Analytics Quad 4

Preparing for Career in Analytics
Reach us : info@analyticsquad4.com
Web: www.analyticsquad4.com
2015 Analytics Quad4 Pvt. Ltd. All rights reserved
12/24/2015
Making the cut for Analytics Jobs

When we hire new employees for Analytics we consider following as essential characteristics.
Quantitative Aptitude and Analytical Skills
An understanding that statistics and data analysis techniques are the foundation of Analytics
Knowledge of Statistical Methods
Business KPI Application of statistical techniques to business problems
Language and Communication skills, Team Worker
We consider the following as Good To Have, that will improve a candidates hiring chances.
Awareness towards Analytics Domain
Algorithms and ability to code or pseudo code.
Awareness of commonly used tools and programming languages,
e.g. SAS, SPSS, R Language, Google Analytics, Tableau
12/24/2015
Analytics Career Landscape
12/24/2015
Qualitative skills gaps from an industry perspective

Knowledge Gap
UG Curriculum: Math 101

Probability and Statistics,
Database, Programming,
Networking, MIS/DSS etc
Data Science Industry needs:
Tools like R or SAS, Data
Modelling, Data ETL, Data
Management, Solution
Development, Testing and
Troubleshooting, Visualization,
Communication
Depth and being hands on
Jig Saw Puzzle Syndrome
Only a small proportion of

graduate hires typically develop
depth in one or more areas.
Unaware that there a big

picture that drives every thing
we do.
Almost a Must Have attribute

since solving real life problem
needs analysis from all
perspectives and trouble shooting
skills
Inability to comprehend business

perspective
Tendency to not understand

other technical factors that
impact an individuals work
Traditionally industry (employers)

are expected to fill this
knowledge gap
12/24/2015
Most work in areas of analytics start from data reporting

Analytics is the system of tools and techniques required to generate insight from data.
Analytics is not
just reporting
Just confirmation of
known hypothesis is
not insights
Today
Reporting
Insights
Tomorrow
Additionally it should be,
Scalable
Real-time
Actionable
On cloud
Sure, big data is great

but so is intuitions
Analytical Model
BI Dashboard
12/24/2015
Business Analytics Skill set and challenges
Stats and
Math
Scientific
approach and
Problem
solving
Tools and
techniques
Domain
Expertise
Visualization
and
communicati
on skills
Challenges
Tools are many and need to be
used as needed
Coding to support analysis
Industry has less appetite for
training new hires and they

would like to hire who is ready
to work.
12/24/2015
Business Analytics Work Areas
12/24/2015
In this module, we will recap the following

When we hire new employees for Analytics we consider following as essential characteristics.
Quantitative Aptitude and Analytical Skills
An understanding that statistics and data analysis techniques are the foundation of Analytics
Knowledge of Statistical Methods
Business KPI Application of statistical techniques to business problems
Language and Communication skills, Team Worker
We consider the following as Good To Have, that will improve a candidates hiring chances.
Algorithms and ability to code or pseudo code.
Awareness of commonly used tools and programming languages,
e.g. SAS, SPSS, R Language, Google Analytics, Tableau
12/24/2015
Foundation Topic 01 : Statistical Methods
12/24/2015
Qualitative and Quantitative Data
Data can be Quantitative or Qualitative
Qualitative Data can be listed or categorized but not measured. E.g. Colour
Quantitative data can be assigned a numerical value by virtue of being counted,
ordered or measured. E.g. Class Rank, Revenues
12/24/2015
Scales of Measurement
The scale on which data is observed
can be either of the following three:
QUIZ: Classify scales for the following data

Gender
Nominal (for Qualitative Data)
Age
Ordinal (for Quantitative Data that can be ordered or

ranked)
Language Preference
Interval (for Quantitative Data that can be measured)
There is a fourth scale, Ratio Scale,
used commonly that is of interest in

Physicals and Engineering disciplines
(e.g. Mass, Length). For practical
purposes we will consider it same as
Interval Scale.
Inclination to buy car in next 3 months
E.g. (Certain, Most likely, Less Likely, None)
Temperature
Number of new sales leads in Q4 Week 4.
12/24/2015
Populations : central tendency, variation, skew and kurtosis.

