Table of Contents

DATA VALUE CHAIN..............................................................................................................................2

MAJOR ANALYTICS JOB FAMILIES........................................................................................................3
DECISION SUPPORT SYSTEMS...............................................................................................................6
DEFINITION OF ANALYTICS.....................................................................................................................7
PROJECT DARE........................................................................................................................................7
RECOMMENDED APEC ANALYTIC COMPETENCIES..................................................................................8
BUSINESS AND ORGANIZATION SKILLS...................................................................................................9
TECHNICAL SKILLS.................................................................................................................................11
WORKPLACE SKILLS..............................................................................................................................14
AAP PROFESSIONAL MATURITY MODEL...............................................................................................15
INVITATION FOR COLLABORATION.......................................................................................................16
SUMMARY............................................................................................................................................17
DELTA+ MODEL AND ORGANIZATIONAL MATURITY MODEL................................................................17
INDUSTRY STANDARD FOR ORGANIZATIONAL MATURITY...................................................................17
DELTA+ MODEL....................................................................................................................................18
STAGES OF ANALYTICAL MATURITY......................................................................................................24
KEY POINTS..........................................................................................................................................24
WHAT IS STRATEGY?............................................................................................................................25
COMPANY'S VISION AND GOALS..........................................................................................................25
PROOF OF CONCEPT.............................................................................................................................27
OPERATIONALIZING ANALYTICS...........................................................................................................28
ANALYTICS STRATEGY THAT WORKS....................................................................................................29
SUMMARY............................................................................................................................................31
DESIGNING FOR DIGITAL......................................................................................................................31
BUILDING THE ANALYTICS ECOSYSTEM IN THE PHILIPPINES.................................................................32
DATA VALUE CHAIN
development of various creation and generation of
options to suggest what data from its source
should be done next

Imperatives Data

Insights Information
finding patterns to answer consolidation of relevant data
why it happened and what to a single repository to
could likely happen next answer what happened

To come to a shared definition of Analytics, let’s start with the data value chain.

Data has been called a lot of things – a new natural resource, the new oil, the new water and so on and
so forth. Being so, data then has to be mined and refined to extract the value from it.

Analytics enables this transformation.

And it starts, of course, with the creation of data. At this stage, data is created and generated from its
source, mostly, from us: personal biodata, an employment application form, a bank loan application
form, our medical records.

When we buy something either from a physical store or an online store, when we call or text someone,
when we take a photo, when we create videos, when we post something on Facebook or on Twitter, we
create data.

Machines and equipment can also create data: biometric machines, CCTVs, barcode scanners in retail
stores, our phones, our computers.

This is the birth of data. All of these are collected by various people and organizations, stored into their
applications, waiting to be extracted for the value that they will provide.
The first transformation that data goes through is when it is extracted from these various sources and
consolidated into a single repository. In this process, data is cleaned, categorized, transformed,
aggregated, and loaded into a single repository where similar data from the past was also stored. At this
stage, data is transformed into information. At this stage as well, organizations will be able to answer
the question, “What happened?”

The second transformation that data goes through is when information is transformed to insights. At
this stage, since our single data repository also contains historical information, organizations can now
see if there are trends or patterns that will emerge from all the stored information.

From these trends and patterns, organizations will now be able to answer the questions, “Why did it
happen?” “What could likely happen next?”

The value of data will not be fully realized until organizations act on the insights that emerge from the
analysis that has been done so far. The transformation then of insights to imperatives or actionable
insights is the last transformation that data goes through. Given the insights of what could likely happen
next, Analytics can develop various options that will help organizations answer the question, “What
should be done next?” From these options, organizations can decide on a course of action for their
organization.

This is the data value chain: from the birth of data, to information (answering the question, “What
happened?”), to insights (answering the questions, “Why did it happen? What could likely happen
next?”), to imperatives or actionable insights (answering the question, “What should be done next?”).

MAJOR ANALYTICS JOB FAMILIES

As Analytics transforms data to information to insights to imperatives through the value chain, we now
find the major roles in Analytics.
Data Stewards

develop, enforce, and maintain an organization’s data

governance process, data usage, and data security policies to
ensure that data assets provide the organization with high-
quality data
expertise is in business and industry domains
you won’t be able to get data without going through them
As they also ensure data quality, they will be the most
knowledgeable in determining how to deal with missing or fix
unclean data.
Related job titles include data privacy officer, data security
officer, data governance manager, data curator, data librarian

Data Engineers

design, construct, test, and maintain data infrastructures

including applications that extract, clean, transform, and load
data from the data sources to centralized data repositories.
expertise is in information technology, information science,
and computer science
ensures data from the centralized data repositories are in-sync
with the various data sources
responsible to make sure that the data infrastructures are
available to key stakeholders during agreed times
Related job titles include ETL developer, data architect, data
warehousing professional, big data engineer.
Data Scientist

leverage statistical techniques and create analytical

models to derive new insights from quantitative and
qualitative data
expertise is in mathematics and statistics
have keen eyes to find trends and patterns from current
and historical pieces of information
make predictions on what could potentially happen
next
Related job titles include statistician, statistical
modeler, advanced analytics professional.

