company's products or services. By analyzing customer behavior and feedback, businesses can implement retention
strategies to retain valuable customers and reduce revenue loss.

Business Analytics Sem 2 ITBM 23-25 46

https://www.simplilearn.com/business-analytics-applications-and-use-cases-article
 Business Analytics – Specific Applications
• A/B Testing
• A/B testing is a fundamental analytics application for optimizing digital marketing campaigns and website performance. It involves conducting controlled
experiments by randomly assigning users to different versions of a webpage or marketing content. By comparing the performance of these versions, companies
can make data-driven decisions to improve conversion rates and user engagement.

• Employee Performance Analytics

• Employee performance analytics helps organizations evaluate the productivity and engagement of their workforce. By analyzing data on key performance
indicators (KPIs), attendance, and employee feedback, companies can make informed decisions about talent management, training, and workforce optimization.

• Quality Control and Process Improvement

• In manufacturing and production industries, analytics is employed to monitor product quality, detect defects, and optimize production processes. By analyzing
data from sensors and production lines, businesses can reduce defects, improve efficiency, and minimize waste.

• Sentiment Analysis
• Sentiment analysis, also known as opinion mining, uses natural language processing and machine learning techniques to assess public sentiment and opinions
from sources like social media, customer reviews, and surveys. Companies can gain insights into how their brand is perceived and use this information to shape
marketing strategies and product development.
Business Analytics Sem 2 ITBM 23-25 47
https://www.simplilearn.com/business-analytics-applications-and-use-cases-article
 Business Analytics – Specific Use Cases
Business analytics helps organizations run more efficiently and profitably. Here are five use
cases where business analytics proves its worth in the commercial sector.
• Churn Prevention
• Churn is the customer attrition rate, a percentage of subscribers, or customers who stop doing business
with a company. Successful companies must keep the churn rate low and replace any customer losses that
inevitably occur. Furthermore, it’s more expensive to acquire new customers than it is to retain existing
ones. By using predictive analysis, a business analyst helps identify customer dissatisfaction and the most
likely risks or departure.

• E-Commerce Personalization
• Online businesses, like Amazon, collect, process, and analyze customer data to personalize their
customers’ shopping experiences. By customizing the experience, vendors can make recommendations
and increase the likelihood of further sales.

Business Analytics Sem 2 ITBM 23-25 48

https://www.simplilearn.com/business-analytics-applications-and-use-cases-article
 Business Analytics – Specific Use Cases
• Predictive Maintenance
• Companies must face the inevitability of equipment maintenance, both scheduled and unplanned. Business analysts
work with data to create metrics about maintenance lifecycles to predict future maintenance needs and avoid costly
unplanned downtime.

• Insurance Fraud Detection

• Insurance fraud is costly to companies and their customers alike. This is especially true in the medical insurance
industry, where fraud costs organizations in the US approximately $68 billion a year. Business analysts use big data
to process billions of claims and billing records, enabling investigators to identify and mitigate any fraudulent
activity.

• Automated Candidate Placement

• Hiring new staff comes with its share of risks and uncertainty. Business analysts leverage data-driven recruitment
platforms to get a better picture of any given candidate—improving the likelihood of a successful job match much
faster. In some cases, the information can even help
Business anticipate
Analytics job23-25
Sem 2 ITBM needs before a position is posted 49
https://www.simplilearn.com/business-analytics-applications-and-use-cases-article
 Some statistics on BI software - Worldwide
Revenue is expected to show an
Revenue in the Business Intelligence
annual growth rate (CAGR 2023-
Software market is projected to reach
2028) of 5.83%, resulting in a market
USD 25.73bn in 2023.
volume of USD 34.16bn by 2028.

The average Spend per Employee in

the Business Intelligence Software The global market share of IBM was
market is projected to reach USD 0.00% in 2020.
7.39 in 2023.

