UNIT 3: Business Analytic Model

0
UNIT

BUSINESS
ANALYTIC MODEL

3
Our current era is termed by many as a "digital
world." It is because numerous amounts of data are
generated every second by almost any conceivable
entity around us. We contribute to the "big data"
cloud surrounding us in every transaction we
perform, such as buying our goods in supermarkets,
reserving tickets in airline companies, paying our
bills, and others.

Information is just around us, and it is indeed a

valuable asset in any organization. Data extracted
from the organization's repository should be
converted into insights that could help the
management create sound decisions deem
necessary in its growth and survival.

In this unit, we will discuss the Business Analytics

Model, which serves as a blueprint that specifies
individual contributors' roles and the information
value chain of successful business analytics. We will
also discuss the different skills and competencies
needed in data analytics. Finally, we will also discuss
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the DELTA+ Model and Organizational Maturity
Model.
 UNIT 3: Business Analytic Model
PRETEST FOR UNIT 3

WHAT DO YOU ALREADY KNOW?

Name: __________________________________ Date: ____________________

Course & Section: ________________________ Result: __________________
Identification. Write the correct answer on the space provided. You can refer to
the words in the box for some clues.

1. They are also known as data keepers, are IT specialists

concerned with the governance process, maintenance, and
usage of data..
2. They facilitate the smooth functioning of application that
allows the proper extraction of data from data sources to
transform and load data to centralized repositories.
3. They have a mission of providing solutions and predictions
by extracting and analyzing patterns or useful data trends.
4. They are responsible for validating results or insights and
suggest final prescriptions that can help the organization in
decision-making.
5. They develop and guide the entire data-driven project
execution from the initial planning to project closure.
6. It is under the technical skills competency that utilizes some
scientific steps to derive insight and new knowledge.
7. It is under the technical skills competency that utilizes
various statistical concepts, formulas, and methodologies to
analyze research data.
8. It refers to the ability to work with team and recognize the
distinctness of others.
9. It refers to the ability to analyze market demand and manage
customers’ needs.
10. It refers to the ability to understand ideas and pass it on to
others.

Communication Customer focus Collaboration

Statistical Techniques Analytics Manager Functional Analysts
Data Scientists Research Methods Data Engineers
Data Stewards Encoder Customer Friendly

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LESSON 1:
BUSINESS ANALYTICS MODEL
AND COMPETENCIES

OBJECTIVES:

At the end of this lesson, the student will be able to:

define a business Analytic Model is

identify the layers in the BA model

enumerate the activities performed in each layer

Duration: 1 hour
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The Business Analytic Model

Business Analytic Model is essential to an organization aiming to build a successful

business analytic (BA) within the organization. It serves as a map or guide that
fosters an understanding of how an effective BA will be implemented in any
organization (Laursen & Thorlund, 2017). Figure 3.1 shows the Business Analytic
Model.

Figure 3.1 Business Analytic Model

Source: Business analytics for managers: taking business intelligence beyond reporting page 3

The model shows that there are many competencies and processes involved in the
creation of business analytic. The top layer of the model is the business-driven
environment, while in the lower layer is the technically oriented environment.
Information requirements flow from the top layer down while the information supply
moves from the technical-oriented layer to the business-driven layer. The model
shows that the top layer consists of the top management, which includes the top
bosses of the organization. These persons are responsible for developing strategic
plans that include identifying the overall information requirements to put in place to
support the organization strategy necessary in the organization's growth and
survival. The second layer consists of the operational decision-makers, who are
usually responsible for decisions involving day-to-day activities. However, the
information and knowledge are used in this layer to support the organization's
chosen strategy. The middle layer consists of analysts, controllers, and report
developers. They are responsible for creating the information and knowledge by the
operational decision-makers, which aid in the optimization of daily activities. The
next layer consists of the database specialists and the ETL (extract, transform, load)
developers responsible for ensuring the availability of data to business users. The
bottom layer consists of Information Technology professionals from IT operations
and developers who develop and manage the business's primary data generating
source systems. Successful BA processes should have a fixed structure that
always begins with the specification of the information strategy, which is derived from
the objectives of the business strategy.

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Strategy Creation

Strategy creation simply means choosing the underlying contributions and activities
most suitable to the chosen information strategy as specified in the business-driven
environment at the top of the model. It is decided in the top management level of the
organization, by functional managers, or by business process owners and is based
on the corporate vision, mission and objectives. In general, these strategies will
result in a number of key performance indicators (KPIs), in which the contents is
dependent on the underlying business process the organization wants to control.
Oftentimes, the purpose of creating KPIs is to measure the degree of progress and
success. Example of KPI are increase of sales target let’s say by at least 20%
compared to the previous year; return of equity (ROEs) of 15-20%; etc.  Large
organizations may have an actual business development function, which is
responsible for the formulation of the strategy for the entire group.

