Business Understanding

Instructions:
Please share your answers filled in-line in the word document. Submit code
separately wherever applicable.

Please ensure you update all the details:

Name: ____Tejas S_________ Batch ID: _Data Science_18082022_10Am_Blr__
Topic: Business Understanding

Instructions: Learn to understand the business objective(s) and constraint(s) based on the
business problem statements. You should identify and frame statements using the words
“maximize” and/or “minimize” for objective(s) and constraint(s) (for example: “maximize
profit” “minimize risk”, etc.)

Guidelines:
1. An assignment submission is considered complete only when correct and executable code(s) are
submitted along with the documentation explaining the method and results. Failing to submit either of
those will be considered an invalid submission and will not be considered as correct submission.

2. Ensure that you submit your assignments correctly. Resubmission is not allowed.

3. Post the submission you can evaluate your work by referring to keys provided. (will be available only
post the submission).

Q. For the below listed business problems, draft the business objectives and constraints.
Hint:
- Objective(s) implies the goals to be achieved in terms of maximizing & minimizing.
- Constraint(s) are the challenges/limitations in achieving the objectives.

S.no Business Problem

Hint Smart data platforms can bring together customer transactions data and data from real-time
: communication streams to disclose the insights concerning customers feelings about the services
which allows addressing the satisfaction-related issues and churn prevention.

Sol: Hint

Business Objective:

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Minimize: Churn rate (churning implies customers going to another company for their needs)

(or)

Maximize: Customer satisfaction (satisfaction will make customer more loyal to the brand)

Business Constraints: Lack of data coverage for all customers

1 Advanced targeting allows predicting needs, preferences, and customers’ reaction to the
telecommunication services and products on offer by segmenting their market and targeting the
content according to each group.

Business Objective:

Maximize: Filter preferences according to customer needs

Minimize: Segmentation of Services and Products

Business Constraints: To target the one optimize services or products

2 Telecommunication companies tend to regard the customers’ engagement process and internal
channels as a guarantee of smooth functioning of the operations. Network management and
optimization gives an opportunity to identify the root causes.

Business Objective:

Minimize: The loop holes of the project

Maximize: take preventive measures for the functioning if the operations

Business Constraints: To improve network management and optimization

3 Ensuring the high-quality performance of the product according to the customer’s requirement is not
possible without applying smart data solutions.

Business Objective:

Minimize: large amounts of data and cheap solution

Maximize: Give optimize data solutions

Business Constraint: To improve the performance of large amount of data

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4 Collection of positive & negative reactions to the service or product from social media sources,
recent trends via customer sentiment analysis may provide an opportunity to utilize mechanisms
for direct responding.

Business Objective:

Minimize: negative feedback of the customer.

Maximize: utilizes mechanisms for direct respond.

Business Constraint: Customer sentiment analysis provide the good opportunities

5 Acquiring as many subscribers as possible remains a critical goal. In recent years, the number of
users has been growing extremely fast and pricing emerged as a tool to limit congestion and
increase revenue at the same time.

Business Objective:

Minimize: limit congestion

Maximize: revenue of the company

Business Constraints: study why the number of user growing so fast?

6 Customers usually search for better & cheaper services so the telecommunication companies
measure, manage, and predict the customer lifetime value (CLV). Smart solutions process real-time
insights based on customer purchasing behavior, activity, services utilized, and average customer
value.

Business Objective:

Minimize: cost of product

Maximize: Low cost and High Quality

Business Constraints: Real time insights

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7 In telecommunications, companies prevent bypass fraud by using big data to review the source of
transactions, the cost of the call, and the destination number, in real-world situations.

Business Objective:

Minimize: Reduce Fraud

Business Constraints: Reviewing the source

8 Identify security issues, conduct predictive analysis, and use machine learning-based solutions to
analyze any patterns of threats and automated escalations to resolve issues before they cause
serious damage.