Functional Analysts

utilize data and leverage on derived insights to help organizations

make better decisions on a specific functional domain
expertise is in business and industry domains
while it is still the role of Data Scientists to come up with prescriptive
models and algorithms, the Functional Analysts, with their domain
expertise, will be the one who will validate the insights derived by
the Data Scientists
make the final prescriptions to the leadership team enabling the
leaders of the organizations to make better decisions
Related job titles include research analyst, human resource analyst,
marketing analyst, financial analyst, operations analyst.
 Analytics Manager

develop and guide data-driven projects– from initiation to

planning, execution to performance monitoring, to closure
expertise is in project management
bring the Analytics team together
with knowledge on what to expect from each team
member, they ensure the successful delivery of Analytics
projects
Related job titles include chief data officer, project
manager, data engineering manager, data science
manager, analytics translator.

DECISION SUPPORT SYSTEMS

Analytics is “a decision support system”. We still elect to use this term – decision support – because
while Analytics can provide the end user with data, information, insights, and prescribed actions, we
should maintain that the end user can still choose to act upon them or not.

The final decision is still with the end user.

With fear spreading about how digital technologies such as artificial intelligence, robotic process
automation, and the like will take over our jobs, this is important to emphasize.

Analytics can only provide decision support. We, the end user, will still have the final say.

What we are adding to this definition, however, is that, in this digital age, Analytics provides decision
support not only to humans within an organization, but also to digital processes.

Analytics is also about the provisioning of data, information, and insights to drive digitalized processes in
an intelligent way.

Smart appliances, self-driving cars, manufacturing robots have digital processes that are supported by
Analytics.
DEFINITION OF ANALYTICS
Analytics progresses data along its value chain, with the purpose of delivering the right decision
support to the right people and digital processes at the right time, for the greater good.

In this definition, we note the work that Analytics is expected to perform, and the recipients of its
output.

More importantly, while Analytics – and other technologies and disciplines, for that matter – is, in itself,
amoral, the definition emphasizes the ethical use of Analytics.

PROJECT DARE
As the Analytics Association of the Philippines has set out to have a framework that will be, among
others, comprehensive (but not complicated), enduring, and valuable to professionals and organizations,
the framework had to ensure that these competencies are globally recognized.

Having a globally recognized list means that Filipino professionals and organizations who will adapt
these competencies can be globally competitive as well.

This is where APEC Project DARE comes in.

Project DARE (or Data Analytics Raising Employment) is an initiative of the Asia-Pacific Economic
Cooperation (or APEC) led by the United States Department of Labor with co-sponsorship from the
governments of Australia, Japan, Malaysia, Peru, Chinese, Taipei, and Vietnam and endorsed by the
APEC Business Advisory Council.

As a project of APEC’s Human Resources and Development Working Group, Project DARE seeks to
facilitate development of a data analytics-enabled workforce across the APEC region to effectively
support sustainable economic growth and prosperity in the Asia-Pacific region.

In May 2017, a 50-person Advisory Group composed of 14 APEC member economies, co-chaired by the
global skills and knowledge company Wiley and the Business Higher Education Forum (or BHEF), met in
Singapore to develop this set of Analytics competencies.

With guidance from North America’s BHEF and Europe’s Project EDISON, the Advisory Group was able to
marry the skills and expected competencies from North America and Europe with the requirements and
expectations from the APEC region to come up with a globally recognized list of Analytics skills and
competencies.
RECOMMENDED APEC ANALYTIC COMPETENCIES
The following 10 competencies apply to teams comprising not only of data engineers and data scientists
but also to a new emerging segment of Analytics-enabled professionals including data stewards,
functional analysts, and analytics managers.

The first 4 competencies comprise the Business and Organization skills.

The next 5 competencies comprise the Technical skills.

The last competency is on Workplace skills.

Domain Data Data

Operational
Knowledge & Management Visualization &
Analytics
Application & Governance Presentation

Data Data Analytics

Research Statistical
Engineering Methods &
Methods Techniques
Principles Algorithms

21st Century
Computing
Skills

Each of these competencies has a 3-level proficiency expectation as part of a toolkit.

Intermediate
Entry Level Level Expert Level
- can perform predefined - can formulate and - identify new
tasks solve tasks to achieve approaches and
- work under guidance wide range of application areas to
organization goals achieve organizational
- work independently on goals
the solutions - assess multiple
development and alternative solutions
operations based on structured
analysis and experience
- propose new
approaches if necessary
As you will see, this toolkit can be used not only by Analytics professionals to chart their career paths. It
can also be used by other stakeholders to build their own solutions for educating, training, certifying,
recruiting, managing, and otherwise supporting Analytics and Analytics-enabled professionals.

BUSINESS AND ORGANIZATION SKILLS

With Domain Knowledge & Application, you apply domain-related knowledge and insights to effectively
contextualize data, achieved by practical experience and exposure to emerging innovations.

This is the main skill of Functional Analysts.

This is about industry knowledge, business experience, and domain expertise.

You currently don’t have the skill.

Level 0

You understand collected data, and how they are handled

Level 1 and applied in the specific industry domain.

You develop content strategy and information architecture

Level 2 to support a given industry domain and its audiences.

You make business cases to improve domain- related

Level 3 procedures through data-driven decision-making.

With Data Management & Governance, you develop and implement data management strategies,
incorporating privacy and data security, policies and regulations, and ethical considerations.