Business Processes and Information Use

Once the strategy, along with the overall strategic KPIs, is in place, a framework,
focus, and objectives are established for the operational business processes and
initiatives. The information and analysis shown
in the underlying layers of the model must be directed at changing and managing
business processes toward the strategic objectives made visible by the KPIs. The
operational decision makers’ desired behavior and the subsequent information and
knowledge requirements to bring about this behavior are specified and outlined in
this layer.

As mentioned, the objective of BA initiatives is to change business processes and

actions so that they are targeted toward achieving the organization’s strategic
objectives. For example, operational decision makers from sales, marketing,
production, general management, human resources (HR), and finance can use
information and knowledge to optimize their daily activities.

Types of Reporting and Analytical Processes

In the analysis and reporting development environment in the middle of the model,
analysts specify which information and data are necessary to achieve the desired
behavior of operational managers and digital processes in the business environment.
This is where information and knowledge are generated about the deployment of
analytical and statistical models, which are typically deployed on data from the data
warehouse. The requirements for front-end applications, reporting, and functionality
are also specified in detail here, all with the purpose of meeting the demands from
the higher layers and levels of the model. Note that the analysis and reporting
development environment is placed in the bordering area between the business-
driven and the technically oriented environment, and that the team in this area
usually has competencies in both areas.

Data Warehouse

Database specialists and ETL developers receive requirements from the analytical
environment about data deliveries. If the required data is already in the warehouse,
the process will be to make this data accessible to the front-end applications of the

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business. If data is not stored, the data warehouse will need to retrieve data from
one or more operational data sources in the organization’s environment.
Alternatively, data can be purchased from an external supplier, or the IT department
may be asked to implement a new infrastructure with a view to create a new
operational data source.

Data Sources: IT Operations and Development

IT operations and development must meet the requirements from the data
warehouse about the delivery of data from the primary operational data sources or
the development of new data sources.

As previously noted, a large number of people, competencies, and processes are

involved in the creation of BA. Large organizations sometimes have several hundred
people on all levels involved at the same time. In smaller companies, controllers and
analysts must have a wider range of competencies to be able to carry out BA
initiatives on their own.

It is important to realize that if something goes wrong in one of the layers of the BA
model, the investment in BA may well be lost. If the management, in the top layer of
the model, does not define one overall strategy, operational decision makers will not
have a goal to work toward. The Analyst won’t know which analyses are required. It
makes a big difference, for example, for the Analyst to know whether
the overall target is for the business to show a profit of $1.3 million after taxes, or
whether the target is to be perceived as the most innovative enterprise—the two
different targets require a completely different analytical approach and information
deliverables. In data warehousing, the database specialist and the ETL developer
won’t know which data sources to retrieve, merge, enrich, and deliver to data marts
(dataprepared in the data warehouse for business use). IT operations and
development won’t be able to contribute by creating new data sources, since they
don’t know which new information and knowledge are required by the business. In
other words, the whole thing becomes a messy affair without focus.

Table 3.1 show example on how to sketch an Information Strategy

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Table 3.1 Sketching an Information Strategy

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ACTIVITY FOR LESSON 1

WHAT YOU HAVE LEARNED?

Name: _______________________________ Date: _______________________

Course & Section: _____________________ Result: _____________________

Answer the question concisely.

1. Think of a particular organization or a business entity (be it a real-world entity
or imaginary). Assume that you are tasked to create an Information Strategy
for it. Conduct deeper analysis about your chosen organization, and create a
sketch of Information Strategy similar to the one shown in table 1.

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GRADING RUBRICS

HOW WELL DID YOU PERFORM?

Weight Actual
No. Items
% Score
1. Analysis is accurate and reliable 25

2. Process done to create an Information Strategy is

25
reliable and satisfactory.

3. Insights reflect authentic observations and coherent

30
conclusions.

4. Expression of answers adheres to quality standard of

20
formal writing.

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LESSON 2:
ANALYTICS JOB FAMILY

OBJECTIVES:

At the end of this lesson, the student will be able to:

Enumerate the major analytics job families.

Define major tasks perform by each analytic job.

Identify the other titles associated with each analytic job.

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Major Analytic Job Family

Data Analytics is a broad area that encompasses activities from data creation from
different data sources until patterns are extracted to form insights that can help in
doing imperative tasks. The prominent analytics job family are data steward, data
engineer, data scientist, functional Analyst, and analytics manager (Pelayo, 2020).

