Master of Business Analytics BUS5PB La Trobe Business School BUS5PB - Principles of Business Analytics Assignment 02: Analytics Preliminaries Marks: 30% Assignment Type: Individual Due Date: 11:59PM Thursday 19th May 2016 (submit online to LMS). The second assignment aims to enhance analytical thinking by focusing on the preliminary activities undertaken in an analytics project. The assignment comprises two independent tasks. First task is to design a data collection methodology based on business expectations and primary findings outlined in the case study. Second task is to develop a taxonomy for descriptive analytics techniques, describing for each technique its purpose, functionality, assumptions, method of validation and sample use case. Task 01 The metropolitan rail network in Melbourne is seeking to improve quality of service. To this end they have conducted an initial demographic analysis of its frequent customers. Upon applying Roy Morgan value segments™ on to their analysis findings, the following direct demographic mappings were uncovered. Rail line Value segment Northern suburbs Socially aware and Look at me Eastern suburbs Visible achievement South Eastern suburbs Conventional and Traditional family life Southern suburbs Real conservatism Western suburbs Young optimism and Fairer deal As the next phase of the project, they want to understand service expectations of this diverse clientele from different parts of Melbourne. You have been consulted to develop a data collection methodology for this phase. Roy Morgan value segments™ Demographic analysis (or demographic segmentation), also known as population analysis is frequently used in business analytics to better understand the current and potential client base. Demographic analysis focuses on factual circumstances of the customer, such as age, gender, income, education, ethnicity etc. Demographics can be segmented into several markets to help an organization target its consumers more accurately. With this type of segmentation, an organization can categorize the needs of consumers and attempt to develop targeted business strategies. Psychographic analysis (or lifestyle analysis) is another technique in customer analytics where instead of factual information the focus is on interests, activities and opinions of the current and target customers. Psychographics attempts to classify customer sentiments towards products, based on general customer values and beliefs, what products are needed, why they are needed and how they choose what they purchase. Roy Morgan Values Segments - devised by Michele Levine of Roy Morgan Research and Colin Benjamin of The Horizons Network, are presented as "an innovative system of market segmentation that goes beyond demographics and psychographics to explore the values, mindsets and attitudes that motivate consumer behaviour". Roy Morgan Research is a Melbourne based market research and consultancy firm. The value segments are publicly accessible from their website - http://www.roymorgan.com/products/valuessegments. 1 Master of Business Analytics BUS5PB La Trobe Business School What you are required to do: • Develop an understanding of the Roy Morgan value segments – segmentation process and value segments. • Determine customers' expectations of quality of service for different metropolitan areas. (e.g. What are service expectations of customers from the northern suburbs?) • Formulate a data collection methodology (consisting of observational studies and experiments) to collect this information from customers. Present your formulation at the highest level of detail – including questions you will ask different customers and potential answers. Consider all aspects of data collection covered in topic 5, as well as customer convenience and accessibility when responding to your data collection methodology). Task 02 Task 02 is an in-depth review of descriptive analytics techniques covered/mentioned in class. You are required to develop a taxonomy for descriptive analytics techniques, describing for each technique its purpose, functionality, assumptions, method of validation and sample use case. The sample use case must be from a business analytics scenario. An example is shown below. Technique: the mean Purpose: determine the mid-point or central tendency of a given set of numbers Functionality: sum up all given numbers and divide by the count of numbers Assumptions: the set of numbers are normally distributed Method of validation: Calculate the mean of another sample, plot the numbers in a histogram to check for normal distribution Sample use case: find the mean service time for customers in a retail bank teller queue. Present the high-level taxonomy in an intuitive and instructive manner. This may be a matrix, tree or other form of graph. You are free to use any of the tools covered in class, but this is not mandatory. Report guidelines 1. Choose a fitting sequence of sections/topics for the body of the report. Two sections for the two tasks are essential, you may add other sections deemed relevant. 2. Page limit: five (5) or more pages. 3. Reports should be written in Microsoft Word (font size 11) and submitted as a Word file. 2 Master of Business Analytics BUS5PB La Trobe Business School Marking rubric A grade will be awarded to each of the tasks and then an overall mark determined for the entire assessment. The rubric below gives you an idea of what you must achieve to earn a certain 'grade'. As a general rule, to meet a 'C', you must first satisfy the requirements of a 'D'. And for an 'A', you must first satisfy the requirements of a 'B', which must of course first meet the requirements of a 'C' and so on. The marking rubric for this assignment is given below. Criterion Pass Credit Distinction High Distinction Task 01 (15 marks) Reasonable coverage of a data collection methodology. Limited understanding of target segments. Good coverage of a data collection methodology. Average understanding of target segments. Excellent coverage of a data collection methodology. Good understanding of target segments. Extensive coverage of a data collection methodology. Highly-detailed and relevant understanding of target segments. Task 02 (15 marks) Limited effort to structure and present a complete taxonomy of all techniques mentioned in class. Average effort to structure and present a complete taxonomy of all techniques mentioned in class. Excellent effort to structure and present a complete taxonomy of all techniques mentioned in class. Exceptional effort to structure and present a complete taxonomy of all techniques mentioned in class. Other information • Standard plagiarism and collusion policy, and extension and special consideration policy of this university apply to this assignment. • A cover sheet is NOT required. By submitting your work online, the declaration on the university's assignment cover sheet is implied and agreed to by you. 3