Dimensions of data analytics

Decision Intelligence is a combination of applied data science and the social and managerial
sciences. It is all about harnessing the power and beauty of data. I help Google Cloud and its
customers turn their data into impact and make their businesses and the world better. A data
analyst is an explorer, a detective, and an artist all rolled into one. Analytics is the quest for
inspiration. You don't know what's going to inspire you before you explore, before you take a
look around. When you begin, you have no idea what you're going to find and whether you're
even going to find anything. You have to bravely dive into the unknown and discover what lies in
your data. There is a pervasive myth that someone who works in data should know the
everything of data. I think that that's unhelpful because the universe of data has expanded. It's
expanded so much that specialization becomes important.

In data analytics, what is the term for elements that interact with one another in order to
produce, manage, store, organize, analyze, and share data? (reminder: be sure to scroll
down to see all options!)

Data compositions
Data storage systems
Data ecosystems
Data maps
Correct
Elements that interact with one another in order to produce, manage, store, organize,
analyze, and share data are data ecosystems. These elements include hardware and
software tools, as well as the people who use them.

You've already learned about being a data analyst and how this program will help prepare you
for your future career. Now, it's time to explore the data ecosystem, find out where data
analytics fits into that system, and go over some common misconceptions you might run into in
the field of data analytics. To put it simply, an ecosystem is a group of elements that interact
with one another. Ecosystems can be large, like the jungle in a tropical rainforest or the
Australian outback. Or, tiny, like tadpoles in a puddle, or bacteria on your skin. And just like the
kangaroos and koala bears in the Australian outback, data lives inside its own ecosystem too.
Data ecosystems are made up of various elements that interact with one another in order to
produce, manage, store, organize, analyze, and share data. These elements include hardware
and software tools, and the people who use them. People like you. Data can also be found in
something called the cloud. The cloud is a place to keep data online, rather than on a computer
hard drive. So instead of storing data somewhere inside your organization's network, that data
is accessed over the internet. So the cloud is just a term we use to describe the virtual location.
The cloud plays a big part in the data ecosystem, and as a data analyst, it's your job to harness
the power of that data ecosystem, find the right information, and provide the team with analysis
that helps them make smart decisions. For example, you could tap into your retail store's
database, which is an ecosystem filled with customer names, addresses, previous purchases,
and customer reviews. As a data analyst, you could use this information to predict what these
customers will buy in the future, and make sure the store has the products and stock when
they're needed. As another example, let's think about a data ecosystem used by a human
resources department. This ecosystem would include information like postings from job
websites, stats on the current labor market, employment rates, and social media data on
prospective employees. A data analyst could use this information to help their team recruit new
workers and improve employee engagement and retention rates. But data ecosystems aren't
just for stores and offices. They work on farms, too. Agricultural companies regularly use data
ecosystems that include information including geological patterns in weather movements. Data
analysts can use this data to help farmers predict crop yields. Some data analysts are even
using data ecosystems to save real environmental ecosystems. At the Scripps Institution of
Oceanography, coral reefs all over the world are monitored digitally, so they can see how
organisms change over time, track their growth, and measure any increases or declines in
individual colonies. The possibilities are endless. Okay, now let's talk about some common
misconceptions you might come across. First is the difference between data scientists and data
analysts. It's easy to confuse the two, but what they do is actually very different. Data science is
defined as creating new ways of modeling and understanding the unknown by using raw data.
Here's a good way to think about it. Data scientists create new questions using data, while
analysts find answers to existing questions by creating insights from data sources. There are
also many words and phrases you'll hear throughout this course, that are easy to get mixed up.
For example, data analysis and data analytics sound the same, but they're actually very
different things. Let's start with analysis. You've already learned that data analysis is the
collection, transformation, and organization of data in order to draw conclusions, make
predictions, and drive informed decision-making. Data analytics in the simplest terms is the
science of data. It's a very broad concept that encompasses everything from the job of
managing and using data to the tools and methods that data workers use each and every day.
So when you think about data, data analysis and the data ecosystem, it's important to
understand that all of these things fit under the data analytics umbrella. All right, now that you
know a little more about the data ecosystem and the differences between data analysis and
data analytics, you're ready to explore how data is used to make effective decisions. You'll get
to see data-driven decision-making, in action.

