Getting Grounded On Analytics
Getting Grounded On Analytics
To come to a shared definition of Analytics, let’s start with the data value chain.
Data has been called a lot of things – a new natural resource, the new oil, the new water and so on and
so forth. Being so, data then has to be mined and refined to extract the value from it.
Analytics enables this transformation. And it starts, of course, with the creation of data.
At this stage, data is created and generated from its source, mostly, from us: personal biodata, an
employment application form, a bank loan application=form, our medical records.
When we buy something either from a physical store or an online store, when we call or Text someone,
when we take a photo, when we create videos, when we post something on Facebook or on Twitter, we
create data. Machines and equipment can also create data: biometric machines, CCTVs, barcode
scanners in retail stores, our phones, our computers. This is the birth of data. All of these are collected
by various people and organizations, stored into their applications, waiting to be extracted for the value
that they will provide. The first transformation that data goes through is when it is extracted from these
various sources and consolidated into a single repository. In this process, data is cleaned, categorized,
transformed, aggregated, and loaded into a single repository where similar data from the past was also
stored. At this stage, data is transformed into information. At this stage as well, organizations will be
able to answer the question, “What happened?” The second transformation that data goes through is
when information is transformed to insights. At this stage, since our single data repository also contains
historical information, organizations can now see if there are trends or patterns that will emerge from all
the stored information. From these trends and patterns, organizations will now be able to answer the
questions, “Why did it happen?” “What could likely happen next?” The value of data will not be fully
realized until organizations act on the insights that emerge from the analysis that has been done so far.
The transformation then of insights to imperatives or actionable insights is the last transformation that
data goes through. Given the insights of what could likely happen next, Analytics can develop various
options that will help organizations answer the question, “What should be done next?” From these
options, organizations can decide on a course of action for their organization. This is the data value
chain: from the birth of data, to information (answering the question, “What happened?”), to insights
(answering the questions, “Why did it happen? What could likely happen next?”), to imperatives or
actionable insights (answering the question, “What should be done next?”).
Data- creation and generation of data
from its source; the birth of data. Answers
what happened?
Let us look into an example on how the data value chain is realized. Supermarkets, department stores,
online stores, even our suking sari-sari store all perform Analytics and allow data to move up its value
chain. Whenever and wherever we go shopping, data about our purchase is recorded: date and time,
location, the item bought, any discount, total cost, and, at times, our data as a customer.
All these are collected on the cash register, or on an ecommerce site, or in Aling Maria’s notebook.
This is the data stage. At the end of the day, the shop owner would want to know, “What happened?
How much sales did they make?” Consolidating all the day’s sales would answer these questions.
As the shop owner would also have the information from previous days or months, he or she might also
notice that the sales for the day is quite less from previous days. This is also a piece of information that
the data could tell the shop owner. This is the information stage. The shop owner would then naturally
ask, “Why did it happen?” The shop owner would want to know what caused the dip in sales and if
there’s any indication that it might continue in the future, the question, “What could likely happen
next?” Looking at historical data, the shop owner might potentially see that the dip in sales always occur
in the same period of the year. Further investigation could show that there are certain products stocked
in their inventory that have really low sales during this time of the year. These are insights that a shop
owner can deduce from the historical information. This is the insights stage. Finally, now knowing what
caused the dip in sales and that there appears to be a pattern every year on the same period, the shop
owner will ask, “What should be done next?” Knowing what products would sell more at given times of
the year, the shop owner can then take action on the insights that were derived. This is the imperatives
stage. With new actions taken to improve their business, the shop owner goes into a new cycle of the
data value chain.
1.3.3. Common Analytics Terminologies
From the data value chain, certain Analytics disciplines emerge. These are Analytics terminologies that
you may have already heard of. Normally associated with Data are Data Governance, Data Management,
Data Security, and Data Ethics. These are disciplines that call for deep knowledge about what data is
being collected, how it is being collected, how it is used, who has access to it, among others. With new
government regulations on data handling, organizations are being mandated to tighten the performance
of these activities. Associated with Information are terms such as Data Engineering, Data Warehousing,
Data Architecture, Business Intelligence. And since this stage answers the question, “What happened?”,
this is where Descriptive Analytics is also done. With Insights, as we answer the questions, “Why did it
happen? What could likely happen next?”, this is where encounter terminologies such as Data Mining,
Algorithms, Machine Learning. This is also where we do Diagnostic Analytics and Predictive Analytics.
Finally, with Imperatives, we answer the question, “What should be done next?”, this is where we
encounter terminologies such as Optimization, Simulation, Recommendation Engines.
This is also where we do Prescriptive Analytics. Confused? Overwhelmed? That’s ok.
We’ll get to learn more of these Analytics disciplines in the next module and in the other courses of
Project SPARTA.
Data
associated with 1.Data Governance 2. Data
Management 3. Data Security 4. Data Ethics
(What data is being collected, how it is being
collected, how it is used, who has access to
it)
As Analytics transforms data to information to insights to imperatives through the value chain, we now
find the major roles in Analytics. Data Stewards develop, enforce, and maintain an organization’s data
governance process, data usage, and data security policies to ensure that data assets provide the
organization with high-quality data. Their expertise is in business and industry domains. Data Stewards
are the data gatekeepers of an organization. You won’t be able to get data without going through them.
