Welcome to week 1!

In this module we’ll learn how to think about analytical problems

and examine the process by which data enables analysis & decision making. We’ll
introduce a framework called the Information-Action Value chain which describes the
path from events in the world to business action, and we’ll look at some of the source
systems that are used to capture data. At the end of this course you will be able to:
Explain the information lifecycle from events in the real world to business actions, and
how to think about analytical problems in that context , Recognize the types of events
and characteristics that are often used in business analytics, and explain how the data
is captured by source systems and stored using both traditional and emergent
technologies, Gain a high-level familiarity with relational databases and learn how to
use a simple but powerful language called SQL to extract analytical data sets of
interest, Appreciate the spectrum of roles involved in the data lifecycle, and gain
exposure to the various ways that organizations structure analytical functions,
Summarize some of the key ideas around data quality, data governance, and data
privacy
Learning Objectives

 Describe what’s covered in the course and what makes it unique.

 Evaluate and think backwards through analytical problems and construct a
conceptual business model.
 Explain the path from events in the real world to business action: The
Information-Action Value Chain .
 Develop a high-level familiarity with the types of systems that capture data and
the forms that data can take.

Absolutely! Here's a summary, highlighting key points, and a conclusion:

Summary:

This introductory course in the Data Analytics for Business Specialization focuses on the
foundational aspects of being a successful data analyst in a real-world business setting, rather
than diving directly into analytical methods. It emphasizes understanding the broader context of
analytics.

Key Points:

 Focus on Process and Environment:

o The course prioritizes understanding the analytical process (the "information
action value chain") and the supporting environment (people, tools, organizational
structures).
o It acknowledges that many analytics courses focus solely on methods, neglecting
the practical application within a business.
 Information Action Value Chain:
o This framework outlines the path from real-world events to actionable insights in
the marketplace.
 o The first module will introduce and detail the initial stages of this chain.
 Analytical Environment:
o The course explores the technologies and tools used by analysts, including
relational databases and SQL.
o It also addresses the crucial roles of people, organizational structures, and policies
in successful analytics.
 Practical Skills:
o The course includes skill-based learning, specifically focusing on SQL for data
extraction from relational databases.
 Surfing Analogy:
o The surfing analogy highlights the importance of understanding the environment,
having the right tools, and knowing the rules before attempting to "ride the wave"
of data analysis.
o The largest part of surfing is preparation and understanding the environment, just
like data analytics.

Conclusion:

This course aims to provide a comprehensive understanding of the practical aspects of data
analytics within a business context. By focusing on the analytical process, the supporting
environment, and essential skills like SQL, it prepares learners to effectively apply analytical
methods and make a real impact in their organizations. The course emphasizes that being a
successful data analyst requires more than just technical skills; it involves understanding the
broader context and operating in harmony with the analytical environment.

Summary:

This introduction highlights data analytics as a process that transforms raw data into clear,
actionable insights. It emphasizes its role in understanding past, present, and future trends to
solve business problems and drive growth. The specialization is based on a university-level boot
camp and focuses on practical skills and knowledge needed for a successful analytics career.

Key Points:

 Data Analytics as a Clarity Creator:

o It transforms "chaos" into "clarity" by using data, methods, and intellect.
o It enables understanding of "what's happening," "what's likely to happen," and
"what to do about it."
 Business Applications:
o Data analytics drives business growth, profitability, and shareholder value.
 Practical Skills Focus:
o The specialization emphasizes practical skills like SQL for data manipulation.
o It covers statistical analysis for descriptive, predictive, and prescriptive purposes.
o It also teaches how to interpret and present analytic results.
 University-Level Foundation:
 o The specialization is based on a proven boot camp from the University of
Colorado Boulder's Masters of Business Analytics program.
 Career Advancement:
o The goal is to equip learners with the skills to become valuable members of
analytics teams and advance their careers.

Conclusion:

This specialization offers a comprehensive and practical approach to data analytics, designed to
equip learners with the skills and knowledge necessary to transform data into valuable business
insights. By focusing on real-world applications and essential tools, it prepares individuals to
contribute effectively to analytical teams and drive positive outcomes in their organizations.

Summary:

Module 1 focuses on the foundational thinking required for effective data analysis in real-world
scenarios. It emphasizes understanding the context of analytical problems, constructing business
models, and tracing the flow of information from real-world events to actionable insights through
the "information action value chain."

Key Points:

 Analytical Problem Framing:

o The module teaches how to approach analytical problems by working backward
from desired decisions to the necessary information.
o Emphasis is placed on understanding the context of the problem.
 Conceptual Business Models:
o Learners will learn to create models that represent the industry or business being
analyzed.
 Information Action Value Chain:
o This key concept explains how real-world events are transformed into data,
analyzed, and used for decision-making.
o The module covers the initial stages of this chain: real-world events and their
capture by source systems.
 Data Identification:
o By the end of the module, learners should be able to identify the data required to
solve a given analytical problem.
o Learners will understand where data originates and how it is captured.
 Contextual Understanding:
o The module stresses the importance of understanding how data fits into the
broader business context.
 Preparation for Later Modules:
o This module lays the groundwork for later modules that will cover analytical
technologies, data extraction, and organizational aspects of analytics.

Conclusion:
Module 1 serves as a critical introduction to the fundamental principles of data analysis in a
business setting. By focusing on problem framing, contextual understanding, and the information
action value chain, it equips learners with the essential skills to effectively identify, understand,
and utilize data for informed decision-making. This module prioritizes the important steps that
occur before and after the actual analysis is performed, setting the stage for deeper exploration in
subsequent modules.

Summary:

This video emphasizes a "think backwards" approach to data analytics, starting with the desired
decision and working backward to the necessary data and analysis. It highlights the importance
of aligning analytics with business decisions, ensuring a return on investment, and prioritizing
efficiency.

Key Points:

 "Think Backwards" Approach:

o Start with the desired decision, then determine the information needed.
o This ensures analysis is relevant and actionable.
o It is similar to hypothesis driven research.
 Business Relevance:
o Analytics must lead to action or change an existing action.
o Focus on a clear return on investment in analytics.
o Prioritize analyses that influence meaningful decisions.
 Context and Decision Influence:
o Understand the business and decision-making processes.
o Determine if the analysis will actually influence a decision.
o Clearly define potential outcomes (x or y) and corresponding actions.
 Output Visualization:
o Visualize the expected output (charts, graphs, presentations).
o This clarifies the analysis goals and facilitates stakeholder buy-in.
 Analysis Design:
o Choose appropriate methods and tools.
o Prioritize simple solutions when possible.
o Avoid overcomplicating the analysis.
 Data Acquisition:
o Check for existing analyses or data.
o Outline data requirements and sources.
o Consider data availability, accessibility, and feasibility.
o Consider time constraints.
 Information Action Value Chain:
o While the course covers the chain from real world events to marketplace action,
when working on a project, work backwards.

Conclusion:
This video provides a practical framework for approaching data analytics in a business context.
By prioritizing decision-driven analysis, visualizing outputs, and carefully planning data
acquisition, analysts can ensure their work is efficient, effective, and impactful. The "think
backwards" approach, combined with a focus on business relevance, empowers analysts to
transform data into actionable insights that drive positive outcomes.

Here's a summary of the provided text, highlighting key points and concluding remarks:

Summary:

The text discusses the importance of understanding the context of a business before diving into
data analysis. It introduces the concept of a "conceptual business model" as a tool to achieve this
understanding. This model is a diagram that visually represents how a business or industry
operates, showing key elements and their relationships. The video uses the in-flight connectivity
business as a practical example to demonstrate the process.

Key Points:

 Context is Crucial: Understanding the business context is as important as mastering data

analysis techniques. It helps in asking the right questions and interpreting results
meaningfully.
 Conceptual Business Model: A diagram that maps out the key elements of a business
(e.g., customer, product, purchase, flight) and how they interact.
 One-to-Many/Many-to-Many Relationships: The diagram uses forked lines to
represent relationships where one element can be associated with multiple instances of
another (e.g., one flight can have many customers).
 Iterative Process: Building a conceptual business model is an iterative process. Start
with basic elements and refine the model as you learn more.
 Subject Matter Experts: Collaborate with experts within the business to gain a deeper
understanding and build relationships.
 The model showed different elements that can relate to one customer, and some may be
defined by the reality of the world, or others by our business decisons.
 The business model brings up analytical questions, and by using the model, we see how
each of the questions might be informed by the elements that influence it.
 Business Evolution: Businesses are dynamic. The conceptual model should be updated
regularly to reflect changes and new relationships.

Conclusion:

Creating a conceptual business model is a valuable exercise for data analysts. It forces a deeper
understanding of the business, helps identify key drivers and interactions reflected in the data,
and ultimately leads to more insightful and relevant analysis. It's a living document that should
evolve alongside the business, and be constructed through a combination of individual effort and
collaboration with subject matter experts. By grounding analysis in a solid understanding of the
business context, analysts can ensure their work is meaningful and drives informed decision-
making.
Summary:

This text emphasizes the importance of understanding the entire data lifecycle, from real-world
events to actionable insights, for analytical professionals. It introduces the "information-action
value chain" to illustrate this process. The focus here is on the steps before the actual analysis,
highlighting the often-overlooked but crucial aspects of data sourcing, preparation, and
extraction. A customer cancellation example in the wireless industry is used to illustrate the
concepts.