How data informs better decisions

So far, you've discovered that there are many different ways data can be used. In our
everyday lives, we use data when we wear a fitness tracker or read product reviews to
make a purchase decision. And in business, we use data to learn more about our
customers, improve processes, and help employees do their jobs more effectively. But
this is just the tip of the iceberg. One of the most powerful ways you can put data to work
is with data-driven decision-making. Data-driven decision-making is defined as using
facts to guide business strategy. Organizations in many different industries are
empowered to make better, data-driven decisions by data analysts all the time. The first
step in data-driven decision-making is figuring out the business need. Usually, this is a
problem that needs to be solved. For example, a problem could be a new company
needing to establish better brand recognition, so it can compete with bigger, more well-
known competitors. Or maybe an organization wants to improve a product and needs to
figure out how to source parts from a more sustainable or ethically responsible supplier.
Or, it could be a business trying to solve the problem of unhappy employees, low levels of
engagement, satisfaction and retention. Whatever the problem is, once it's defined, a data
analyst finds data, analyzes it and uses it to uncover trends, patterns and relationships.
Sometimes the data-driven strategy will build on what's worked in the past. Other times, it
can guide a business to branch out in a whole new direction. Let's look at a real-world
example. Think about a music or movie streaming service. How do these companies
know what people want to watch or listen to, and how do they provide it? Well using data-
driven decision-making, they gather information about what their customers are currently
listening to, analyze it, then use the insights they've gained to make suggestions for
things people will most likely enjoy in the future. This keeps customers happy and coming
back for more, which in turn means more revenue for the company. Another example of
data-driven decision-making can be seen in the rise of e-commerce. It wasn't long ago
that most purchases were made in a physical store, but the data showed people's
preferences were changing. So a lot of companies created entirely new business models
that remove the physical store, and let people shop right from their computers or mobile
phones with products delivered right to their doorstep. In fact, data-driven decision-
making can be so powerful, it can make entire business methods obsolete. For example,
data helped companies completely move away from corded phones and replace them
with mobile phones. By ensuring that data is built into every business strategy, data
analysts play a critical role in their companies' success, but it's important to note that no
matter how valuable data-driven decision-making is, data alone will never be as powerful
as data combined with human experience, observation, and sometimes even intuition. To
get the most out of data-driven decision-making, it's important to include insights from
people who are familiar with the business problem. These people are called subject
matter experts, and they have the ability to look at the results of data analysis and identify
any inconsistencies, make sense of gray areas, and eventually validate choices being
made. Organizations that work this way put data at the heart of every business strategy,
but also benefit from the insights of their people. It's a win-win. As a data analyst, you play
a key role in empowering these organizations to make data-driven decisions, which is
why it's so important for you to understand how data plays a part in the decision-making
process.

Identify the real-world examples of how a company might make data-driven decisions.
Select all that apply.

Scheduling a certain number of restaurant employees to work based on the average

number of lunch-goers per day
Correct
Real-world examples of making data-driven decisions include suggesting new music to
a customer, scheduling a certain number of restaurant employees to work, and
choosing e-commerce solutions based on established facts. Data-driven decision-
making is using facts to guide business strategy.

Making spending decisions based on the gut instinct of the company accountant

Choosing e-commerce solutions based on customer shopping preferences

Correct
Real-world examples of making data-driven decisions include suggesting new music to
a customer, scheduling a certain number of restaurant employees to work, and
choosing e-commerce solutions based on established facts. Data-driven decision-
making is using facts to guide business strategy.

Suggesting new music to a customer based on their listening history

Correct
Real-world examples of making data-driven decisions include suggesting new music to
a customer, scheduling a certain number of restaurant employees to work, and
choosing e-commerce solutions based on established facts. Data-driven decision-
making is using facts to guide business strategy.
 Data and gut instinct
Detectives and data analysts have a lot in common. Both depend on facts and clues to make
decisions. Both collect and look at the evidence. Both talk to people who know part of the story. And
both might even follow some footprints to see where they lead. Whether you’re a detective or a data
analyst, your job is all about following steps to collect and understand facts.

Analysts use data-driven decision-making and follow a step-by-step process. You have learned that
there are six steps to this process:

1. Ask questions and define the problem.

2. Prepare data by collecting and storing the information.
3. Process data by cleaning and checking the information.
4. Analyze data to find patterns, relationships, and trends.
5. Share data with your audience.
6. Act on the data and use the analysis results.
But there are other factors that influence the decision-making process. You may have read
mysteries where the detective used their gut instinct, and followed a hunch that helped them solve
the case. Gut instinct is an intuitive understanding of something with little or no explanation . This
isn’t always something conscious; we often pick up on signals without even realizing. You just have
a “feeling” it’s right.

Why gut instinct can be a problem?