As they also ensure data quality, they will be the most knowledgeable in determining how to deal with
missing or fix unclean data. Related job titles include data privacy officer, data security officer, data
governance manager, data curator, data librarian. Data Engineers design, construct, test, and maintain
data infrastructures including applications that extract, clean, transform, and load data from the data
sources to centralized data repositories. Their expertise is in information technology, information
science, and computer science. Ensuring that data from the centralized data repositories are in-sync
with the various data sources is the responsibility of the Data Engineers. Furthermore, they are also
responsible to make sure that the data infrastructures are available to key stakeholders during agreed
times. Related job titles include ETL developer, data architect, data warehousing professional, big data
engineer. Data Scientists leverage statistical techniques and create analytical models to derive new
insights from quantitative and qualitative data. Their expertise is in mathematics and statistics. Data
Scientists have keen eyes to find trends and patterns from current and historical pieces of information.
This allows Data Scientists to make predictions on what could potentially happen next. Related job titles
include statistician, statistical modeler, advanced analytics professional. Functional Analysts utilize data
and leverage on derived insights to help organizations make better decisions on a specific functional
domain. Their expertise is in business and industry domains. While it is still the role of Data Scientists to
come up with prescriptive models and algorithms, the Functional Analysts, with their domain expertise,
will be the one who will validate the insights derived by the Data Scientists. They will then make the final
prescriptions to the leadership team enabling the leaders of the organizations to make better decisions.
Related job titles include research analyst, human resource analyst, marketing analyst, financial analyst,
operations analyst. Analytics Managers develop and guide data-driven projects – from initiation to
planning, execution to performance monitoring, to closure. Their expertise is in project management.
Analytics Managers bring the Analytics team together. With knowledge on what to expect from each
team member, the Analytics Managers ensure the successful delivery of Analytics projects.
Related job titles include chief data officer, project manager, data engineering manager, data science
manager, analytics translator. It should be recognized that there are numerous Analytics job titles out
there and that there are overlaps across these roles. The Analytics Association of the Philippines
believes, however, that the job families identified here are differentiated enough especially in their role
in the data value chain and in the identified areas of expertise. Such jobs require people with unique
skills and experience to fill these roles. By understanding this distinction, organizations and Analytics
practitioners can share the same set of expectations to ensure that, one, organizations get the most out
of their Analytics efforts and, two, that Analytics practitioners are positively engaged by performing
tasks that are aligned to their profession and career path.
Leverage
Analytics Roles
As we proceed to come to a shared definition of Analytics, let’s look at a definition of Analytics that
states that Analytics is “a decision support system”. We still elect to use this term – decision support –
because while Analytics can provide the end user with data, information, insights, and prescribed
actions, we should maintain that the end user can still choose to act upon them or not. The final
decision is still with the end user. With fear spreading about how digital technologies such as artificial
intelligence, robotic process automation, and the like will take over our jobs, this is important to
emphasize. Analytics can only provide decision support. We, the end user, will still have the final say.
What we are adding to this definition, however, is that, in this digital age, Analytics provides decision
support not only to humans within an organization, but also to digital processes. Analytics is also
about the provisioning of data, information, and insights to drive digitalized processes in an intelligent
way. Smart appliances, self-driving cars, manufacturing robots have digital processes that are supported
by Analytics.
With this understanding of the data value chain, the major job families, and decision support systems,
the following definition of Analytics is derived: Analytics progresses data along its value chain, with the
purpose of delivering the right decision support to the right people and digital processes at the right
time . . . for the greater good. In this definition, we note the work that Analytics is expected to perform,
and the recipients of its output. More importantly, while Analytics – and other technologies and
disciplines, for that matter – is, in itself, amoral, the definition emphasizes the ethical use of Analytics.
1.5.1 Summary
That’s all for Week 1: Analytics, the Data Value Chain, and the Analytics Roles. Here are our key take-
away points from this week:
● Analytics mines and refines data to extract its value as it transforms data to information, to insights,
and to imperatives.
● This transformation is performed through the various Analytics roles: data steward, data engineer,
data scientist, functional analyst, and analytics manager. It is important that the right people are
assigned to the right roles.
● Analytics is still just a decision support system that enables us, the end user, to make the final ethical
decision on what the data is telling us.
2.2.1 APEC PROJECT DARE
After coming up with a baseline definition of Analytics and a set of the major Analytics job families, we
now move on to identify a list of Analytics skills and competencies that will be needed by Analytics
professionals to perform their roles. As the Analytics Association of the Philippines has set out
to have a framework that will be, among others, comprehensive (but not complicated), enduring,
and valuable to professionals and organizations, the framework had to ensure that these competencies
are globally recognized. Having a globally recognized list means that Filipino professionals and
organizations who will adapt these competencies can be globally competitive
as well. This is where APEC Project DARE comes in. Project DARE (or Data Analytics Raising Employment)
is an initiative of the Asia-Pacific Economic Cooperation (or APEC) led by the United States Department
of Labor with co-sponsorship from the governments of Australia, Japan, Malaysia, Peru, Chinese Taipei,
and Viet Nam and endorsed by the APEC Business Advisory Council. As a project of APEC’s Human
Resources and Development Working Group, Project DARE seeks to facilitate development of a data
analytics-enabled workforce across the APEC region to effectively support sustainable economic growth
and prosperity in the Asia-Pacific region. In May 2017, a 50-person Advisory Group composed of 14
APEC member economies, co-chaired by the global skills and knowledge company Wiley and the
Business Higher Education Forum (or BHEF), met in Singapore to develop this set of Analytics
competencies. With guidance from North America’s BHEF and Europe’s Project EDISON, the Advisory
Group was able to marry the skills and expected competencies from North America and Europe with the
requirements and expectations from the APEC region to come up with a globally recognized list of
Analytics skills and competencies. To know more about APEC Project DARE, kindly click the link below.