Key Points:

 Beyond the Analysis: A data analyst's job involves more than just number crunching.
Understanding data origins, quality, and how the analysis will be used is crucial.
 Information-Action Value Chain: A framework that describes the steps from a real-
world event to a marketplace action. Each step adds value.
 Real-World Phenomenon: The starting point is a real-world event, characteristic, or
entity (e.g., a customer canceling service).
 Source Systems: These systems capture data about real-world phenomena (e.g., a billing
system recording a cancellation).
 Data Warehouse (Enterprise Data Warehouse): A central repository that consolidates
data from multiple source systems. This makes data more accessible, cleaner, and
consistent. It improves usability, and combines data in ways that are useful.
 Data Extraction: The process of retrieving specific data needed for analysis from the
data warehouse (often using SQL). Direct data extraction is a vital skill for analysts.
 Relational Databases and SQL: The dominant method for storing and extracting data in
many organizations.
 It is crucial that as an analytical professional, you are well versed in data extraction.
*Three categories of analytics: descriptive, predictive and prescriptive.

Conclusion:

The pre-analysis phase of the information-action value chain is critical for successful data
analysis. Analysts must understand where data comes from, how it's captured and stored, and
how to extract it efficiently. Mastering these steps, particularly skills like SQL and understanding
relational databases, is essential for becoming an indispensable part of an analytical team. This
foundational knowledge sets the stage for the analysis itself and ensures that the subsequent
insights are relevant, reliable, and actionable. Without this understanding, even the most
sophisticated analytical techniques may be applied to flawed or incomplete data, leading to
misleading conclusions.

Here's a summary of the provided text, with key points and a concluding statement:

Summary:

This text continues the discussion of the "Information-Action Value Chain," focusing on the
steps that occur after the initial data extraction and preparation. It details the types of analysis
that can be performed, how to interpret and summarize results, and how to translate those
insights into a concrete action plan, a compelling pitch, and finally, action in the marketplace.
The customer cancellation example is continued to illustrate these concepts.

Key Points:

 Three Types of Analytics:

o Descriptive: Describes what has happened or what the current state is (e.g.,
customer cancellation rates by tenure).
o Predictive: Forecasts future outcomes based on past data (e.g., predicting which
customers are likely to cancel).
o Prescriptive: Recommends actions to achieve a desired outcome (e.g., targeting
specific customers with retention offers).
 Interpreting and Summarizing Results:
o Distill complex analyses into key findings.
o Use clear visuals (charts, graphs) and concise narratives.
o Focus on simplicity and key points, connecting the analysis to business
understanding.
o Ensure the original question was addressed or if needed to change.
 Developing a Strategy and Action Plan:
o Translate insights into a high-level strategy and specific tactics.
o Consider multiple options and their pros/cons.
o May involve financial modeling or decision analysis.
o Plan how to measure the impact of the action.
 Delivering the Pitch:
o Communicate results effectively and sell the proposed plan.
o Keep the message simple and focus on business value (e.g., ROI).
o Ensure high-quality materials (slides, documents).
o Anticipate questions and be prepared to defend the analysis.
 Taking Action:
o Implement the plan in the marketplace.
o This often leads back to the beginning of the value chain, as the impact of the
action needs to be measured and analyzed.

Conclusion:

The post-analysis phase of the Information-Action Value Chain is just as vital as the pre-analysis
and analysis phases. Effectively interpreting results, crafting a well-defined action plan,
communicating that plan persuasively, and finally, taking action are essential steps to realizing
the value of data analysis. This cyclical process emphasizes that data analysis is not an end in
itself, but rather a means to informed decision-making and impactful action in the real world.
The ability to connect analysis to action is a hallmark of a truly effective data analyst.

Summary:
The text discusses the wide variety of real-world phenomena that can be captured as data and
used in business analytics. It divides this discussion into two main categories: data related to
people and data related to objects/environment. The text emphasizes the breadth and depth of
potential data sources, driven by advancements in technology.

Key Points:

 Anything Can Be Data: Technology allows for capturing and storing vast amounts of
data about diverse real-world events and entities.
 People Data:
o Characteristics: Demographics (age, gender, race, etc.), psychographics
(opinions, interests), and technographics (technology attitudes).
o Identifiers: Names, addresses, contact information, online handles.
o Location: Physical (residence, movement) and virtual (web browsing).
o Transactions: Purchases, investments, contracts.
o Consumption/Usage: How people use products/services (e.g., minutes of use,
data consumption).
o Interactions: With businesses (marketing, customer care, social media) and with
others.
 Object/Environment Data:
o Object Characteristics: Size, shape, features, location, movement (e.g., supply
chain logistics).
o Machine Data: Data generated by machines (e.g., connected home devices,
industrial sensors).
o Natural Events: Weather, seasons, tides, earthquakes.
o Non-Natural Events: Holidays, sporting events, traffic accidents, elections,
conflicts.
 No specific mention of number about ethnicities or races.

