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ANALYTICS PPT

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.

Machine Learning Mathematical

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

Types of analytics company


. .
Captive Extensions

Standalone

Various Techniques of Analytics


Exploratory Data Analysis

Attribution Modelling
Forecasting Predictive Modelling Classification Design of Experiments Optimization and Simulation Text Mining

Exploratory Data analysis


It helps to get an initial feel of the data

EX: Count, Min, Max, Sum, Range, Std and Variance, Mean
Types:

1)Character 3)Data 5)Ordinal/Ranking 7)Open Text

2)Numeric 4)Binary 6)Mutually exclusive

Types of Data sets

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

1) Value Promotions 2) Volume Promotions 3) Kind Promotions

Credit Risk Modeling


Uses logistical regression technique This model uses the logistical regression model to

find out the credit worthiness of a customer EX- A bank customer


BASEL- 8% of risk weighed asset DPD- Date past due

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

Premium calculation : Prob. of Death*Expected loss

Logistic Regression: using log of odds of claim

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.

Share = part ownership of a company


Fundamental Analysis = Looking at the basics of

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

It puts similar stocks in the same category


Eigen Value- Amt. of information a particular

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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