2.2.2 The recommended APEC Analytics competencies
The following 10 competencies apply to teams comprising not only of data engineers and data scientists
but also to a new emerging segment of Analytics-enabled professionals including data stewards,
functional analysts, and analytics managers.
The first 4 competencies comprise the Business and Organization skills:
● Domain Knowledge & Application
● Data Management & Governance
● Operational Analytics
● Data Visualization & Presentation
The next 5 competencies comprise the Technical skills:
● Research Methods
● Data Engineering Principles
● Statistical Techniques
● Data Analytics Methods & Algorithms
● Computing
The last competency is on Workplace skills:
● 21st Century Skills
As you will see, this toolkit can be used not only by Analytics professionals to chart their career paths.
It can also be used by other stakeholders to build their own solutions for educating, training, certifying,
recruiting, managing, and otherwise supporting Analytics and Analytics-enabled professionals.
As I introduce you to each of these competencies, do a self-assessment of your skill level.
This will help you craft a training and development plan for yourself. And do not worry if you don’t have
the skills right now. Acquiring these skills is one of the reasons you are here anyway, right?
2.2.3 Business and Organizational Skills
Let’s start with the Business and Organization Skills. Do a self-assessment as we go along.
With Domain Knowledge & Application, you apply domain- related knowledge and insights to
effectively contextualize data, achieved by practical experience and exposure to emerging
innovations. This is the main skill of Functional Analysts. This is about industry knowledge, business
experience, and domain expertise. Level 0. You currently don’t have the skill. Level 1. You understand
collected data, and how they are handled and applied in the specific industry domain. Level 2. You
develop content strategy and information architecture to support a given industry domain and its
audiences. Level 3. You make business cases to improve domain- related procedures through data-
driven decision-making. At which level are you in right now? With Data Management & Governance,
you develop and implement data management strategies, incorporating privacy and data security,
policies and regulations, and ethical considerations. This is the forte of Data Stewards, the data
gatekeepers of an organization. In certain cases, the HR and Legal departments are involved in
developing and enforcing these policies. Level 0. You currently don’t have the skill. Level 1. You are
aware and always apply policies and measures to ensure data security, privacy, intellectual property,
and ethics. Level 2. You enforce policies and procedures for data security, privacy, intellectual property,
and ethics. Level 3. You develop policies on data security, privacy, intellectual property, and ethics. At
which level are you in right now? With Operational Analytics, you use general and specialized analytics
techniques for the investigation of all relevant data to derive insight for decision-making. This is the
area of Analytics Managers. With their project management expertise, they can oversee the successful
delivery of an Analytics project. Level 0. You currently don’t have the skill. Level 1. You perform
business analysis for specified tasks and data sets. Level 2. You identify business impact from trends and
patterns. Level 3. You identify new opportunities to use historical data for organizational processes
optimization. At which level are you in right now? With Data Visualization & Presentation, you
create and communicate compelling and actionable insights from data using visualization and
presentation tools and technologies. This is not just about creating charts but creating and effectively
communicating the story that data is telling an organization. Level 0. You currently don’t have the skill.
Level 1. You prepare data visualization reports or narratives based on provided specifications. Level 2.
You create infographics for effective presentation and communication of actionable outcomes. Level
3. You select appropriate and develop new visualization methods used in a specific industry. At which
level are you in right now?
These are the competencies that comprise the Business and Organization skills: ● Domain Knowledge &
Application ● Data Management &Governance ● Operational Analytics ● Data Visualization
&Presentation As you will see later, all Analytics practitioners should have certain levels of proficiency
across these competencies.
2.2.4 Technical Skills
Let’s move on to the Technical Skills. Do a self-assessment as we go along. These are the skills that you
may really not have any proficiency on at this time. Again, do not worry, we’ll build up these skills in due
time. With Research Methods, you utilize the scientific and engineering methods to discover and
create new Used by Data Scientists, research methods are the strategies, processes or techniques
utilized in the collection of data or evidence for analysis in order to uncover new information or create
better understanding of a topic. Level 0. You currently don’t have the skill. Level 1. You understand and
use the 4-step research model: hypothesis, research methods, artifact, evaluation. Level 2. You develop
research questions around identified issues within existing research or business process models. Level 3.
You Design experiments which include data collection (passive and active) for hypothesis
testing and problem solving. At which level are you in right now? With Data Engineering Principles, you
use software and system engineering principles and modern computer technologies to develop data
analytics applications. This is the realm of Data Engineers. They are the ones who will bring all the
needed data from the various sources, extract, clean, aggregate, transform, and finally load them to
the identified data repositories. Level 0. You currently don’t have the skill. Level 1. You have
knowledge and ability to program selected SQL and NoSQL platform for data storage and access, in
particular write ETL scripts. Level 2. You design and build relational and non-relational databases, ensure
effective ETL processes for large datasets. Level 3. You have advanced knowledge and experience of
using modern Big Data technologies to process different data types from multiple sources. At which
level are you in right now? With Statistical Techniques, you apply statistical concepts and
methodologies to data analysis. Ok, so, “unfortunately,” especially for aspiring Data Scientists, there’s
no escaping math and statistics. Here, mathematical formulas are used in the analysis of raw research
data. The application of these techniques extracts information from research data and provides
different ways to assess the robustness of research outputs. Level 0. You currently don’t have the skill.
Level 1. You know and use statistical methods such as sampling, ANOVA, hypothesis testing, descriptive
statistics, regression analysis, and others. Level 2. You select and recommend appropriate statistical
methods and tools for specific tasks and data. Level 3. You identify problems with collected data and
suggest corrective measures, including additional data collection, inspection, and pre-processing. At
which level are you in right now? With Data Analytics Methods & Algorithms, you implement and
evaluate machine learning methods and algorithms on the data to derive insights for decision-
making. This is, again, the area of Data Scientists. With what they know of their data, they should now
be able to identify the most appropriate methods or algorithm to really extract insights from data.
This is moving towards real advanced Analytics as this competency starts where Statistical Technique
ends. See Level 3 of Statistical Techniques and note where Methods & Algorithms start at Level 1. Level
0. You currently don’t have the skill. Level 1. You demonstrate understanding and perform statistical
hypothesis testing; you can explain statistical significance of collected data. Level 2. You apply
quantitative techniques (e.g., time series analysis, optimization, simulation) to deploy appropriate
models for analysis and prediction. Level 3. You assess data on reliability and appropriateness; you
select appropriate approaches and their impact on analysis and the quality of the results. At which level
are you in right now?
With Computing, you apply information technology, computational thinking, and utilize programming
languages and software and hardware solutions for data analysis. This is software programming. Data
Engineers and Data Scientists would have to develop these skills to perform their functions. You will
learn several of these programming languages in Project SPARTA. Level 0. You currently don’t have the
skill. Level 1. You perform basic data manipulation, analysis, and visualization. Level 2. You apply
computational thinking to transform formal data models and process algorithms into program code.
Level 3. You select appropriate application and statistical programming languages, and development
platforms for specific processes and data sets. At which level are you in right now? These are
competencies that comprise the Technical skills: ● Research Methods ● Data Engineering Principles
● Statistical Techniques ● Data Analytics Methods & Algorithms ● Computing Exciting stuff, right?
As you will see later, depending on the Analytics role that you will build a career on, you would need
only certain Technical competencies to effectively perform your role.
Let’s move on to the last set of skills, the 21st Century Workplace Skills. With the 21 st Century Skills,
there’s really no 3-level toolkit that can be applied given that these are necessary skills not only in
Analytics but also in other fields as well. For Analytics, APEC Project DARE recommended that
Analytics professionals should exhibit crosscutting skills essential for Analytics at all levels, including
but not limited to: collaboration, communication and storytelling, ethical mindset, organizational
awareness, critical thinking, planning and organizing, problem solving, decision making, customer
focus, flexibility, business fundamentals, cross-cultural awareness, social and societal awareness,
dynamic (self) re-skilling, professional networking, and entrepreneurship. Such skills should be enabled
at levels of proficiency driven behind successful career and professional development programs:
● Critical Thinking: Demonstrating the ability to apply critical thinking skills to solve problems and make
effective decisions
● Communication: Understanding and communicating ideas
● Collaboration: Working with others, appreciation of multicultural differences
● Creativity and Attitude: Deliver high quality work and focus on final result, initiative, intellectual risk
● Planning & Organizing: Planning and prioritizing work to manage time effectively and accomplish
assigned tasks
● Business Fundamentals: Having fundamental knowledge of the organization and the industry
● Customer Focus: Actively look for ways to identify market demands and meet customer or client
needs
● Working with Tools & Technology: Selecting, using, and maintaining tools and technology to facilitate
work activity
● Dynamic (Self-) Re-Skilling: Continuously monitor individual knowledge and skills as shared
responsibility between employer and employee, ability to adopt to changes
● Professional Network: Involvement and contribution to professional network activities
● Ethics: Adhere to high ethical and professional norms, responsible use of power data driven
technologies, avoid and disregard un-ethical use of technologies and biased data collection and
presentation.
Many actually call these skills soft skills but there’s really nothing “soft” about these skills.
These skills are harder to develop as they take the longest time and
is further influenced by the culture and the environment
that an individual is exposed to.
2.3.1 AAP Professional Maturity
With a shared definition of Analytics, a set of the major Analytics job families, and a globally recognized
list of Analytics skills and competencies, the Analytics Association of the Philippines introduces the AAP
Professional Maturity Model. This model suggests a maximum proficiency level per competency and
role. Roles requiring business and industry knowledge, i.e., data stewards and functional analysts, would
require higher proficiency in the business and organizational skills. Roles requiring technical
competencies, i.e., data engineers and data scientists, would require higher proficiency in the technical
skills. Analytics managers should have high proficiency in business and industry skills as well as entry-
level proficiency in the technical skills to effectively manage Analytics projects. All roles, however, are
expected to have high proficiency in the 21st century skills. Take a look again at your self-assessment.
How close are they to the expected proficiency levels of the Analytics role you are eyeing to be?
Plan your training and development, as well as your work experiences, around the competencies that
you need to build proficiency on.
Some notes about the AAP Professional Maturity Model: First, The 3-level toolkit presented this week is
but a subset of a larger pool of proficiency expectations per level, per competency. It is important to
highlight that the courses you will take within Project SPARTA are aligned to this 3- level toolkit and to
the AAP Professional Maturity Model. Second, the model can be used not only by Analytics professionals
to chart their career paths. It can also be used by other stakeholders to build their own solutions for
educating, training, certifying, recruiting, managing, and otherwise supporting Analytics and Analytics-
enabled professionals. Lastly, the Analytics Association of the Philippines invites everyone, from the
private sector, to the academe, to government agencies to further develop and enhance the AAP
Professional Maturity Model through the adoption and the evaluation of this framework. This course is
just a start to introduce a set of standards in building world-class Filipino Analytics professionals. It must
evolve, however, to keep pace with the advancement of Analytics and other emerging Analytics-enabled
disciplines. Visit www.aap.ph to know more about how you can start being involved.
2.5.1 Summary
That’s all for Week 2: The Analytics Competencies and the Professional Maturity Model. Here are our
key take-away points from this week:
● Analytics is a broad field of knowledge requiring quantitative and technical skills, industry expertise,
and business acumen; but practitioners also need to be able to communicate effectively, build
relationships, and coach others.
● Different roles call for different levels of proficiency across the various Analytics competencies. The
AAP Professional Maturity Model is a framework that can help practitioners chart a career path for
themselves.
● The Professional Maturity Model is a framework that will be in continuous improvement to keep up
with the advancement of Analytics and other emerging Analytics-enabled disciplines. Practitioners are
encouraged to contribute to its continuous improvement.
In Week 3, we will be discussing the Organizational Maturity Model. As you have competencies to
develop for you to perform your Analytics roles, so do organizations have “competencies” as well to
develop to become data- driven organizations.
In 2007, Thomas Davenport and Jeanne Harris introduced the Five Stages of Analytics Maturity in their
book, “Competing on Analytics: the New Science of Winning.” In 2010, Tom and Jeanne were joined by
Robert Morison in introducing the DELTA Model in their book, “Analytics at Work: Smarter Decisions,
Better Results.” Both frameworks were updated by Tom and Jeanne in their 2017
revision of “Competing on Analytics.” Two new components were added to the DELTA model creating
the DELTA+ Model. The Five Stages of Analytics Maturity and the DELTA+ Model have become the
industry standard frameworks for assessing organizational analytics maturity. This week, we summarize
the key elements of these frameworks so that you and your organization can make an assessment on
how far along your organization is in terms of Analytics maturity.
The DELTA+ Model is comprised of seven elements that must evolve and mature for organizations to
succeed in their Analytics initiatives. These seven elements are:
D for integrated, high-quality, and easily accessible data
E for managing Analytics resources in a coordinated fashion across the enterprise
L for strong, committed leadership that understands the importance of analytics and constantly
advocates their use in decision and actions
T for selecting the right, strategic, organizational targets that will be the core of an Analytics roadmap
A for nurturing high-performing analytics professionals
The continued growth of big data and the introduction of new Analytics techniques like machine
learning provided the + in the DELTA+ model:
T for the technologies that will support Analytics across the organization
A for the various analytical techniques ranging from simple descriptive statistics to machine learning
Let’s look at each of these elements.
D is for Data.
It is no secret that many organizations face data quality issues. For meaningful Analytics to happen,
organizations must ensure that high quality data is organized and accessible by the right people.
Make an assessment about Data in your organization:
Level 1: Inconsistent, poor-quality, and unstandardized data; difficult to do substantial analysis; no
groups with strong data orientation
Level 2: Standardize and structured data, mostly in functional or process silos; senior executives
do not discuss data management
Level 3: Key data domains identified, and central data repositories created
Level 4: Integrated, accurate, common data in central repositories; data still mainly an IT matter, little
unique data
Level 5: Relentless search for new data and metrics leveraging structured and unstructured data (e.g.,
text, video); data viewed as a strategic asset
E is for Enterprise.
Analytical organizations advocate a single and consistent perspective for Analytics across the enterprise.
This is accomplished by setting an Analytics strategy and building a roadmap to implement that strategy.
Make an assessment about your organization as an analytical Enterprise:
Level 1: No enterprise perspective on data or analytics; poorly integrated systems
Level 2: Islands of data, technology, and expertise deliver local value
Level 3: Process or business unit focus for analytics; infrastructure for analytics beginning to
coalesce
Level 4: Key data, technology, and analytics professionals managed from an enterprise perspective
Level 5: Key analytical resources focused on enterprise priorities and differentiation
L is for Leadership.
Analytical organizations have leaders who fully embrace Analytics and lead company culture towards
data-driven decision-making. Beyond the C-level, all levels of leadership within the enterprise should
support Analytics. Make an assessment about Leaders in your organization:
Level 1: Little awareness of or interest in analytics
Level 2: Local leaders emerge but have little connection
Level 3: Senior leaders recognize importance of analytics and developing analytical capabilities
Level 4: Senior leaders develop analytical plans and build analytical capabilities
Level 5: Strong leaders behave analytically and show passion for analytical competition
T is for Targets.
Analytics efforts must be aligned with specific, strategic targets that are also aligned with the objectives
of the organization. At the highest maturity level, these targets become embedded in the strategic
planning process and are considered business initiatives and not just Analytics initiatives. Make an
assessment about the Targets in your organization:
Level 1: No targeting of opportunities
Level 2: Multiple disconnected targets, typically not of strategic importance
Level 3: Analytical efforts coalesce behind a small set of important targets
Level 4: Analytics is centered on a few key business domains with explicit and ambitious outcomes
Level 5: Analytics is integral to the company’s distinctive capability and strategy
Organizations mature their analytical capabilities as they develop in the seven areas of DELTA+.
As introduced in “Competing on Analytics” and developed in “Analytics at Work,” this maturity model
helps organizations measure their growth across these areas.
At Level 1, the organization is Analytically Impaired. The organization lacks one or several of the
prerequisites for serious analytical work, such as data, analytical skills, or senior management interest.
At Level 2, the organization has Localized Analytics. There are pockets of analytical activity within the
organization, but they are not coordinated or focused on strategic targets.
At Level 3, the organization has strong Analytical Aspirations. The organization envisions a more
analytical future, has established analytical capabilities, and has a few significant initiatives under way,
but progress is slow—often because some critical factors have been too difficult to implement.
At Level 4, the organization becomes an Analytical Organization. The organization has the needed
human and technological resources, applies analytics regularly, and realizes benefits across the business.
