business analytics group assignment the potential risks a company may face when launching a new product

Part I of the report is the answer for general questions related to Business Analytics which includes concepts of Business Analytics possible techniques used for Business Analytics.. Mor

- NATIONAL ECONOMICS UNIVERSITY

Faculty Of Economic Mathematics

BUSINESS ANALYTICS

GROUP ASSIGNMENT

GROUP MEMBERS:

NO NAME STUDENT ID

1 Dinh Thi Ha Phuong (leader) 11194179

2 | Nguyễn Thị Phương 11194251

3 | Dao Thi Thu Phuong 11194176

4_ | Nguyễn Minh Anh 11190278

5 | Nguyễn Linh Chi 11190836

6 |Hà Long Giang 11191393

LECTURER: MR NGUYEN MANH THE

SUBMISSION DATE: 12th FEBUARY 2023

Contents

PARTI: REVIEW THE NECESSARY MATRERIALS -c<S<<<<<+ 4

1 Concepts of Business Analytics: classification and distinction from Business Analysis or Business Data AnaÌyflCS Ăn HT TH TH TH TH TH TH HH 4

2 Possible techniques that can be used for Business Analytics: method and example for dernOnSfTAfIOH - 5 25 S4 + S3 +31 911111113113 11H Hà HH TH HH 5

3 Example of situation in which an organization use the techniques of business analytic 6

PART 2: CASE STUDY ANALYSIS OE GIS COMPANY 10

1 Understand the case stUdy LH cS SH HH HH HH TH TH HH HH re 10 1.1 Summarizing the situation of GIS is facing, analysing some key points that may influence the company’s business 0uf€OTNe 5 +5 + 2< ++2E£+s+ssxeserseerses 11 1.2 The potential risks a company may face when launching a new product

13 1.3 Special challenge for the software DfOVIđe€fS - -<S<<<<+++ 15

2 SuggestHon for GI§ - LG LH HH HH TH HH HH HH HH HH 16 2.1 The decision tree evaluates all possible options of GIS 16 2.2 Recommended strategy for GIHŠ - -S-SSS Sky 17

INTRODUCTION

Everyone makes decisions Individuals face personal decisions such as choosing a college or graduate program, making product purchases Managers make decisions including what products to make and how to price them, where to locate facilities, how many people to hire, where to allocate advertising budgets, whether to outsource a business function or make a capital investment Many of these decisions have significant economic consequences; moreover, they are difficult to make because of uncertain data and imperfect information about the future Thus, managers need good information and assistance to make such critical decisions that will impact not only their companies but also their careers What makes business decisions complicated today is the overwhelming amount of available data and information Data to support business decisions are growing exponentially and becoming increasingly difficult to understand and use This is one of the reasons why analytics is important in today’s business

environment

The aim of the report is to navigate to understand the basic concepts of Business Analytics and take advantage of all necessary materials to solve the case of GIS company which is a software company working on a project that is estimated to bring to GIS business a massive revenue While there are also many dilemmas which need to be dealt

with

Part I of the report is the answer for general questions related to Business Analytics which includes concepts of Business Analytics possible techniques used for Business Analytics Moreover, brainstorming and creating an imaginative situation in which an organization can use the techniques of business analytics to create more efficient operation then proposing the method for doing this are also detailly described in the effort of using mentioned techniques for identifying the best markets to invest money in for advertising our courses

Part II is the deep navigation into the GIS situation consisting of summarizing, analysing the case and the risks that have impact on GIS in and other companies in general After that, considering the strategy for GIS, building a decision tree to evaluate all possible options are conducted to make the company’s dilemma clear by suggestions

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PART I: REVIEW THE NECESSARY MATERIALS

Business Analytics are mentioned everywhere on the internet and business environments With the purpose of distilling important information, part I of the report

is the result of navigation, searching, collecting all knowledge related to Business Analytics

1 Concepts of Business Analytics: classification and distinction from Business Analysis or Business Data Analytics

Business analytics is also known as data analytics It is a process of collecting, evaluating, and drawing valuable outcomes from the enormous amount of data available Some widely used applications of Business Analytics are Finance, Marketing,

