Big Data Analytics - Unit 1
Big Data Analytics - Unit 1
1. Descriptive Analytics
This summarizes past data into a form that people can easily read. This helps in creating
reports, like a company’s revenue, profit, sales, and so on. Also, it helps in the tabulation of
social media metrics.
Use Case: The Dow Chemical Company analyzed its past data to increase facility utilization
across its office and lab space. Using descriptive analytics, Dow was able to identify
underutilized space. This space consolidation helped the company save nearly US $4 million
annually.
2. Diagnostic Analytics
This is done to understand what caused a problem in the first place. Techniques like drill-
down, data mining, and data recovery are all examples. Organizations use diagnostic
analytics because they provide an in-depth insight into a particular problem.
Use Case: An e-commerce company’s report shows that their sales have gone down, although
customers are adding products to their carts. This can be due to various reasons like the form
didn’t load correctly, the shipping fee is too high, or there are not enough payment options
available. This is where you can use diagnostic analytics to find the reason.
3. Predictive Analytics
This type of analytics looks into the historical and present data to make predictions of the
future. Predictive analytics uses data mining, AI, and machine learning to analyze current
data and make predictions about the future. It works on predicting customer trends, market
trends, and so on.
Use Case: PayPal determines what kind of precautions they have to take to protect their
clients against fraudulent transactions. Using predictive analytics, the company uses all the
historical payment data and user behavior data and builds an algorithm that predicts
fraudulent activities.
4. Prescriptive Analytics
This type of analytics prescribes the solution to a particular problem. Perspective analytics
works with both descriptive and predictive analytics. Most of the time, it relies on AI and
machine learning.
Use Case: Prescriptive analytics can be used to maximize an airline’s profit. This type of
analytics is used to build an algorithm that will automatically adjust the flight fares based on
numerous factors, including customer demand, weather, destination, holiday seasons, and oil
prices.
Needless to say, we have faced a lot of challenges in the analysis and study of such a huge
volume of data with traditional data processing tools. To overcome these challenges, some
big data solutions were introduced such as Hadoop. These big data tools helped realize the
applications of big data.
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In this blog, we will cover the following Big Data applications used in various sectors:
The education industry is flooded with huge amounts of data related to students, faculty,
courses, results, and whatnot. Now, we have realized that proper study and analysis of this
data can provide insights that can be used to improve the operational effectiveness and
working of educational institutes.
Following are some of the fields in the education industry that has been transformed by big
data-motivated changes:
Customized programs and schemes to benefit individual students can be created using the
data collected based on each student’s learning history. This improves the overall student
results.
Reframing Course Material
Reframing the course material according to the data that is collected based on what a student
learns and to what extent by real-time monitoring of the components of a course is beneficial
for the students.
Grading Systems
New advancements in grading systems have been introduced as a result of a proper analysis
of student data.
Career Prediction
Appropriate analysis and study of every student’s records will help understand each student’s
progress, strengths, weaknesses, interests, and more. It would also help in determining which
career would be the most suitable for the student in the future.
The applications of big data have provided a solution to one of the biggest pitfalls in the
education system, that is, the one-size-fits-all fashion of academic set-up, by contributing to
e-learning solutions.
The University of Alabama has more than 38,000 students and an ocean of data. In the past
when there were no real solutions to analyze that much data, some of them seemed useless.
Now, administrators can use analytics and data visualizations for this data to draw out
patterns of students revolutionizing the university’s operations, recruitment, and retention
efforts.
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Big data reduces the costs of a treatment since there are fewer chances of having to
perform unnecessary diagnoses.
It helps in predicting outbreaks of epidemics and also in deciding what preventive
measures could be taken to minimize the effects of the same.
It helps avoid preventable diseases by detecting them in the early stages. It prevents
them from getting any worse which in turn makes their treatment easy and effective.
Patients can be provided with evidence-based medicine identified and prescribed after
researching past medical results.
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Wearable devices and sensors have been introduced in the healthcare industry which can
provide real-time feed to the electronic health record of a patient. One such technology is
Apple.
