Business Understanding

Business Understanding defines the “business problem”. it requires understanding business objectives and creating models for them.


Process:

  • Define business objectives
  • Identify data sources
  • Define success metrics for business objectives
  • Define key variables in data sources

Business metrics categories:

  • Revenue Metrics: E.g. sales and marketing
  • Profitability: efficiency of the processes in logistics, production, and operations
  • Risk metric: E.g. Risk Management, external shock

Impactful metrics: