Data Analytics

Note: The material to prepare this presentation has been taken from internet
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• Industries that gather and exploit data
• Credit card companies monitor purchase
• Good at identifying fraudulent purchases
• Mobile phone companies analyze calling patterns –
e.g., even on rival networks
• Look for customers might switch providers
• For social networks data is primary product
• Intrinsic value increases as data grows
• Huge volume of data
• Not just thousands/millions, but billions of items
• Complexity of data types and structures
• Varity of sources, formats, structures
• Speed of new data creation and grow
• High velocity, rapid ingestion, fast analysis
• Volume
• Big Data observes and tracks what happens from various
sources which include business transactions, social media and
information from machine-to-machine or sensor data. This
creates large volumes of data.
• Variety
• Data comes in all formats that may be structured, numeric in
the traditional database or the unstructured text documents,
video, audio, email, stock ticker data.
• Velocity
• The data streams in high speed and must be dealt with timely.
The processing of data that is, analysis of streamed data to
produce near or real time results is also fast.
• Cost Savings : help in identifying more efficient ways of doing
business.
• Time Reductions :helps businesses analyzing data
immediately and make quick decisions based on the learnings.
• New Product Development : By knowing the trends of
customer needs and satisfaction through analytics you can
create products according to the wants of customers.
• Understand the market conditions : By analyzing big data you
can get a better understanding of current market conditions.
• Control online reputation: Big data tools can do sentiment
analysis. Therefore, you can get feedback about who is saying
what about your company.
• Mobile sensors – GPS, accelerometer, etc.
• Social media – 700 Facebook updates/sec in2012
• Video surveillance – street cameras, stores, etc.
• Video rendering – processing video for display
• Smart grids – gather and act on information
• Geophysical exploration – oil, gas, etc.
• Medical imaging – reveals internal body structures
• Gene sequencing – more prevalent, less expensive,
healthcare would like to predict personal illnesses
• Structured – defined data type, format, structure
• Transactional data, OLAP cubes, RDBMS, CVS files, spreadsheets
• Semi-structured
• Text data with discernable patterns – e.g., XML data
• Quasi-structured
• Text data with erratic data formats – e.g., clickstream data
• Unstructured
• Data with no inherent structure – text docs, PDF’s, images, video
Rno Name Address Phone no
1 Amit Nashik 9766543267
2 Neha Pune -
3 Jiya Mumbai -
4 Riya Aurangabad 8990765432
visiting 3 websites adds 3 URLs to user’s log files
Video about Antarctica Expedition
Business Intelligence (BI) versus Data Science

Current Analytical Architecture

Drivers of Big Data

Emerging Big Data Ecosystem and a New Approach to

Analytics
BI (Business
Intelligence)

Data Science
Business Intelligence (BI) vs Data Science
Current Analytical Architecture
Typical Analytic Architecture
Data sources must be well understood

EDW – Enterprise Data Warehouse

From the EDW data is read by applications

Data scientists get data for downstream analytics

processing
High-value data is hard to reach, and predictive analytics
and data mining activities are last in line for data.

Data scientists are limited to performing in-memory

analytics, which will restrict the size of the datasets . So
Analyst works on sampling, which can skew model
accuracy.

