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Data Science
and Analytics
for SMEs
Consulting, Tools,
Practical Use Cases
―
Afolabi Ibukun Tolulope
Data Science and
Analytics for SMEs
Consulting, Tools,
Practical Use Cases
Acknowledgments�����������������������������������������������������������������������������xiii
Preface�����������������������������������������������������������������������������������������������xv
Chapter 1: Introduction������������������������������������������������������������������������1
1.1 Data Science���������������������������������������������������������������������������������������������������1
1.2 Data Science for Business������������������������������������������������������������������������������2
1.3 Business Analytics Journey����������������������������������������������������������������������������4
Events in Real Life and Description�����������������������������������������������������������������5
Capturing the Data������������������������������������������������������������������������������������������9
Accessible Location and Storage������������������������������������������������������������������10
Extracting Data for Analysis��������������������������������������������������������������������������10
Data Analytics������������������������������������������������������������������������������������������������12
Summarize and Interpret Results������������������������������������������������������������������14
Presentation��������������������������������������������������������������������������������������������������15
Recommendations, Strategies, and Plan�������������������������������������������������������15
Implementation���������������������������������������������������������������������������������������������16
1.4 Small and Medium Enterprises (SME)�����������������������������������������������������������16
1.5 Business Analytics in Small Business�����������������������������������������������������������17
1.6 Types of Analytics Problems in SME�������������������������������������������������������������19
iii
Table of Contents
iv
Table of Contents
v
Table of Contents
vi
Table of Contents
Data Files������������������������������������������������������������������������������������������323
Index�������������������������������������������������������������������������������������������������327
vii
About the Author
Afolabi Ibukun is a Data Scientist and is
currently an Assistant Professor in Computer
Science at Northeastern University London.
She holds a B.Sc in Engineering Physics, an
M.Sc and Ph.D in Computer Science. Afolabi
Ibukun has over 15 years working experience
in Computer Science research, teaching and
mentoring. Her specific areas of interest
are Data & Text Mining, Programming and
Business Analytics. She has supervised several
undergraduate and postgraduate students
and published several articles in international journals and conferences.
Afolabi Ibukun is also a Data Science Nigeria Mentor (https://www.
datasciencenigeria.org/mentors/) and currently runs a Business
Analytics Consulting and Training firm named I&F Networks Solutions.”
08021247616
ibukunafolabi0909@gmail.com
linkedin.com/in/afolabi-ibukun-051777a6
github.com/ibkAfolabi
ix
About the Technical Reviewer
Hitesh Hinduja is an ardent Artificial Intelligence (AI) and Data Platforms
enthusiast currently working as Senior Manager in Data Platforms (Azure)
and AI at Microsoft. He worked as a Senior Manager in AI at Ola Electric,
where he led a team of 20+ people in the areas of machine learning,
statistics, computer vision, deep learning, natural language processing,
and reinforcement learning. He has filed 14+ patents in India and the
United States and has numerous research publications under his name.
Hitesh had been associated in research roles at India’s top B-schools –
Indian School of Business, Hyderabad, and the Indian Institute of
Management, Ahmedabad. He is also actively involved in training and
mentoring and has been invited as a guest speaker by various corporates
and associations across the globe.
Hitesh is an avid learner and enjoys reading books in his free time.
xi
Acknowledgments
First of all, I would like to acknowledge God almighty for making it
possible for me to write this book. I would also like to thank my husband
Oluwafemi Afolabi for his support and encouragement that has made
this book a reality. I deeply appreciate Prof. Olufunke Oladipupo and Dr.
