Why Learning only Data Analytics tools is useless.
Knowing SQL, Python, or dashboards is like knowing how to use a calculator.
If you donβt know what question to calculate, the tool doesnβt matter.
One of the most important things to learn as a Data Analyst is Defining or understanding business problem.
The simple way to define a business problem
Ask these 5 basic questions:
1. What decision needs to be made?
Example:
β’Who should we give discounts to?
β’Which product should we stop selling?
β’Where are we losing money?
If thereβs no decision, stop here.
2. Who is making that decision?
There must be one person who will act on the result.
If the answer is:
β’βThe teamβ
β’βManagementβ
β’βWeβll seeβ
Then the analysis probably wonβt be used.
3. What does βsuccessβ mean in numbers?
Turn ideas into something you can measure.
Examples:
β’More sales β βIncrease sales by 5%β
β’Fewer customers leaving β βReduce churnβ
β’Faster delivery β βReduce delivery timeβ
If you canβt measure it, you canβt improve it.
4. By when?
Every problem needs a time limit.
Examples:
β’This month
β’Next 30 days
β’This quarter
Without time, the problem never ends.
5. What will we do with the answer?
Finish this sentence:
βIf the data shows X, we will do Y.β
If you canβt finish that sentence, the problem isnβt clear yet.
Simple example
β Bad problem:
βLook at customer data.β
β
Good problem:
βWhich customers are likely to leave in the next 30 days so we can offer them discounts and keep them?β
Why itβs good:
β’Clear question
β’Clear action
β’Clear time frame
One sentence rule (easy to remember)
A good business problem answers:
Who needs to decide what, using data, by when, and for what action?
If you can answer that, youβre ready to use the tools.