Introduction to Analytics
Alex MeadowsOctober 21, 2015
Contents
What is Analytics?
Why Care?
The Analytics Landscape
Components of Analytics
What is Analytics?
The science (and art!) of applying statistical techniques to
data sets to obtain actionable information
Part of Business Intelligence
Multidimensional disciplineData AnalysisData Modeling
Data Quality
Data Transformation
Data Visualization
Math/Statistics
Machine Learning
Within the past five years it has become more accessible and
easier to use in practice
Usually a latter-stage evolution of business decision making
What Is Analytics?
Obtain good data
Analyze
Turn into a human readable story
Image Source: http://www.dataincolour.com/about
Why Care?
Health CarePredict how long a patient will stay as soon as they
are admitted
Predict what a patient has based on symptoms and past medical
history
ManufacturingPredict when a machine will need maintenance before
it breaks down
Determine better production processes to reduce waste
EducationDetermine what educational techniques provide desired
results
Predict students who need tutoring based on the first few weeks
of attendance
Overlapping Skills
Source: Back In Business, Klimberg, Miori (www.informs.org)
Analytics Components Data Modeling
Providing structure to data based on metadata
Relational Database Normalization (reduction of
duplication)Single source
Data WarehousingIntegration of many sources
Provides cleansed data for reporting/dashboards, analysis, and
analytics
Ontological metadata in plain languageTriple stores (subject,
predicate, object)
Integration of one or many sources
Analytics Components Data Quality
Measuring data to determine if it is fit for purpose
Spot the issues:
Analytics Components Data Transformation
Transforming the data to match business requirements and correct
data quality issues
Before
After
Analytics Components Data Visualization
Graphical representation of data
Useful to tell the story the data provides
Analytics Components Data Visualization
Analytics Components Statistics
Deeper analysis of data to determine hidden trends and make
predictions
Feeds other components of Business Intelligence to make smarter
decisions
Scatterplot Source:
https://teamsite.smu.edu.sg/wiki/stats/Wiki/Linear%20Regression%20in%20STATA.aspx
Analytics Components Machine Learning
Train computers to learn trends and understand data
Provide action to the analytics
Analytic Ladder
Source: Competing on Analytics, 2007, Davenport and Harris
First NameLast NameBirth Date
1TomSmith01/01/89
2BarbaraJone04/12/43
3ThomasSmith01/01/1989
4JessicaMartin03/19/2084
???Page ??? (???)00/00/0000, 00:00:00Page / ???Page ???
(???)00/00/0000, 00:00:00Page / First NameLast NameBirth Date
1TomSmith01/01/89
2BarbaraJone04/12/43
3ThomasSmith01/01/1989
4JessicaMartin03/19/2084
First NameLast NameBirth Date
2BarbaraJones04/12/1943
3ThomasSmith01/01/1989
4JessicaMartin03/19/2084
???Page ??? (???)00/00/0000, 00:00:00Page /
