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Lesson title: Principles in Data Analytics and Materials:
Data Science SAS
Learning Targets: References:
At the end of the module, students will be able to: Provost, F., & Fawcett, T. (2013). Data
1. Explain the fundamental principles of data science for business: What you need to
analytics and data science. know about data mining and data-analytic
2. Understand the data analytics lifecycle and thinking. O’Reilly Media.
its key processes.
3. Discuss the ethical considerations and [Link]
challenges in data analytics. nalytics/data-analytics-lifecycle/
A. CONNECT
I. Lesson Preview/Review
Now that you have learned the basics and differences in data analytics. Unjumble the letters
below that describe common terms used in data analytics.
1. TADA TICONLOCEL - This is the process of collecting data from various sources, including but
not limited to spreadsheets, social media, and data sensors.
2. ADTA LENGANICS - reviewing raw data to ensure critical information is not missing.
3. ATDA TOGESRA - This refers to the places where your data is stored
B. COACH
I. Content Notes
Are you ready to learn today? You will be learning about the principles of data analytics and
data science. Also, you will understand the data analytics lifecycle and key processes.
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LO1: Explain the fundamental principles of data analytics and data science.
FUNDAMENTAL PRINCIPLES OF DATA ANALYTICS
1. Data-analytic Thinking
Analytic thinking involves structuring business questions in ways that make them solvable through
data. It requires identifying if a problem can be approached using classification, prediction,
clustering, or other techniques.
2. Understanding Business Concept
You must understand business goals, stakeholder needs, and the decision-making environment.
This contextual knowledge ensures that data projects are relevant and impactful.
3. Data-driven Decision Making
This principle emphasizes making decisions with measurable support from data rather than gut feel.
It promotes evidence-based management.
4. Importance of Data
Quality, volume, and variety of data significantly affect outcomes. The right data must be available,
accurate, and timely.
5. Modeling and Patterns
The goal is to uncover patterns in data that help forecast trends, categorize behaviors, or segment
populations.
6. Evaluation
Models and insights must be assessed using appropriate metrics such as accuracy, precision, or
recall, to ensure they provide meaningful answers.
7. Ethics and Data Privacy
Always respect privacy and comply with laws like the Data Privacy Act. Avoid exposing personal or
confidential information.
8. Iterative and Experimental Process
Expect to revise models, reevaluate assumptions, and update reports. This process is never
one-and-done.
9. Communicating Results Effectively
Results should be shared clearly with non-technical audiences through visuals, summaries, and
recommendations they can act on.
10. Computational Efficiency and Reproducibility
Efficiency may not always be a top concern, but clear documentation of data sources and
calculations still matters.
FUNDAMENTAL PRINCIPLES OF DATA SCIENCE
1. Data-analytic Thinking
The mindset is the same—treating data as a tool for pattern discovery and decision support. This
principle pushes learners to think like data scientists: framing hypotheses, exploring evidence, and
applying logic to quantitative information.
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2. Data-generating Process
Understanding the data-generating process is critical to avoid biases and misinterpretations. Where
did the data come from? What assumptions are embedded in its collection? Was there sampling
bias?
3. Data-driven Decision Making
The same principle applies, but with a stronger focus on building systems or models that automate
or guide decisions with structured logic.
4. Data Preparation
The bulk of effort goes into data wrangling—cleaning, formatting, dealing with missing values,
transforming variables. This is where analytics lives or dies.
5. Algorithmic Thinking
Modeling uses algorithms that can learn from data—regression, decision trees, neural
networks—depending on the problem type.
6. Validation
Robust validation includes techniques like train-test splits, cross-validation, and the use of metrics
specific to the model’s purpose (e.g., RMSE for regression, AUC for classification).
7. Fairness
Goes further by addressing algorithmic bias, fairness in automated decisions, and transparency in
how data is used and interpreted.
8. AIterative and Experimental Process
The scientific method applies: build hypotheses, test them, adjust based on results. Iteration
improves accuracy and insight.
