Understanding the Predictive Analytics Lifecycle

Chapter 1Problem Identification and Definition

How executives focus resources and assess an organization’s readiness for meeting the challenges posed by new business realities

Recently I met with a pair of business executives at the Gaylord Convention Center near Washington, DC.

Two analysts glided their way toward me. I smiled and went in for handshakes, exclaiming “Hello there!” Their names were Zizi and Javier. Both worked for a big corporation right outside of the Beltway in Maryland. I quickly launched into a flurry of business jargon, briskly walking toward the coffee kiosk, mouth running at a hundred million miles per minute. The executives shuffled after me, saying “We are very interested in finding out more about developing a modern analytical system.”

I bought a soy latte with an extra espresso shot. As the caffeine kicked in, I started by asking, “What is your firm’s level of analytical maturity?”

Javier looked at me and said, “Before we get started, do we have an NDA in place?” A nondisclosure agreement is a document signed to protect both parties. (A sample agreement is presented at the end of this chapter.) “We sure do,” I answered. “Great! So let’s continue.”

Javier stammered, “I-I don’t know. I believe that analysis is a portion of the transformation cycle from data to knowledge to wisdom. So, probably the analytical maturity of an enterprise would tell how ...