Banking

Business Analysis Business Analytics Common e« Examine and enhance businesses

e Determine solutions to issues

e Establish things based on the requirements

Difference | It mainly aims at the methods and] It aims at data and reporting

determining the business needs

It is employed to figure out the organizational needs and_ possible problems to have productive outcomes

It is widely practiced to reckon further stats and make decisions

to bring improvements in the

business

The tasks are carried out by Functional It is widely practiced to reckon

Analysts, Systems Analysts, and| further stats and make decisions

Business Analysts to bring improvements in the

business

Business, functional, and domain skills | Mathematical, statistical, and

are needed to perform business analysis programming skills are needed

for executing business analytics

The architectural domains for business | The architectural domains for

analysis include enterprise architecture, | business analytics include data process architecture, technology | architecture, technology

architecture, and organization | architecture, and information

architecture architecture

2 Possible techniques that can be used for Business Analytics: method and example for demonstration

Techniques needed in Business Analytics:

e Descriptive Analysis:

Descriptive analytics uses historical data and interprets it in a way to better understand any changes that take place in a business Key data sets that are commonly used in descriptive analytics are changes in price, patterns in sales growth, user data, and

subscriber-related revenue

This form of big data tries to answer the question "What happened?" Having said that, business leaders can use this information to recognize their strengths and weaknesses This allows them to make better decisions and enhance their business strategies

Descriptive analytics can be a useful business solution when used in conjunction with other forms, such as prescriptive analytics

¢ Predictive Analytics:

Predictive Analytics tries to surmise what could happen in the immediate future by using historical data and making predictions about the future Businesses can use this form of data analytics to find opportunities for growth and improvement as well as the chance to recognize risks that need to be addressed

¢ Prescriptive analytics:

Prescriptive analytics is a type of data analytics that attempts to answer the question

"What do we need to do to achieve this?" It involves the use of technology to help businesses make better decisions through the analysis of raw data Prescriptive analytics specifically factors information about possible situations or scenarios, available

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resources, past performance, and current performance, and suggests a course of action or strategy It can be used to make decisions on any time horizon , from immediate to long- term It is the opposite of descriptive analytics, which examines decisions and outcomes after the fact

¢ Diagnostic Analytics:

This type of data analytics tries to ask the question "Why did this happen?" As such,

it requires much more diverse data inputs But there's a little guesswork involved because businesses use it to find out why certain trends pop up For instance, it tries to figure out whether there's a relationship between a certain market force and sales or if a certain ad campaign helped or hurt sales of a particular product

3 Example of situation in which an organization use the techniques of business analytic

As we work for an e-learning firm that provides programming classes, we'll try to identify the two finest markets to promote our product in Although web and mobile programming make up most of our courses, we also teach a wide range of other topics, including data science and game development

We use descriptive analytics for solving problems To figure out what are the best markets to invest money in for advertising our courses We'd like to know:

e Where are these new coders located?

e What are the locations with the greatest number of new coders?

e How much money new coders are willing to spend on learning?

3.1 Checking for Sample Representation

Determine whether the data collection contains the appropriate kind of people for our objectives Each participant's interest in a particular position is shown in the

‘JobRoleinterest’ column From quick scan, we have:

e A lot of people are interested in web development (full-stack web development, front-end web development and back-end web development)

e A few people are interested in mobile development

e A few people are interested in domains other than web and mobile development How many people are interested in a single subject and how many have mixed interests?

Only 31.7% of the participants have a clear idea about what programming niche they'd like to work in, while many students have mixed interests But given that we offer courses on various subjects, the fact that new coders have mixed interests might be good for us

How many respondents chose at least one of these two options?