9. Interpretation
Storytelling and visualization are critical—no model is useful if stakeholders can’t understand or trust
it.
10. Computational Efficiency and Reproducibility
Working with big data demands scalable systems (e.g., distributed computing) and reproducibility
(e.g., using version control, notebooks, and code annotations).
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Idea Dock Question:
What do you think is the most critical principle among data analytics and data science?
LO2: Understand the data analytics lifecycle and its key processes.
The data analytics lifecycle is a structure for doing data analytics that has business objectives at its core.
Following this structure will help you better understand your data and improve the effectiveness of your data
analytics work.
1. DISCOVERY
You should begin by defining your business
objective and the scope of the work. Work out
what data sources will be available and useful to
you (for example, Google Analytics, Salesforce,
your customer support ticketing system, or any
marketing campaign information you might have
available), and perform a gap analysis of what
data is required to solve your business problem
analysis compared with what data you have
available, working out a plan to get any data you
still need.
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2. DATA PREPARATION
In the next stage, you need to decide which data sources will be useful for the analysis, collect the
data from all these disparate sources, and load it into a data analytics sandbox so it can be used for
prototyping.
When loading your data into the sandbox area, you will need to transform it. The two main types
of transformations are preprocessing transformations and analytics transformations. Preprocessing
means cleaning your data to remove things like nulls, defective values, duplicates, and outliers.
Analytics transformations can mean a variety of things, such as standardizing or normalizing your
data so it can be used more effectively with certain machine learning algorithms, or preparing your
datasets for human consumption
3. MODEL PLANNING
A model in data analytics is a mathematical or programmatic description of the relationship
between two or more variables. It allows us to study the effects of different variables on our data and
to make statistical assumptions about the probability of an event happening.
The main categories of models used in data analytics are SQL models, statistical models, and
machine learning models. A SQL model can be as simple as the output of a SQL SELECT
statement, and these are often used for business intelligence dashboards. A statistical model shows
the relationship between one or more variables (a feature that some data warehouses incorporate
into more advanced statistical functions in their SQL processing), and a machine learning model
uses algorithms to recognize patterns in data and must be trained on other data to do so.
4. MODEL BUILDING
After defining your models, you begin building them to draw insights. The process varies based on
the model type:
A. SQL models
You start by identifying your source tables and join keys. You then decide where to build
your models, which can range from saving SQL queries in a data warehouse to using tools
like dbt or Dataform for more complex modeling. Typically, you create a base model first,
then extend it as needed. After testing and verifying the extended model, you publish the
final version to its destination, such as a business intelligence (BI) tool or a reverse ETL
platform.
B. Statistical Model
You first develop a dataset that contains only the data needed for your analysis. You then
choose the most appropriate statistical method based on your use case, such as a
correlation test, linear regression, or ANOVA. Once selected, you run the model and publish
the results.
C. Machine Learning Models
The process begins similarly by preparing a focused dataset. However, you must split this
dataset into training and testing sets. You may experiment with different model types—such
as linear regression, decision trees, or support vector machines—to determine which
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performs best. Training the model involves using the training set and fine-tuning parameters
to achieve optimal predictions. Once trained, you evaluate the model on the testing set,
select the most accurate version, and publish the results.
5. COMMUNICATING RESULTS
You must communicate your findings clearly, and it can help to use data visualizations to achieve
this. Any communication with stakeholders should include a narrative, a list of key findings, and an
explanation of the value your analysis adds to the business. You should also compare the results of
your model with your initial criteria for accepting or rejecting your hypothesis to explain to them how
confident they can be in your analysis.
6. OPERATIONALIZING
Once the stakeholders are happy with your analysis, you can execute the same model outside of
the analytics sandbox on a production dataset.
You should monitor the results of this to check if they lead to your business goal being achieved.
If your business objectives are being met, deliver the final reports to your stakeholders, and
communicate these results more widely across the business.
LO3: Discuss the ethical considerations and challenges in data analytics.