Figure 3.2 shows where in the data value chain a particular analytic job is essential.

Figure 3.2. The Analytic Job Family

Source: https://www.youtube.com/watch?v=86M6Kk5okc8

The data steward scope of function is during the creation of data from database
sources. The data engineer focused on the consolidation of information and within
the domain of descriptive analytics. The data scientist is responsible for delivering
insights and is a concern more on diagnostic and predictive analytics. The functional
Analyst gives the final recommendation for decision-making and works in the domain
of prescriptive analytics. The analytic manager, on the other hand, oversees the
entire data-driven project.

Data Steward

Data Stewards, also known as data keepers, are IT specialists concerned with the
governance process, maintenance, and usage of data. They are also responsible for
the development and enforcement of data security policies. They are knowledgeable
in data cleansing necessary in assuring that the organization's information resource
is of high quality (SPARTA). Data stewards also determine data ownership and data
meaning. The work of the data stewards is crucial to produce data-related
deliverables. (Plotkin, 2013). Data privacy officers, data security officers, data
governance managers, data curators, and data librarians are only some of the other
data steward titles.

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In larger organizations, data stewards' responsibilities are divided based on the

following (Giordano, 2015):

● Focusing on data definition and usage

● Performing policy audits for ensuring adherence to data definition policies
● Collecting from project teams data quality criteria for data quality control
points
● Gathering data quality metrics for ongoing data quality measurement

Although the diverse functions of data stewards are distributed among several
individuals in some organizations, there are also organizations where a single
individual handles multiple data steward functions.

Data Engineer

Data Engineers are considered a new wave of IT professionals in the advent of big
data. Data engineers design, construct, test, and maintain the infrastructure needed
to store, extract, clean, transform, and analyze data and information. In other words,
data engineers are the designers, builders, and managers of the big data
infrastructure. They facilitate the smooth functioning of application that allows the
proper extraction of data from data sources to transform and load data to centralized
repositories. They also ensure that data are available whenever needed (La Bella,
2018; Pelayo, 2020).

Data engineers also decide how to store data from various situations. They prepare
long-term archival storage for data that needs preservation for years and temporary
staging areas for those that only need to stay for a few seconds before performing
read or delete the application. Data engineers are also responsible for choosing
appropriate storage technology. They consider the various data such as structured,
semi-structured, and unstructured to decide on the appropriate storage technology
(Sullivan, 2020).

ETL Developer, data architect, data warehousing professional, big data engineers
are just some of the titles of Data Engineers (Pelayo, 2020).

Data Scientist

Data scientists have a mission of providing solutions and predictions by extracting

and analyzing patterns or useful data trends. Other related titles for data scientists
are statistician, statistical modeler, and advanced analytics professional. Data
scientists usually perform data mining, machine learning, diagnostic analytics, and
predictive analytics (Pelayo, 2020). They are expected to effectively use different
techniques that usually combine mathematics, statistics, programming, and lately
advanced field, artificial intelligence, to carry out their mission (Voulgaris & Bulut,
2020).

Data scientists acquire some hard and soft skills as they develop professionally.
Among them are as follows:

Hard Skills

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1. Programming in a data science language: competence in programming

languages such as Julia, Python, Scala, and R, which are useful in carrying
out a data science project
2. Understanding of the scientific method: ability to perform scientific steps in
conducting experiments and simulations as they perform data science work
3. Mathematics: having a good understanding of mathematics, predominantly
linear algebra and statistics since these are usually vital expertise needed in
data scientist work
4. Machine Learning: ability to apply machine learning models across different
methodologies
5. Artificial Intelligence and Natural Language Processing skills: possessing
these skills is essential especially in dealing with big data
6. Data Visualization: data visualization is used to communicate the results of a
data science project properly.

Soft Skills

1. Communication: effective communication with other professionals to fully

understand what is expected to a data science project; also the presentation
of findings to the management
2. Problem-solving: ability to resolve issues whenever technical problems arise
during the project and ability to implement solutions to complex situations
3. Creativity: ability to think out-of-the-box and deal with novel and even
complicated issues or problems
4. Researching new topics: capability to explore new things and remain up-to-
date with the latest trends or technology in the field
5. Report Writing: competency in creating documentation and reports to put
together data science project details and findings
6. Business acumen: understanding of how business works especially about
organizations policies and regulations, dealing with other professionals in
various field and with the management

Functional Analyst

Functional Analyst is responsible for validating results or insights derived by data

scientists and support the organization by suggesting final prescriptions that can help
the organization create sound decisions. Functional analysts usually develop
options, perform optimization and simulation, and prescriptive analytics to tell what
should be done next to best address an organization's particular project objective.
They are expected to be expert both in industry and business domain. Other titles
for functional Analysts are research analyst, HR analyst, marketing analyst, and
operation analyst.