Most people in this survey (roughly 86%) are interested in either web or mobile development These figures offer us a strong reason to consider this sample representative for our population of interest We want to advertise our courses to people interested in all sorts of programming niches but mostly web and mobile development

3.2 New Coders - Locations and Densities

45.7% of our potential customers are in the US, and this definitely seems like the most interesting market India has the second highest customer density, but it's just 7.7%, which is not too far from the United Kingdom (4.6%) or Canada (3.8%)

This is useful information, but we need to go more in depth than this and figure out how much money people are willing to spend on learning Advertising in high-density markets where most people are only willing to learn for free is extremely unlikely to be profitable for us

3.3 Spending Money for Learning

Our company sells subscriptions at a price of $59 per month, and for this reason we're interested in finding out how much money each student spends per month We'll narrow down our analysis to only four countries: the US, India, the United Kingdom, and Canada We do this for two reasons:

e These are the countries having the highest frequency in the frequency table above, which means we have a decent amount of data for each

e Our courses are written in English, and English is an official language in all these four countries The more people know English, the better our chances to target the right people with our ads

United States of America 227.997996

Canada 113.510961

The results for the United Kingdom and Canada are a bit surprising relative to the values we see for India If we considered a few socio-economical metrics (like GDP per capita), we'd intuitively expect people in the UK and Canada to spend more on learning than people in India

It might be that we don't have enough representative data for the United Kingdom and Canada, or we have some outliers (maybe coming from wrong survey answers) making the mean too large for India, or too low for the UK and Canada Or it might be that the results are correct

3.4 Dealing with Extreme Outliers

Money Spent Per Month Per Country

(Distributions)

17500

15000

12500

10000

7500

5000

2500

US UK india Canada

Country

We can see a few extreme outliers for India (values over $2500 per month), but it's unclear whether this is good data or not Maybe these people attended several bootcamps, which tend to be very expensive

Also, the data shows that eight respondents had been programming for no more than three months when they completed the survey They most likely paid a large sum of money for a bootcamp that was going to last for several months, so the amount of money spent per month is unrealistic and should be significantly lower (because they probably didn't spend anything for the next couple of months after the survey) Consequently, we'll remove all these eight outliers

We'll remove respondents that:

« - Didnt attend bootcamps

e Had been programming for three months or less when at the time they completed the survey

Looking again at the last box plot above, we can also see an extreme outlier for Canada — a person who spends roughly $5000 per month Let's examine this person in more depth

Age AttendedBootcamp BootcampFinish BootcampLoanYesNo BootcampName BootcampRecommend ChildrenNumber GityPopulation CodeEventConferences CodeEven|

million

The situation is similar to some of the US respondents — this participant had been programming for no more than two months when he completed the survey He seems to have paid a large sum of money in the beginning to enroll in a bootcamp, and then he probably didn't spend anything for the next couple of months after the survey We'll take the same approach here as for the US and remove this outlier

Recompute the mean values and generate the final box plots:

India 65.758763

United States of America 142.654608

Money Spent Per Month Per Country

(Distributions)

~ +

cs +

>S 5000 +

Ta)

S 4000 ‡

E = 3000

+

¬

s i ;

> 1000

S o 1

Country 3.5 Choosing the Two Best Markets

Obviously, one country we should advertise in is the US Lots of new coders live there and they are willing to pay a good amount of money each month (roughly $143)

We sell subscriptions at a price of 59 per month and Canada seems to be the best second choice because people willingly pay roughly 93 per month, compared to India (66) and UK(45)

The data suggests strongly that we shouldn't advertise in the UK, but let's take a second look at India before deciding to choose Canada as our second-best choice:

« 59 doesn't seem like an expensive sum for an Indian because they willingly pay 66 each month

e We have almost twice as more potential customers in India than we have in Canada:

We have several options:

e Advertise in the US, India, and Canada by splitting the advertisement budget in various combinations:

o 60% for the US, 25% for India, 15% for Canada

o 50% for the US, 30% for India, 20% for Canada, etc

e Advertise only in the US and India, or the US and Canada Again, it makes sense

to split the advertisement budget unequally For instance:

o 70% for the US, and 30% for India

o 65% for the US, and 35% for Canada; etc

e Advertise only in the US

At this point, it's probably best to send our analysis to the marketing team and let them use their domain knowledge to decide They might want to do some extra surveys

in India and Canada and then get back to us for analysing the new survey data

NOTE: The code used to support the finding of this case is available here

PART 2: CASE STUDY ANALYSIS OF GIS COMPANY

Closing the Part I with general information and imaginative situations related to Business Analytics Part II of the report aims to disclose summarization, conducting decision tree methods to make clear the case and giving the suggestion on GIS company

situation which includes 2 dilemmas

1 Understand the case study

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