The Data Science Handbook-I Flashcards
(89 cards)
What are six steps in the business approach to analytics?
- Understand where and how to leverage big data
- Integrate analytics into everyday operation
- Structure your organisation to drive analytics insights
- Optimize processes, uncover opportunities, and stand out fom the rest
- Help stakeholders to “think like a data scientist”
- Understand appropriate business application of different analytics techniques
Name the five phases of the Big Data Model Maturity Index.
- Business Monitoring
- Business Insights
- Business Optimization
- Data Monetization
- Business Metamorphosis
Phase 1 of the Big Data Business Model Maturity Index.
What is Business Monitoring?
Monitor key business processes and report on business performance using data warehousing techniques.
Phase 2 of the Big Data Business Maturity Index.
What is Business Insights?
Pool all detailed operational and transactional data with internal unstructured and external (third-party, publicly available) data; integrate with advanced analytics to uncover customer, product, and operational insights buried in the data.
Phase 3 of the Big Data Business Model Maturity Index.
What is Business Optimization?
Deliver actionable recommendations and scores to front-end employees to optimize customer engagement.
Deliver actionable recommendations to end customers based on their product and usage preferences, propensities, and tendencies.
Stage where organisations develop the predictive analytics and the prescriptive analytics necessary to optimize the targeted key business processes.
Phase 4 of the Big Data Business Model Maturity Index.
What is Data Monetization?
Monetize the customer, product, and operational insights coming out of the optimization process to create new services and products, capture new markets and audiences, and create “smart” products and services.
This is the phase where organisations leverage the insights gathered from the Business Insights phase and Business Optimization phase to create new revenue opportunities.
Phase 5 of the Big Data Business Model Maturity Index.
What is Business Metamorphosis?
Reconsititute customer, product, and operational insights to metamorphose the very fabric of an organization’s business model, including processes, people, compensation, promotions, products/ services, target markets, and partnerships.
There are some interesting lessons that organizations will discover as they progress through the phases of the Big Data Business Model Maturity Index. Understanding these lessons ahead of time should help prepare organizations for their big data journey.
Which three lessons?
Lesson one. Focus initial big data efforts internally.
Internal process optimization starts by seeking to leverage BI and data warehouse (phase 1 to 3)
Lesson two. Leverage insights to create new monetization opportunities.
The opportunity to leverage the insights to create new revenue or monetization opportunities (phase 4 to 5).
Lesson three. Preparing for organizational transformation.
Organizational and cultural transformation.
Lesson three. Preparing for organizational transformation.
To fully exploit the big data opportunity, subtle organizational and cultural changes will be necessary for the organization to advance along the maturity index. If organizations are serious about integrating data and analytics into their business models, then three organizational or cultural changes will need to take place.
Which three?
- Treat data as an asset.
Organizations must develop an insatiable appetitefor more and more data - even if they are unclear as to how they will use the data. - Legally protect your analytics intellectual property.
Put formal processes in place to protect analytics intellectual property. - Get comfortable using data to guide decisions.
Move from HIPPO to business decisions based on what data and analytics tell them.
Define “corporate mission”.
Why the organization exists; defines what an organization is and the organization’s reason for being.
Define “business strategy”.
How the organization is going to achieve its mission over the next two to three years.
Define “strategic business initiatives”.
What the organization plans to do to achieve its business strategy over the next 9 to 12 months;
usually includes business objectives, financial targets, metrics, and time frames.
Define “business entities”.
The physical objects or entities (e.g., customers, patients, students, doctors, wind turbines, trucks) around which the business initiative will try to understand, predict, and influence behaviours and performance (sometimes referred to as the “strategic nouns” of the business).
Define “business stakeholders”.
Those business functions (sales, marketing, finance, store operations, logistics, and so on) that impact or are impacted by the strategic business initiative.
Define “business decisions”.
The decisions that business stakeholders need to make in support of the strategic business initiative.
Define “big data use cases”.
The analytic use cases (decisions and corresponding actions) that support the strategic business initiative.
Define “data”.
The structured and unstructured data sources, both internal and external of the organisation, that will be indentified throughout the big data strategy document process.
The big data strategy document is composed of which five sections?
- Business strategy
- Key business initiatives
- Key business entities
- Key decisions
- Financial drivers (use cases)
What does S.A.M. mean?
- Strategic - strategic to what the business is trying to accomplish
- Actionable - can act on
- Material - benefit is greater than the costs
Why is the Business Insights phase the most difficult stage of the Big Data Business Model Maturity Index?
Because it requires organisations to “think differently” about how they want to approach data and analytics.
The rules, techniques, and approaches that worked in the Business Intelligence and data warehouse worlds do not necessary apply to the world of big data.
Also, much of the big data financial payback or Return on Investment (ROI) is not realized until the organisation reaches the Business Optimization phase.
In which phase of the Big Data Business Model Maturity Index are the predictive and prescriptive analytics developed?
In the Business Optimization phase.
Which four things are developed in the Business Optimization phase?
- Create the prescriptive and predictive analytics to optimize key business processes
- Deliver actionable insights (e.g., recommendations, scores, rules) to frontline employees and managers to help them make better decisions supporting the targeted business promesses
- Influence customer purchase and engagement behaviours by analyzing the customer’s past purchase patterns, behaviours, and tendencies in order to deliver relevant and actionable recommendations.
- Integrate the customer, product, and operational prescriptive analytics or recommendations back into the operational systems and management application systems.
What is the Big Data Business Model Maturity Index?
A framework for organizations to measure how effective they are at leveraging data and analysis to power their business models.
What are the four big data value drivers?
- Access to all the organisation’s detailed transactional and operational data at the lowest level of granularity (at the individual customer, machine, or device level).
- Integration of unstructured data from both internal (consumer comments, e-mail threads, technician notes) and external sources (social media, mobile, publicly available) with the detailed transactional and operational data to provide new metrics and new dimensions against which to optimize key business processes.
- Leverage real-time (or right-time) data analysis to accelerate the organisation’s ability to identify and act on customer, product, and market opportunities in a timelier manner.
- Apply predictive analytics and data mining to uncover customer, product, and operational insights or areas of “unusualness” buried in the massive volumes of the detailed structured and unstructured data that are worthy of further business investigation.