Conclusion:

The real world is a vast and diverse source of data for business analytics. Understanding the
types of data available, both related to people and to objects/the environment, is crucial for
analysts. This broad perspective allows analysts to identify relevant data sources, ask insightful
questions, and ultimately derive meaningful insights from the ever-increasing volume of
information generated in our increasingly connected world. The key takeaway is that the starting
point for any analysis is understanding the real-world context from which the data originates.

Here's a summary of the provided text, highlighting key points and providing a conclusion:

Summary:

This text describes the various types of systems that capture data within and outside a business,
serving as sources for data analysis. It categorizes these systems into five broad groups: core
enterprise systems, customer and people systems, product and presence systems, technical
operations systems, and external source systems. The video emphasizes the importance for
analysts to understand the origin and nature of the data they work with.

Key Points:

 Understanding Data Sources is Crucial: Analysts benefit from knowing where their
data originates, even if it's consolidated in a data warehouse.
 Five Broad Categories of Source Systems:
o Core Enterprise Systems: Large-scale systems tied to financial operations (e.g.,
billing, ERP, supply chain management, accounting).
o Customer and People Systems: Focus on individuals and organizations (e.g.,
CRM, customer care, sales force automation, HR, electronic health records).
o Product and Presence Systems: Support systems for various business areas
(e.g., product management, content management, web analytics).
o Technical Operations Systems: Monitor processes and systems (e.g., process
monitoring, alarming, workflow management, telematics/machine data).
o External Source Systems: Data from outside the business (e.g., credit agencies,
demographic data providers, partners/suppliers). *The systems are grouped
together because of their relation to the topic.
 System Overlap: Some systems perform multiple functions (e.g., an ERP system might
handle supply chain and invoicing).
 Importance of Machine Data: Telematics and machine data are increasingly valuable
for analytics (Internet of Things, connected home).

Conclusion:

A wide array of systems capture data relevant to business analytics. By understanding these
different source systems, analysts can better identify potential data sources, appreciate the
context and limitations of the data, and ultimately perform more informed and effective analyses.
This knowledge helps bridge the gap between real-world events and actionable insights, enabling
analysts to navigate the complex data landscape within and outside their organizations. The
categorization provided serves as a starting point for exploring the specific systems within any
given business.

1.
Question 1

What statement below best describes why we do data analytics in business?

Refer to the following video for a refresher: video 1.

Analytics improve our understanding of how the business works

We must show a return on the investment we make in data & analytical resources

We need specific insights to make business decisions

We have to calculate & report financial results to owners / shareholders

Correct

The primary reason we do analytics in business is to enable specific decisions to be

made.

1 / 1 point

2.
Question 2

What should you consider as you approach an analytical problem and in which order?
Identify correct order for the following ideas / steps.

For example, if you think they are already in the correct order, correct answer would be
ABCDEF.

A. Sourcing Data

B. Analysis Outputs

C. Execute Analysis

D. Analysis Methods

E. Define Decision

F. Data Needs

Refer to the following video for a refresher: video 1.

ABCDEF:
A. Sourcing Data

B. Analysis Outputs

C. Execute Analysis

D. Analysis Methods

E. Define Decision

F. Data Needs

EBDAFC

E. Define Decision

B. Analysis Outputs

D. Analysis Methods

A. Sourcing Data

F. Data Needs

C. Execute Analysis

EBDFAC

E. Define Decision

B. Analysis Outputs

D. Analysis Methods

F. Data Needs

A. Sourcing Data

C. Execute Analysis
BDFACE

B. Analysis Outputs

D. Analysis Methods

F. Data Needs

A. Sourcing Data

C. Execute Analysis

E. Define Decision

Correct

Correct! When we think backwards about analytical problems, we start with the decision
to be made, consider the analysis outputs needed to make that decision, determine the
type of analysis required, identify the data needed, find sources for the data, and THEN
execute the analysis.

1 / 1 point

3.
Question 3

What diagram below best describes the relationship between a mobile wireless carrier
account holder and devices at a point in time?

A - shows oval with account connected to oval with device by straight line
B - shows oval with account connected to oval with device by straight line – forked end
on Account side

C - shows oval with account connected to oval with device by straight line – forked end
on Device side

D - shows oval with account connected to oval with device by straight line – forked end
on both sides

Refer to the following video for a refresher: video 2.

Correct

Typically one account can have many devices, so the diagram with the forked end on
the device side, which indicates a one to many relationship, is most appropriate.