Business Objective:

Maximize: Resolve issues before a time

Business Constraints: Identify all issues, analysis, and pattern

9 Retail industry uses AI systems with built-in machine learning algorithms to collect and analyze data
regarding products, transactions, etc. Based on findings from data, systems estimate the best
strategies that can be implemented for the profit of the business

Business Objective:

Maximize: Usage of best strategies for profit

Business Constraints: Using Machine Algorithms

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10 The price determination process depends not only on the costs to produce an item but on the
wallet of a typical customer and the competitors' offers. The tools for data analysis bring this issue
to a new level of its approach.

Business Objective:

Minimize: Low Price

Maximize: Product quality and more selling

Business Constraints: Data Analysis and visualization

11 Inventory deals with stocking goods for their future use. Inventory management refers to stocking
goods to use in times of crisis. The retailers aim to provide the right product at the right time in the
proper condition.

Business Objective:

Maximize: Better Service

Business Constraints: Inventory Management

12 Customer feedback is taken as an important aspect of the retail store. Considering customer
feedback and making changes can increase the store profits and customer satisfaction.

Business Objective:

Minimize: increase the profits and customer satisfaction

Maximize: Product fault

Business Constraints: Collect customer feedback

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13 Businesses have to be extremely cautious about choosing a new store's location. To make such a
decision, a great deal of study regarding the location is required which gives us a basis for
understanding the potential of the market. Also, special settings concerning the location of other
stores are considered.

Business Objective:

Maximize: promote business and cover new location

Business Constraints: new store’s location

14 Airlines use AI systems with built-in machine learning algorithms to collect and analyze flight data
regarding each route distance, altitudes, aircraft type, weight, weather, etc. Based on findings from
the data, systems estimate the optimal amount of fuel needed for a flight.

Business Objective:

Minimize: low fuel

Maximize: high accuracy

Business Constraints: collect and analyze the data

15 Airlines and flight operators can significantly reduce their operational costs and overhead by
optimizing their sales revenue in the longer term with AI-powered systems (dynamic pricing)

Business Objective:

Minimize: cost

Maximize: sales revenue

Business Constraints: ________________________________________

16 As flight delays are dependent on a huge number of factors, an intelligent system can be applied to
analyze huge datasets in real time to predict delays and re-book customers’ flights in time.

Business Objective:

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Minimize: flight delay

Maximize: real time and easy way to book seat

Business Constraints: analyze large data

17 By analyzing specific customer’s flight and purchase patterns, and coupling it with historic data,
algorithms are able to point out suspicious credit card transactions and detect fraudulent cases
thereby saving airline and travel companies millions of dollars every year.

Business Objective:

Minimize: eliminate fraudulent

Business Constraints: analyse specific customers flight

18 What is the optimal way to schedule an airline’s crew to maximize their productive time and
balance their working hours to increase employee retention?

Business Objective:

Minimize: Schedule

Maximize: their time

Business Constraints: the way to schedule

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19 The image of the enterprise in the community largely influences the recruitment process. A person
may not be interested in applying for a job in an enterprise whose goodwill is low.

Business Objective:

Maximize: finding the right candidate

Business Constraints: organization policies

20 If the job is boring, hazardous, tension ridden, and lacking in opportunities for advancement, very
few people may be available for such jobs.

Business Objective:

Minimize: work load

Maximize: self spirit

Business Constraints: find right candidate

21 One of the greatest challenges that an HR leader could face is keeping the staff satisfied.

Business Objective:

Maximize: staff satisfaction

Business Constraints: problem of staff

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22 Organizations face huge costs resulting from employee turnover. Some costs are tangible such as
training expenses and the time it takes from when an employee starts to when they become a
productive member.

Business Objective:

Minimize: cost

Maximize: save money

Business Constraints: organisations face huge costs

23 Attracting the attention of a candidate and driving the traffic towards a company’s hiring page is
one place where an AI can see widespread use.

Business Objective:

Maximize: get more traffic at the company’s hiring page

Business Constraints: attracting the attention of a candidate

24 HR departments are responsible for the implementation of training programs. Some of these
programs are designed to ensure your staff follows policies and procedures while others are used
for job advancement. In some job settings, employees are required to complete certain
certification programs.