Apple has come up with Apple HealthKit, CareKit, and ResearchKit. The main goal is to
empower iPhone users to store and access their real-time health records on their phones.
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Application of Big Data in Government Sector
Governments, be it of any country, come face to face with a huge amount of data almost
daily. The reason for this is, they have to keep track of various records and databases
regarding their citizens, their growth, energy resources, geographical surveys, and many
more. All this data contributes to big data. The proper study and analysis of this data, hence,
helps governments in endless ways. A few of them are as follows:
Welfare Schemes
In making faster and more informed decisions regarding various political programs
To identify areas that are in immediate need of attention
To stay up to date in the field of agriculture by keeping track of all existing land and
livestock.
To overcome national challenges such as unemployment, terrorism, energy resources
exploration, and much more.
Cyber Security
Big Data is hugely used for deceit recognition in the domain of cyber security.
It is also used in catching tax evaders.
Cyber security engineers protect networks and data from unauthorized access.
Food and Drug Administration (FDA) which runs under the jurisdiction of the Federal
Government of the USA leverages the analysis of big data to discover patterns and
associations to identify and examine the expected or unexpected occurrences of food-based
infections.
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Other than this, social media platforms are another way in which a huge amount of data is
generated. Although businesses in the media and entertainment industry have realized the
importance of this data, they have been able to benefit from it for their growth.
Some of the benefits extracted from big data in the media and entertainment industry
are given below:
Amazon Prime which offers, videos, music, and Kindle books in a one-stop shop is also big
on using big data.
There are weather sensors and satellites deployed all around the globe. A huge amount of
data is collected from them, and then this data is used to monitor the weather and
environmental conditions.
All of the data collected from these sensors and satellites contribute to big data and can be
used in different ways such as:
In weather forecasting
To study global warming
In understanding the patterns of natural disasters
To make necessary preparations in the case of crises
To predict the availability of usable water around the world
Big Data Application Example in Weather Patterns
IBM Deep Thunder, which is a research project by IBM, provides weather forecasting
through high-performance computing of big data. IBM is also assisting Tokyo with improved
weather forecasting for natural disasters or predicting the probability of damaged power lines.
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Since the rise of big data, it has been used in various ways to make transportation more
efficient and easy. Following are some of the areas where big data contributes to
transportation.
Route planning: Big data can be used to understand and estimate users’ needs on
different routes and multiple modes of transportation and then utilize route planning
to reduce their wait time.
Congestion management and traffic control: Using big data, real-time estimation of
congestion and traffic patterns is now possible. For example, people are using Google
Maps to locate the least traffic-prone routes.
The level of traffic: Using the real-time processing of big data and predictive analysis
to identify accident-prone areas can help reduce accidents and increase the safety
level of traffic.
Example
Let’s take Uber as an example here. Uber generates and uses a huge amount of data regarding
drivers, their vehicles, locations, every trip from every vehicle, etc. All this data is analyzed
and then used to predict supply, demand, location of drivers, and fares that will be set for
every trip.
And guess what? We too make use of this application when we choose a route to save fuel
and time, based on our knowledge of having taken that particular route sometime in the past.
In this case, we analyzed and made use of the data that we had previously acquired on
account of our experience, and then we used it to make a smart decision. It’s pretty cool that
big data has played parts not only in big fields but also in our smallest day-to-day life
decisions too.
With the evolution of the internet and technologies like big data, this field of marketing also
went digital, known as Digital Marketing. Today, with big data, you can collect huge
amounts of data and get to know the choices of millions of customers in a few
seconds. Business Analysts analyze the data to help marketers run campaigns, increase click-
through rates, put relevant advertisements, improve the product, and cover the nuances to
reach the desired target.
For example, Amazon collected data about the purchase done by millions of people around
the world. They analyzed the purchase patterns and payment methods used by the customers
and used the results to design new offers and advertisements.
One of the companies named Netflix is using Big Data to understand the user behavior, the
type of content they like, popular movies on the website, similar content that can suggest to
the user, and which series or movies should they invest in.