Analytics Manager

Analytics managers develop and guide the entire data-driven project execution from
the initial planning to project closure. An analytic manager ensures the successful
delivery of Analytics projects by bringing together the Analytics team together. Other
related titles for Analytics managers are chief data officer, project manager, data
engineering manager, data science manager, and analytics translator (Pelayo,
2020).
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Critical Skills of Analytics Manager (Dubovikov, 2019)

1. Software management methodology: should be capable of performing

specific strategies for managing data science projects and should have a
good understanding of primary software management methodologies such as
SCRUM and Kanban
2. Domain Expertise: should be knowledgeable in the business domain to
perform task decomposition and prioritization
3. Data Science: should understand the basic of data science and machine
learning streamline communication among team members
4. Software Engineering: should be knowledgeable in software engineering
principles to monitor crucial aspects of the project

ACTIVITY FOR LESSON 2

WHAT YOU HAVE LEARNED?

Name: _______________________________ Date: _______________________

Course & Section: _____________________ Result: _____________________

Answer the question concisely.

1. Data engineers and data scientists are two positions that are not
interchangeable. Understanding the differences between the two can avoid
misconception and increase team’s productivity. Discuss the skills that are
distinct to each and identify the skills that both may possess.

2. The quality of data is very important in analytics. “The practical way to control
data quality is to do it at the point where the data is created.” (Berkooz,2017)
Identify who among the analytics professional is responsible here and discuss
the different activities performed by this professional.

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GRADING RUBRICS

HOW WELL DID YOU PERFORM?

Weight Actual
No. Items
% Score
1. The discussion on distinct skills of data scientists is
20
clear and complete.

2. The discussion on distinct skills of data engineer is

20
clear and complete.

3. The list of the skills common to data scientists and

20
data engineers is sufficient.

4. The identification of analytic professional who controls

10
the quality of data during creation is correct.

5 The delivery of the discussion about the

20
responsibilities of data stewards is sufficient.

6. Expression of answers adheres to the quality standard

10
of formal writing.

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LESSON 3:
ANALYTICS COMPETENCIES
AND PROFESSIONAL MATURITY MODEL

OBJECTIVES:
At the end of this lesson, the student will be able to:

identify the ten analytics competencies as defined by APEC.

define the three levels of proficiency expectations for each analytics

competencies defined.

enumerate the 21st Century Skills needed by analytics professionals.

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Analytics Competencies and Professional Maturity Model

The Asia Pacific Economic Cooperation (APEC) initiated a project called "DARE" or
Project Data Analytics Raising Employment to facilitate the development of data-
analytics enabled workforce in the APEC region. APEC defined the analytics
competencies needed alongside each competency is the proficiency level
expectations to sustain economic growth in the region. There are ten skills identified
and structured in the following manner:

● Business and Organization Skills

1. Domain Knowledge and Application

2. Data Management and Governance

3. Operation Analytics

4. Data Visualization and Presentation

● Technical Skills

1. Research Method

2. Data Engineering Principles

3. Statistical Techniques

4. Data Analytics Methods and Algorithm

5. Computing

● Workplace Skills

1. 21st Century Skills

In each of the skills, three levels of proficiency expectations are defined. At the entry-
level, the expectation is that the IT professional can accomplish a pre-defined task
with minimal supervision. IT professionals perform tasks at the intermediate level to
achieve goals independent of others and formulate viable solutions on identified
issues. The top-level or the expert level comprises individuals who assess

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alternatives, identify new approaches, and propose innovations to solve goals or

improve business operations.

Business and Organization Skills

Domain Knowledge and Application: Domain Knowledge and Application is the

primary skills required for Functional Analyst. The expectation here is for an
individual to have the ability to contextualize data acquired through real-world
experience and exposure to emerging technology and innovation. Business
experience, industry knowledge, and domain expertise are also equally important.

Level of Skills

● Level 1: perform data collection, handling, and application in a specific

industry domain.

● Level 2: the ability to create a content strategy and information architecture

that will support the industry domain and its users.

● Level 3: skills to improve domain-related procedures by proposing business

cases that will support decision-making.

Data Management and Governance: Data Management and Governance is the

primary work of Data Steward. It is all about developing and implementing data
management strategies, including data privacy and security, ethical considerations
on data, and data access policies.

Level of Skills

● Level 1: aware and apply the policies on data privacy, security, and ethics.