This is the forte of Data Stewards, the data gatekeepers of an organization.

In certain cases, the HR and Legal departments are involved in developing and enforcing these policies.
 You currently don’t have the skill.
Level 0

You are aware and always apply policies and measures to ensure
Level 1 data security, privacy, intellectual property, and ethics.

You enforce policies and procedures for data security, privacy,

Level 2 intellectual property, and ethics.

You develop policies on data security, privacy, intellectual

Level 3 property, and ethics.

With Operational Analytics, you use general and specialized analytics techniques for the investigation of
all relevant data to derive insight for decision-making.

This is the area of Analytics Managers.

With their project management expertise, they can oversee the successful delivery of an Analytics
project.

You currently don’t have the skill.

Level 0

You perform business analysis for specified tasks and

Level 1 data sets.

You identify business impact from trends and

Level 2 patterns.

You identify new opportunities to use historical data

Level 3 for organizational processes optimization.

With Data Visualization & Presentation, you create and communicate compelling and actionable
insights from data using visualization and presentation tools and technologies.
This is not just about creating charts but creating and effectively communicating the story that data is
telling an organization.

You currently don’t have the skill.

Level 0

You prepare data visualization reports or narratives

Level 1 based on provided specifications.

You create infographics for effective presentation

Level 2 and communication of actionable outcomes.

You select appropriate and develop new visualization

Level 3 methods used in a specific industry.

TECHNICAL SKILLS
With Research Methods, you utilize the scientific and engineering methods to discover and create new.

Used by Data Scientists, research methods are the strategies, processes or techniques utilized in the
collection of data or evidence for analysis in order to uncover new information or create better
understanding of a topic.

You currently don’t have the skill.

Level 0

You understand and use the 4-step research model: hypothesis,

Level 1 research methods, artifact, evaluation.

You develop research questions around identified issues within

Level 2 existing research or business process models.

You design experiments which include data collection (passive and

Level 3 active) for hypothesis testing and problem solving.
With Data Engineering Principles, you use software and system engineering principles and modern
computer technologies to develop data analytics applications.

This is the realm of Data Engineers. They are the ones who will bring all the needed data from the
various sources, extract, clean, aggregate, transform, and finally load them to the identified data
repositories.

You currently don’t have the skill.

Level 0

You have knowledge and ability to program selected SQL and NoSQL platform
for data storage and access, in particular write ETL scripts.
Level 1

You design and build relational and non-relational databases, ensure effective
ETL processes for large datasets.
Level 2

You have advanced knowledge and experience of using modern Big Data
technologies to process different data types from multiple sources.
Level 3

With Statistical Techniques, you apply statistical concepts and methodologies to data analysis.

Ok, so, “unfortunately,” especially for aspiring Data Scientists, there’s no escaping math and statistics.
Here, mathematical formulas are used in the analysis of raw research data. The application of these
techniques extracts information from research data and provides different ways to assess the robustness
of research outputs.
 You currently don’t have the skill.
Level 0

You know and use statistical methods such as sampling, ANOVA, hypothesis
testing, descriptive statistics, regression analysis, and others.
Level 1

You select and recommend appropriate statistical methods and tools for
specific tasks and data.
Level 2

You identify problems with collected data and suggest corrective measures,
including additional data collection, inspection, and pre-processing.
Level 3

With Data Analytics Methods & Algorithms, you implement and evaluate machine learning methods
and algorithms on the data to derive insights for decision-making.

This is, again, the area of Data Scientists. With what they know of their data, they should now be able to
identify the most appropriate methods or algorithm to really extract insights from data. This is moving
towards real advanced Analytics as this competency starts where Statistical Technique ends.

You currently don’t have the skill.

Level 0

You demonstrate understanding and perform statistical hypothesis testing;

you can explain statistical significance of collected data.
Level 1

You apply quantitative techniques (e.g., time series analysis, optimization,

simulation) to deploy appropriate models for analysis and prediction.
Level 2

You assess data on reliability and appropriateness; you select appropriate

approaches and their impact on analysis and the quality of the results.
Level 3

With Computing, you apply information technology, computational thinking, and utilize programming
languages and software and hardware solutions for data analysis. This is software programming.

Data Engineers and Data Scientists would have to develop these skills to perform their functions.
 You currently don’t have the skill.
Level 0

You perform basic data manipulation, analysis, and visualization.

Level 1

You apply computational thinking to transform formal data models and

process algorithms into program code.
Level 2

You select appropriate application and statistical programming languages, and

development platforms for specific processes and data sets.
Level 3

WORKPLACE SKILLS
With the 21st Century Skills, there’s really no 3-level toolkit that can be applied given that these are
necessary skills not only in Analytics but also in other fields as well.