Data Science projects will remain isolatedrather than

centrally managed. The implication of this is that the
organization can never tie together the power of advanced
analytics.
• One solution to this problem is to introduce
analytic sandboxes to enable data
scientists to perform advanced analytics.
Data Evolution & Rise of Big Data Sources
Data Evolution & Rise of Big Data Sources
• Medical information, such as diagnostic imaging
• Photos and video footage uploaded to the World Wide Web
• Video surveillance, such as the thousands of video cameras across a
city
• Mobile devices, which provide geospatial location data of the users
• metadata about text messages, phone calls, and application usage on
smart phones
• Smart devices, which provide sensor-based collection of information
from smart
• Nontraditional IT devices, including the use of radio-frequency
identification (RFID) readers, GPS navigation systems, and seismic
processing
Emerging Big Data Ecosystem and a
New Approach to Analytics
• Four main groups of players
• Data devices
• Games, smartphones, computers, etc.
• Data collectors
• Phone and TV companies, Internet, Gov’t, etc.
• Data aggregators – make sense of data
• Websites, credit bureaus, media archives, etc.
• Data users and buyers
• Banks, law enforcement, marketers, employers, etc.
Emerging Big Data Ecosystem and a
New Approach to Analytics
• Data devices
• Gather data from multiple locations and continuously generate new data
about this data. For each gigabyte of new data created, an additional
petabyte of data is created about that data.
• For example, playing an online video game, Smartphones data, Retail
shopping loyalty cards data
• Data collectors
• Include sample entities that collect data from the device and users.
• For example, Retail stores tracking the path a customer
• Data aggregators – make sense of data
• They transform and package the data as products to sell to list brokers for
specific ad campaigns.
• Data users and buyers
• These groups directly benefit from the data collected and aggregated by
others within the data value chain.
• For Example, People want to determine public sentiments toward a
candidate by analyzing related blogs and online comments
Emerging Big Data Ecosystem and a
New Approach to Analytics
1. Deep analytical talent
• Advanced training in quantitative disciplines – e.g., math,
statistics, machine learning
2. Data savvy(Intelligent , knowledgeable) professionals
• Savvy but less technical than group 1
3. Technology and data enablers
• Support people – e.g., DB admins, programmers, etc.
• This group represents people providing technical expertise to
support analytical projects,
• such as provisioning and administrating analytical sandboxes,
and managing large-scale data architectures
1. Reframe business challenges as analytics
challenges
2. Design, implement, and deploy statistical
models and data mining techniques on Big
Data
3. Develop insights that lead to actionable
recommendations
• Quantitative skill – e.g., math, statistics
• Technical aptitude – e.g., software engineering,
programming
• Skeptical mindset and critical thinking – ability to examine
work critically
• Curious and creative – passionate about data and finding
creative solutions
• Communicative and collaborative – can articulate ideas, can
work with others
• Retailer Target
• Uses life events: marriage, divorce, pregnancy
• Apache Hadoop
• Open source Big Data infrastructure innovation
• MapReduce paradigm, ideal for many projects
• Social Media Company LinkedIn
• Social network for working professionals
• Can graph a user’s professional network
• 250 million users in 2014
• Big Data comes from myriad(many) sources
• Social media, sensors, IoT, video surveillance, and sources
only recently considered
• Companies are finding creative and novel ways to
use Big Data
• Exploiting Big Data opportunities requires
• New data architectures
• New machine learning algorithms, ways of working
• People with new skill sets
• 1. What are the three characteristics of Big Data, and what are
the main considerations in processing Big Data?
• 2. What is an analytic sandbox, and why is it important?
• 3. Explain the differences between BI and Data Science.
• 4. Describe the challenges of the current analytical
architecture for data scientists.
• 5. What are the key skill sets and behavioral characteristics of
a data scientist?
• Data science projects differ from BI projects
• More exploratory in nature
• Critical to have a project process
• Participants should be thorough and rigorous
• Break large projects into smaller pieces
• Spend time to plan and scope the work
• Documenting adds rigor and credibility
Data Analytics Lifecycle Overview

Phase 1: Discovery

Phase 2: Data Preparation

Phase 3: Model Planning

Phase 4: Model Building

Phase 5: Communicate Results

Phase 6: Operationalize

Case Study: GINA

• The data analytic lifecycle is designed for Big Data problems and data
science projects
• With six phases the project work can occur in several phases
simultaneously
• The cycle is iterative to portray a real project
• Work can return to earlier phases as new information is uncovered
Key Roles for a Successful
Analytics Project
Key Roles for a
Successful Analytics Project
• Business User – understands the domain area
• Project Sponsor – provides requirements
• Project Manager – ensures meeting objectives
• Business Intelligence Analyst – provides business domain
expertise based on deep understanding of the data
• Database Administrator (DBA) – creates DB environment
• Data Engineer – provides technical skills, assists data
management and extraction, supports analytic sandbox
• Data Scientist – provides analytic techniques and modeling
Background and Overview of Data
Analytics Lifecycle
• Data Analytics Lifecycle defines the analytics process and best
practices from discovery to project completion
• The Lifecycle employs aspects of
• Scientific method
• Cross Industry Standard Process for Data Mining (CRISP-DM)
• Process model for data mining
• Davenport’s DELTA framework
• Hubbard’s Applied Information Economics (AIE) approach
• MAD Skills: New Analysis Practices for Big Data by Cohen et al.
1. Learning the Business Domain
2. Resources
3. Framing the Problem
4. Identifying Key Stakeholders
5. Interviewing the Analytics Sponsor
6. Developing Initial Hypotheses
7. Identifying Potential Data Sources
• Includes steps to explore, preprocess, and
condition data
• Create robust environment – analytics sandbox
• Data preparation tends to be the most labor-
intensive step in the analytics lifecycle
• Often at least 50% of the data science project’s time
• The data preparation phase is generally the most
iterative and the one that teams tend to
underestimate most often
Preparing the Analytic Sandbox

• Create the analytic sandbox (also called workspace)

• Allows team to explore data without interfering with live
production data
• Sandbox collects all kinds of data (expansive approach)
• The sandbox allows organizations to undertake ambitious
projects beyond traditional data analysis and BI to
perform advanced predictive analytics
• Although the concept of an analytics sandbox is relatively
new, this concept has become acceptable to data science
teams and IT groups
Performing ETLT
(Extract, Transform, Load, Transform)