But its strategic focus is not grounded in analytics, and it hasn't turned analytics to competitive
advantage.
At Level 5, the organization is an Analytical Competitor. The organization routinely uses analytics as a
distinctive business capability. It takes an enterprise-wide approach, has committed and involved
leadership, andhas achieved large-scale results.
So how does your organization fare? Where do you see strengths in your organization and where do
you also see areas for improvement?
3.3.2 Grow your Organization’s Analytical Maturity
This part summarizes the seven elements of a successful Analytics program within an organization. It is
highly recommended that you work with your leadership team to grow your organization’s analytical
maturity. The works of Davenport, Harris, and Morison in “Competing on Analytics: the New Science of
Winning” and “Analytics at Work: Smarter Decisions, Better Results” provide excellent blueprints for this
maturity journey as they show how each element could transition from one maturity level to another.
3.5 Summary
That’s all for Week 3: The DELTA+ Model and the Organizational Maturity Model. Here are our key
takeaway points from this week:
The Organizational Maturity Model is a tool to assess an organization’s process capability
in Analytics. Truly analytical organizations have three hallmarks:
Analytics is embedded in the major processes of an organization, the “workhorse” activities
of the enterprise. They build and continually reinforce a culture of analytical decisions, a “test and learn”
philosophy, and a commitment to fact-based decision making. Never satisfied, and always mindful of
how conditions change, they continually review their assumptions and analytical models.
In Week 4, we will put together what we have learned so far in this course to help you
outline an Analytics strategy road map for your organization.
Thank you for completing this week and see you in Week 4!
4.1 What is Strategy?
What we want to highlight in this definition is alignment. Anything that anyone does in an organization
should be aligned to the overall mission and vision of the organization. If a project or an initiative is not
aligned with the organization’s strategy, then there’s really no point in doing that project in the
first place. This holds true for Analytics initiatives. One of the reasons we are not seeing more and more
organizations in the Philippines embrace Analytics is that the leadership team is not seeing the value of
Analytics projects being initiated within a unit or department, which is usually IT. Analytics projects are
usually started within a unit without aligning the intended output to the organization’s overall
objectives. Thus, when presented to the leadership team, the potential value is lost.
Let’s see how we can fix this.
4.2.2 Building an Analytics Strategy Road Map
Let’s look into how an Analytics strategy roadmap can be developed for a retailer.
Recall that we have the following roles in Analytics:
● Data Steward ● Data Engineer ● Data Scientist ● Functional Analyst ● Analytics Manager
Let’s add a few more roles that we can findin most organizations that will be supporting our
mAnalytics team:
● Leadership ● Department Head ● IT Engineer
We will show in this example how these roles are involved in the strategy roadmap.
Through hard work and overall business savviness, Aling Maria’s sari-sari store has transformed into a
large retail company focused solely on Filipino-made products. Her company’s vision: a Filipino brand for
every Filipino product at every Filipino’s home. As the CEO, she and her LEADERSHIP team sets annual
objectives for the company. This year, she wants to, among others, increase their market share from
15% to 20%. This is the goal that she cascaded to the entire company at the start of their fiscal year.
The various departments took this to hear and developed their own strategies that will contribute to the
larger goal of increased market share. In their annual planning, as a case in point, The DEPARTMENT
HEAD of the Marketing Department, said, “In order for us to increase our market share, we need to
attract new customers.” She then asked several ideas from her team who are experts in their own right
in marketing. She got the usual suggestions of increasing marketing campaigns, going into social media,
getting celebrities for endorsements. She agreed, in principle, but she wanted to be more focused and
more targeted. One FUNCTIONAL ANALYST suggested, “How about looking into past sales records and
see who are our loyal customers? Perhaps we can deduce who to target based on this information.”
The department head, having read somewhere about data being the new oil and knowing that the
leadership team is in support of innovative ideas in the company, said, “Let’s try that. And, oh, by the
way, I think our IT department is trying out Analytics and has a team of people doing some proof of
concepts. If we need to, we can probably borrow some of their people.” The functional analyst goes
back to her desk and starts looking into the customer database (which she has access
to as part of her job). As she scrolls past, because of her expertise in marketing and in retail, she
began to have this nagging feeling that there are certain things about their customers that could tell
them who to target. Looking at the data, she has this hunch that gender, generation, location, and
income level could affect a customer’s decision to buy. She would like to investigate further but she
doesn’t know how to proceed. She remembers what her department head said and went to IT.
She explained her dilemma to the IT department head who quickly (and excitedly) introduced her to
their lead DATA SCIENTIST. The data scientist also got excited as she felt that, finally, she can do
something that is aligned to their organization’s agenda. She talked to the functional analyst and
explained to her that what she currently has – that nagging feeling, that hunch – is actually
a hypothesis. And that is how Analytics projects are started: with a hunch that needs to be proven by
data.