For Analytics, APEC Project DARE recommended that Analytics professionals should exhibit crosscutting
skills essential for Analytics at all levels, including but not limited to:

communication organizational
collaboration ethical mindset
and storytelling awareness

planning and
critical thinking problem solving decision-making
organizing

business cross-cultural
customer focus flexibility
fundamentals awareness

social and
dynamic (self) re- professional
societal entrepreneurship
skilling networking
awarenes
Such skills should be enabled at levels of proficiency driven behind successful career and professional
development programs:

Demonstrating the ability to apply critical thinking skills to solve problems and make
Critical Thinking
effective decisions

Communication Understanding and communicating ideas

Collaboration Working with others, appreciation of multicultural differences
Creativity and Attitude Deliver high quality work and focus on final result, initiative, intellectual risk

Planning & Organizing Planning and prioritizing work to manage time effectively and accomplish assigned tasks

Business Fundamentals
Customer Focus
Working with Tools &
Technology
Dynamic (Self-) Re-Skilling
Having fundamental knowledge of the organization and the industry
Actively look for ways to identify market demands and meet customer or client needs
Selecting, using, and maintaining tools and technology to facilitate work activity
Continuously monitor individual knowledge and skills as shared responsibility between
employer and employee, ability to adopt to changes

Professional Networ Involvement and contribution to professional network activities

Adhere to high ethical and professional norms, responsible use of power data driven
Ethics technologies, avoid and disregard un-ethical use of technologies and biased data
collection and presentation

Many actually call these skills soft skills but there’s really nothing “soft” about these skills. These skills
are harder to develop as they take the longest time and is further influenced by the culture and the
environment that an individual is exposed to.

AAP PROFESSIONAL MATURITY MODEL

With a shared definition of Analytics, a set of the major Analytics job families, and a globally recognized
list of Analytics skills and competencies, the Analytics Association of the Philippines introduces the AAP
Professional Maturity Model.

STEWARD ENGINEER SCIENTIST ANALYST MANAGER

Domain
3 1 2 3 3
Knowledge
Data
3 2 2 2 3
Governance
Operational
3 3 3 3 3
Analytics
Data
Visualization & 2 1 2 3 3
Presentation
Research
1 1 3 1 1
Methods
Data
- 3 1 - 1
Engineering
 Statistical
- 1 3 - 1
Techniques
Methods and
- 1 3 - 1
Algorithms
Computing 1 2 3 1 1
21st century
3 3 3 3 3
skills

This model suggests a maximum proficiency level per competency and role.

Roles requiring business and industry knowledge, i.e., data stewards and functional analysts, would
require higher proficiency in the business and organizational skills.

Roles requiring technical competencies, i.e., data engineers and data scientists, would require higher
proficiency in the technical skills.

Analytics managers should have high proficiency in business and industry skills as well as entry-level
proficiency in the technical skills to effectively manage Analytics projects.

All roles, however, are expected to have high proficiency in the 21st century skills.

INVITATION FOR COLLABORATION

Some notes about the AAP Professional Maturity Model:

First, the 3-level toolkit presented this week is but a subset of a larger pool of proficiency expectations
per level, per competency.

It is important to highlight that the courses you will take within Project SPARTA are aligned to this 3-
level toolkit and to the AAP Professional Maturity Model.

Second, the model can be used not only by Analytics professionals to chart their career paths.

It can also be used by other stakeholders to build their own solutions for educating, training, certifying,
recruiting, managing, and otherwise supporting Analytics and Analytics-enabled professionals.

Lastly, the Analytics Association of the Philippines invites everyone, from the private sector, to the
academe, to government agencies to further develop and enhance the AAP Professional Maturity Model
through the adoption and the evaluation of this framework.

This course is just a start to introduce a set of standards in building world-class Filipino Analytics
professionals.

It must evolve, however, to keep pace with the advancement of Analytics and other emerging Analytics-
enabled disciplines.
Visit www.aap.ph to know more about how you can start being involved.

SUMMARY
● Analytics is a broad field of knowledge requiring quantitative and technical skills, industry expertise,
and business acumen; but practitioners also need to be able to communicate effectively, build
relationships, and coach others.

● Different roles call for different levels of proficiency across the various Analytics competencies. The
AAP Professional Maturity Model is a framework that can help practitioners chart a career path for
themselves.

● The Professional Maturity Model is a framework that will be in continuous improvement to keep up
with the advancement of Analytics and other emerging Analytics-enabled disciplines. Practitioners are
encouraged to contribute to its continuous improvement.

DELTA+ MODEL AND ORGANIZATIONAL MATURITY MODEL

As practitioners develop proficiency across the various Analytics competencies, so too must
organizations who employ them.

An organization which is not Analytically inclined runs the risk of having disengaged Analytics
practitioners as they will not have the proper support and guidance from these organizations.

As such, similar to how practitioners have a Professional Maturity Model to guide their progression in
their chosen Analytics career paths, organizations are also provided with an Organizational Maturity
Model to ensure that they can support their practitioners while also building a data-driven culture in
their organization.

INDUSTRY STANDARD FOR ORGANIZATIONAL MATURITY

In 2007, Thomas Davenport and Jeanne Harris introduced the Five Stages of Analytics Maturity in their
book, “Competing on Analytics: the New Science of Winning.”

In 2010, Tom and Jeanne were joined by Robert Morison in introducing the DELTA Model in their book,
“Analytics at Work: Smarter Decisions, Better Results.”

Both frameworks were updated by Tom and Jeanne in their 2017 revision of “Competing on Analytics.”
Two new components were added to the DELTA model creating the DELTA+ Model.

The Five Stages of Analytics Maturity and the DELTA+ Model have become the industry standard
frameworks for assessing organizational analytics maturity.
DELTA+ MODEL
The DELTA+ Model is comprised of seven elements that must evolve and mature for organizations to
succeed in their Analytics initiatives.