• In ETL users perform extract, transform, load

• In the sandbox the process is often ELT – early
load preserves the raw data which can be useful to
examine
• Example – in credit card fraud detection, outliers
can represent high-risk transactions that might be
inadvertently filtered out or transformed before
being loaded into the database
Learning about the Data

• Becoming familiar with the data is critical

• This activity accomplishes several goals:
• Determines the data available to the team early in
the project
• Highlights gaps – identifies data not currently
available
• Identifies data outside the organization that might
be useful
Learning about the Data Sample
Dataset Inventory
Data Conditioning

• Data conditioning includes cleaning data,

normalizing datasets, and performing
transformations
• Often viewed as a preprocessing step prior to data
analysis, it might be performed by data owner, IT
department, DBA, etc.
• Best to have data scientists involved
• Data science teams prefer more data than too little
Data Conditioning

• Additional questions and considerations

• What are the data sources? Target fields?
• How clean is the data?
• How consistent are the contents and files? Missing or
inconsistent values?
• Assess the consistence of the data types – numeric,
alphanumeric?
• Review the contents to ensure the data makes sense
• Look for evidence of systematic error
Survey and Visualize

• Leverage data visualization tools to gain an

overview of the data
• Shneiderman’s mantra:
• “Overview first, zoom and filter, then details-on-
demand”
• This enables the user to find areas of interest, zoom and
filter to find more detailed information about a
particular area, then find the detailed data in that area
Survey and Visualize
Guidelines and Considerations

• Review data to ensure calculations are consistent

• Does the data distribution stay consistent?
• Assess the granularity of the data, the range of values, and
the level of aggregation of the data
• Does the data represent the population of interest?
• Check time-related variables – daily, weekly, monthly? Is
this good enough?
• Is the data standardized/normalized? Scales consistent?
• For geospatial datasets, are state/country abbreviations
consistent
Common Tools
for Data Preparation

• Hadoop can perform parallel ingest and analysis

• Alpine Miner provides a graphical user interface
for creating analytic workflows
• OpenRefine (formerly Google Refine) is a free,
open source tool for working with messy data
• Similar to OpenRefine, Data Wrangler is an
interactive tool for data cleansing an
transformation
• Activities to consider
• Assess the structure of the data – this dictates the
tools and analytic techniques for the next phase
• Ensure the analytic techniques enable the team to
meet the business objectives and accept or reject the
working hypotheses
• Determine if the situation warrants a single model or
a series of techniques as part of a larger analytic
workflow
• Research and understand how other analysts have
approached this kind or similar kind of problem
Model Planning in Industry Verticals

• Example of other analysts approaching a similar problem

• Explore the data to understand the relationships among
the variables to inform selection of the variables and
methods
• A common way to do this is to use data visualization tools
• Often, stakeholders and subject matter experts may have
ideas
• For example, some hypothesis that led to the project
• Aim for capturing the most essential predictors and
variables
• This often requires iterations and testing to identify key variables
• If the team plans to run regression analysis, identify the
candidate predictors and outcome variables of the model
• The main goal is to choose an analytical technique, or
several candidates, based on the end goal of the project
• We observe events in the real world and attempt to
construct models that emulate this behavior with a set of
rules and conditions
• A model is simply an abstraction from reality
• Determine whether to use techniques best suited for
structured data, unstructured data, or a hybrid approach
• Teams often create initial models using statistical
software packages such as R, SAS, or Matlab
• Which may have limitations when applied to very large datasets
• The team moves to the model building phase once it has
a good idea about the type of model to try
Common Tools for the Model
Planning Phase
• R has a complete set of modeling capabilities
• R contains about 5000 packages for data analysis and graphical
presentation
• SQL Analysis services can perform in-database analytics
of common data mining functions, involved
aggregations, and basic predictive models
• SAS/ACCESS provides integration between SAS and the
analytics sandbox via multiple data connections
• Execute the models defined in Phase 3
• Develop datasets for training, testing, and production
• Develop analytic model on training data, test on test data
• Question to consider
• Does the model appear valid and accurate on the test data?
• Does the model output/behavior make sense to the domain experts?
• Do the parameter values make sense in the context of the domain?
• Is the model sufficiently accurate to meet the goal?
• Does the model avoid intolerable mistakes? (see Chapters 3 and 7)
• Are more data or inputs needed?
• Will the kind of model chosen support the runtime environment?
• Is a different form of the model required to address the business problem?
Common Tools for
the Model Building Phase
• Commercial Tools
• SAS Enterprise Miner – built for enterprise-level computing and analytics
• SPSS Modeler (IBM) – provides enterprise-level computing and analytics
• Matlab – high-level language for data analytics, algorithms, data
exploration
• Alpine Miner – provides GUI frontend for backend analytics tools
• STATISTICA and MATHEMATICA – popular data mining and analytics tools
• Free or Open Source Tools
• R and PL/R - PL/R is a procedural language for PostgreSQL with R
• Octave – language for computational modeling
• WEKA – data mining software package with analytic workbench
• Python – language providing toolkits for machine learning and analysis
• SQL – in-database implementations provide an alternative tool
• Determine if the team succeeded or failed in its
objectives
• Assess if the results are statistically significant and
valid
• If so, identify aspects of the results that present salient
findings
• Identify surprising results and those in line with the
hypotheses
• Communicate and document the key findings and
major insights derived from the analysis
• This is the most visible portion of the process to the
outside stakeholders and sponsors
• In this last phase, the team communicates the benefits of the
project more broadly and sets up a pilot project to deploy the
work in a controlled way
• Risk is managed effectively by undertaking small scope, pilot
deployment before a wide-scale rollout
• During the pilot project, the team may need to execute the
algorithm more efficiently in the database rather than with in-
memory tools like R, especially with larger datasets
• To test the model in a live setting, consider running the model in
a production environment for a discrete set of products or a
single line of business
• Monitor model accuracy and retrain the model if necessary
Key outputs from successful analytics project
Key outputs from successful analytics project

