Industry-Specific Analytic Applications

by | Apr 2, 2025 | Human Resource Management

 

 

 

Identify and research a major issue that is prevalent in the industry related to your career choice that can be analyzed using data analytic models. Review pages 29-35 for examples in the healthcare and retail industries. Address all of the following:

Identify the industry and the specific issue for analysis and discuss the impact of the issue within the industry.
For example, in the healthcare industry, accidental falls present a serious health risk for adults 65 years and older with 33% experience falls every year (Sharda, Delen, & Turban, 2018).
Utilizing data, provide the specific measurement and the costs associated with the issue.
For example, costs associated with accidental falls in 2013 amounted to $34 billion (Sharda, Delen, & Turban, 2018).
Identify and describe a major business within the industry that would benefit from conducting analytics that would address this problem. Provide a short review of the company including profit, customer base, revenue, and sales for the most current year available.
Discuss the specific type of analytics (descriptive, predictive, and/or prescriptive) that would be conducted in order to address the issue using the graphic below. Be sure to include the variables to be analyzed.

 

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Data Analytics for Addressing Mobile Money Fraud in the Kenyan Financial Technology (FinTech) Industry

Industry and Specific Issue:

The industry under analysis is the Financial Technology (FinTech) sector in Kenya, specifically focusing on mobile money fraud. Mobile money has revolutionized financial inclusion in Kenya, providing a convenient and accessible platform for payments, savings, and credit for a large segment of the population, many of whom were previously unbanked. However, this rapid growth has also been accompanied by a significant rise in fraudulent activities targeting mobile money users.

The impact of mobile money fraud within the Kenyan FinTech industry is substantial and multifaceted:

  • Financial Losses for Individuals: Fraud directly leads to financial losses for individuals, eroding their savings and income, particularly affecting vulnerable populations who may have limited financial safety nets.
  • Erosion of Trust: The prevalence of fraud undermines user trust in mobile money platforms, potentially hindering further adoption and impacting the overall success of financial inclusion initiatives.
  • Damage to Mobile Money Operators’ Reputation: Frequent fraud incidents can damage the reputation of mobile money operators, leading to customer churn and increased regulatory scrutiny.
  • Increased Operational Costs: Mobile money operators incur significant costs in implementing fraud detection and prevention measures, as well as in investigating and resolving fraud cases.
  • Hindrance to Economic Growth: Reduced trust and financial losses due to fraud can negatively impact economic activity, particularly for small businesses and individuals who rely on mobile money for transactions.

Measurement and Costs Associated with the Issue:

Quantifying the exact scale and cost of mobile money fraud in Kenya can be challenging due to underreporting and the evolving nature of fraudulent schemes. However, available data indicates a significant problem.

  • Specific Measurement: While comprehensive, real-time national statistics are often proprietary, reports and surveys from regulatory bodies like the Central Bank of Kenya (CBK) and industry associations consistently highlight the increasing trend of mobile money fraud. For instance, anecdotal evidence and periodic reports suggest that the number of reported mobile money fraud cases has been increasing year-on-year, with various schemes targeting user credentials, exploiting system vulnerabilities, or leveraging social engineering tactics. A key metric tracked by operators is the fraud loss rate as a percentage of total transaction value. While specific percentages vary and are often not publicly disclosed for competitive reasons, industry insiders acknowledge it as a significant concern.
  • Associated Costs: The costs associated with mobile money fraud extend beyond direct financial losses for users. These include:
    • Direct Financial Losses: Estimates from various reports and industry analyses suggest that billions of Kenyan Shillings are lost annually to mobile money fraud. While a precise figure for 2024 is not yet available, extrapolating from past trends and acknowledging the continued growth of mobile money usage points to a substantial amount.

Data Analytics for Addressing Mobile Money Fraud in the Kenyan Financial Technology (FinTech) Industry

Industry and Specific Issue:

The industry under analysis is the Financial Technology (FinTech) sector in Kenya, specifically focusing on mobile money fraud. Mobile money has revolutionized financial inclusion in Kenya, providing a convenient and accessible platform for payments, savings, and credit for a large segment of the population, many of whom were previously unbanked. However, this rapid growth has also been accompanied by a significant rise in fraudulent activities targeting mobile money users.

The impact of mobile money fraud within the Kenyan FinTech industry is substantial and multifaceted:

  • Financial Losses for Individuals: Fraud directly leads to financial losses for individuals, eroding their savings and income, particularly affecting vulnerable populations who may have limited financial safety nets.
  • Erosion of Trust: The prevalence of fraud undermines user trust in mobile money platforms, potentially hindering further adoption and impacting the overall success of financial inclusion initiatives.
  • Damage to Mobile Money Operators’ Reputation: Frequent fraud incidents can damage the reputation of mobile money operators, leading to customer churn and increased regulatory scrutiny.
  • Increased Operational Costs: Mobile money operators incur significant costs in implementing fraud detection and prevention measures, as well as in investigating and resolving fraud cases.
  • Hindrance to Economic Growth: Reduced trust and financial losses due to fraud can negatively impact economic activity, particularly for small businesses and individuals who rely on mobile money for transactions.

Measurement and Costs Associated with the Issue:

Quantifying the exact scale and cost of mobile money fraud in Kenya can be challenging due to underreporting and the evolving nature of fraudulent schemes. However, available data indicates a significant problem.