● Level 2: enforce procedures on data privacy, security, and ethics.

● Level 3: develop policies on data privacy, security, and ethics.

Operations Analytics: Operations Analytics is the area of expertise of Data

Manager. Competence in this area allows the development of insights necessary for
decision-making. Specialized analytic tools and techniques are used to process and
analyze critical data to extract patterns or perform optimization.

Level of Skills

● Level 1: conduct data analysis on data sets to accomplish specific tasks.

● Level 2: extract patterns and trends to identify business impact.

● Level 3: perform process optimization and explore new opportunities on

historical data.

Data Visualization and Presentation: Data Visualization and Presentation Skills

are necessary to communicate the data's story with others. Visualization and

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presentation tools are used to create and present actionable insights derived from
data.

Level of Skills

● Level 1: prepare and present data visualization reports based on specific,

actionable results.

● Level 2: create an infographic to present actionable results clearly and

effectively.

● Level 3: choose appropriate and develop a new visualization method.

Technical Skills

Research Methods: Research methods utilize some scientific steps to derive insight
and new knowledge.

Level of Skills

● Level 1: understand and able to practice research models in solving task

assignments.

● Level 2: construct research questions on business issues.

● Level 3: perform experiments to test hypotheses and solve problems.

Data Engineering Principles: Data Engineering Principles is the area of interest of

Data Engineers. Data Engineers consolidate data from several data sources in
repository and perform extraction, transformation, and loading of data. The use of
software, modern computer technology, and system engineering principles is
essential to develop data analytics applications.

Level of Skills

● Level 1: able to write NoSQL or SQL script for data storage and
manipulation.

● Level 2: design and build relational and non-relational databases and

perform the ETL process in large databases.

● Level 3: competent in using big data technologies to work with various data
types retrieved from several data sources.

Statistical Techniques: Statistical Techniques utilized various statistical concepts,

formulas, and methodologies to analyze research data.

Level of Skills

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● Level 1: possess knowledge and ability to utilize the different statistical

methods such as regression, ANOVA, sampling, and others in data analysis.

● Level 2: recommend the most appropriate statistical method to solve a

particular task.

● Level 3: analyze the collected data to identify problems and suggest

corrective measures.

Data Analytics Methods and Algorithms: Data Analytics Methods and Algorithms
is the area of expertise of Data Scientists. Applying statistical algorithm, machine
learning, and advanced analytics is vital to derive insights for decision-making.

Level of Skills

● Level 1: perform statistical hypothesis testing and interpret statistical

significance of obtained data.

● Level 2: apply quantitative techniques to deploy appropriate predictive

models for analysis.

● Level 3: perform data reliability assessment and evaluate their impact on the
analysis and results quality; select appropriate approaches needed in data
analysis.

Computing: Computing competency requires knowledge in software programming.

Computational Thinking and computer programming coding are necessary to
transform data analysis results to programming codes to address specific goals.

Level of Skills

● Level 1: execute fundamental data manipulation, analysis, and visualization.

● Level 2: transform data models into programming codes through

computational Thinking and algorithm conversion.

● Level 3: suggest applicable programming language requirements and

development platforms attain specific targets.

Workplace Skills

21st Century Skills: The 21st-century skills refer to the broad sets of knowledge,
skills, work habits, and character traits critical in today's world. Environment and
culture affect the development of an individual's 21st-century skills. The following are
the 21st-century skills relevant in data analytic profession:
1. Critical Thinking:  refers to the ability to analyze issues necessary for
problem solving and decision-making.
2. Communication: refers to the ability to understand ideas and pass it on to
others.
3. Collaboration: refers to the ability to work with a team and recognize the
distinctness of others.

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4. Creativity and Attitude: refer to the innovative spirit to deliver quality work
and being result-oriented.
5. Planning and Organizing: refer to the ability to plan and manage time to
accomplish the assigned task.
6. Business Fundamentals: refers to the knowledge of the organization and
industry.
7. Customer Focus: refers to the ability to analyze market demand and manage
customers’ needs.
8. Working with Tools and Technology refers to selecting and using tools and
technology in work activities.
9. Dynamic Self Re-skilling: refers to the ability to keep abreast with changes
by continuous monitoring of self’s skills and knowledge.
10. Professional Network: refers to the participation in professional adherence
to network activities.
11. Ethics: refers to the adherence to the ethical standards regarding proper data
collection and presentation.

ACTIVITY FOR LESSON 3

WHAT YOU HAVE LEARNED?

Name: _______________________________ Date: _______________________

Course & Section: _____________________ Result: _____________________

Answer the question concisely.