Visualize data in a spatial manner:
Central Tendency most likely behavior of a typical sample? where does this data belong? What animal is it?
Variation how large and varied (spread) is the data?
Skew how biased the population is?
Kurtosis how volatile (uneven) is the data?
Measures of central tendencies and Variation are more commonly used in practice.
12/24/2015
Quick Measures
Measures of Central Tendency
Corpus Christi, TX. Jan 2008 Flight Arrival Delays
Median = Middle value when sorted. Average of two middle values

when sample size is an even number
50
Mode = Most frequently-occurring value. More than one modes

possible.
40
Measures of Variation
Range = difference between Max and Min
30
20
IQR = Difference between third and first quartile (Q3 -Q1)

Quartiles of an ordered data set are the three points that divide
the data set into four equal groups, each group being a quarter of
the data set.
Example: Delays in Flight Arrivals at Corpus
Christie, TX -6, -8, -7, -13, 23, -15, -6, 0, -2, 0, -10,
2, 26, 38
What is the Median Value, Mode and Range?
10
-10
-20
12/24/2015
Quick Measures
Example: Delays in Flight Arrivals at Corpus Christie, TX -6, -8, -7, -13, 23, -15, -6, 0, -2, 0, -10, 2, 26, 38
What is the Median Value, Mode and Range?
Median: Two middle values: -6 and -2. So, median is -4
Mode: Two modes: -6 and 0
Range: 38 (-15) => 53 minutes
IQR
Q(U) = 2
Q(L) = -8
IQR = 2 (-8) => 10
-8 -7
0
-6
-15 -13 -10
-2 0 2
2015 Analytics Quad4 Pvt. Ltd. All-6rights reserved
23
26
38
12/24/2015
Outliers
Outlier is a value that appears to be uniquely
different from the rest of the data set.

Conventionally, an outlier is more than a distance of
1.5 * IQR from Q(L) or Q(U). [Erwin Kreyszig]

In the example at Corpus Christie, the most delayed
flight is 38 minutes late.

Is it an outlier?
If yes, how?
If not, how much of further delay will make it an
outlier?
-8 -7
-6
-15 -13 -10
-6
0
-2
0 2
23
26
38
12/24/2015
Refined Measures
Mean = The mean of a set of observations is their average, that is, the sum of the
observed values divided by the number of observations.

Variance = Averageof the squared deviations from the mean
Standard Deviation = Square root of the variance
For the flight delay at Corpus Christi, compute Mean, Variance and SD
-8 -7
-6
-15 -13 -10
-6
0
-2
0 2
23
26
38
12/24/2015
Statistical Distributions
Frequency Distribution : Flight Arrival Delays
1600
1400
1200
Count
1000
800
600
http://www.headscratchingnotes.net/2011/12/frequency-distributions/
Grouping of data in categories results in distribution.
400
Frequency Distribution (above example)
200
Probability Distribution = instead of frequency, shows the

likelihood of an event in a range.
Probability distributions, and frequency distribution of large

population
sizesPvt.are
curve. In practice, several
2015
Analytics Quad4
Ltd.plotted
All rights as
reserved
common curves are observed. Eg. Normal curve, etc
Delay (minutes)
12/24/2015
>1
00
95
85
75
65
55
45
35
25
15
-5
-1
5
-2
5
-3
5
A Random Variable
For several phenomena, the desired outcome depends on several input parameters,
some of which cannot be controlled.

Therefore, there is an element of chance with respect to final outcome, and the
variable that measures the desired outcome is often called a Random Variable. Also
called Stochastic Variable
Recommended: http://youtu.be/dOr0NKyD31Q
Examples
Delay in flight arrival.
Sales turnover achieved each month
Cost of acquiring a real estate property.
Practical statistics is concerned with identifying and managing factors

that can
12/24/2015
favorably impact the desired outcome (or, value of random variable)
Mean and Variance of Normal curve

Mean is the average value of the population
Variance is a measure of dispersion of values
around the mean, commonly spoken as sigma

squared
In normal distribution, curve is symmetrical
around its mean.