Ethical Considerations in Big Data Analytics
As big data reshapes decision-making across industries, it also presents serious ethical challenges. The
complexity and scale of data collection and analysis require new frameworks to uphold privacy, consent,
fairness, and accountability. This section highlights five key ethical domains.
1. Privacy
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Big data often enables re-identification even from anonymized datasets. Techniques like
differential privacy, which adds noise to protect individual records, offer safeguards but depend on
high-quality data and proper calibration. Meanwhile, devices like smart assistants and apps raise
surveillance concerns, as passive data collection in homes and public spaces increases. Privacy
requires both technological measures and strict oversight on data access and usage.
2. Consent
Informed consent is difficult in the big data era. Most users accept vague, lengthy policies without
fully understanding how their data will be reused. The Facebook–Cambridge Analytica case
revealed how data could be harvested under misleading pretenses. Traditional consent models are
inadequate; new approaches like dynamic consent and data stewardship are needed to restore user
control.
3. Accuracy and Transparency
Analytics can be flawed if based on incorrect or biased data. Inaccuracies in datasets can lead to
unfair credit scores, health misdiagnosis, or poor business decisions. Transparency is equally
crucial: documenting how data is collected, cleaned, and used builds trust and allows for
accountability. Tools like dataset cards can help improve openness.
4. Data Accessibility and Ownership
A "big data divide" limits access to valuable datasets, often favoring large corporations with
exclusive control. Legal data ownership remains unclear—users generate data, but companies
collect and profit from it. Proposals for treating data as personal property aim to address this
imbalance.
5. Bias and Fairness
Algorithms trained on biased historical data can perpetuate or amplify inequality. For instance,
Amazon’s AI hiring tool penalized female candidates due to male-dominated training data. Bias is
often mistakenly seen as a technical flaw, but it stems from human decisions. Ensuring fairness
requires diverse datasets, algorithm audits, and ongoing human oversight.
Top 10 Analytics Challenges for Businesses
Data on its own isn’t all that useful—it’s the analysis of data that lets teams make more informed
decisions and respond better to changing business conditions.
1. Data Quality
Businesses often suffer from inconsistent, outdated, or duplicated data. Poor data quality
undermines the credibility of any analysis. When decision-makers act on flawed data, they risk
costly errors. Cleaning, standardizing, and validating data is essential before analysis. Strong data
governance policies help ensure data remains accurate and reliable over time.
2. Data Access
Many organizations store data in multiple systems or departments, leading to data silos. This
fragmented access limits collaboration and slows down analysis. Without centralized or integrated
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access, analysts must spend time retrieving and reconciling data. Solutions include setting up data
warehouses, APIs, or unified platforms to promote data sharing while maintaining security.
3. Bad Visualizations
Misleading or overly complex charts can distort interpretation. Even accurate data can be
misunderstood if not presented clearly. Using the wrong chart types (e.g., 3D pie charts or cluttered
dashboards) causes confusion. Good visualization depends on knowing the audience, selecting the
right format, and highlighting key insights. Tools like Tableau or Power BI can help, but skill in design
is still crucial.
4. Data Privacy and Security
The growing volume of personal and sensitive data raises the risk of breaches and regulatory
violations. Data must be protected through access controls, encryption, and compliance with laws
like GDPR or the Philippine Data Privacy Act. Classifying data by sensitivity level and training
employees in privacy practices are also critical.
5. Talent Shortage
The demand for skilled data professionals exceeds the supply. Small and medium-sized
businesses often struggle more than large firms to attract talent. Roles like data scientists, analysts,
and engineers require technical expertise. To bridge the gap, companies should invest in training,
partner with universities, or adopt user-friendly tools that reduce technical barriers.
6. Too Many Tools
Organizations may use different analytics platforms across teams, leading to inefficiencies,
miscommunication, and compatibility issues. Disparate tools can create redundant work, duplicate
data, and conflicting metrics. A unified or integrated tool strategy helps standardize reporting and
promote collaboration. IT leadership should evaluate and consolidate tools strategically.