1. APEC identified 10 competency skills that are important for analytics
professionals. It also defines the three levels of proficiency expectations in
every skill. Discuss the general proficiency expectations for entry,
intermediate and top level.

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2. The ten competency skills are classified into three principal categories:
Business and Organization, Technical and Workplace skills. Based on your
understanding, explain how the different skills are grouped together.

GRADING RUBRICS

HOW WELL DID YOU PERFORM?

Weight Actual
No. Items
% Score
1. The discussion on the proficiency expectations on
20
entry level is clear and with sufficient.

2. The discussion on the proficiency expectations on

20
intermediate level is clear and with sufficient.

3. The discussion on the proficiency expectations on top

20
level is clear and with sufficient.

4. Analysis and understanding on how the proficiency

30
skills are group together is profound.

5. Expression of answers adheres to the quality standard

10
of formal writing.

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LESSON 4:
DELTA PLUS MODEL &
FIVE STAGES OF ANALYTICS MATURITY

OBJECTIVES:
At the end of this lesson, the student will be able to:

determine the elements in the DELTA Plus Model.

identify the five stages of analytics maturity.

define the conditions that are in place at each stage of progress in

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Duration: 1.5 hours

DELTA Plus Model & Five Stages of Analytics Maturity

The Five Stages of Analytics Maturity and the DELTA Model have become the
industry standard frameworks for assessing analytics maturity. Tom Davenport and
Jeanne Harris introduced the former in their book, Competing on Analytics: The New
Science of Winning in 2007 while the latter was introduced by Tom Davenport,
Jeanne Harris and Bob Morison in their book, Analytics at Work: Smarter Decisions,
Better Results in 2010. The two frameworks serve as a guide for organizations to
understand their analytic maturity and to succeed in their analytics initiatives
(Davenport, 2018).

The DELTA Plus Model

The original DELTA fundamental elements are Data, Enterprise, Leadership,

Targets, and Analysts. Organizations align themselves with these elements to
succeed with their analytics initiatives and improve their featured elements'
capabilities to become real data-driven organizations. The emergence of big data
considers the addition of two other elements, Technology and Analytic Techniques
that give room for higher performance. Figure 3.3 shows the Delta Model Plus.

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Figure 3.3 The Data Model Plus

Davenport, T. (2018). DELTA Plus Model & Five Stages of Analytics Maturity: A Primer. Ebook.
Portland, Oregon, USA: International Institute for Analytics

The five elements of a successful analytics program, as stated in Analytics at Work,

are:

● D for accessible, high-quality data

● E for an enterprise orientation to managing analytics
● L for analytical leadership
● T for strategic targets
● A for analysts

The additional elements are:

● T for technology
● A for analytics techniques

DATA

The data element is a fundamental element of meaningful analytics. Organizations

should ensure to have organized, unique, integrated, accessible, and high-quality
data to create the highest opportunity. If not all the important data elements are
present, the organization should be able to prioritize at least what to pursue.

The organization of data is essential in the type and value of analytics. The type and
value of data analysis are dependent on the way an organization's information is
structured. Likewise, the organization will have a higher opportunity and analytical
edge if it can acquire data beyond what other companies can access. There is also
a need to integrate data gathers across organizational silos and boundaries. Data
taken from various transaction systems and data sources should be merged and
harmonized to understand organizational performance.

On the other hand, analytical processes are only possible if data is accessible after
cleaning and integration. Data warehouses or Hadoop-based data lakes, which may
be deployed on-premise, in the cloud, or a hybrid mix of the two, are the principal
means to allow analysts and other end-users to access data. Finally, an enterprise is
becoming more mature within all aspects of its data environment; it implements a
dynamic governance strategy to ensure high-quality and well-managed data.

ENTERPRISE

Analytical competitors take an enterprise approach to managing systems, data, and

people. They have coordinated methods relying on enterprise-level organizational
structures, resource allocations, and plans.

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An enterprise approach creates a unified perspective for analytics across the

organization by developing a road map, cultivating analytics culture, and establishing
an analytics strategy. A crucial component of the analytics road map is integrating
and managing unified data and analytics platform. A single, enterprise wide view of
analytics is important and organizational resistance on enterprise view should be
resolved and addressed. An enterprise approach to analytics is important for
organization’s competitiveness, thus, centrally established analytics goals is a good
tactic. Besides, this approach will avoid problems such as duplicated efforts and
tools, errors in analysis, ineffective use of resources, conflict among different groups,
and increased complexity with analytics projects.