The curve on both sides of the mean has a
property that a span of six sigma covers 99.99%

population
Four Sigma = 99.4%
Three Sigma = 93.3%
Sigma
= 69.1%
2015Two
Analytics
Quad4
Pvt. Ltd. All rights reserved
One Sigma = 30.9%
12/24/2015
Measurement of central tendency

Mean: Arithmetic mean
Mode: The measurement that repeats
For a normal Distribution

mean=median=mode
the largest number of time.

Median: Sort the data and the
measurement or data that falls in the

middle. If even number of data is
available, then take average of the two
middle data
Mode
Median
Mean
Skewed Distribution 12/24/2015
Measurements of Variance i.e. square of
the standard deviation. This is the

measurement of the dispersion of the
data.
Skewness is the measurement of how
skewed the data is to the left or the

right of the mean.
Probability Distribution
Measurement of central tendency
Right Skewed
Left Skewed
High Kurtosis
Kurtosis is the measure of the peaked
ness of the data. Higher the value more

peaked the data is lower the number
more flat the peak is.
Low Kurtosis
12/24/2015
Popular Continuous Distribution
12/24/2015
Foundation Topic 02 : Business KPIs
12/24/2015
23
What do businesses want to know today?

How is my sales trending Y-O-Y?
Are sales team achieving targets?
This quarter, how are revenue stream compared to
last year?
Are my customers satisfied?
Do I have the right supply chain and optimal network
flows?
What Inventory buffer should I hold, and where to
position?
Are my agents taking too much time handling calls?
More .
Internet sources and respective Copyrights
12/24/2015
KPI Definitions
KPI = (K) Key (P) Performance (I) Indicators
A set of quantifiable measures used to evaluate an entity's performance in terms of meeting its strategic and operational
goals.
The entity could be an organization, such as as business function or even an entire company. It could even be a city, state or
a nation.
KPI's could also be tied to a strategic initiative by a business function.

Usually, evaluation of KPIs lead to business decisions.
Examples
Conversion Rate (%), month on month, of opportunities less than 3 months age
Percentage (%) of student with at least one job offer at the close of placement season
12/24/2015
Business need for KPIs

To evaluate outcome of business strategies
To monitor business operations
What do we want
to achieve?
To evaluate investment decisions

To track projects
To establish and update benchmarks
How do we
measure where
we are going?
How far we want to go?

12/24/2015
Examples across business functions

QUIZ: For each example below, determine if the KPI is a percentage, monetary
quantity or non-monetary quantity? And, how a business will use the data?
Net profit rate
Revenue
Profitable customers
Net Promoter Score
On-time delivery
Recommended Reference: http://www.smartkpis.com/
2014 Analytics Quad4 India Private Limited
12/24/2015
Classification of KPIs
Below is the most significant classes of KPIs
Strategic Vs Operational
Leading Vs Lagging KPIs
Directional Vs Actionable
Quantitative Vs Qualitative
Financial Vs Non Financial
There can be other ways of classifying KPIs depending upon the application. For
example in process engineering, one can classify KPIs as those measuring quality of
Input Vs Quality of Output.
KPIs can also be classified by the business function they measure. That is, Sales KPI,
MarComm KPI, Accounting KPIs, Product Design KPIs et al.

12/24/2015
12/24/2015
29
BI and Analytics Applications
12/24/2015
Business intelligence
Its roots go back to the late 1960s
In the 1970s, there were decision
support systems (DSS)

In the 1980s, there were EIS, OLAP, GIS,
and more
Data warehousing and
dashboards/scorecards became popular

in the 1990s
12/24/2015
Definitions
What is BI?
BI Architecture
BI is a set of technologies and processes that use data to

understand and analyze business performance.
What are Analytics?