These seven elements are:

for integrated, high-quality, and easily accessible data

D

for managing Analytics resources in a coordinated fashion across the enterprise

E

for strong, committed leadership that understands the importance of analytics and constantly
L advocates their use in decision and actions

for selecting the right, strategic, organizational targets that will be the core of an Analytics
T roadmap

for nurturing high-performing analytics professionals

A

for the technologies that will support Analytics across the organization
T*

for the various analytical techniques ranging from simple descriptive statistics to machine
A* learning

The continued growth of big data and the introduction of new Analytics techniques like machine
learning provided the + in the DELTA+ model:

Let’s look at each of these elements.

D is for Data.

It is no secret that many organizations face data quality issues.

For meaningful Analytics to happen, organizations must ensure that high quality data is organized and
accessible by the right people.

Make an assessment about Data in your organization:

 Inconsistent, poor-quality, and unstandardized data; difficult to do
Level 1 substantial analysis; no groups with strong data orientation

Standardize and structured data, mostly in functional or process silos;

Level 2 senior executives do not discuss data management

Key data domains identified, and central data repositories created

Level 3

Integrated, accurate, common data in central repositories; data still

Level 4 mainly an IT matter, little unique data

Relentless search for new data and metrics leveraging structured and
Level 5 unstructured data (e.g., text, video); data viewed as a strategic asset

E is for Enterprise.

Analytical organizations advocate a single and consistent perspective for Analytics across the enterprise.
This is accomplished by setting an Analytics strategy and building a roadmap to implement that strategy.
Make an assessment about your organization as an analytical Enterprise:

No enterprise perspective on data or analytics; poorly integrated

Level 1 systems

Islands of data, technology, and expertise deliver local value

Level 2

Process or business unit focus for analytics; infrastructure for

Level 3 analytics beginning to coalesce

Key data, technology, and analytics professionals managed from

Level 4 an enterprise perspective

Key analytical resources focused on enterprise priorities and

Level 5 differentiation
L is for Leadership.

Analytical organizations have leaders who fully embrace Analytics and lead company culture towards
data-driven decision-making.

Beyond the C-level, all levels of leadership within the enterprise should support Analytics.

Make an assessment about Leaders in your organization:

Little awareness of or interest in analytics

Level 1

Local leaders emerge but have little connection

Level 2

Senior leaders recognize importance of analytics and developing

Level 3 analytical capabilities

Senior leaders develop analytical plans and build analytical

Level 4 capabilities

Strong leaders behave analytically and show passion for analytical

Level 5 competition

T is for Targets.

Analytics efforts must be aligned with specific, strategic targets that are also aligned with the objectives
of the organization.

At the highest maturity level, these targets become embedded in the strategic planning process and are
considered business initiatives and not just Analytics initiatives.

Make an assessment about the Targets in your organization:

 No targeting of opportunities
Level 1

Multiple disconnected targets, typically not of strategic

Level 2 importance

Analytical efforts coalesce behind a small set of important targets

Level 3

Analytics is centered on a few key business domains with explicit

Level 4 and ambitious outcomes

Analytics is integral to the company’s distinctive capability and

Level 5 strategy

A is for Analytics Professionals.

Organizations require analytical talent that covers a range of skills and roles.

Once the right people are in place, keeping them motivated with creative and challenging projects is
crucial.

Make an assessment about Analytics Professionals in your organization:

 Few skills that are attached to specific functions
Level 1

Unconnected pockets of analytics professionals; unmanaged mix

Level 2 of skills

Analytics professionals recognized as key talent and focused on

Level 3 important business areas

Highly capable analytics professionals explicitly recruited,

Level 4 developed, deployed, and engaged

World-class professional analytics professionals; cultivation of

Level 5 analytical amateurs across the enterprise

T is for Technology.

As the technology for Analytics rapidly evolves, an organization’s ability to deploy and manage the
underlying infrastructure, tools, and technologies become increasingly important.

Make an assessment about Technology in your organization:

Desktop technology, standard office packages, poorly

Level 1 integrated systems

Individual analytical initiatives, statistical packages, descriptive

Level 2 analytics, database querying, tabulations

Enterprise analytical plan, tool and platforms; predictive

Level 3 analytical packages

Enterprise analytical plan and processes, cloud-based big data

Level 4

Sophisticated, enterprise-wide big data and analytics

Level 5 infrastructure, cognitive technologies, prescriptive analytics
A is for Analytical Techniques.

With rapidly evolving technology comes a higher level of sophistication from the various analytical
techniques that organizations may use in their decision-making process.

This could range from simple descriptive statistics to machine learning. Make an assessment about
Analytical Techniques in your organization:

Mostly ad-hoc, simple math, extrapolation, trending

Level 1

Basic statistics, segmentation, database querying, tabulations of key

Level 2 metrics are leveraged to gain insights

Simple predictive analytics, classification and clustering, dynamic forecasts

Level 3

Advanced predictive methods deployed to discover insights, advanced

Level 4 optimization, sentiment analytics, text and image analytics

Neural nets and deep learning, genetic algorithms, advanced machine

Level 5 learning
STAGES OF ANALYTICAL MATURITY
Organizations mature their analytical capabilities as they develop in the seven areas of DELTA+.