Leadership- sets annual Department Head Functional Analyst (Marketing and
Retail Expertise)- look to past sales Data Scientist (IT)-
objectives of the (Marketing)- in looking into a hunch, is
records and look to loyal
company (increase order to increase called a hypothesis,
customers. Deduce who to target
markets share from our market, attract based on(gender, generation, which needs to be
15% to 20%) new customers location and income level) proven by data
Act 2: A Proof of Concept
As part of the research method, the data scientist further explained that they need more data points to
test their hypothesis. She would definitely need access to data. With the functional analyst, the data
scientist went to the DATA STEWARD of the customer and sales data. As the data keeper, the data
steward asked both on what data they would need and why. She scrutinized their request and
questioned the need for sensitive, personally- identifiable information, that is, data that could point to a
single known person. Based on her evaluation, she determined that such information as name, TIN, and
actual birth month and date will not matter in the project. The data scientist agreed, and they were then
given the needed data. Using her skills in statistics and Analytics methods and algorithms, the data
scientist went on and trained and tested her model to determine whether gender, generation, location,
and income level do affect a customer’s decision to buy. And, if they do affect decision making, to what
degree do they affect that decision. After several iterations, the data scientist was able to come
up with a formula to score a potential customer’s decision to buy. In her formula, she determined that
gender, generation, and income level contributed equally to the decision-making process of customers,
but that location doesn’t matter at all. Furthermore, the formula suggests that millennials would be
their most likely customers. Having only basic domain experience in marketing and retail, the data
scientist conferred with the functional analyst. Upon seeing the result, the functional analyst got
excited as her hunch was correct. Furthermore, based on her domain expertise, she did feel that
millennials would be their most likely customers. At least now, she has data to back her intuition. The
functional analyst went on and setup a meeting with her department head to present their findings.
With the help of the data scientist, she created a presentation with easy-to-understand visualization
that is focused on their message, “We need to target millennials”. The presentation included a high-level
view of the research method that was done but it was not technical or even mathematical as these will
not have any use for the department head. At the end of the meeting, the department head
congratulated the functional analyst and the data scientist for the presentation. She was very impressed,
and she also felt that what they presented made sense based also on what she has observed.
She also just needed data to back what she observed. And now that she has, she invited the functional
analyst and the data scientist to a meeting with Aling Maria herself. On the day of the meeting, quite
nervous but also confident of the output of their small project, the team presented their findings.
They started with echoing their company’s goal which is to increase market share. They then presented
their research study on which customer segment to attract, discussed their findings, and, towards the
end, connected back their project to the company’s overall goal. Quiet but listening intently the whole
time, Aling Maria just smiled . . . and gave two thumbs up! She gave the marketing department the
green light to proceed and even directed them to see what other data they should consider to achieve
their goals.
Act 3: Operationalizing Analytics
With the green light to proceed, the marketing department went ahead and implemented the
“customer attraction” algorithm of the data scientist. However, in response to Aling Maria’s ask to look
into other data that they should consider, the department head felt that this now needs to turn into a
real project. Using the successful proof-of- concept as a business case, she was given the go ahead to
proceed. To manage a project this big, the department head employs an ANALYTICS MANAGER. With
her project management skills, the analytics manager assembled a team to plan for the project. She
knew that she needed the functional analyst and the data scientist to be part of the team. But as they
now are going to operationalize the proof-of-concept and as they also now need to look into other
pieces of information, they need more people in the team. In their first meeting, the functional analyst,
again, gave a hunch – a hypothesis – that product brand and quality matters to buying decisions.
Furthermore, she felt that they need to look into social media and/or customer surveys to get feedback
about the products that they sell. As they needed new data, they met with the data steward who told
them what data they can have – including data about their supplier and products which is in a totally
separate database system – but they don’t presently collect customer feedback or social media
information. Having some experience managing Analytics projects before, the analytics manager
determined that they would also need an IT ENGINEER and a DATA ENGINEER in the team.
The IT ENGINEER would have to develop an application that would get customer feedback.
The DATA ENGINEER would need to bring together data from social media, the customer database, the
supplier and products database, and the sales database into a single repository for the data scientist to
work on her new algorithm. With a carefully laid out project plan, the analytics manager monitors the
entire project, providing regular updates to the leadership team and addressing challenges in a timely
manner. After data has been consolidated and transformed to pieces of information, the data scientist
gained new insights on how product brand and quality, and customer feedback affect customer buying
decisions. With these insights, the functional analyst came up with imperatives for the leadership team
not only on customer segments that they need to target but also on the products and brands that they
should be selling. With a story on how data was transformed to information to insights and to
imperatives, the entire analytics project team confidently presented their findings to Aling Maria
who, again, at the end just smiled and said with confidence, “Our market leadership is assured thanks to
data.”
4.2.3 An Analytics Strategy that Works
So, is the “story” that I told you too good to be true? No, not really. Of course, Analytic projects, like any
other projects, would take a reasonable amount of time. And, like any other projects, there will be
challenges that will need to be addressed in a timely manner. But it is not totally impossible to have
successful analytics projects such as the use case that I just presented. What would help make an
Analytics project successful? Well, just look back to what you learned in the previous modules.
It’s the DELTA+ model.
1. You need consolidated and integrated data of the highest quality and accessible to the right people.
2. You need an enterprise-wide culture that is open to innovation.
3. You need leaders who are willing to take a chance in what could be potentially new for them.
4. You need targets that are aligned from the top of the organization down to all the departments and
units.
5. You need the right analytics professionals at the right roles.
6. You need just the right technology for your project.
7. You need to know the right analytical techniques to apply to your project.
So, how do you start? In most cases, you have to do a proof-of-concept first to prove to your leadership
that there’s value in Analytics. In doing a proof-of-concept, select a project for a specific department
first making sure that your project’s goal is still aligned with the overall goal of the organization. Have
targets that could demonstrate value, for example, return on investment, or productivity gains, or cost
savings. Do you need already all the analytics roles to begin with? No. From the use case, the proof-of-
concept was just done by a functional analyst and a data scientist. You need a functional analyst with
really strong domain expertise to start off with a hypothesis and a really good data scientist to test and
prove (or disprove) that hypothesis. With them and a supportive leadership team, you would have
started to build a successful analytics strategy roadmap for your organization.
