Professional Documents
Culture Documents
DEFINITION
Analytics is the analysis of data emanating from
organizations as part of its business process to generate actionable insights to have better informed decisions to gain competitive advantage.
Pattern recognition
ANALYSIS
APPLICATIONS
BFSI
Whom to lend? Who are the profitable customers? How much to lend? Retail Recency frequency monitoring Loyal customers Buying pattern
Telecom
customer satisfaction and retention percent Profitable customers? No of profitable users added?
Pharma
Drug lifecycle?
Other applications
Supply Chain Marketing HR IT services
Standalone
Attribution Modelling
Forecasting Predictive Modelling Classification Design of Experiments Optimization and Simulation Text Mining
EX: Count, Min, Max, Sum, Range, Std and Variance, Mean
Types:
1) Time Series Compared a variable across time 2) Cross sectional Compare one or more variable at an instant across diff. sections 3) Pannel Consists of both Time series and Cross Sectional Comparison of 2 variables 2 character variable(Cross Tab) 1 Char and 1 Num (Summary over class) 2 Numeric(Corelation)
Attribution Modelling
It is used in situations where there are KPIs and
we want to know what influences them Market Mix Modelling(Application) It is the attribution model too estimate contribution of the elements of marketing mix and environmental factors to sales and market share 1) Product 2) Price 3) Place Marketing inputs/mix 4) Promotion 5) Packaging
6) Season 7) Trend Marketing Evironvent 8) Competition KPIs 1) Sales 2) Market share etc Terminologies in Maket mix modeling Vintage: how long ie Last day-First day Granuality: Difference ie daily, monthly etc Cut-off Date:
Kinds of Promotions
Predictive Modeling
Insurance is about protecting yourself from
financial loss due to an unforeseen event. It is a matter of solicitation A person transfers the risk of loss by paying premium When should we get insured? When we get job When we buy home When we get married
Types of policies Term No savings component(pure risk) Whole Life Whenever you die, nominee gets
money Endowment Saving (Bond market)+ Insurance. Gets money at end of term Unit Linked Savings(stock market) + Risk. Gets money at end of term Pension Risk + Bond/Stock
Whether the policy will have a claim Likelihood of event Probability Odd(Fav./Unfav.) Hazard Log(odds) = a0 +a1x1 + .anxn The logarithm of odds is a linear combination of explanatory variables(provided by insurance company)
Stock markets
Mutual fund Mgt. = Wealth mgt.
company Technical Analysis = Speculator and traders Expected return of stock- Mean of return over a period of time(Ri) Risk- Std deviation of Return
Factor Analysis
Classification Tech. based on correlation
factor contributes to the overall knowledge. More the value, better is factor Simulation- To mimic real data Monte Carlo Simulation- Simulates data based on data like people walking in the store.
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