LEADERSHIP

Leaders in all organization levels who embrace and support analytics and lead
company culture toward data-driven decision-making are essential in Analytic
organizations. These leaders are significant in the cultivation of analytics culture
across the organization and in the accomplishment of analytics initiatives. In
Analytics at Work, authors Davenport, Harris, and Morison note 12 traits that
analytical leaders exhibit in analytically competitive organizations.

● Possess people skill

● Push for more data and analysis
● Hire smart people, and give them credit
● Set a hands-on example
● Sign up for results
● Teach
● Set strategy and performance expectations
● Look for leverage
● Demonstrate persistence over time
● Build an analytical ecosystem
● Work along multiple fronts
● Know the limits of analytics

TARGETS

Analytics efforts must be aligned with specific, strategic targets that are also aligned
with corporate objectives. It is vital to focus on some initial and purposeful use cases
and applications so that organization will not get lost in the analytics opportunities.
Choosing the targets based organization’s strategic plan may involve executives and
internal employees who understand both the business and analytics opportunities.
Ideas from external groups may also be considered to increase understanding of the
industry and analytical trends. Looking beyond one’s industry is also helpful in
finding opportunities in typical, cross-industry applications.
When determining what targets to choose, leaders should narrow in on the best
options. First, leaders should look into the whole picture for where the business is
going, build a systematic inventory of possibilities, and then prioritize potential uses
of analytics based on the organization's benefit and capabilities. Once an enterprise
is mature, its targets become embedded in the strategic planning process and
become business initiatives.

ANALYSTS

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The organization needs employees capable of performing analytical works. The

Analytics at Work defines four kinds of people who play essential roles in an
organization. These are analytical champions, analytical professionals, or data
scientists, analytical semiprofessionals, and analytical amateurs. In reality, hiring
analysts and data scientists, who possess the technical, business, intrapersonal, and
coaching skills, are challenging; making them stay is another story. It is indeed
crucial to keep the right people motivated with creative and challenging projects.
In a situation when the perfect Analyst or data scientist with the necessary skills is
not available, there is an option of hiring business people with the potential to be
great analysts. Others may employ analysts and develop their business intelligence
along the way. Because analytical skills are often in short supply, organizational
structures and processes are critical for using them effectively. Both organizing
hiring analysts will have an impact on how the analytics strategy is deployed across
the organization.
TECHNOLOGY
The organization's ability to manage infrastructure, tools and technologies for
analytics is increasingly important when analytics rapidly evolves. Creating an
effective technology strategy for analytics is a critical prerequisite for success. There
are also increasing expectations on "citizen data scientists" who are doing self-
service analytics and reporting in today's time. As such, there are also self-service
data science platforms that can be of help in the productivity of all types of analytical
professionals and semiprofessionals.

As analytics and AI become more critical to an organization’s success, many will

need to develop sophisticated architectures for them. The architecture must support
experimentation and flexibility while making it feasible to integrate analytics with
production systems and processes. The architecture should also specify the relative
proportions of cloud versus on-premises, open-source versus proprietary, structured
versus unstructured data capabilities, and other critical decisions. Organizations
may also consider purchasing specialized hardware to allow efficient graphics
processing, deep learning-based image recognition, and other technical data and
analytics AI environments.

ANALYTICAL TECHNIQUES

The explosion of analytical methods and techniques, which, before focused only on
simple regression analysis, is more common today due to the low cost of computing
and storage and widespread adoption of open source development offered by
Google, Amazon, Microsoft, and others. The more traditional approaches to
analytics, such as reporting and visual analytics, are still worth using. Also, there are
machine-learning platforms that are powerful enough to evaluate hundreds of
different algorithms. "Ensemble" methods exhibit numerous techniques within a
particular model. AI methods such as deep learning raise essential issues of the
transparency and interpretability of models

Organizations need to assess the type of models they are mostly to need and the
availability of relevant tools and analytics skills they have as a quest to succeed in
analytics. They can also perform a comparison between the methods used within the
organization and the methods available externally. The most sophisticated tools will
increasingly determine which of techniques are appropriate in analyzing data, which
may lessen the need for an organization-specific approach to technique selection.
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The Five Stages of Analytics Maturity

The maturity model, described in Competing on Analytics and developed in Analytics

at Work, helps companies measure their growth across the seven DELTA elements
as it assesses the organization's strengths and weaknesses in the featured
elements. For example, an organization may achieve a stage 4 in maturity in one
element, but reach only a stage 3 in another. This assessment enables targeted
investment to mature analytics weaknesses based on the DELTA Model. The
organization is considered more mature in terms of their analytical capabilities as it
develops in the seven DELTA plus. Figure 3. 5 shows the five stages of analytic
maturity.