At the heart of data-driven decision-making is data. Therefore, it's essential that data
analysts focus on the data to ensure they make informed decisions. If you ignore data
 by preferring to make decisions based on your own experience, your decisions may be
biased. But even worse, decisions based on gut instinct without any data to back them
up can cause mistakes.

Consider an example of a restaurant entrepreneur, partnering with a well-known chef to

develop a new restaurant in a bustling part of the city’s central shopping district. The
well-known chef has several restaurants across the city. Banking on their reputation, the
restaurant entrepreneur and chef followed gut instinct and created another uniquely
themed restaurant. However, fundraising efforts fell short to fund the opening of the
restaurant after months of planning and preparation. The property will go back on the
market to be sold at a loss. Had the entrepreneur done more research, they would've
found data showing prospective customers in this new restaurant location were very
different from the chef's other restaurants.

The more you understand the data related to a project, the easier it will be to figure out
what is required. These efforts will also help you identify errors and gaps in your data so
you can communicate your findings more effectively. Sometimes past experience helps
you make a connection that no one else would notice. For example, a detective might
be able to crack open a case because they remember an old case just like the one,
they’re solving today. It's not just gut instinct.

Data + business knowledge = mystery solved

Blending data with business knowledge, plus maybe a touch of gut instinct, will be a
common part of your process as a junior data analyst. The key is figuring out the exact
mix for each particular project. A lot of times, it will depend on the goals of your
analysis. That is why analysts often ask, “How do I define success for this project?”

In addition, try asking yourself these questions about a project to help find the perfect
balance:

 What kind of results are needed?

 Who will be informed?
 Am I answering the question being asked?
 How quickly does a decision need to be made?
For instance, if you are working on a rush project, you might need to rely on your own
knowledge and experience more than usual. There just isn’t enough time to thoroughly
analyze all of the available data. But if you get a project that involves plenty of time and
resources, then the best strategy is to be more data-driven. It’s up to you, the data
analyst, to make the best possible choice. You will probably blend data and knowledge
a million different ways over the course of your data analytics career. And the more you
practice, the better you will get at finding that perfect blend.
 Origins of the data analysis process
When you decided to join this program, you proved that you are a curious person. So, let’s tap into
your curiosity and talk about the origins of data analysis. We don’t fully know when or why the first
person decided to record data about people and things. But we do know it was useful because the
idea is still around today!  

We also know that data analysis is rooted in statistics, which has a pretty long history itself.
Archaeologists mark the start of statistics in ancient Egypt with the building of the pyramids. The
ancient Egyptians were masters of organizing data. They documented their calculations and theories
on papyri (paper-like materials), which are now viewed as the earliest examples of spreadsheets and
checklists. Today’s data analysts owe a lot to those brilliant scribes, who helped create a more
technical and efficient process.

It is time to enter the data analysis life cycle—the process of going from data to decision. Data
goes through several phases as it gets created, consumed, tested, processed, and reused. With a
life cycle model, all key team members can drive success by planning work both up front and at the
end of the data analysis process. While the data analysis life cycle is well known among experts,
there isn't a single defined structure of those phases. There might not be one single architecture
that’s uniformly followed by every data analysis expert, but there are some shared fundamentals in
every data analysis process. This reading provides an overview of several, starting with the process
that forms the foundation of the Google Data Analytics Certificate.

The process presented as part of the Google Data Analytics Certificate is one that will be valuable to
you as you keep moving forward in your career:

1. Ask: Business Challenge/Objective/Question

2. Prepare: Data generation, collection, storage, and data management
3. Process: Data cleaning/data integrity
4. Analyze: Data exploration, visualization, and analysis
5. Share: Communicating and interpreting results 
6. Act:  Putting your insights to work to solve the problem
Understanding this process—and all of the iterations that helped make it popular—will be a big part
of guiding your own analysis and your work in this program. Let’s go over a few other variations of
the data analysis life cycle.

EMC's data analysis life cycle

EMC Corporation's data analytics life cycle is cyclical with six steps:

1. Discovery
2. Pre-processing data
3. Model planning
4. Model building
5. Communicate results
6. Operationalize
EMC Corporation is now Dell EMC. This model, created by David Dietrich, reflects the
cyclical nature of real-world projects. The phases aren’t static milestones; each step
connects and leads to the next, and eventually repeats. Key questions help analysts
test whether they have accomplished enough to move forward and ensure that teams
have spent enough time on each of the phases and don’t start modeling before the data
is ready. It is a little different from the data analysis life cycle this program is based on,
but it has some core ideas in common: the first phase is interested in discovering and
asking questions; data has to be prepared before it can be analyzed and used; and then
findings should be shared and acted on.