Joke Badejo who have taught me a lot, both as a data scientist and in other
aspects of life. Lastly, I would like to say thank you to Timileyin Owoseni
and Christabel Uzor, my M.Sc. students who also helped with the book. I
will not forget my wonderful students that I have been fortunate to teach
and advise, Obinna Okorie, Temi Oyedepo, and many others; I learned a
lot from them. I would like to appreciate afrimash.com for the opportunity
to learn practical data science consulting.
xiii
Preface
This book is written from the perspective of offering a Business Analytics
service as a product. It helps to understand how to package your analytics
solution as a product that can be offered as a consulting service. Some
of these products are customer loyalty, market segmentation, sales and
revenue increase, etc. It is also particularly focused on small businesses
and their peculiarity in analytics. Understanding the contents of the book
will help anyone interested in applying data analytics to make a difference
in small businesses achieve such, starting from the beginner’s level. It
uses a do-it-yourself approach to analytics, and the tools used are easily
available online and are nonprogramming based.
The book teaches the tricks and techniques of Business Analytics
consulting for small businesses. In particular, readers will be able to create
and measure the success of their analytics project. The book also provides
a career guide and helps to jump-start the world of Business Analytics
consulting career. The approach in the book is to focus on popular
problems in the small and medium business world that have data science
solutions and then introduce the technique and how to use it to solve the
problems. Readers will not only learn the fundamental techniques used in
solving these problems, but they will also experience how to use them in
practical use cases and problem scenarios. The techniques are taught in a
simple way, but the book is supported with a lot of reference and resource
material that can help build more mastery on the techniques.
The book is divided into four major parts. Part 1 (Chapters 1 and 2)
explains the fundamental concepts explored in this book, such as data
science, data science for business (Business Analytics), and what it takes
to carry out any analytics project both generally and specifically for a
xv
Preface
small business. In this part, we also explore issues around data and how
to manage and prepare it for the analytics project with practical examples.
Part 2 (Chapters 3 and 4) focuses on analytics consulting and explains how
to navigate your way through to becoming successful in the data analytics
consulting space. It also gives a detail of the phases involved in Business
Analytics consulting. Part 3 (Chapters 5–8) is focused on the data mining
techniques common with small businesses, and this is expressed in an
approach that first explains the basic concepts of these techniques in a
simple way and then uses a real small business problem scenario for the
practical application. This part is practical oriented and based on case
study problems experienced by small businesses. In this book, we will
explore five major practical business problem scenarios and several small
business problems for illustration. These are covered in Chapters 5–8. The
techniques used demonstrate how to solve these problems. It is important
to say here that despite using a particular problem as a case study, it is
not only in this situation that the approach can be deployed, but it can
be used in other similar problem scenarios. The techniques selected
are based on their popularity in practice, and they fall under the broad
classification of prediction (predicting numerical outcome), classification
(predicting categorical outcome), and descriptive analytics. Finally, Part 4
brings the consulting principles to life by using an SME case study to
model the already explained consulting phases in Part 2 and adopting the
appropriate techniques among the ones explained in Part 3. Although each
chapter stands alone, we advise that you read Part 1 before proceeding to
Part 3, and Part 2 before proceeding to Part 4.
The tools used for the practical examples are RapidMiner Studio and
Gephi. The book is written such that all the RapidMiner Studio and Gephi
screenshots are included with details of how to run them. GitHub will also
be used to store the practical project.
This book goes beyond explaining the techniques to giving an
experience of applying the recommendations from the modeling to get
results. In particular, we use a sample of business scenarios experienced
xvi
Preface
in the past for the use cases. The book is also supported with a real-life
business group on Telegram (https://t.me/+kSSQjNhhz6plZTk0) where
we harvest business problems and encourage readers to be a part of
solving the problems. We have in this book real-life business case studies
(from the Telegram group) that can be used as a reference. The book
also comes with links to YouTube videos that help to explain some of the
concepts better.
This book, together with the solutions to the exercises and more
application scenarios and data science techniques, is available as an
online course and training; you can visit datasciencenaija.com for more
details.
We appreciate reader feedback. We would like to know what
you think about this book, good or bad. To give us general feedback,
simply send an email to ibukunafolabi0909@gmail.com. Also, the data
and more information about the book can also be obtained at
www.datasciencenaija.com/book.
xvii
CHAPTER 1
Introduction
In this chapter, we introduce data science generally and narrow it down to
data science for business which is also referred to as Business Analytics.