Why does Analytics have to be a business function and not remain as an IT function?
0 1 2 3
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Let us define first what is analytics, analytics is the scientific process of discovering and communicating
the meaningful patterns which can be found in data*. Analytics on a process is a multi-functional
approach that needs different expertise to achieve a single goal. Which IT function limits only on
database management, programming, information security, analysis of the algorithm and cloud
computing, or in analytics function its focus is on technical skills which include research methods, data
engineering methods, statistical techniques, data analytics methods and algorithms, and computing. They
have the capacity and expertise in the area, which focuses on technical skills but has limited or no
business expertise and organizational skills. This is where data stewards and functional analysts come in.
The data stewards whose functions are to keep the integrity of the data and its governance. While
functional analysts are experts on business and industry which they have the leverage, understanding, and
use of the data. Now that we have defined analytics and identified functions concerning analytics. We can
state that analytics is a business function that needs different expertise to properly discover and
communicate what is behind the data.
*https://www.techopedia.com/definition/30296/analytics
Summary
That’s all for week 4: An Organizational Strategy Road Map for Analytics. Here are our key takeaway
points from this week:
Analytics initiatives of a unit or a department must support and promote the department’s overall
strategic targets, which equally must support and promote the overall strategic targets of the
organization as a whole. All underlying contributions and activities must submit to the chosen Analytics
strategy. The Analytics strategy is decided at the top leadership level based on the organization’s
vision, mission, and overall objectives.
In Week 5, let’s find out why we are all doing this - learning about Analytics.
Thank you for completing this week and see you in week 5!
5.2.1 Designing for Digital
One cannot really separate Digital Transformation with Analytics as Analytics is fundamental to how
organizations can complete in the Digital age. To design our Analytical organizations for the Digital age,
Dr. Jeanne Ross, Director & Principal Research Scientist, MIT Sloan Center for Information Systems
Research, gives us 4 key decisions to make. Click the link below to watch the video.
Customer
Market Driven Engangement Product Driven
nt
Operational Experience
● How will you architect your organization?
Summary
Let’s tackle first the last three points. To succeed in the marketplace, organizations must embrace a
competitive strategy. Organizations must choose—and then achieve—market leadership
in one of the three disciplines, and perform to an acceptable level in the other two.
These disciplines are:
● Operational Excellence, which is about automating processes and work procedures to streamline
operations, reduce cost, and increase customer satisfaction
● Customer Intimacy, which is about providing a unique range of customer services to personalized
service and customized products to meet differing needs of customers
● Product Leadership, which is about achieving premium market prices due to the experience created
for customers Organizations can choose to be the market leader in any of these disciplines and they
can then prioritize their Analytics initiatives around the chosen discipline.
If you look closer, however, all these disciplines have something in common: all of them focus on what is
beneficial for the customer. It is important to look back then at the first key decision that an
organization must make, “What is your vision for improving the lives of your customers?” As Dr. Ross
puts it, “A company without a clear value proposition for their customers will create cool things, but it
will not transform.” And it is because digital transformation is not about technology; it’s about the
people. This is why we are here. This is why we are doing all of these. If there’s one thing that I would
really like for you to take away in all of these is that we should do Analytics for the good of society, for
the good of the Philippines.
What can you start doing now that will ensure that your organization is doing Analytics for the
good of society?
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structure. Readers structure and paints a logical order but logical order and
were left to fill in the complete picture to could have been presented in
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discussions.
Currently, the organization I’m working with, a 1st class Municipality, in the Province of Romblon which
the residents desired to see the Municipality of Odiongan as an urbanized city. The local chief executive
whose goal is to serve the people having a motto “Serbisyong may puso” in every project and advocacy
she endeavors to achieve. I can support in accomplishing the objective of the municipality by introducing
analytics to the local chief executive and the management to enhance the collection of local taxes such as
business taxes, RPT/SPT, and other taxes. It will then increase the percentage and total amount of
collection. When the collection of taxes are increased, the succeeding year budget will also increase,
which leads to more development projects, social programs, and job creations for the Municipality of
Odiongan and its residents as it aims to be a recognized city. It will be a starting point of my organization
to prioritize data-driven analytics as a basis in making plans to achieve its mandate and the desire of the
constituents, for the good of society.
Key Takeaways
That’s week 5: Analytics for the People and the Analytics Ecosystem of the Philippines.
Here are our key take-away points from this week:
● Digital Transformation starts with a grand vision. The vision should be a statement of how to improve
lives; otherwise, we cannot transform.
● Fundamental to Digital Transformation is Analytics. Analytics is critical to survive amidst all of these
disruptions.
● The Analytics Association of the Philippines is enabling the country to be a data-driven country for the
benefit of all Filipinos - and we need your help in realizing this.
Well, that’s it for your first course in Project SPARTA: Getting Grounded on Analytics.
Let’s look again at our course objectives and see if we have met all of them. You should now:
● know the various Analytics roles and the corresponding required competencies in each role
to determine how you can develop your expertise and find your own value in Analytics;
● be able to determine how your organization’s goals, people, resources, and data can be linked
together to build a successful Analytics strategy roadmap for your organization; and
● have a solid foundation and a shared understanding on what Analytics is and the value that it brings to
start enabling the Analytics ecosystem of the Philippines for the good of society.
Have we met all of these objectives? Yes? Great! Well, this might be the end of this course but your
journey towards being an Analytics professional has just begun. And, with this first step of yours, our
country is also on its way to becoming truly data-driven for the good of all Filipinos.
Thank you for completing this course. This is Sherwin Pelayo, wishing you happy learning!