  • Specific Measurement: While comprehensive, real-time national statistics are often proprietary, reports and surveys from regulatory bodies like the Central Bank of Kenya (CBK) and industry associations consistently highlight the increasing trend of mobile money fraud. For instance, anecdotal evidence and periodic reports suggest that the number of reported mobile money fraud cases has been increasing year-on-year, with various schemes targeting user credentials, exploiting system vulnerabilities, or leveraging social engineering tactics. A key metric tracked by operators is the fraud loss rate as a percentage of total transaction value. While specific percentages vary and are often not publicly disclosed for competitive reasons, industry insiders acknowledge it as a significant concern.
  • Associated Costs: The costs associated with mobile money fraud extend beyond direct financial losses for users. These include:
    • Direct Financial Losses: Estimates from various reports and industry analyses suggest that billions of Kenyan Shillings are lost annually to mobile money fraud. While a precise figure for 2024 is not yet available, extrapolating from past trends and acknowledging the continued growth of mobile money usage points to a substantial amount.
    • Operational Costs for Operators: Mobile money operators invest heavily in fraud detection and prevention technologies, employ specialized teams for monitoring and investigation, and incur costs related to customer support for fraud victims. These operational costs are significant.
    • Reputational Damage Costs: The cost of eroded trust and damage to brand reputation is difficult to quantify directly but can lead to customer attrition and reduced market share over time.
    • Regulatory Compliance Costs: Increased regulatory scrutiny and the potential for fines due to inadequate fraud prevention measures add to the overall cost burden.

Major Business Benefiting from Analytics:

A major business within the Kenyan FinTech industry that would significantly benefit from conducting analytics to address mobile money fraud is Safaricom PLC, through its dominant mobile money platform, M-Pesa.

  • Short Review of Safaricom PLC (Most Current Year Available – Assuming Fiscal Year Ending March 2024):
    • Profit: Safaricom announced a net profit of KES 62.4 billion for the financial year ended March 31, 2024.
    • Customer Base: Safaricom boasts a massive customer base, with over 42.8 million subscribers as of March 2024.
    • Revenue: The company’s total revenue for the financial year 2024 reached KES 310.9 billion.
    • M-Pesa Revenue: M-Pesa continues to be a significant revenue driver, contributing KES 117.2 billion in the financial year 2024, representing substantial growth.
    • Sales (in this context, referring to M-Pesa transaction value): The total value of transactions processed through the M-Pesa platform in the financial year 2024 was a staggering KES 12.47 trillion.

Given the immense volume and value of transactions processed through M-Pesa, even a small percentage lost to fraud translates to significant financial losses for users and potential reputational damage for Safaricom. Implementing advanced analytics to proactively detect and prevent fraud is crucial for protecting their vast customer base and maintaining the integrity of their platform.

Specific Type of Analytics to Address the Issue:

To effectively address mobile money fraud, Safaricom (M-Pesa) would benefit from a combination of descriptive, predictive, and prescriptive analytics.

  • Descriptive Analytics: This initial stage involves analyzing historical transaction data to understand the “what” and “how” of past fraud incidents.

    • Variables to be Analyzed:
      • Transaction Details: Amount, timestamp, location (if available), transaction type (send money, pay bill, airtime purchase, etc.).
      • User Behavior: Transaction frequency, average transaction value, recipient patterns, top-up behavior, changes in usual activity.
      • Device Information: Device identifiers, operating system, IP address (where applicable).
      • Fraudulent Activity Data: Reported fraud cases, methods used by fraudsters, time of reporting, resolution outcomes.
      • Demographic Data (Anonymized and Aggregated): Age group, geographical location of users involved in fraud.
    • Purpose: Descriptive analytics will help identify patterns and trends in past fraud, understand the most common types of fraud schemes, and segment users and transactions based on their fraud risk profiles.

  • Predictive Analytics: Building upon the insights from descriptive analytics, predictive models aim to forecast the “why” and “when” of potential future fraud.

    • Variables to be Analyzed (building on descriptive variables):
      • Derived Features: Velocity of transactions (number of transactions within a specific time window), deviation from typical user behavior, network characteristics of transactions.
      • External Data (Potentially): Publicly available information on known fraud schemes, threat intelligence feeds (while being mindful of data privacy regulations).
      • Behavioral Biometrics (Potentially): Keystroke dynamics, typing speed, navigation patterns within the M-Pesa application (with user consent and adhering to privacy regulations).
    • Purpose: Predictive models will assign risk scores to transactions and users in real-time, enabling the identification of potentially fraudulent activities before they are completed. Techniques like machine learning algorithms (e.g., logistic regression, decision trees, neural networks) can be employed to build these predictive models.

  • Prescriptive Analytics: This advanced stage focuses on recommending the “how” to prevent or mitigate future fraud based on the insights from predictive models.

    • Variables to be Analyzed (building on predictive variables and model outputs):
      • Risk Scores Generated by Predictive Models.
      • Predefined Business Rules and Thresholds.
      • Available Intervention Strategies: Transaction blocking, account freezing, multi-factor authentication prompts, targeted user education.
      • Cost-Benefit Analysis of Different Intervention Strategies.
    • Purpose: Prescriptive analytics will provide actionable recommendations to the fraud detection and prevention teams. For instance, based on a high-risk score, the system might automatically block a suspicious transaction or prompt the user for additional verification. It can also help optimize the allocation of resources for fraud investigation and prevention efforts.

By leveraging this comprehensive approach to data analytics, Safaricom (M-Pesa) can significantly enhance its ability to detect, predict, and prevent mobile money fraud, thereby protecting its users, safeguarding its reputation, and contributing to a more secure and trustworthy FinTech ecosystem in Kenya.

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