We then give a detailed explanation of the process involved in Business
Analytics in the form of the Business Analytics journey. In this journey,
we explain what it takes from start to finish to carry out an analytics
project in the business world, focusing on small business consulting, even
though the process is generic to all types of business, small or large. We
also give a description of what small business refers to in this book and
the peculiarities of navigating an analytics project in such a terrain. To
conclude the chapter, we talk about the types of analytics problems that
are common to small businesses and the tools available to solve these
problems given the budget situation of small businesses when it comes to
analytics projects.
1.1 Data Science
In simple terms, data science refers to the ability to take data, generate
an understanding from the data, process the data, extract value from the
data, visualize the data, and present it in such a way that decisions can be
made from this presentation. Data science is described as the process of
extracting knowledge from huge amounts of data. It is an intersection of
Mathematics, Statistics, Visualization, and Artificial Intelligence. Artificial
Intelligence is a superset of machine learning, which is a superset of deep
learning.
© Afolabi Ibukun Tolulope 2022 1
A. I. Tolulope, Data Science and Analytics for SMEs,
https://doi.org/10.1007/978-1-4842-8670-8_1
Chapter 1 Introduction
2
Chapter 1 Introduction
3
Chapter 1 Introduction
4
Chapter 1 Introduction
5
Chapter 1 Introduction
domain understanding of the business terrain and also the typical success
strategies of the business since the analytics recommendation will be used
to improve this purpose. Depending on the kind of business in question,
there are several means to discover their particular analytics needs. Some
of these means include using interviews, social media (text mining), focus
groups, and so on. It is also important to note that these needs should be
focused on the goal of specific business. Generally, Business Analytics
helps to boost business processes, reduce business cost, drive business
strategy, and monitor and improve business financial performance. Uber,
for example, enhanced its Customer Obsession Ticket Assistant (COTA) in
early 2018 to improve the speed and accuracy while responding to support
tickets using predictive analytics. This is a great example of a company
that has implemented Business Analytics. Many companies now employ
predictive analytics to anticipate maintenance and operational concerns
before they become major problems; this is according to a KPMG analysis
on emerging infrastructure trends.12
In this first stage of Business Analytics journey, we develop an
understanding of the purpose of the data mining project or Business
Analytics project particularly to know if it is a one-shot effort to answer
a question or questions or if it is an ongoing procedure. After this, we
then highlight the decisions we want to make and determine or suggest
the analysis output that will help to make the decision. It will help to
have a design that is a conceptual design of the analysis that will create
the output.
The conceptual business model is used to understand data in the
business domain and how the business actually works. It particularly helps
to understand the importance of context in solving analytical problems.
It also helps us to understand how important elements relate together.
Since Business Analytics solves problems, that is, it answers questions, it is
therefore important to know at this stage what questions are worth asking
in the course of the analytics project. This conceptual business model will
help us to do that.
6
Chapter 1 Introduction
7
Chapter 1 Introduction
prospects and many more. In the second step of the conceptual model which
deals with how Alegria contacts the prospects in step one, you want to store
information on the time of contact, location, etc. For each of the remaining
steps, such as negotiating for collecting of waste, collecting the waste,
recycling the waste, and making revenue from the waste, you will have to
bring out the data attributes that could be captured. This is how you are
able to use the conceptual business model to have a complete understanding
of the data in the business domain.
8
Chapter 1 Introduction
9
Chapter 1 Introduction
the correct data gathering and governance procedures in place, the data
capturing stage is much more easy to navigate as all that is left is to check
the appropriateness of the data for the particular analytics goal.
10
Chapter 1 Introduction
11
Chapter 1 Introduction
earned into a range between N50,000 and N100,000. There are also situations
where you need to create new variables from what you have, for example,
creating a variable true or false capturing if a customer showed up or not
from the purchase data on customers. It is also important for us to know
what each variable means and whether to include it in the analysis or not.
