Key Business Analytics: The 60+ business analysis tools every manager needs to know

276 Pages·2016·3.62 MB·English

by  Bernard Marr

Praise for Key Business Analytics
‘Why was this book not written earlier? Key Business Analytics is an excel-
lent compendium of the analysis tools you really need, explained in a way
that is practical and rigorous.’
RoBeRt ShAw, honoRARy PRofeSSoR of MARKeting AnAlyticS, cASS
BuSineSS School
‘Many business and technology leaders are aware of the opportunities
advanced analytics can bring to their businesses but struggle to define
how exactly value is going to be generated. Bernard Marr has produced
a book that fills a substantial gap in the analytics literature. He gives, with
great detail, insights as to how virtually any business can benefit from
modern analytics. This book must be a reference to practitioners and
managers, as well as technologists.’
DR AhMeD KhAMASSi, gloBAl heAD of inSight S, wiPRo DigitAl
‘This book demystifies analytics and provides a practical guide for any
business professional. Bernard makes it clear which methods and pro-
cesses are applicable to a wide range of business needs.’ 
Rich clAyton, Vice PReSiDent, BuSineSS AnAlyticS, oRAcle
‘This book is a must-have for anyone trying to navigate the data analytics
landscape. Thoughtfully organised and full of practical, real-life cases, this
handy reference will help you cut through the big data hype and under-
stand the many ways that analytics can benefit your business. Whether
you are new to analytics or a big data guru, this book should be on your
desk.’ 
Scott etKin, wRiteR, jouRnAliSt AnD eDitoR, DAtA infoRMeD
‘While early adopters are busy implementing business analytics solutions,
a majority of business leaders are just beginning their analytics focus and
need a jargon-free reference guide. Bernard Marr’s book is this guide. He
provides readers with a non-technical, high-level overview of seven critical
areas of analytics. He defines terminology, types of analytics and business
areas that can quickly see benefit from analytics.  Each area is practical
and guides managers towards quick ways to get up to speed and join the
conversation. I highly recommend this book for managers feeling excluded
from today’s business analytics conversation.’ 
gRetA RoBeRtS, ceo, tAlent AnAlyticS, coRP.
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‘Straightforward, engaging and entirely practical – Bernard Marr provides
a comprehensive toolkit to rigorously analyse all aspects of your business.’
DR SiMon BoucheR, chief executiVe, iRiSh MAnA geMent inStitute
‘An essential reference guide which demystifies the complexity sur-
rounding analytical techniques. This book offers practical examples and
advice on where to implement data analytics for maximum return.’
leigh BAteS, DiRectoR, ADVAnceD RiSK AnD coMPliAnce AnAlyticS,
PRicewAteRhouSecooPeRS llP
‘Marr’s new book Key Business Analytics is a must read for any profes-
sional who wants to stay current. The explanations are clear, concise and
will bring you up to date in the field of business analytics and big data.’
VlADiMiR MelniK, DiRectoR, DAtA AnD AnAlyticS, AccentuRe/AVAnADe
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Key Business Analytics
A01_MARR7433_01_SE_FM.indd 3 9/16/15 12:28 PM
A01_MARR7433_01_SE_FM.indd 4 9/16/15 12:28 PM
BeRnAR D MARR
Key Business Analytics
the 60+ business analysis tools every
manager needs to know
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PeARSon eDucAtion liMiteD
edinburgh gate
harlow cM20 2je
united Kingdom
tel: [phone]
web: www.pearson.com/uk
First edition published 2016 (print and electronic)
© Bernard Marr 2016 (print and electronic)
the right of Bernard Marr to be identified as author of this work has been asserted by him in accordance
with the copyright, Designs and Patents Act 1988.
the print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval
system, distribution or transmission in any form or by any means, electronic, mechanical, recording or
otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting
restricted copying in the united Kingdom should be obtained from the copyright licensing Agency ltd,
Barnard’s inn, 86 fetter lane, london, ec4A 1en.
the ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed,
leased, licensed or publicly performed or used in any way except as specifically permitted in writing by
the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly
permitted by applicable copyright law. Any unauthorised distribution or use of this text may be a direct
infringement of the author’s and the publisher’s rights and those responsible may be liable in law
accordingly.
Pearson education is not responsible for the content of third-party internet sites.
iSBn: 978–1-292–01743–3 (print)
978–1-292–01745–7 (PDf)
978–1-292–01744–0 (etext)
978–1-292–01746–4 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British library
Library of Congress Cataloging-in-Publication Data
Marr, Bernard, author.
  Key business analytics : the 60+ business analysis tools every manager needs to know / Bernard Marr. —
first edition.
       pages cm
  iSBn 978-1-292-01743-3 (pbk.)
 1. Benchmarking (Management) 2. Management—Statistical methods.
3. Business planning. 4. Performance. i. title.
  hD62.15.M37433 2016
  658.4’013—dc23
                                                                                               2015027897
10 9 8 7 6 5 4 3 2 1
19 18 17 16 15
Print edition typeset in 9.25 pt, helvetica neue lt w1g font by 76
Print edition printed and bound by Ashford colour Press ltd, gosport
note thAt Any PAge cRoSS RefeRenceS RefeR to the PRint eDition
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Contents
About the author x
introduction xi
PART ONE Bare analytics 1
1 Business experiments/experimental design/AB testing 3
2 Visual analytics 8
3 Correlation analysis 12
4 Scenario analysis 16
5 Forecasting/time series analysis 21
6 Data mining 24
7 Regression analysis 28
8 Text analytics 31
9 Sentiment analysis 35
10 Image analytics 38
11 Video analytics 41
12 Voice analytics 45
13 Monte Carlo simulation 49
14 Linear programming 53
15 Cohort analysis 58
16 Factor analysis 61
17 Neural network analysis 64
18 Meta-analytics – literature analysis 67
PART TWO Analytics input tools or data collection methods 69
19 Quantitative surveys 71
20 Qualitative surveys 75
21 Focus groups 79
22 Interviews 83
23 Ethnography 87
24 Text capture 91
25 Image capture 95
26 Sensor data 98
27 Machine data capture 102
vii
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PART THREE financial analytics 107
28 Predictive sales analytics 109
29 Customer profitability analytics 113
30 Product profitability analytics 117
31 Cash flow analytics 121
32 Value driver analytics 124
33 Shareholder value analytics 127
PART FOUR Market analytics 131
34 Unmet need analytics 133
35 Market size analytics 136
36 Demand forecasting 139
37 Market trend analytics 142
38 Non-customer analytics 145
39 Competitor analytics 148
40 Pricing analytics 152
41 Marketing channel analytics 155
42 Brand analytics 158
PART FIVE customer analytics 161
43 Customer satisfaction analysis 163
44 Customer lifetime value analytics 168
45 Customer segmentation analytics 171
46 Sales channel analytics 175
47 Web analytics 178
48 Social media analytics 182
49 Customer engagement analytics 186
50 Customer churn analytics 190
51 Customer acquisition analytics 193
PART SIX employee analytics 197
52 Capability analytics 199
53 Capacity analytics 202
54 Employee churn analytics 205
55 Recruitment channel analytics 208
viii Contents
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56 Competency acquisition analytics 211
57 Employee performance analytics 214
58 Corporate culture analytics 217
59 Leadership analytics 220
PART SEVEN operational analytics 223
60 Fraud detection analytics 225
61 Core competency analytics 229
62 Supply chain analytics 232
63 Lean Six Sigma analytics 236
64 Capacity utilisation analytics 240
65 Project and programme analytics 242
66 Environmental impact analytics 245
67 Corporate social responsibility (CSR) analytics 248
index 251
Contents ix
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