Understanding the business

Understanding the business

1. Data Science

   • Field that combines statistics, mathematics, scientific methods and programming to build predictive models from data.
     • What will happen?
     • What should we do about it?
   • The 6 phases of CRISP-DM
     • 1# Business Understanding
       • Understand what a project needs and want to achieve, assesing the current resources to produce a business plan.
     • 2# Data Understanding
       • Collect the initial data and analyse it in order to become familiar with it. Identifying problems and first insights in the database.
     • 3# Data Preparation
       • The process of converting raw data to a structured and clean one to be used for modeling.
     • 4# Modeling
       • In this phase, the dataset is used in different modeling algorithms in order to select tuning parameters, building models and the appropriate technique.
     • 5# Evaluation
       • In this step, the model is evaluated to ensure that the business objectives are reached. This phase works as a final check before the model is deployed to the real world.
     • 6# Deployment
       • Phase where the model's insights and results are applied to the real world. Then document the lessons learned to improve any point necesarry in the model.

2. Data Analytics

   • Process that examinate data to create meaningful conclusions, uncover trends and indentify patterns. Mainly focuses in giving a meaning to historical data, helping in doing informed decision making.
     • What happened?
     • Why did it happen?
     • What will happen?
     • What should we do?

3. Big Data

   • Very complex and large datasets that standard tools cannot process properly
     • The 5 V´s
       • Volume
         • Massive scale of data
       • Velocity
         • High speed of data creation
       • Variety
         • Different formats
       • Veracity
         • Uncertainties and inconsistencies in data
       • Value
         • Importance of data into business performance

4. Connection to the films

   • Margin Call
     • The analisis that Sullivan do shows insight in what whould happen to the company in the future, thanks to a model that predicted the costs of the assets.
       • This scene shows how a good use of data science can create great models to predict the future and make actions based on it.
   • The Big Short
     • Michael began to see the raw data of mortgages, discovering that the delinquency rate was rising silently.
       • This part of the movie make us see that a good analysis of big data can show opportunity areas that we can take advantage of it.