Data Analytics
In this stage, we determine the data mining task to be carried out. This
ranges from descriptive analytics, diagnostic analytics, predictive analytics,
prescriptive analytics, and cognitive analytics. Sometimes, you might
need to combine these tasks or use them as a prerequisite to each other.
It is important to note here that one method isn’t more important than
another; it all depends on the end goal or the purpose of the Business
Analytics project.
Descriptive analytics helps to describe what things look like now or what
happened in the past. In descriptive analytics, we use available information
to better understand the business environment and apply the knowledge
along with business acumen to make better decisions. Descriptive analytics
makes use of simple aggregations, cross-tabulations, and simple statistics
like means, medians, standard deviations, and distributions, for example,
histograms. Some advanced descriptive analytics includes associations or
clustering algorithms. An example of the question that descriptive analytics
helps to answer is: What type of customers are renting our equipment?
Sometimes, we use descriptive analytics to identify the link between
two variables; this field of study is known as association rule mining. A
supermarket, for example, might collect information on customer purchase
behavior. The supermarket can use this information to discover which
products are usually purchased together and sell them accordingly. This
is known as market basket analysis. In addition, clustering can be used to
identify groupings and structures in data that are “similar” in some sense
without relying on existing data structures.
12
Chapter 1 Introduction
13
Chapter 1 Introduction
14
Chapter 1 Introduction
Presentation
In presenting the results, you need a clear understanding of how the
business works; then with the help of charts, graphs, or tables, you will
be able to present what is going on. You will also need to supplement the
figure with a short narrative explaining what they mean. Simplicity is the
word here, regardless of how complex the analytics procedure is; at this
point, you will need to reduce the details and sieve out all your analysis
into a few key points. At this point, you want to check if you have been
able to successfully answer all the questions you set out to answer at the
beginning of the analytics project. It’s interesting to know that sometimes
you might even discover that you were asking or pursuing the wrong goal
or question to begin with. Do not forget that as a business analyst, solid
presentation skills are required to be able to communicate your analytics
results efficiently. Depending on the tools you are using to make your
presentation (Tableau dashboard, Microsoft PowerPoint, etc.), you will
need to develop mastery in its use and ability to use it to communicate
effectively.
15
Chapter 1 Introduction
Implementation
In the implementation stage, the result of the analysis is put to test live.
The nature of this implementation will be determined by your strategy
in the previous step. In this stage, you will have to monitor the success
metrics you highlighted related to each goal in the first step of the
analytics journey. Depending on whether the results are successful or
not, you might need to iterate the process based on lessons learned in
the analytics journey. This entire process is iterative in nature. Also, after
implementation, there is a need to use feedback from the users to iterate
the analytics process for better analytics results and interpretation of
results. The stage to be repeated in this iteration is determined by the
nature of the feedback. There are situations where there will be a need to
revisit the system data capture stage or even the data analysis stage.
16
Chapter 1 Introduction
other things. According to the World Bank, MSMEs account for over
90% of all enterprises and more than 50% of all jobs worldwide. In
emerging economies, formal SMEs can account for up to 40% of national
income (GDP).
According to the Bank of Industry (BOI) in a report by PwC3, SMEs can
be defined using Table 1-1.
In the same report, the most pressing problem currently faced by SMEs
is obtaining finance, followed by finding customers. For SMEs, the task of
finding customers is mostly captured by marketing analytics, analytics in
customer relationship management, and so on, which takes the lion share
of Business Analytics.
17
Chapter 1 Introduction
enterprises, the variety and velocity are often the same. The good thing
is that, so far, they are able to use the data quickly and efficiently and can
compete with larger competitors in the same space. Interestingly, one of
the edges that small businesses have over larger ones when it comes to
maximizing data science is that they do not need a large data science team
to get value out of data.
The major problems of small and medium businesses when it comes
to applying data science to improve revenue include the following:
The amount of data collected: Due to technology advancement, there
is an enormous amount of data available in small businesses, but these
businesses lack a data system that efficiently collects and organizes
information.
Data integration: For analysis to be complete and accurate, there is a
need to bring together data across multiple, disjointed sources; currently,
this is done manually and can be time-consuming and cumbersome.
