Question
When identifying business problems, what is the first
step a data analyst should take to ensure clarity and effectiveness in solving the problem?Solution
The first step in identifying business problems is to engage stakeholders to define objectives. It's critical to understand what the business or the specific stakeholders hope to achieve with the data analysis. Without clear, defined objectives, the analysis might miss the mark or provide insights that are not aligned with the business needs. Engaging stakeholders ensures that the analyst is solving the correct problem, using the right data, and setting up measurable goals that align with organizational priorities. This step is key to focusing the analysis on areas that will add the most value to the business. Option A (Define key performance indicators - KPIs) is important but comes after understanding the objectives. Option B (Identify potential data sources) is a necessary step but follows once the problem and objectives are well defined. Option D (Gather and clean the data) is crucial but should happen after aligning the objectives with the business needs. Option E (Build a predictive model) is a part of the analysis process but comes much later, after the problem and objectives are clearly understood.
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