1 / 1 point

4.
Question 4

For the next 5 questions that describe types of metrics, select a source that best
describes where the following data might come from:

The average temperature of a turbine bearing over the last 8 hours

Refer to the following video for a refresher: video 1.

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

5.
Question 5

Select a source that best describes where the following data might come from:

The number of developers allocated to a company software project

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

6.
Question 6

Select a source that best describes where the following data might come from:

Household water consumption by month

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

7.
Question 7

Select a source that best describes where the following data might come from:

The dollar amount of unpaid invoices at the end of a month

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

8.
Question 8

Select a source that best describes where the following data might come from:
The average age of customers in Madison, Wisconsin

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

9.
Question 9

Why is it important for data analysts to understand the value-chain (process) associated
with information and the analytical process?

Refer to the following videos for a refresher: videos 3 and 4

Understanding the information-action value chain is critical for data analysts because it highlights the
entire process, from identifying a real-world phenomenon to taking a business action. Analysts need
to know where data comes from, how it's captured and stored, and how to extract it. They also need
to understand how their analysis will be summarized, interpreted, and used to inform decisions and
actions. Without this end-to-end understanding, analysts risk working with irrelevant or flawed data,
producing analyses that don't address the real business need, or creating insights that are never
needed. The value chain emphasizes that data analysis is not an isolated activity, but a crucial part
of a larger process that drives business goals.

Feedback

The short answer to this question is that the more you understand about the way the
business works and how information flows through business systems, the better
prepared you will be to both execute and interpret your analysis. Also, the more skill you
have in finding and accessing data, the more productive and valuable you will be as an
analyst!

1 / 1 point

10.
Question 10

Identify correct order of steps in the Information-Action Value Chain.

Refer to the following videos for a refresher: videos 3 and 4.

ABCDEFGHI

A. Develop Strategy & Plan

B. Deliver the Pitch

C. Events & Characteristics in the Real World

D. Take Action

E. Data Capture by Source Systems

F. Data Extraction

G. Data Storage

H. Analytical Methods

I. Summarize & Interpret Results

CEFGHIABD
C. Events & Characteristics in the Real World

E. Data Capture by Source Systems

F. Data Extraction

G. Data Storage

H. Analytical Methods

I. Summarize & Interpret Results

A. Develop Strategy & Plan

B. Deliver the Pitch

D. Take Action

CEGFHIABD

C. Events & Characteristics in the Real World

E. Data Capture by Source Systems

G. Data Storage

F. Data Extraction

H. Analytical Methods

I. Summarize & Interpret Results

A. Develop Strategy & Plan

B. Deliver the Pitch

D. Take Action

CEGFHIBAD

C. Events & Characteristics in the Real World

E. Data Capture by Source Systems

G. Data Storage

F. Data Extraction

H. Analytical Methods

I. Summarize & Interpret Results

B. Deliver the Pitch

A. Develop Strategy & Plan

D. Take Action

Correct

Correct! CEGFHIABD is the correct order.

C. Events & Characteristics in the Real World

G. Data Storage

E. Data Capture by Source Systems

F. Data Extraction

H. Analytical Methods

I. Summarize & Interpret Results

A. Develop Strategy & Plan

B. Deliver the Pitch

D. Take Action

1 / 1 point

11.
Question 11

Why do we bring data together into a common location (select all that apply)?

Refer to the following video for a refresher: video 3.

We can establish relationships among data sources

Correct

Correct! When we bring data together in one location, it makes it easier to establish
relationships and link data together in a meaningful way.

It’s more convenient for extraction to have data in one place

Correct

Correct! Generally it’s easier to get access to data when you only have to go to one
place versus accessing each source system independently

Sometimes we can’t access source systems directly

Correct

Sometimes it is the case that we don’t want analysts to access data directly, particularly
when they are critical to business

Source data may be unstructured or not formatted for analysis

Correct

Correct! It is sometimes the case that the way a source system stores data makes it
hard to analyze directly, so we modify it and bring it to a common location for access

1 / 1 point

12.
Question 12

What type of analytics would you use to determine the best way to route delivery trucks
to minimize miles driven or gasoline consumed?

Refer to the following video for a refresher: video 4.

Descriptive

Predictive

Transitive

Cognitive

Prescriptive

Correct

Prescriptive analytics gives us insights into how we should do something. This

optimization problem is an example of prescriptive analytics.

1.
Question 1

What statement below best describes why we do data analytics in business?

Refer to the following video for a refresher: video 1.

Analytics improve our understanding of how the business works

We must show a return on the investment we make in data & analytical resources

We need specific insights to make business decisions

We have to calculate & report financial results to owners / shareholders

Correct

The primary reason we do analytics in business is to enable specific decisions to be

made.

