Choosing the best analytical solution

Forming Analytical Questions

Konstantinos Kattidis

Data Analytics Lead

Steps to identify the best analytical technique

Categorize the analytical question into the relevant type of analytical solution.
Brainstorm relevant techniques.
Select the most appropriate technique

Two people trying to understand a problem

Find the relevant type of analytics

The four types of analytics table

Consider the output of the analysis

Tick mark

Think of what the expected output should be.

Example:

Predicting which customer segments are most likely to churn.
- Output: Binary prediction. Churn, or no churn.
Summarize the sales trends over time.
- Output: Data visualization

Customer churn prediction

Consider the data type and size

The selection of the analytical technique depends on the:

Data type:

Continuous or categorical
Structured or unstructured

Data sample size:

Large or small sample

Data types and size

Consider time and skill set

Consider the time and resources of the analytics team.
Simpler techniques may provide the insights needed and save time.

Consider the skill set of the analytics team.
Complex techniques may require advanced analytics expertise.

Person considering time and skills.

Aim for the simplest solution

Disadvantages of complex solutions:

Challenging to implement
Increased cost and time required
Challenging to interpret and communicate to non-technical stakeholders

The best analytical solution is one that can provide actionable insights that can drive decision-making.

Choosing simple techniques over complex.

Let's practice!

Forming Analytical Questions

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