As introduced in “Competing on Analytics” and developed in “Analytics at Work,” this maturity model
helps organizations measure their growth across these areas.

the organization is Analytically Impaired

the organization lacks one or several of the prerequisites for serious analytical work, such as data, analytical skills, or senior
Level 1 management interest

the organization has Localized Analytics

there are pockets of analytical activity within the organization, but they are not coordinated or focused on strategic targets
Level 2

the organization has strong Analytical Aspirations

the organization envisions a more analytical future, has established analytical capabilities, and has a few significant initiatives under
Level 3 way, but progress is slow—often because some critical factors have been too difficult to implement

the organization becomes an Analytical Organization

the organization has the needed human and technological resources, applies analytics regularly, and realizes benefits across the
Level 4 business, but its strategic focus is not grounded in analytics, and it hasn't turned analytics to competitive advantage

the organization is an Analytical Competitor

the organization routinely uses analytics as a distinctive business capability
Level 5 it takes an enterprise-wide approach, has committed and involved leadership, and has achieved large-scale results

KEY POINTS
The Organizational Maturity Model is a tool to assess an organization’s process capability in Analytics.

Truly analytical organizations have three hallmarks:

 Analytics is embedded in the major processes of an organization, the “workhorse” activities of

the enterprise.
 They build and continually reinforce a culture of analytical decisions, a “test and learn”
philosophy, and a commitment to fact-based decision making.
 Never satisfied, and always mindful of how conditions change, they continually review their
assumptions and analytical models.
WHAT IS STRATEGY?

STRATEGY

is a description of the overall way in which an organization

currently is, and is to be run
covers a year at a time
aligns the organization’s business area, resources, and activities
to the market in which the organization operates
attempts to handle issues in the short run while, at the same
time, trying to create competitive advantages in the long run

What we want to highlight in this definition is alignment.

Anything that anyone does in an organization should be aligned to the overall mission and vision of the
organization.

If a project or an initiative is not aligned with the organization’s strategy, then there’s really no point in
doing that project in the first place.

This holds true for Analytics initiatives.

One of the reasons we are not seeing more and more organizations in the Philippines embrace Analytics
is that the leadership team is not seeing the value of Analytics projects being initiated within a unit or
department, which is usually IT.

Analytics projects are usually started within a unit without aligning the intended output to the
organization’s overall objectives.

Thus, when presented to the leadership team, the potential value is lost.

Let’s see how we can fix this.

COMPANY'S VISION AND GOALS

Recall that we have the following roles in Analytics:

● Data Steward ● Data Engineer ● Data Scientist ● Functional Analyst ● Analytics Manager

Let’s add a few more roles that we can find in most organizations that will be supporting our Analytics
team:
● Leadership ● Department Head ● IT Engineer

We will show in this example how these roles are involved in the strategy roadmap.

Through hard work and overall business savviness, Aling Maria’s sari-sari store has transformed into a
large retail company focused solely on Filipino-made products.

Her company’s vision: a Filipino brand for every Filipino product at every Filipino’s home.

As the CEO, she and her LEADERSHIP team sets annual objectives for the company. This year, she wants
to, among others, increase their market share from 15% to 20%.

This is the goal that she cascaded to the entire company at the start of their fiscal year.

The various departments took this to hear and developed their own strategies that will contribute to the
larger goal of increased market share.

In their annual planning, as a case in point, The DEPARTMENT HEAD of the Marketing Department, said,
“In order for us to increase our market share, we need to attract new customers.”

She then asked several ideas from her team who are experts in their own right in marketing. She got the
usual suggestions of increasing marketing campaigns, going into social media, and getting celebrities for
endorsements.

She agreed, in principle, but she wanted to be more focused and more targeted.

One FUNCTIONAL ANALYST suggested, “How about looking into past sales records and see who are our
loyal customers? Perhaps we can deduce who to target based on this information.”

The department head, having read somewhere about data being the new oil and knowing that the
leadership team is in support of innovative ideas in the company, said, “Let’s try that. And, oh, by the
way, I think our IT department is trying out Analytics and has a team of people doing some proof of
concepts. If we need to, we can probably borrow some of their people.”

The functional analyst goes back to her desk and starts looking into the customer database (which she
has access to as part of her job).

As she scrolls past, because of her expertise in marketing and in retail, she began to have this nagging
feeling that there are certain things about their customers that could tell them who to target.

Looking at the data, she has this hunch that gender, generation, location, and income level could affect a
customer’s decision to buy.

She would like to investigate further but she doesn’t know how to proceed. She remembers what her
department head said and went to IT. She explained her dilemma to the IT department head who
quickly (and excitedly) introduced her to their lead DATA SCIENTIST.
The data scientist also got excited as she felt that, finally, she can do something that is aligned to their
organization’s agenda.

She talked to the functional analyst and explained to her that what she currently has – that nagging
feeling, that hunch – is actually a hypothesis.

And that is how Analytics projects are started: with a hunch that needs to be proven by data.

PROOF OF CONCEPT
As part of the research method, the data scientist further explained that they need more data points to
test their hypothesis.

She would definitely need access to data.

With the functional analyst, the data scientist went to the DATA STEWARD of the customer and sales
data.