In global comparison, most revenue

will be generated in the United States
(US$13,150.00m in 2023).

https://www.statista.com/outlook/tmo/software/enterprise-software/business-intelligence-software/worldwide#revenue
Business Analytics Sem 2 ITBM 23-25 50
https://www.alliedmarketresearch.com/business-analytics-software-market
Journey of Information Systems

The Global Analytics and BI In 2022, the market is growing Analytics and BI Software It encompasses a range of Key features of Analytics and
Software Market is anticipated at a steady rate and with the market is a dynamic and software applications designed BI Software include vendor
to rise at a considerable rate rising adoption of strategies by rapidly evolving sector within to streamline and optimize the management, procurement
during the forecast period, key players, the market is the broader realm of business procurement processes of automation, spend analysis, e-
between 2023 and 2030. expected to rise over the and technology solutions. organizations across various procurement, contract
projected horizon. industries. management, and supplier
collaboration

https://www.linkedin.com/pulse/analytics-bi-software-market-2023-insights-o8fwc/
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Leading Players in Analytics and BI Software
• Who are the world's leading • Informatica
manufacturers in the Analytics • MicroStrategy
and BI Software industry? • Teradata Corporation
• SAS Institute • FICO
• SAP • Information builders
• IBM • Alteryx
• Microsoft • Birst
• Tableau • GoodData Corporation
• Oracle • OpenText
• Qlik
https://www.linkedin.com/pulse/analytics-bi-software-market-2023-insights-o8fwc/
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Leading Players in Analytics and BI Software
• Key players in the Analytics and BI Software market are influential
companies that play a significant role in shaping the industry and driving
its growth. These players are often at the forefront of technological
advancements, product innovation, and market trends.

https://www.linkedin.com/pulse/analytics-bi-software-market-2023-insights-o8fwc/
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Leading Players in Analytics and BI Software
• What Are the Different Types of Analytics and BI Software on the
Market?
• On-Premise
• Cloud-Based

• Types help provide a comprehensive understanding of the diverse

landscape within the Analytics and BI Software market. Keep in mind that
the categorizations can evolve as technology advances and market trends
change. This study presents the production, revenue, price, market share,
and growth rate of each type of product, basically divided into

https://www.linkedin.com/pulse/analytics-bi-software-market-2023-insights-o8fwc/
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Leading Players in Analytics and BI Software
• What are the factors driving applications of the Analytics and BI
Software Market?
• Retail
• Healthcare
• Manufacturing
• Aerospace and Defense
• Transportation
• Consumer Goods
• Others

https://www.linkedin.com/pulse/analytics-bi-software-market-2023-insights-o8fwc/
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 Key drivers of Analytics and BI Software market
• Competitive Forces: Analytics and BI Software Market competition can understand consumer behavior and market trends, enabling more informed
drive innovation, improve quality, and lower prices. Companies striving to decision-making and market development.
gain a competitive edge often lead to market growth and evolution.

• Infrastructure Development: Investment in infrastructure, such as

• Globalization: As Analytics and BI Software markets become more transportation, communication, and energy, can open up new markets and
interconnected on a global scale, businesses can access larger customer bases facilitate economic growth.
and supply chains. Globalization can also lead to increased competition and
opportunities for market expansion.
• Consumer Demand: Consumer preferences, needs, and purchasing power
play a significant role in driving markets. When consumers demand certain
• Demographics: Population growth, aging demographics, and shifts in products or services, businesses respond by producing and offering them.
consumer demographics (e.g., urbanization) can influence market demand
for various products and services.
• Technological Advancements: Advances in technology can create new
markets or revolutionize existing ones. Innovations often drive market
• Environmental Concerns: Growing awareness of environmental issues has growth by creating opportunities for new products, services, and industries.
led to the emergence of eco-friendly markets.

• Economic Conditions: Economic factors such as GDP growth, inflation

• Social and Cultural Trends: Changing societal values and cultural trends rates, and employment levels can profoundly impact markets. Strong
can impact consumer preferences and drive markets. economic conditions generally lead to increased consumer spending and
business investment.

• Market Research and Data: The availability of Analytics and BI Software

market research and data analytics tools allows businesses to better
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 Business Analytics Framework

Raghupathi W, Raghupathi V. Contemporary Business Analytics: An Overview. Data. 2021; 6(8):86. https://doi.org/10.3390/data6080086
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