1 / 1 point

2.
Question 2

What should you consider as you approach an analytical problem and in which order?
Identify correct order for the following ideas / steps.

For example, if you think they are already in the correct order, correct answer would be
ABCDEF.

A. Sourcing Data

B. Analysis Outputs

C. Execute Analysis

D. Analysis Methods

E. Define Decision

F. Data Needs

Refer to the following video for a refresher: video 1.

ABCDEF:

A. Sourcing Data

B. Analysis Outputs

C. Execute Analysis

D. Analysis Methods
E. Define Decision

F. Data Needs

EBDAFC

E. Define Decision

B. Analysis Outputs

D. Analysis Methods

A. Sourcing Data

F. Data Needs

C. Execute Analysis

EBDFAC

E. Define Decision

B. Analysis Outputs

D. Analysis Methods

F. Data Needs

A. Sourcing Data

C. Execute Analysis

BDFACE

B. Analysis Outputs

D. Analysis Methods

F. Data Needs
A. Sourcing Data

C. Execute Analysis

E. Define Decision

Correct

Correct! When we think backwards about analytical problems, we start with the decision
to be made, consider the analysis outputs needed to make that decision, determine the
type of analysis required, identify the data needed, find sources for the data, and THEN
execute the analysis.

1 / 1 point

3.
Question 3

What diagram below best describes the relationship between a mobile wireless carrier
account holder and devices at a point in time?

A - shows oval with account connected to oval with device by straight line

B - shows oval with account connected to oval with device by straight line – forked end
on Account side

C - shows oval with account connected to oval with device by straight line – forked end
on Device side
D - shows oval with account connected to oval with device by straight line – forked end
on both sides

Refer to the following video for a refresher: video 2.

Correct

Typically one account can have many devices, so the diagram with the forked end on
the device side, which indicates a one to many relationship, is most appropriate.

1 / 1 point

4.
Question 4

For the next 5 questions that describe types of metrics, select a source that best
describes where the following data might come from:

The average temperature of a turbine bearing over the last 8 hours

Refer to the following video for a refresher: video 1.

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

5.
Question 5

Select a source that best describes where the following data might come from:

The number of developers allocated to a company software project

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

6.
Question 6

Select a source that best describes where the following data might come from:

Household water consumption by month

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point
7.
Question 7

Select a source that best describes where the following data might come from:

The dollar amount of unpaid invoices at the end of a month

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

8.
Question 8

Select a source that best describes where the following data might come from:

The average age of customers in Madison, Wisconsin

Billing System

Usage Tracking System

Customer Relationship Management System

Machine Data System

Enterprise Resource Planning System

Ticketing / Workflow System

Correct
1 / 1 point

9.
Question 9

Why is it important for data analysts to understand the value-chain (process) associated
with information and the analytical process?

Refer to the following videos for a refresher: videos 3 and 4

Understanding the information-action value chain is critical for data analysts because it highlights the
entire process, from identifying a real-world phenomenon to taking a business action. Analysts need
to know where data comes from, how it's captured and stored, and how to extract it. They also need
to understand how their analysis will be summarized, interpreted, and used to inform decisions and
actions. Without this end-to-end understanding, analysts risk working with irrelevant or flawed data,
producing analyses that don't address the real business need, or creating insights that are never
needed. The value chain emphasizes that data analysis is not an isolated activity, but a crucial part
of a larger process that drives business goals.

Feedback
The short answer to this question is that the more you understand about the way the
business works and how information flows through business systems, the better
prepared you will be to both execute and interpret your analysis. Also, the more skill you
have in finding and accessing data, the more productive and valuable you will be as an
analyst!

1 / 1 point

10.
Question 10

Identify correct order of steps in the Information-Action Value Chain.

Refer to the following videos for a refresher: videos 3 and 4.

ABCDEFGHI

A. Develop Strategy & Plan

B. Deliver the Pitch

C. Events & Characteristics in the Real World

D. Take Action

E. Data Capture by Source Systems

F. Data Extraction

G. Data Storage

H. Analytical Methods

I. Summarize & Interpret Results

CEFGHIABD

C. Events & Characteristics in the Real World

E. Data Capture by Source Systems

F. Data Extraction
G. Data Storage

H. Analytical Methods

I. Summarize & Interpret Results

A. Develop Strategy & Plan

B. Deliver the Pitch

D. Take Action

CEGFHIABD

C. Events & Characteristics in the Real World

E. Data Capture by Source Systems

G. Data Storage

F. Data Extraction

H. Analytical Methods

I. Summarize & Interpret Results

A. Develop Strategy & Plan

B. Deliver the Pitch

D. Take Action

CEGFHIBAD

C. Events & Characteristics in the Real World

E. Data Capture by Source Systems

G. Data Storage

F. Data Extraction
H. Analytical Methods

I. Summarize & Interpret Results

B. Deliver the Pitch

A. Develop Strategy & Plan

D. Take Action

Correct

Correct! CEGFHIABD is the correct order.

