God we trust, all others must bring data - by Edwards Deming , year 1930'sEdwards Deming said in 1930's or 40 , terms analytic and data scientist. Let's understand why 1930's quotes still exist. When we talk about decision making, the approach may different in many organization. One famous Algorithm still we are considering in real world : "HIPO algorithm " Highest Paid Person Opinion. What happen , whenever any cause in business or organization we make committee for opinion , committee member comes with their own opinion and most of the cases we go with highest pain person opinion (CEO , CFO ..etc) and Sometimes it can be wrong decision for cause. this HIPO algorithm triggered to Edwards Deming quotes , take decision using data don't think decision is right based on level of experience.
Definition :
Business Analytic refers to the tools,techniques and process for continuous exploration and investigation of past data gain insight and help in decision making.
Business Analytic is an integration between science, technology and business context ; that assist data driven decision making.
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| 1. Business Analytic Integration b/w science and business context |
Science is combination of Statistical and mathematical approach. Technology like ERP system which helps to collect multi dimensional data.
Example :
- Bank is very much interest to find whether a particular customer should be given a loan or not.Bank has ERP system , have collected the data over the period. Once having data and bring the analytical tools and assess creak risk of a particular customer using Logistic regression.this example tells , it combination of science ( statistical : regression) and technology (ERP system).
- Every day 350+ millions of photo uploading in Facebook ,Assume we are in tourist company and how this uploaded photo helps.we can gets idea from uploaded photos , identifying the popular place , so that places can gives better market.
- 7 billion shares exchange hand in US equity market every day. People may like to know how many of these exchanges are actually resulting in profit.
- The amount of credit card debt in US which is about $890.91 billion. The total amount of credit card fraud worldwide is about $5.5 billion, which is earlier data. The number of bankruptcies in US in 2014 is 910,000. The question here could be whether we can actually predict the bankruptcies before it occurs.
- The percentage of US credit card holders who have been victims of credit card fraud was about 10 percent. Again whether we can predict fraud before it occurs and every week about 260 million customers visit Walmart stores.
Source :
Predictive Analytic,
IIMBX
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