7. Cost
Data analytics projects can be expensive, especially if infrastructure, talent, and software
licensing are involved. Cloud-based services can reduce upfront capital costs, but businesses must
still track whether analytics generate value (e.g., higher sales, improved efficiency). Cost-benefit
analysis and linking analytics to KPIs can help justify investment.
8. Changing Technology
The fast pace of innovation—especially in AI, machine learning, and big data—can overwhelm
companies. Businesses risk falling behind if they rely on outdated systems. However, constantly
chasing new tech can be expensive and risky. Adopting flexible, cloud-based systems and focusing
on business needs rather than hype helps manage this challenge.
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9. Resistance to Change
Employees may fear that analytics will replace their judgment or jobs, leading to passive or active
resistance. Culture change is often harder than technical change. Involving staff early, providing
training, and showing clear benefits (e.g., faster decisions, fewer errors) can reduce resistance.
Leadership support is essential in fostering a data-driven culture.
10. Goal Setting
Without specific objectives, data analytics efforts become unfocused and yield little value.
Organizations must define what they want to achieve—whether it’s lowering costs, improving
customer retention, or predicting trends. Setting SMART goals (Specific, Measurable, Achievable,
Relevant, Time-bound) ensures the analysis is aligned with business strategy.
Notetaker Area:
II. Skill Building Activity
Directions: Read the case below and prepare a 2 paged written report in a short bond paper
answering the given guide questions. Form a team of 3-5 members.
CASE STUDY 1
FreshMart is a mid-sized grocery retail chain operating in Northern Luzon. Its management team wants to
launch a personalized marketing campaign to improve customer retention. They’ve collected customer
purchase data from loyalty cards, POS systems, and online orders.
However, issues have emerged:
● Some data entries are incomplete or duplicated.
● Management is unsure whether the data supports segmentation and prediction models.
● A data scientist proposes using customer demographics and purchase history to predict shopping
habits.
● An ethics officer warns that using demographics might unintentionally lead to biased targeting or
exclusion.
The CEO asks the Data Analytics Team to:
1. Recommend an analysis approach.
2. Outline the steps in the data analytics lifecycle that apply.
3. Identify potential ethical challenges and solutions.
Guide Questions:
1. Which principles of data analytics and data science are most relevant to FreshMart’s case?
2. Which stages of the data analytics lifecycle should FreshMart prioritize?
3. What modeling approaches can they use to analyze customer behavior?
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4. Identify at least two ethical concerns in this case and propose solutions.
5. What are your recommendations to the CEO?
RUBRIC FOR GRADING
Criteria 4 3 2 1
Understanding of Demonstrates deep Generally accurate Limited Misunderstands
the Case / Topic understanding and and complete understanding, some major points
insight errors
Organization and Clear, logical flow Mostly clear and Some structure but Disorganized and
Structure with strong organized lacks clarity hard to follow
introduction, body,
and conclusion
Analysis and Insightful, Adequate analysis Minimal analysis; Lacks analysis or
Critical Thinking well-supported with some insight mostly descriptive critical thinking
analysis
Use of Evidence / Strong, relevant Adequate support Weak or inconsistent Lacks relevant
Examples evidence/examples with minor gaps support support or examples
Grammar, Style, and Free of errors; Minor errors that Noticeable errors, Frequent errors that
Mechanics polished and don’t hinder clarity sometimes interfere with
professional distracting meaning
C. CHECK
I. Check for Understanding
Directions: Write your answers in 3-5 sentences only.
1. Define “data-driven decision-making” in your own words.
2. Give one way to protect customer privacy when analyzing personal data.
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D. LESSON WRAP UP
I. Summary / Frequently Asked Questions
1. What are the main challenges of data analytics?
The main challenges associated with data analytics include collecting meaningful data, selecting
the right analytics tool, visualizing data, improving data quality, finding skilled analysts, and creating a
data-driven culture.
II. Thinking about Learning
1. Please read the learning targets for the day again. Were you able to achieve those learning
targets? If yes, what helped you achieve them? If not, what is the reason for not achieving
them?
2. What question(s) do you have as we end this lesson?
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