Data that lacks quality and integrity: Garbage in, garbage out. There
are no accurate insights that we can get from data that is full of errors
and does not reflect the whole problem scenario, sometimes referred to
as asymmetrical data. For more details of how SMEs can benefit from
Business Analytics, the challenges, and solution, this can be found in
Coleman et al. (2008).6
The major solution to some of the problems stated earlier is to
implement a data governance policy for the business no matter how
small. Data governance is a set of procedures, responsibilities, policies,
standards, and measurements that ensure that information is used
effectively and efficiently to help an organization achieve its objectives.7
Small businesses need to realize that the earlier they have this in place, the
better they are prepared for the future that is here already.
18
Chapter 1 Introduction
19
Chapter 1 Introduction
20
Chapter 1 Introduction
21
Chapter 1 Introduction
the fundamental concepts explored in this book, such as data science, data
science for business (Business Analytics), and what it takes to carry out any
analytics project both generally and specifically for a small business. In this
part, we also explore issues around data and how to manage and prepare it
for the analytics project with practical examples. Part 2 (Chapters 3 and 4)
focuses on analytics consulting and explains how to navigate your way
through to becoming successful in the data analytics consulting space. It
also gives a detail of the phases involved in Business Analytics consulting.
Part 3 (Chapters 5–8) is focused on the data mining techniques common
with small businesses, and this is expressed in an approach that first
explains the basic concepts of these techniques in a simple way and
then uses a real business problem scenario for the practical application.
This part is practical oriented and based on case study problems
experienced by small businesses. In this book, we will cover five different
practical business problems. These business problems are covered in
Chapters 5–8. The techniques used in the book demonstrate how to solve
these problems. It is important to say here that despite using a particular
problem as a case study, it is not only in this situation that the approach
can be deployed, but it can be used in other similar problem scenarios.
The techniques selected are based on their popularity in practice, and
they fall under the broad category of prediction (predicting numerical
outcome), classification (predicting categorical outcome), and descriptive
analytics. Finally, Part 4 brings the consulting principles into practice
by using an SME case study to model the already explained consulting
phases in Part 2 and adopting the appropriate techniques among the ones
explained in Part 3. Although each chapter stands alone, we advise that
you read Part 1 before proceeding to Part 3, and Part 2 before proceeding
to Part 4.
22
Chapter 1 Introduction
23
Chapter 1 Introduction
Using Gephi
Gephi is an open source and free software for visualization and exploration
of all kinds of graphs and networks. To download Gephi, visit https://
gephi.org/. Some installation guide can be found at https://gephi.
org/users/install/. If you have any issues installing Gephi, visit www.
youtube.com/watch?v=-JU-S5dMDVo. After installing Gephi successfully,
24
Chapter 1 Introduction
you will see the screen in Figure 1-6. A quick introduction to Gephi can
be found at https://gephi.org/tutorials/gephi-tutorial-quick_
start.pdf.
1.9 Problems
1. Design a conceptual business model for the
following business scenarios:
25
Chapter 1 Introduction
1.10 References
1. Galit Shmueli, Nitin R. Patel, & Peter C. Bruce,
Data Mining for Business Intelligence, Concepts,
Techniques and Applications in Microsoft Office
Excel with XLMiner, published by John Wiley &
Sons, Inc., Hoboken, New Jersey, 2010.
26
Chapter 1 Introduction
8. www.gartner.com/en/information-technology/
glossary/customer-analytics
9. www.techopedia.com/definition/29495/
operational-analytics
27
Chapter 1 Introduction
28
CHAPTER 2
2.1 Source of Data
Data can be retrieved in different forms; the most basic category of data is
the structured, semistructured, and unstructured data.1
Structured data: This type of data has a predefined order to it, and
it is formatted to a particular structure before it is stored. This structure
is referred to as schema-on-write. One good example is data stored in a
relational database management system.