Business Objective:

Maximize: Provide program to all employers and complete that

Business Constraints: Implementation of training programs

25 Understanding people and why they decide to stay at or leave a job is arguably one of the most
important questions for HR to answer. Identifying attrition risk calls for advanced pattern
recognition in surveying an array of variables.

Business Objective:

Minimize: minimize job leave ratio

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Business Constraints: identifying attrition

26 Your HR department likely deals with many requests and queries from employees throughout the
day. This could include queries about available time off, vacation time, or HR issues with their
paycheck. They may also receive requests for shift swaps and other scheduling problems.

Business Objective:

Maximize: solve all the problems

Business Constraints: create the new schedule and time management

27 In modern manufacturing, production can often depend on a few critical machines or cells. The
same data that provides a manufacturer real-time monitoring can be analyzed through data
science to improve asset management and prevent machine failure.

Business Objective:

Maximize: less machine failure and maximize production

Business Constraints: analyse real time data and used it in real time manufacture

28 Plan to help manufacturers analyze if their product and services are meeting all objectives for initial
processes such as the DMAIC framework. They need a strategy to be used to determine which
product has the highest impact. Helping in minimizing errors and losses and eliminating
unnecessary human effort can increase the overall quality of products and services.

Business Objective:

Minimize: errors and losses and eliminates unnecessary human effort

Business Constraints: without unnecessary human effort work done

29 Some flaws in products are too small to be noticed by the naked eye even if the inspector is very
experienced. The time taken for inspection also slows down the production.

Business Objective:

Minimize: time taken by inspection

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Business Constraints: find an experienced inspector

30 A business wants to make design enhancements/upgrades to the current version of the product to
increase consumption of the product and thereby the brand image. They need to identify the
features which most of the customers use and they need to understand customer behavior
towards the product, brand, and their interests.

Business Objective:

Maximize: upgrade design

Business Constraints: understand customer behaviour

31 For many contract manufacturers, product development is part of the service they provide so
having data to validate their choices to their customer is crucial. To validate the choices, they need
to depend on a wide range of factors such as value for money, quality, reliability, and service. It is
crucial to gather such data.

Business Objective:

Maximize: product development and best service

Business Constraints: understand data

32 Manufacturers are able to detect all kinds of issues on their routine methods of production, from
bottlenecks to unprofitable production lines. Companies are taking a deeper look into their
logistics, inventory, assets, and supply chain management. The insights will bring high-value
insights that uncover potential opportunities not just in the manufacturing process but also in the
packaging and distribution.

Business Objective:

Minimize: detect all kind of issues

Business Constraints: maintain packaging and distrubution

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33 The Department of Employment, Skills and Small Business carries out research to identify skill
shortages in the labor market. Factors for skilled labor shortage analysis are adequate availability of
vacancy, job postings and recruitments, applicants’ qualifications for the job, factors affecting the
position to be filled, such as required licensing requirements, qualification and experience
requirements are few of those constraints that should be considered.

Business Objective:

Maximize: job posting and recruitements

Business Constraints: identify skill

34 The world is constantly changing. Thus, the sports industry is faced with the challenge of trying to
predict the next trend, the next big idea that will capture their audience. Coupling this challenge
with that of technology, it’s clear that some sports teams and venues will always be at odds.

Business Objective:

Maximize: go with the trend and capture all audience

Business Constraints: some sports teams and venues will always be at odds

35 Betting companies analyze the massive amounts of data generated by sporting events all around
the world to come up with probabilities for future outcomes. Goes without saying that predictive
modelling using machine learning techniques plays an important role in this.

Business Objective:

Minimize: minimize event cancellation

Maximize: future outcome

Business Constraints: analyse massive amount of datas

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36 Stadium management and sponsors have studied the average profile of their audience carefully
and have made targeted advertisements that appeal to their audiences. The broadcasters and
stadium management have placed those ads carefully after conducting a careful analysis of its own
resources for maximum impact.

Business Objective:

(i) Minimize: appeal selected people and save money

Business Constraints: collecting information from audience data

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