Module: 01

Topic: Business Understanding

Q1. For the below listed Business Problems, draft Business Objectives and Business Constraints.

S.no Business Problem

1 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.

Ans. Business Objective: Minimize the customer Churn

Business Constraint: Maximize the customer satisfaction

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

Business Objective: Minimize Advance targeting

Business Constraint: Maximize customer reaction
3 Telecommunication companies tend to regard the customer's 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 customer's engagement process and internal channels

Business Constraint: Maximize Root Causes
4 Ensuring the high-quality performance of the product according to the customer’s requirement is
not possible without applying smart data solution

Business Objective: Maximize Quality Performance

Business Constraint: Minimize Smart Data Solution
5 Collection of positive & negative reaction to the service or product from social media sources,
recent trends via Customer sentiment analysis. This may provide an opportunity of utilizing
mechanisms for direct responding.

Business Objective: Maximize customer sentiment analysis

Business Constraint: Minimize mechanisms for direct responding
6 Acquiring as many subscribers as possible remains a critical goal, anyway. In recent years the
number of users has been growing extremely fast, pricing emerged as a tool to limit congestion
and increase revenue at the same time.

Business Objective: Maximize acquiring as many subscribers as possible

Business Constraint: Minimize limit congestion and increase revenue at the same time.

7 Customers usually search for better & cheaper services, so the telecommunication companies to
measure, manage and predict the customer lifetime value (CLV). Smart solutions process real-time
© 2013 - 2020 360DigiTMG. All Rights Reserved.
 insights based on customer purchasing behavior, activity, services utilized, and average customer
value.

Business Objective: Minimize smart solution process

Business Constraint: Maximize better & cheaper services
8 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 bypass fraud

Business Constraint: Maximize review source of transaction
9 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 predictive analysis

Business Constraint: Minimize resolve issue before they cause serious damage

© 2013 - 2020 360DigiTMG. All Rights Reserved.

10 Retail industry use 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 use of AI system

Business Constraint: Minimize system estimate best strategies
11 The price formation 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 approaching.

Business Objective: Minimize the wallet of a typical customer

Business Constraint: Maximize data analysis bring this issue to a new level of its approaching
12 Inventory, as it is, concerns stocking goods for their future use. Inventory management, in its turn,
refers to stocking goods in order to use them in time of crisis. The retailers aim to provide a proper
product at a right time, in a proper condition, at a proper place.

Business Objective: Minimize inventory management

Business Constraint: Maximize provide a proper product at a right time
13 Customer feedback is taken as the important aspects of the retail store. To increases the store
profits and customer satisfaction based on kiosk survey given by the customer

Business Objective: Minimize customer feedback

Business Constraint: Maximize profit and customer satisfaction
14 To be extremely efficient about the issue of the new store's location. To make such a decision a
great deal location give a basis for understanding the potential of the market. Also, special settings
concerning the location of other shops are taken into account

Business Objective: Minimize issue of the store’s location

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

Business Objective: Maximize use AI systems

Business Constraint: Minimize optimal amount of fuel
16 Airlines and flight operators can significantly reduce their operational costs and overhead by
optimizing their sales revenue in the longer term to ensure all flights with AI-powered systems
(Dynamic pricing)

Business Objective: Minimize reduce their operational costs

Business Constraint: Maximize all flights with AI-powered systems
17 As flight delays are dependent on a huge number of factors, an intelligent system can be applied to
analyze huge data sets in real time to predict delays and re-book customers’ flights in time.

Business Objective: Maximize intelligent system

Business Constraint: Minimize delays and re-book customers’ flights

18 By analyzing specific customers’ flight and purchase patterns and coupling it with historic data,
algorithms are able to point out suspicious credit card transaction and eliminate fraudulent cases,
 saving airline and travel companies millions of dollars every year.

Business Objective: Maximize analyzing

Business Constraint: Minimize eliminate fraudulent cases
19 The optimal way to schedule an airline’s crew to maximize their time and increase employee
retention?

Business Objective: Maximize optimal way

Business Constraint: Minimize employee retention
20 The image of the enterprise in the community largely influences recruitment process. A person
may not be interested to apply for a job in an enterprise whose goodwill is not good.

Business Objective: Minimize image of the enterprise

Business Constraint: Maximize goodwill
21 If the job is boring, hazardous, tension ridden and lacking in opportunities for advancement, very
few persons may be available for such jobs.

Business Objective: Minimize

Business Constraint: Minimize
22 One of the greatest challenges that an HR leader could face is keeping the staff satisfied.

Business Objective: Minimize challenges

Business Constraint: Maximize staff satisfaction
23 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 costs

Business Constraint: Maximize productive member
24 Attracting the attention of a candidate and driving the traffic towards a company’s hiring page is
one place where an AI can and is seeing a widespread use.

Business Objective: Maximize Attracting the attention

Business Constraint: Minimize AI
25 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 implementation of training programs

Business Constraint: Minimize certification programs
26 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: Maximize Understanding people

Business Constraint: Minimize attrition risk
27 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: Minimize requests and queries

Business Constraint: Maximize scheduling problems
28 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: Minimize few critical machines or cells

Business Constraint: Maximize analyzed through data science
29 To helps manufacturers, analyze if their product and services are meeting all objectives for initial
processes such as DMAIC framework. To be used to determine which product has the highest
impact. helping in minimize errors and losses and eliminates unnecessary human effort, thereby
increasing the overall quality of products and services.

Business Objective: Maximize processes such as DMAIC framework

Business Constraint: Minimize errors and losses
30 Some flaws in products are too small to be noticed with the naked eye, even if the inspector is very
experienced. The time taken for inspection is also slowing down the production.

Business Objective: Minimize flaws in products

 Business Constraint: Maximize inspection
31 To make design enhancements/upgrade the current version of the product to increase
consumption of the product and thereby the brand image. To bring in the features most of the
customers use we need to understand customer behavior towards the product, brand, and their
interests.

Business Objective: Maximize increase consumption of the product

Business Constraint: Minimize customer behavior towards the product
32 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, we 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, also how your own potential customers weigh up their purchasing
decisions.

Business Objective: Maximize data to validate

Business Constraint: Minimize range of factors
33 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 unprofitable production lines

Business Constraint: Maximize insight
34 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: Minimize skilled labor shortage

Business Constraint: Maximize required licensing requirements, qualification and experience
requirements
35 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 predict

Business Constraint: Minimize odds
36 A team can find out the strengths and weaknesses of key players in the opposite team by analyzing
past data and device their own tactics accordingly

Business Objective: Maximize analyzing past data and device

Business Constraint: Minimize tactics accordingly
37 Using machine learning algorithms to find out the profile of players who are best to be bought/sold

Business Objective: Maximize machine learning algorithms

Business Constraint: Minimize best to be bought/sold
38 Betting companies to 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: Maximize probability

Business Constraint: Minimize predictive modeling
39 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 has placed those ads carefully after conducting a careful analysis of its own
resources for maximum impact

Business Objective: Minimize targeted advertisements

Business Constraint: Minimize impact

Hints:
1. Understanding the Business Problem
Should come up with short one-line statements using Maximize and Minimize terminology for
Objective and Constraints