• Business user – tries to determine business benefits and

implications
• Project sponsor – wants business impact, risks, ROI
• Project manager – needs to determine if project completed
on time, within budget, goals met
• Business intelligence analyst – needs to know if reports and
dashboards will be impacted and need to change
• Data engineer and DBA – must share code and document
• Data scientist – must share code and explain model to
peers, managers, stakeholders
Four main deliverables

• Although the seven roles represent many interests, the

interests overlap and can be met with four main
deliverables
1. Presentation for project sponsors – high-level
takeaways for executive level stakeholders
2. Presentation for analysts – describes business process
changes and reporting changes, includes details and
technical graphs
3. Code for technical people
4. Technical specifications of implementing the code
Case Study: Global Innovation Network
and Analysis (GINA)
• In 2012 EMC’s new director wanted to improve the
company’s engagement of employees across the
global centers of excellence (GCE) to drive
innovation, research, and university partnerships
• This project was created to accomplish
• Store formal and informal data
• Track research from global technologists
• Mine the data for patterns and insights to improve the
team’s operations and strategy
• Team members and roles
• Business user, project sponsor, project manager – Vice President from
Office of CTO
• BI analyst – person from IT
• Data engineer and DBA – people from IT
• Data scientist – distinguished engineer
• The data fell into two categories
• Five years of idea submissions from internal innovation
contests
• Minutes and notes representing innovation and research
activity from around the world
• Hypotheses grouped into two categories
• Descriptive analytics of what is happening to spark further
creativity, collaboration, and asset generation
• Predictive analytics to advise executive management of
where it should be investing in the future
• Set up an analytics sandbox
• Discovered that certain data needed conditioning and
normalization and that missing datasets were critical
• Team recognized that poor quality data could impact
subsequent steps
• They discovered many names were misspelled and problems
with extra spaces
• These seemingly small problems had to be addressed
• The study included the following considerations
• Identify the right milestones to achieve the goals
• Trace how people move ideas from each milestone
toward the goal
• Tract ideas that die and others that reach the goal
• Compare times and outcomes using a few different
methods
• Several analytic method were employed
• NLP on textual descriptions
• Social network analysis using R and Rstudio
• Developed social graphs and visualizations
Social graph of data submitters and finalists
Social graph of top innovation influencers
• Study was successful in in identifying hidden
innovators
• Found high density of innovators in Cork, Ireland
• The CTO office launched longitudinal studies
• Deployment was not really discussed
• Key findings
• Need more data in future
• Some data were sensitive
• A parallel initiative needs to be created to
improve basic BI activities
• A mechanism is needed to continually reevaluate
the model after deployment
• The Data Analytics Lifecycle is an approach to managing and
executing analytic projects
• Lifecycle has six phases
• Bulk of the time usually spent on preparation – phases 1
and 2
• Seven roles needed for a data science team
• Review the exercises
• http://www.csis.pace.edu/~ctappert/cs816-15fall/slides/
• https://norcalbiostat.github.io/ADS/notes/Data%20Analytics%20Lifecycle%2
0-%20EH1.pdf
• http://srmnotes.weebly.com/it1110-data-science--big-data.html
• http://www.csis.pace.edu/~ctappert/cs816-
15fall/books/2015DataScience&BigDataAnalytics.pdf