You now have the basic structure of your model mapped out. Now, you need to “fill in the blanks” by quantifying the parameters and other functions it contains.  But before…

QUESTION

You now have the basic structure of your model mapped out. Now, you need to “fill in the blanks” by quantifying the parameters and other functions it contains.  But before you (or someone supporting you) can jump in and do this, you face one more step: identifying how you will acquire the data you’ll need and what analytic method you will employ to make the calculations. Follow the steps below.

1.Identify Your Data Sources: Start by listing the inputs you’ve already identified and where you can acquire the data for each. In addition, you’ll need historical data on outputs. List them as well and where you can acquire data for them. Keep in mind that you need these data across the range of conditions you wish to test. Do you have them? Where not, note that you have a gap.

2.Address Data Gaps: Summarize the gaps you’ve found, if any, and consider how you will close them. Business leaders often desire data that is not readily available. Use the Guide to Identifying Data to consider common options for addressing gaps.

3.Select Your Analytic Method: Now you know what data you’ll need and how you’ll get it. Next identify what analytic method you’ll use to take that data and quantify your model. Use the Guide to Identifying Methods to select the method you’ll use.

4.Plan Your Path Forward: Summarize the resources you’ll need and the steps you’ll take. During this step, you’ll face a critical choice for how you treat the remainder of the program. Consider the progress you’ll be able to make over the next week, which is the time you’ll have to complete the analysis. Based on what you uncover for data and methods, you’ll face a choice going forward between:

• Complete the Analysis: If you can mobilize the data you’ll need and can either execute the method yourself or get support from others who can do it for you, you should move ahead to complete the Empirical Strategy process. As your final deliverable, you’ll propose an approach for resolving the business challenge underlying you Personal Case Project based on the insight you gain from your analysis.
• Test Your Model: If it completing your analysis will take more time or resource than you have available, you should move ahead to “test” your model. You’ll make some educated assumptions about key inputs and/or relationships in order to generate some tentative insights. As your final deliverable, you’ll develop a proposal to complete the analysis after the program is done, based on the structure you have developed for it and an assessment of the business value that completing it may generate.

ANSWER

Identifying Data Sources, Addressing Data Gaps, and Selecting Analytic Method

Identify Your Data Sources

Begin by listing the inputs that have been identified for your model and the corresponding data sources from which you can acquire the necessary data. Additionally, consider the historical data on outputs that will be required for the analysis. Ensure that you have access to the data across the range of conditions you wish to test. If there are any data gaps, take note of them as they will need to be addressed.

Address Data Gaps

Summarize the data gaps that have been identified, if any, and explore potential options for closing these gaps. It is not uncommon for business leaders to desire data that may not be readily available. Refer to the Guide to Identifying Data to consider common approaches for addressing data gaps, such as seeking alternative data sources, collecting new data, or using proxies or estimates where applicable.

Select Your Analytic Method

With a clear understanding of the data requirements and how to obtain them, it is time to determine the appropriate analytic method for quantifying your model. Consult the Guide to Identifying Methods to explore different analytical approaches and select the method that aligns best with your objectives and available data. Consider the strengths and limitations of each method and choose the one that provides the most meaningful insights given the specific context of your analysis.

Plan Your Path Forward

Summarize the resources that will be required and outline the steps you will take to proceed with the analysis. At this stage, you face a critical decision regarding the remainder of the program. Evaluate the progress you anticipate making within the available timeframe, typically the next week, considering the data and methods at hand. Based on this assessment, you have two options:

Complete the Analysis

If you can gather the necessary data and have the expertise to execute the chosen analytic method or access support from others, it is advisable to proceed with completing the analysis. As the final deliverable, you will propose an approach to address the underlying business challenge based on the insights gained from your analysis. This will involve providing actionable recommendations and outlining the potential impact of implementing your proposed approach.

Test Your Model

If completing the analysis within the available timeframe requires more resources or time than you have, it is recommended to proceed with testing your model. In this case, you will make educated assumptions about key inputs and relationships in order to generate preliminary insights. As the final deliverable, you will develop a proposal for completing the analysis after the program, based on the existing structure of your model and an assessment of the potential business value that completing the analysis may generate. This proposal will outline the necessary steps, resources, and expected outcomes for the comprehensive analysis.

In conclusion, by identifying data sources, addressing data gaps, and selecting the appropriate analytic method, you are now equipped to proceed with quantifying your model. Consider the availability of data, the feasibility of obtaining missing data, and the most suitable analytic approach. Based on the resources and time available, determine whether to complete the analysis or test the model, ensuring that your final deliverable provides valuable insights and recommendations for addressing the business challenge at hand.