As the data keeper, the data steward asked both on what data they would need and why. She
scrutinized their request and questioned the need for sensitive, personally-identifiable information, that
is, data that could point to a single known person.

Based on her evaluation, she determined that such information as name, TIN, and actual birth month
and date will not matter in the project.

The data scientist agreed, and they were then given the needed data.

Using her skills in statistics and Analytics methods and algorithms, the data scientist went on and trained
and tested her model to determine whether gender, generation, location, and income level do affect a
customer’s decision to buy.

And, if they do affect decision making, to what degree do they affect that decision.

After several iterations, the data scientist was able to come up with a formula to score a potential
customer’s decision to buy.

In her formula, she determined that gender, generation, and income level contributed equally to the
decision-making process of customers, but that location doesn’t matter at all.

Furthermore, the formula suggests that millennials would be their most likely customers.

Having only basic domain experience in marketing and retail, the data scientist conferred with the
functional analyst.

Upon seeing the result, the functional analyst got excited as her hunch was correct.

Furthermore, based on her domain expertise, she did feel that millennials would be their most likely
customers.
At least now, she has data to back her intuition. The functional analyst went on and setup a meeting
with her department head to present their findings.

With the help of the data scientist, she created a presentation with easy-to-understand visualization
that is focused on their message, “We need to target millennials”.

The presentation included a high-level view of the research method that was done but it was not
technical or even mathematical as these will not have any use for the department head.

At the end of the meeting, the department head congratulated the functional analyst and the data
scientist for the presentation.

She was very impressed, and she also felt that what they presented made sense based also on what she
has observed.

She also just needed data to back what she observed. And now that she has, she invited the functional
analyst and the data scientist to a meeting with Aling Maria herself.

On the day of the meeting, quite nervous but also confident of the output of their small project, the
team presented their findings.

They started with echoing their company’s goal which is to increase market share.

They then presented their research study on which customer segment to attract, discussed their
findings, and, towards the end, connected back their project to the company’s overall goal.

Quiet but listening intently the whole time, Aling Maria just smiled… and gave two thumbs up!

She gave the marketing department the green light to proceed and even directed them to see what
other data they should consider to achieve their goals.

OPERATIONALIZING ANALYTICS
With the green light to proceed, the marketing department went ahead and implemented the
“customer attraction” algorithm of the data scientist.

However, in response to Aling Maria’s request to look into other data that they should consider, the
department head felt that this now needs to turn into a real project.

Using the successful proof-of-concept as a business case, she was given the go ahead to proceed.

To manage a project this big, the department head employs an ANALYTICS MANAGER.

With her project management skills, the analytics manager assembled a team to plan for the project.
She knew that she needed the functional analyst and the data scientist to be part of the team.
But as they now are going to operationalize the proof-of-concept and as they also now need to look into
other pieces of information, they need more people in the team.

In their first meeting, the functional analyst, again, gave a hunch – a hypothesis – that product brand
and quality matters to buying decisions.

Furthermore, she felt that they need to look into social media and/or customer surveys to get feedback
about the products that they sell.

As they needed new data, they met with the data steward who told them what data they can have –
including data about their supplier and products which is in a totally separate database system – but
they don’t presently collect customer feedback or social media information.

Having some experience managing Analytics projects before, the analytics manager determined that
they would also need an IT ENGINEER and a DATA ENGINEER in the team.

The IT ENGINEER would have to develop an application that would get customer feedback.

The DATA ENGINEER would need to bring together data from social media, the customer database, the
supplier and products database, and the sales database into a single repository for the data scientist to
work on her new algorithm.

With a carefully laid out project plan, the analytics manager monitors the entire project, providing
regular updates to the leadership team and addressing challenges in a timely manner.

After data has been consolidated and transformed to pieces of information, the data scientist gained
new insights on how product brand and quality, and customer feedback affect customer buying
decisions.

With these insights, the functional analyst came up with imperatives for the leadership team not only on
customer segments that they need to target but also on the products and brands that they should be
selling.

With a story on how data was transformed to information to insights and to imperatives, the entire
analytics project team confidently presented their findings to Aling Maria who, again, at the end just
smiled and said with confidence, “Our market leadership is assured thanks to data.”

ANALYTICS STRATEGY THAT WORKS

So, is the “story” that I told you too good to be true?

No, not really.

Of course, Analytic projects, like any other projects, would take a reasonable amount of time.
And, like any other projects, there will be challenges that will need to be addressed in a timely manner.

But it is not totally impossible to have successful analytics projects such as the use case that I just
presented.

What would help make an Analytics project successful?

Well, just look back to what you learned in the previous modules.

It’s the DELTA+ model.

You need consolidated and integrated data of the highest quality and accessible to the right
1. people.

You need an enterprise-wide culture that is open to innovation.

2.

You need leaders who are willing to take a chance in what could be potentially new for them.
3.

You need targets that are aligned from the top of the organization down to all the departments
4. and units.

You need the right analytics professionals at the right roles.

5.

You need just the right technology for your project.

6.

You need to know the right analytical techniques to apply to your project.
7.

So, how do you start?

In most cases, you have to do a proof-of-concept first to prove to your leadership that there’s value in
Analytics.

In doing a proof-of-concept, select a project for a specific department first making sure that your
project’s goal is still aligned with the overall goal of the organization.

