CRISP-ML(Q) 1a.
Business Understanding
Instructions:
Please share your answers filled in-line in the Word document. Submit code
separately wherever applicable.
Please ensure you update all the details:
Name: ______Naveen M_______ Batch ID: __11/09/2023-10AM_________
Topic: Business Understanding
Instructions: Learn to understand the problem statement and frame business objective(s) and
constraint(s). You should try and use data optimization terminologies “maximize” and/or
“minimize” for objective(s) and constraint(s) (for example: “maximize profit” “minimize risk”,
etc.)
Hint:
- Objective(s) implies the goals to be achieved in terms of maximizing & minimizing.
- Constraint(s) are the challenges/limitations in achieving the objectives.
Q. For the below-listed business problems, draft the business objectives and constraints.
S.no Business Problem
Hint Smart data platforms can bring together customer transaction data and data from real-time
: communication streams to disclose insights concerning customers’ feelings about the services
which allows for addressing satisfaction-related issues and churn prevention.
Sol: Hint
Business Objective:
Minimize: Churn rate (churning implies customers going to another company for their needs)
(or)
Maximize: Customer satisfaction (satisfaction will make customers more loyal to the brand)
Business Constraints: Lack of data coverage for all customers
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1 Advanced targeting allows predicting needs, preferences, and customers’ reactions to the
telecommunication services and products on offer by segmenting their market and targeting the
content according to each group.
Business Objective:
Maximize: _Business Sales_________________________
(or)
Minimize: _Research Expenses_________________________
Business Constraints: _Targeting Content to Specific Group_______________________________________
2 Collection of positive & negative reactions to the service or product from social media sources, and
recent trends via customer sentiment analysis may provide an opportunity to utilize mechanisms
for direct responding.
Business Objective:
Maximize: _Customer Satisfaction_______________________
(or)
Minimize: _Time for Query Redressal_________________________
Business Constraints: _Accuracy in Analysis_______________________________________
3 Customers usually search for better & cheaper services so telecommunication companies measure,
manage, and predict the customer lifetime value (CLV). Smart solutions process real-time insights
based on customer purchasing behavior, activity, services utilized, and average customer value.
Business Objective:
Maximize: _Customer Retention_________________________
(or)
Minimize: _Product Price_________________________
Business Constraints: _Diversity in Population_______________________________________
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4 The retail industry uses AI systems with built-in machine-learning algorithms to collect and analyze
data regarding products, transactions, etc. Based on findings from data, systems estimate the best
strategies that can be implemented for the profit of the business
Business Objective:
Maximize: Business Efficiency and Profitability__________________________
(or)
Minimize: Churn Rate__________________________
Business Constraints: Accuracy Of Algorithm, Cost of Updating_________________________________
5 The price determination process depends not only on the costs to produce an item but also on a
typical customer’s wallet and the competitors' offers. The tools for data analysis bring this issue to
a new level of its approach.
Business Objective:
Maximize: Product Quality__________________________
(or)
Minimize: Price of Product/Budget Friendly__________________________
Business Constraints: _Demand Fluctuation, High Competition______________________________________
6 Inventory deals with stocking goods for their future use. Inventory management refers to stocking
goods to use in times of crisis. The retailers aim to provide the right product at the right time and in
the proper condition.
Business Objective:
Maximize: Product Availability__________________________
(or)
Minimize: Lack Of Stock__________________________
Business Constraints: Warehouse Costing, Lack of Capital______________________________________
7 As flight delays depend on many factors, an intelligent system can be applied to analyze huge
datasets in real-time to predict delays and re-book customers’ flights in time.
Business Objective:
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Maximize: Easy Way to Book the Seat__________________________
(or)
Minimize: Delay in Flight__________________________
Business Constraints: Analyze Huge Dataset________________________________________
8 Understanding people and why they decide to stay at or leave a job is arguably one of the most
important questions for HR to answer. Identifying attrition risk calls for advanced pattern
recognition in surveying an array of variables.
Business Objective:
Maximize: Employee Retention__________________________
(or)
Minimize: Employee Attrition Rate__________________________
Business Constraints: Cause Analyzing for HR________________________________________
9 In modern manufacturing, production can often depend on a few critical machines or cells. The
same data that provides a manufacturer with real-time monitoring can be analyzed through data
science to improve asset management and prevent machine failure.
Business Objective:
Maximize: Production Efficiency__________________________
(or)
Minimize: Failure of Machinery__________________________
Business Constraints: Maintenance Cost of Machinery ________________________________________
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10 The world is constantly changing. Thus, the sports industry is faced with the challenge of trying to
predict the next trend, the next big idea that will capture its audience. Coupling this challenge with
that of technology, it’s clear that some sports teams and venues will always be at odds.
Business Objective:
Maximize: View Rate of Audience__________________________
(or)
Minimize: Obsolescence in Sports Industry__________________________
Business Constraints: Rapid Development, Change in Customer Preference__________________
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