Analytics, Purpose and kinds of analytics, Portfolio Analytics

1. ANALYTICS
• Analytics is computational analysis of data or
statistics.
•It is used for discovery, interpretation and
communication of meaningful patterns in data.
•It also entails applying data patterns towards effective
decision making.
•It can be valuable in areas rich with recorded
information; analytics relies on simultaneous
application of statistics, computer programming and
operation research to quantify performance.

2. BENEFITS OF DATA ANALYTICS FOR
BUSINESS
•Personalize customer experience: Business collects
data from different channels including physical retail, e-
commerce and social media, businesses can gain insights
into customer behaviour to provide more personalized
experience.
•Inform business decision making: Entrepreneurs can
use data analytics to guide business decisions and
minimize financial losses. Predictive analysis can suggest
what could happen in response to changes to the
business, and it helps in indicating how business should
react to such changes.

3. • Streamline operations: Organizations can
improve operational efficiency through data
analytics. Gathering and analyzing data about
the supply chain can show where production
delays or bottlenecks originate and help
predict where future problems may arise.
• Mitigate risk and handle setbacks: Risks are
an integral part of business, data analytics can
help an organization in understanding risk and
take preventive measures. Business can also
use data analytics to limit losses after setback
occurs.

4. • Enhance security: All businesses face data
security threats. Organizations can use data
analytics to diagnose the causes of past data
breaches by processing and visualizing
relevant data. For instance, the IT department
can use data analytics applications to parse,
process, and visualize their audit logs to
determine the course and origins of an attack.
This information can help IT locate
vulnerabilities and patch them.

5. TYPES OF ANALYTICS
• Marketing analytics: Marketing analytics
consists of both qualitative and quantitative,
structured and unstructured data used to
drive strategic decisions in relation to brand
and revenue outcomes. The data enables
companies to make predictions and alter
strategic execution to maximize performance
results.

6. • Web analytics: They allow marketers to collect
session-level information about interactions on a
website using an operation called sessionization.
Google analytics is an example of a popular free
analytics tool that marketers use for this purpose.
• People analytics: People Analytics is using
behavioural data to understand how people work
and change how companies are managed. People
analytics is also known as workforce analytics, HR
analytics etc. HR analytics is the application of
analytics to help companies manage human
resources.

7. •Portfolio analytics: Portfolio Analysis is the
process of reviewing or assessing the elements
of the entire portfolio of securities or products in
a business.
•Risk analytics: It helps take the guesswork out
of managing risk-related issues by using a range
of techniques and technologies to extrapolate
insights, calculate likely scenarios, and predict
future events.

8. • Digital analytics: Digital analytics is a set of
business and technical activities that define,
create, collect, verify or transform digital data
into reporting, research, analyses,
recommendations, optimizations, predictions,
and automations.
• Security analytics: Security analytics refers to
information technology (IT) to gather security
events to understand and analyze events that
pose the greatest risk.

9. PORTFOLIO ANALYSIS
• Portfolio Analysis is the process of reviewing or
assessing the elements of the entire portfolio of
securities or products in a business.
• The review is done for careful analysis of risk and
return.
• Portfolio Analysis conducted at regular intervals
helps the investor to make changes in the
portfolio allocation and change them according
to the changing market and different
circumstances.

10. • Advantages of portfolio analysis:
1. Evaluation of firm’s business by top
management
2. It helps to assess company’s attractiveness.
3. Raises issues related to cash flow availability.
4. It helps to assess the competitive strength of
the company with respect to market share,
contribution margin etc.
5. Communication is facilitated.

11. • Portfolio analyst also known as financial or
investment analyst. Core duties or
responsibilities of portfolio analyst are:
1. Conduct investment analysis: Portfolio
analyst will evaluate the performance of
client’s investment and help these clients
increase the assets and help them in making
financial decisions.
2. Track Economic trends: It is up to a Portfolio
Analyst to keep track of trends that will affect
the performance of various types of
investments.

12. • Create Investment Reports: Portfolio Analysts
will generate reports regarding investment
values, performances and trends and present
this material to clients on a regular basis.
These reports can be generated monthly or
quarterly. These reports might include details
about investment risks, product pricing and
rate changes.

13. • Portfolio analyst need to focus on the
following things:
1. Preparing portfolio analysis reports
2. Recommending the best to the organization
and customers based on the performance.
3. Understanding the risk associated with the
investing.
4. Maintaining knowledge of market and
economic trends.
5. Knowing various investment types like
mutual funds, stocks and bonds.