For more information, refer to this e-book, Data Science & Big Data Analytics.

SAS's iterative life cycle

An iterative life cycle was created by a company called SAS, a leading data analytics
solutions provider. It can be used to produce repeatable, reliable, and predictive results:

1. Ask
2. Prepare
3. Explore
4. Model
5. Implement
6. Act
7. Evaluate
The SAS model emphasizes the cyclical nature of their model by visualizing it as an
infinity symbol. Their life cycle has seven steps, many of which we have seen in the
 other models, like Ask, Prepare, Model, and Act. But this life cycle is also a little
different; it includes a step after the act phase designed to help analysts evaluate their
solutions and potentially return to the ask phase again. 

For more information, refer to Managing the Analytics Life Cycle for Decisions at Scale.

Project-based data analytics life cycle

A project-based data analytics life cycle has five simple steps:

1. Identifying the problem

2. Designing data requirements
3. Pre-processing data
4. Performing data analysis
5. Visualizing data
This data analytics project life cycle was developed by Vignesh Prajapati. It doesn’t
include the sixth phase, or what we have been referring to as the Act phase. However, it
still covers a lot of the same steps as the life cycles we have already described. It
begins with identifying the problem, preparing and processing data before analysis, and
ends with data visualization.

For more information, refer to Understanding the data analytics project life cycle.

Big data analytics life cycle

Authors Thomas Erl, Wajid Khattak, and Paul Buhler proposed a big data analytics life
cycle in their book, Big Data Fundamentals: Concepts, Drivers & Techniques. Their life
cycle suggests phases divided into nine steps:

 Business case evaluation

 Data identification

 Data acquisition and filtering

 Data extraction

 Data validation and cleaning

 Data aggregation and representation

 Data analysis
  Data visualization

 Utilization of analysis results

This life cycle appears to have three or four more steps than the previous life cycle
models. But in reality, they have just broken down what we have been referring to as
Prepare and Process into smaller steps. It emphasizes the individual tasks required for
gathering, preparing, and cleaning data before the analysis phase.

For more information, refer to Big Data Adoption and Planning Considerations.

Key takeaway

From our journey to the pyramids and data in ancient Egypt to now, the way we analyze
data has evolved (and continues to do so). The data analysis process is like real life
architecture, there are different ways to do things but the same core ideas still appear in
each model of the process. Whether you use the structure of this Google Data Analytics
Certificate or one of the many other iterations you have learned about, we are here to
help guide you as you continue on your data journey.

1.
Question 1
Data ______ is the collection, transformation, and organization of data in order to draw
conclusions, make predictions, and drive informed decision-making.

1 / 1 point

analysis

ecosystem

science
life cycle

Correct
2.
Question 2
Fill in the blank: Hardware, software, and the cloud all interact with each other to store
and organize data in a _____.

1 / 1 point

modeling system

database

cloud environment

data ecosystem

Correct
3.
Question 3
A data analyst is someone who does what?

1 / 1 point

Finds answers to existing questions by creating insights from data sources

Designs new products

Creates new questions using data

Solves engineering problems

Correct
4.
Question 4
Gut instinct is an intuitive understanding of something with little or no explanation.

1 / 1 point

True

False

Correct
5.
Question 5
A furniture manufacturer wants to find a more environmentally friendly way to make its
products. A data analyst helps solve this problem by gathering relevant data, analyzing
it, and using it to draw conclusions. The analyst then shares their analysis with subject-
matter experts from the manufacturing team, who validate the findings. Finally, a plan is
put into action. This scenario describes data-driven decision making.

1 / 1 point

True

False

Correct
6.
Question 6
What do subject-matter experts do to support data-driven decision-making? Select all
that apply.

0.5 / 1 point

Validate the choices made as a result of the data insights

Review the results of data analysis and identify any inconsistencies

Correct

Collect, transform, and organize data

This should not be selected

Review the section on data-driven decision-making.

Offer insights into the business problem

Correct
7.
Question 7
Fill in the blank: When following data-driven decision-making, a data analyst will consult
with ______ .

1 / 1 point

subject matter experts

customers

managers
stakeholders

Correct
8.
Question 8
You have recently subscribed to an online data analytics magazine. You really enjoyed
an article and want to share it in the discussion forum. Which of the following would be
appropriate in a post? Select all that apply.

0.5 / 1 point

Checking your post for typos or grammatical errors.

Including your own thoughts about the article.

Correct

Giving credit to the original author.

Correct

Including an advertisement for how to subscribe to the data analytics magazine.

This should not be selected

Review the section on discussion forums.