Figure 3.5 The Five Stages of Analytics Maturity

Davenport, T. (2018). DELTA Plus Model & Five Stages of Analytics Maturity: A Primer. Ebook.
Portland, Oregon, USA: International Institute for Analytics

Stage 1: Analytically Impaired. Companies on stage do not have formal

plans for becoming more analytical and rely on gut feel in decision making because
their leaders are unaware of what analytics is and what benefits it can bring to them.

Stage 2: Localized Analytics. Companies with localized analytics developed

"several versions of the truth" across the company since reporting and analytics exist
within silos and no means for collaboration across organizational units.

Stage 3: Analytical Aspirations. In this level, companies show little

progress in analytic maturity because they see the analytics value in their
organization and indent to improve their capabilities for generating and using them.
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Stage 4: Analytical Companies. Companies in this category have sufficient

data, possess analytical tools, use analytics in collaboration within the organization,
and are useful in analytics. However, there remains a lack of commitment to
compete on analytics or use them strategically fully.

Stage 5: Analytical Competitors. Analytical competitors have the highest

maturity in terms of maximizing analytical capabilities for competitive advantage.
They use analytics strategically and pervasively across the entire enterprise.

DELTA Plus Elements Across the Five Stages of Maturity

The factors described above drive the relative maturity and sophistication levels of
an organization's approach to analytics. The tables below describe typical attributes
of each DELTA element for a given maturity level and the types of changes that
typically accompany a move from one maturity level to the next.

Organizations that desire to increase their maturity level can use table 3.2 as a
guideline for capabilities and improvements to pursue.

Table 3.1. Success Factors

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DELTA Plus Elements Across the Five Stages of Maturity

Table 3.3 outlines the conditions that are typically in place at each stage of progress
in building an analytics program.

Table 3.3 DELTA Plus Transitions

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ACTIVITY FOR LESSON 4

WHAT YOU HAVE LEARNED?

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Name: _______________________________ Date: _______________________

Course & Section: _____________________ Result: _____________________

Answer the question concisely.

1. The original DELTA model consists of five elements: the Data, Enterprise,
Leadership, Technology and Analysts. What is the reason of adding two
more elements (please identify) in the existing model? Will it help the
organization in acquiring higher maturity in terms of Analytics? Explain your
answer

2. What are the five stages of analytics maturity? Do you think aiming for higher
stage can help the organizations in their growth and survival in their business
industry? Explain why or why not.

GRADING RUBRICS

HOW WELL DID YOU PERFORM? 96

UNIT 3: Business Analytic Model

Weight Actual
No. Items
% Score
1. The additional elements of DELTA plus model
10
identified are correct.

2. The reason provided for improving the DELTA model

20
is clear and with sufficient.

3. The explanation about using DELTA plus model for

20
higher Analytics maturity is insightful.

4. The identification of analytics maturity stages is

10
correct.

5. The explanation about relationship of analytics

maturity and organization’s growth and survival is 30
profound.

6. Expression of answers adheres to the quality standard

10
of formal writing.

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POST-TEST FOR UNIT 3

WHAT DO YOU ALREADY KNOW?

Name: __________________________________ Date: ____________________

Course & Section: ________________________ Result: __________________

Identification. Write the correct answer on the space provided.

1. They are also known as data keepers, are IT specialists

concerned with the governance process, maintenance, and
usage of data.
2. They facilitate the smooth functioning of application that
allows the proper extraction of data from data sources to
transform and load data to centralized repositories.
3. They have a mission of providing solutions and predictions
by extracting and analyzing patterns or useful data trends.
4. They are responsible for validating results or insights and
suggesting final prescriptions that can help the organization
decide.
5. They develop and guide the entire data-driven project
execution from the initial planning to project closure.
6. It is under the technical skills competency that utilizes some
scientific steps to derive insight and new knowledge.
7. It is under the technical skills competency that utilizes
various statistical concepts, formulas, and methodologies to
analyze research data.
8. It refers to the ability to work with a team and recognize the
distinctness of others.
9. It refers to the ability to analyze market demand and manage
customers’ needs.
10. It refers to the ability to understand ideas and pass it on to
others.

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PRE-TEST and POST-TEST FOR UNIT 3

ANSWER KEY

No. PRE-TEST POST - TEST

1. Data Stewards Data Stewards
2. Data Engineers Data Engineers
3. Data Scientist Data Scientist
4. Functional Analyst Functional Analyst
5. Analytics Manager Analytics Manager
6. Research Method Research Method
7. Statistical Techniques Statistical Techniques
8. Collaboration Collaboration
9. Customer Focus Customer Focus
10. Communication Communication

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POST-TEST FOR LESSON 1

100