C. Events & Characteristics in the Real World

G. Data Storage

E. Data Capture by Source Systems

F. Data Extraction

H. Analytical Methods

I. Summarize & Interpret Results

A. Develop Strategy & Plan

B. Deliver the Pitch

D. Take Action

1 / 1 point

11.
Question 11

Why do we bring data together into a common location (select all that apply)?

Refer to the following video for a refresher: video 3.

We can establish relationships among data sources

Correct
Correct! When we bring data together in one location, it makes it easier to establish
relationships and link data together in a meaningful way.

It’s more convenient for extraction to have data in one place

Correct

Correct! Generally it’s easier to get access to data when you only have to go to one
place versus accessing each source system independently

Sometimes we can’t access source systems directly

Correct

Sometimes it is the case that we don’t want analysts to access data directly, particularly
when they are critical to business

Source data may be unstructured or not formatted for analysis

Correct

Correct! It is sometimes the case that the way a source system stores data makes it
hard to analyze directly, so we modify it and bring it to a common location for access

1 / 1 point

12.
Question 12

What type of analytics would you use to determine the best way to route delivery trucks
to minimize miles driven or gasoline consumed?

Refer to the following video for a refresher: video 4.

Descriptive
Predictive

Transitive

Cognitive

Prescriptive

Correct

Prescriptive analytics gives us insights into how we should do something. This

optimization problem is an example of prescriptive analytics.

You can now start part 1 of the final assignment!

Don't wait to complete your final assignment in the last week. You can start part 1 after
completing the 1st week! You can access the final assignment in module 4.

What is more important for a data analyst to understand, the

business or analytical methods?
What’s relatively more important for a data analyst, understanding the business or
understanding analytical methods? Engage your co-learners in a debate on the topic –
find good arguments on both sides of the debate!

While both business understanding and analytical methods are essential for a data analyst,
understanding the business is relatively more important, especially at the outset and for
overall effectiveness. Here's a breakdown of why:

Why Business Understanding is Paramount:

1. Asking the Right Questions: A deep understanding of the business allows an analyst to
identify the most important questions to ask. Without this context, an analyst might apply
sophisticated methods to the wrong problems, producing technically correct but
ultimately useless results. Knowing what questions are worth answering is often more
valuable than knowing how to answer any arbitrary question.
2. Interpreting Results Meaningfully: Business context is crucial for interpreting the
results of an analysis. A statistical anomaly might be meaningless, or it might be a critical
 insight, depending on the business situation. Only someone who understands the business
can make that distinction. Raw numbers and statistical outputs need to be translated into
business implications.
3. Driving Actionable Insights: The ultimate goal of data analysis in a business setting is
to drive better decisions and actions. An analyst who understands the business can
connect their findings to specific strategies, tactics, and potential outcomes. They can
explain why the analysis matters and how it can be used to improve the business.
4. Communicating Effectively: Analysts need to communicate their findings to
stakeholders, often non-technical audiences. Business understanding allows them to
"speak the language" of the business, frame their results in terms of business impact, and
make a compelling case for action.
5. Data Source and Quality Awareness: Understanding the business helps an analyst
understand where data comes from, how it's collected, and its potential limitations. This
is vital for assessing data quality and avoiding flawed analyses.
6. Framing the problem. Business understanding allows the analyst to correctly frame the
problem.

The Role of Analytical Methods:

Analytical methods are, of course, also essential. An analyst needs a toolkit of techniques to
extract, clean, transform, and analyze data. However:

 Methods Can Be Learned: While mastering advanced analytical techniques takes time
and effort, the fundamental skills can be acquired through training and practice. There are
abundant resources for learning statistical methods, programming languages, and data
visualization tools.
 Tools Evolve: The specific tools and techniques used in data analysis are constantly
evolving. New software, libraries, and algorithms emerge regularly. A strong business
understanding provides a stable foundation that remains relevant even as technology
changes. A strong conceptual understanding will allow quick learning.
 Methods are Means to an End: Analytical methods are tools to answer questions, not
the questions themselves. The business context defines the questions; the methods
provide the means to answer them.

In Conclusion:

A data analyst needs a solid foundation in both business understanding and analytical methods.
However, business understanding is relatively more important because it provides the context,
direction, and purpose for the analysis. An analyst with excellent technical skills but poor
business acumen is like a skilled carpenter with no blueprint – they can build things, but they
may not be building the right things. An analyst with strong business understanding can guide
the analysis, interpret the results, and ensure that the work leads to real business value, even if
their technical skills are still developing. Over time, a great analyst will develop both their
technical skills and their business acumen.
What are some of the challenges you might find in communicating
the results of your analysis?
What are some of the challenges you might find in communicating the results of your
analysis? Do you have any stories /anecdotes to share about how you’ve seen results
communicated successfully or poorly? What made those communications effective or
ineffective?