Have targets that could demonstrate value, for example, return on investment, or productivity gains, or
cost savings.

Do you need already all the analytics roles to begin with?

No.

From the use case, the proof-of-concept was just done by a functional analyst and a data scientist.
You need a functional analyst with really strong domain expertise to start off with a hypothesis and a
really good data scientist to test and prove (or disprove) that hypothesis.

With them and a supportive leadership team, you would have started to build a successful analytics
strategy roadmap for your organization.

SUMMARY
Analytics initiatives of a unit or a department must support and promote the department’s overall
strategic targets, which equally must support and promote the overall strategic targets of the
organization as a whole.

All underlying contributions and activities must submit to the chosen Analytics strategy.

The Analytics strategy is decided at the top leadership level based on the organization’s vision, mission,
and overall objectives.

DESIGNING FOR DIGITAL

To design our Analytical organizations for the Digital age, Dr. Jeanne Ross, Director & Principal Research
Scientist, MIT Sloan Center for Information Systems Research, gives us 4 key decisions to make.

Dr. Jeanne Ross asks organizations to make 4 key decisions as they design for the Digital age:

What is your strategic driver:

What is your vision for improving market-driven through customer
the lives of your customers? engagement, or product-driven
through digitized solutions?

What are your key digital How will you architect your
capabilities? organization?

Let’s tackle first the last three points.

To succeed in the marketplace, organizations must embrace a competitive strategy.

Organizations must choose—and then achieve—market leadership in one of the three disciplines, and
perform to an acceptable level in the other two.
These disciplines are:

Operational Customer Product

Excellence Intimacy Leadership
automating providing a unique achieving premium
processes and range of customer market prices due
work procedures services to to the experience
to streamline personalized created for
operations, reduce service and customers
cost, and increase customized
customer products to meet
satisfaction differing needs of
customers

Organizations can choose to be the market leader in any of these disciplines and they can then prioritize
their Analytics initiatives around the chosen discipline.

If you look closer, however, all these disciplines have something in common: all of them focus on what is
beneficial for the customer.

It is important to look back then at the first key decision that an organization must make, “What is your
vision for improving the lives of your customers?”

As Dr. Ross puts it, “A company without a clear value proposition for their customers will create cool
things, but it will not transform.”

And it is because digital transformation is not about technology; it’s about the people.

This is why we are here.

This is why we are doing all of these.

If there’s one thing that I would really like for you to take away in all of these is that we should do
Analytics for the good of society, for the good of the Philippines.

BUILDING THE ANALYTICS ECOSYSTEM IN THE PHILIPPINES

With a vision of a healthy and vibrant Philippines ecosystem composed of the government, private
sector, academia, and professionals utilizing Analytics for the good of society, the Analytics Association
of the Philippines has been developing frameworks and models since 2016 that will lay the foundations
for an Analytics roadmap for our country.

Backed by global references, standards, and studies such as the APEC: Asia-Pacific Economic
Cooperation, BHEF: Business-Higher Education Forum, Project EDISON, United Nations, the Analytics
Association of the Philippines provides a set of standards such as competency framework, learning
roadmap, best practices, and governance to an ecosystem comprised of the government, the academe,
service providers, and practitioners.

With these standards and oversight, the AAP hopes to enable the various components of the ecosystem
to:

to formulate an industry roadmap for analytics

to craft policies and regulations that will promote data-driven country
for the government
governance
to implement data-driven programs and projects for the country

to develop curricula for Analytics and other emerging Analytics-related

disciplines
for the academe
to implement related degree programs
to produce job-ready graduates in these fields
for service providers of to provide placement opportunities for graduates and practitioners
Analytics and other
to provide world-class products and services
emerging Analytics-
related disciplines to document and contribute best practices and use cases

to hone their skills and competencies to match world-class standards

for the practitioners to grow their careers in these fields
to be a leading source of talent to address global demand

The products of the ecosystem will be collected, assessed, and reviewed by the AAP to improve the
competency framework, and to document and showcase success stories in the Philippines.

The entire ecosystem hopes to enable organizations to be data-driven and globally competitive as well
as to drive smart cities for the good of society.

Please visit www.aap.ph and be part of our drive to make the Philippines a data-driven country.

ESSAY
Question: Especially in the Digital age, as organizations go through Digital Transformation, why is it
important to have a vision about improving the lives of customers?
Answer: As Dr. Jeanne Ross stated, "A company without a clear value proposition for their customers
will create cool things, but it will not transform." It is important to have a vision about improving the
lives of customers to have a clear sense of the direction that the company aims to traverse. It helps us
make more focused and targeted goals, which guides us to make the right actions towards the
achievement of that vision and towards the development of the company. Moreover, as stated in the
previous lessons, digital transformation is not about technology, but about the people. We are here
because we wanted to use Analytics for the good of the people, the society, and the nation as a whole.

KEY POINTS
Here are our key take-away points from this week:

● Digital Transformation starts with a grand vision. The vision should be a statement of how to improve
lives; otherwise, we cannot transform.

● Fundamental to Digital Transformation is Analytics. Analytics is critical to survive amidst all of these
disruptions.

● The Analytics Association of the Philippines is enabling the country to be a data-driven country for
the benefit of all Filipinos - and we need your help in realizing this.