Analytics is subset of Business Intelligence (BI). Analytics
means extensive use of data, statistical and quantitative
analysis, explanatory and predictive models and fact based
management to drive decisions and actions.
12/24/2015
People : Skills,
Capabilities,
Experience,
Attitude and
Culture
Data
analytics
Process:
Frameworks,
Protocols, SOPs,
Plans, Roles, KPI
Hiring
Training
Certifications
Standards Adoption
Corporate Processes
Engineering Processes
Compliance
Incentives
Technology :
Tools, Techniques,
Infrastructure,
Software Stack
Build
Buy
3 PILLARS OF A SYSTEM
12/24/2015
33
About Us
Shesha Shah,
Founder
AQ4 Delivered BI and Analytics solutions for social media,

retail, banking and healthcare for last 3 year
20+ Years of Research, Industry Solution Development and
Consulting experience with global giants,Yahoo, Travelocity
and Dell
Developed advanced web analytics using pattern recognition

algorithms with predictive model and media mix modelling
and integrated into business
Ph.D. from IISc in domain of Machine Learning with 10

patents and several publications.
Shobhit Mathur,
Founder
Conceptualized, designed and implement product eRx for

India healthcare and analytics
Delivered Solution Architecture, Business Analysis, Process

Management to several global clients
20+ Years of IT services and consulting experience at

Infosys and IBM
Managed large delivery teams across countries and

delivered global applications.
Applied Analytics and Big Data to real time solutions for

telecom services and healthcare and developed a
healthcare product for India market
M.Tech. in Industrial Management and Engineering from

IITK Kanpur
12/24/2015
34
End of presentation
Reach us : info@analyticsquad4.com
Call : +91 97409 31188
Web: www.analyticsquad4.com
12/24/2015
35

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Preparing for Career in Analytics

Making the cut for Analytics Jobs

Quantitative Aptitude and Analytical Skills

Knowledge of Statistical Methods

Business KPI Application of statistical techniques to business problems

Language and Communication skills, Team Worker

Awareness towards Analytics Domain

Algorithms and ability to code or pseudo code.

Awareness of commonly used tools and programming languages,

e.g. SAS, SPSS, R Language, Google Analytics, Tableau

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Analytics Career Landscape

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Qualitative skills gaps from an industry perspective

UG Curriculum: Math 101

Depth and being hands on

Jig Saw Puzzle Syndrome

Only a small proportion of

Unaware that there a big

Almost a Must Have attribute

Inability to comprehend business

Tendency to not understand

Traditionally industry (employers)

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Most work in areas of analytics start from data reporting

Sure, big data is great

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Business Analytics Skill set and challenges

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

training new hires and they

Business Analytics Work Areas

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

In this module, we will recap the following

Quantitative Aptitude and Analytical Skills

Knowledge of Statistical Methods

Business KPI Application of statistical techniques to business problems

Language and Communication skills, Team Worker

Awareness towards Analytics Domain

Algorithms and ability to code or pseudo code.

Awareness of commonly used tools and programming languages,

e.g. SAS, SPSS, R Language, Google Analytics, Tableau

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Foundation Topic 01 : Statistical Methods

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Qualitative and Quantitative Data

Data can be Quantitative or Qualitative

ordered or measured. E.g. Class Rank, Revenues

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

can be either of the following three:

QUIZ: Classify scales for the following data

Nominal (for Qualitative Data)

Ordinal (for Quantitative Data that can be ordered or

Interval (for Quantitative Data that can be measured)

There is a fourth scale, Ratio Scale,

used commonly that is of interest in

Inclination to buy car in next 3 months

E.g. (Certain, Most likely, Less Likely, None)

Populations : central tendency, variation, skew and kurtosis.

2015 Analytics Quad4 Pvt. Ltd. All rights reserved

Corpus Christi, TX. Jan 2008 Flight Arrival Delays

Median = Middle value when sorted. Average of two middle values

Mode = Most frequently-occurring value. More than one modes

IQR = Difference between third and first quartile (Q3 -Q1)