Communicating the results of data analysis is often as challenging, and sometimes more
challenging, than the analysis itself. Here are some common challenges, followed by anecdotes
illustrating good and bad communication:

Common Challenges in Communicating Analytical Results:

1. Audience Knowledge Gap: The audience (managers, executives, colleagues) may lack
the technical background to understand the methods used. Explaining complex statistical
concepts or algorithms in a way that's both accurate and accessible is a major hurdle.
2. Data Overload: Presenting too much data, too many charts, or too many technical details
can overwhelm the audience and obscure the key findings. The "curse of knowledge" can
make it hard for the analyst to remember what it's like not to know the details.
3. Lack of Clear Narrative: Simply presenting a collection of charts and numbers without
a clear storyline or narrative makes it difficult for the audience to follow the logic and
grasp the implications.
4. Failure to Connect to Business Goals: The analysis might be technically sound, but if
it's not clearly linked to business objectives, it won't be seen as valuable. The "so what?"
factor needs to be explicitly addressed.
5. Over-Reliance on Jargon: Using technical jargon or statistical terms without
explanation can alienate the audience and create a barrier to understanding.
6. Poor Visualizations: Charts and graphs that are poorly designed, cluttered, or misleading
can confuse the audience and even distort the findings.
7. Lack of Confidence or Clarity: If the analyst appears hesitant, unsure, or unable to
explain things clearly, the audience will lose confidence in the results.
8. Ignoring Audience Concerns: Failing to anticipate potential questions or objections
from the audience can lead to a defensive or unproductive discussion.
9. Focusing on the Process, Not the Outcome: Spending too much time describing the
analytical process rather than the results and their implications can bore the audience and
diminish the impact.
10. Not Tailoring to the Audience: A presentation that works well for a technical team
might be completely inappropriate for a group of senior executives, and vice-versa.

Anecdotes:

Poor Communication (Story 1 - The Data Dump):

"I once sat through a presentation where a junior analyst presented the results of a customer
segmentation analysis. He spent 45 minutes walking through every single step of the clustering
algorithm, showing dozens of scatter plots with different combinations of variables, and
explaining the statistical measures used to evaluate cluster quality. He used terms like 'silhouette
coefficient' and 'elbow method' without defining them. By the end, the audience was completely
lost. No one understood why this segmentation mattered, which segments were most important,
or what the company should do with this information. The presentation was a 'data dump' – a
massive amount of information with no clear narrative or actionable insights. It focused entirely
on the how and ignored the why and so what."

What Made It Ineffective:

 Audience knowledge gap: Assumed a high level of statistical understanding.

 Data overload: Too many charts and technical details.
 Lack of clear narrative: No storyline to connect the analysis to business outcomes.
 Jargon: Used unexplained technical terms.
 Focus on process, not outcome.

Good Communication (Story 2 - The Elevator Pitch):

"I worked with a senior analyst who was incredibly effective at communicating complex
findings. She was analyzing the impact of a new marketing campaign. Instead of presenting a
detailed breakdown of the statistical models, she started with a single slide: a simple bar chart
showing the increase in sales attributed to the campaign, along with the calculated return on
investment (ROI). She then said, 'This campaign generated a 30% increase in sales and a 5x ROI.
Here's why it worked so well...' She then used three more slides, each with a single, clear
visualization and a concise explanation, to highlight the key drivers of the campaign's success.
She used plain language, avoided jargon, and focused entirely on the business implications. The
entire presentation took less than 10 minutes, but everyone in the room understood the key
findings and their significance."

What Made It Effective:

 Clear narrative: Started with the key takeaway (ROI) and then explained the "why."
 Simplicity: Used a minimal number of slides and visualizations.
 Focus on business value: Emphasized the impact on sales and ROI.
 No jargon: Used plain language understandable to everyone.
 Conciseness: Kept the presentation short and to the point.
 Anticipation: She later answered follow-up questions.

Poor Communication (Story 3 - The Technical Deep Dive, with no connection)* I was
helping a team conduct analysis of different marketing strategies. The client's analytical group
showed up with a brilliant data scientist, who explained his model for hours. No one understood
what he did, and he didn't share any recommendations based on his analysis.

What Made It Ineffective:

  Audience gap
 No business connection
 Focus on the how, but no why, and so what.

These anecdotes highlight that effective communication is not just about presenting data; it's
about telling a compelling story, connecting the analysis to business goals, and tailoring the
message to the specific audience. It's about making complex information understandable and
actionable.