Unstructured data: This is when data is stored in its native format and
not processed until it is used, which is known as schema-on-read. It has
no form or order. It can be stored in a variety of file formats; examples
are emails, social media posts, presentations, chats, IoT sensor data, and
satellite imagery.
Semistructured data: This form of data includes metadata that
outlines specific features of the data3 and allows it to be manipulated
more efficiently than unstructured data. Data stored in XML format is an
example of this kind of data.
In business, the types of systems that capture data include the
following:
30
Chapter 2 Data for Analysis in Small Business
31
Another random document with
no related content on Scribd:
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Asdingues, la plus noble et la plus belliqueuse de Euseb. vit.
leur nation. Les Goths vinrent les attaquer sur les Const. l. 4, c. 6.
bords du fleuve Marisch [Marisia][73] et les succès
furent balancés pendant assez long-temps. Enfin Anony. Vales.
Wisimar ayant été tué dans une bataille avec la
plus grande partie de ses soldats, la victoire Hieron. Chron.
demeura à Gébéric. Les vaincus réduits à un trop
petit nombre, pour résister à de si puissants
ennemis, prirent le parti de donner des armes aux [Idat. chron.]
Limigantes; c'est ainsi qu'ils appelaient leurs
esclaves; les maîtres se nommaient Arcaragantes. Ces nouveaux
soldats vainquirent les Goths; mais ils n'eurent pas plutôt senti leur
force, qu'ils la tournèrent contre leurs maîtres et les chassèrent du
pays. Les Sarmates, au nombre de plus de trois cent mille de tout
âge et de tout sexe, passèrent le Danube et vinrent se jeter entre les
bras de Constantin, qui s'avança jusqu'en Mésie pour les recevoir. Il
incorpora dans ses troupes ceux qui étaient propres à la guerre;
mélange mal entendu, qui contribua à corrompre la discipline des
légions et à les abâtardir. Il donna aux autres des terres en Thrace,
dans la petite Scythie, en Macédoine, en Pannonie, même en Italie;
et ces Barbares eurent à se féliciter d'un malheur, qui les avait fait
passer d'un état libre, mais turbulent et périlleux, à un doux
assujettissement où ils trouvaient le repos et la sûreté[74]. Un autre
corps de Sarmates se retira chez les Victohales, qui sont peut-être
les mêmes que les Quades Ultramontains, dans la partie occidentale
de la haute Hongrie. Ceux-ci furent vingt-quatre ans après rétablis
dans leur pays par les Romains qui en chassèrent les Limigantes.
[72] C'est des Vandales que Wisimar était roi, selon Jornandès, qui est à
proprement parler le seul qui nous ait conservé le souvenir de cette guerre. Il se
fonde sur le témoignage de Dexippe, auteur du troisième siècle, qui avait écrit une
Histoire des Goths dont il ne nous reste plus rien. Il ajoute qu'en moins d'un an, les
Vandales étaient venus des bords de l'Océan, s'établir sur les frontières de
l'empire, malgré le grand éloignement; qui ab Oceano ad nostrum limitem vix in
anni spatio pervenisse testatur prœ nimiâ terrarum immensitate. C'est sans doute
des bords de la Baltique que les Vandales vinrent à cette époque.—S.-M.
[73] Selon Jornandès, les Vandales occupaient alors le pays possédé de son
temps par les Gépides, et arrosé par les fleuves Marisia, Miliare, Gilfil et Grissia
plus fort que les trois autres. Ils avaient à l'orient les Goths, à l'occident les
Marcomans, au nord les Hermundures et au sud le Danube. Ils occupaient donc le
Bannat de Temeswar et une partie de la Hongrie.—S.-M.
[74] Jornandès ne parle que des Vandales seuls. Réduits à un petit nombre, ils
quittèrent le pays qu'ils occupaient et obtinrent de Constantin de nouvelles
habitations dans la Pannonie. C'est de ces Vandales que descendaient ceux qui, à
l'instigation de Stilichon, se répandirent plus tard sur la Gaule et sur d'autres
parties de l'empire.—S.-M.