A Beginner’s Guide

to Data & Analytics

Contents Data is ubiquitous. It’s collected at every purchase made, flight taken, ad clicked, and
social media post liked—which means it’s never been more accessible to organizations.
3 Data Science Yet, access to data isn’t all it takes to set a business on the path to success; it also takes
vs. Data Analytics: What’s employees who understand and know how to leverage data. There’s now an increased
the Difference? demand for data-literate business professionals who can handle, analyze, and interpret
data to drive decision-making.

7 Data Literacy 101: “In this world of big data, basic data literacy—the ability to analyze, interpret, and even
question data—is an increasingly valuable skill,” says Harvard Business School Professor
Familiarizing Yourself with Janice Hammond in the online course Business Analytics.
the Data Landscape
With the right skills, data can allow you to gain and act on customer insights, predict future
financial and market trends, and enact systemic change for social good.
11 Building Your Data &
Through this e-book, you’ll gain an introduction to data literacy that can put you on
Analytical Skill Set track to be a data-driven professional. Entering into the data space as a beginner
may seem daunting, but with foundational knowledge, you can build your data
19 Which Data & Analytics literacy and leverage the power of data for organizational success.
Course Is Right for You?
Data Science
vs. Data Analytics:
What’s the
Difference?
If you’re new to the world of data, two terms you’re likely to encounter
are “data science” and “data analytics.” While these terms are
related, they refer to different things. Here’s an overview of
what each term means and how it applies to business.
Data Science vs. Data Analytics
FACULTY INSIGHT
Data science is the process of building, cleaning, and
structuring datasets to analyze and extract meaning. Putting Data Analysis to Work
Data analytics, on the other hand, refers to the process HBS Professor Janice Hammond, who teaches
and practice of analyzing data to answer questions, extract the online course Business Analytics, implores
insights, and identify trends. professionals to harness the power of data
You can think of data science as a precursor to data analysis. analytics in a previous interview.
If your dataset isn’t structured, cleaned, and wrangled, how “Every time you do an analysis, you don’t just
will you be able to draw accurate, insightful conclusions? say, ‘Oh, the answer is 17. I’m done,’” she says.
Below is a deeper dive into each field’s role in business. “You need to ask, ‘What can I learn from the
results of this analysis about the underlying
context, about competition, about customers,
about suppliers?’ Managers should ask things
like, ‘How do the results of this analysis validate
or reinforce hypotheses I had before I did the
analysis?’ It is equally important to ask, ‘What
did I learn that negates or calls into question
the assumptions that I made going into the
analysis?’ Every analysis should be a feedback
loop that deepens your learning.”

Data Science vs. Data Analytics: What’s the Difference? 4

Data Science in Business
In business, data science is used to collect, organize, and maintain data—often to
write algorithms that make large-scale analysis possible. When designed correctly and
tested thoroughly, algorithms can catch information or trends that humans miss. They
can also significantly speed up the processes of gathering and analyzing data. You can
use data science to:
• Gain customer insights: Data about your customers can reveal details about their “This course was impactful,
habits, demographics, preferences, and aspirations. A foundational understanding especially using case studies of
of data science can help you make sense of and leverage it to improve user real-life situations to solve complex
experiences and inform retargeting efforts. and confusing problems. The
results of this will help improve my
• Increase security: You can also use data science to increase your business’s managerial decisions within and
security and protect sensitive information. For example, machine-learning outside organizations to minimize
algorithms can detect bank fraud faster and with greater accuracy than humans, risks and increase profits.”
simply because of the sheer volume of data generated every day.
Bamidele Ajisogun
• Inform internal finances: Your organization’s financial team can utilize data Data Science for Business
science to create reports, generate forecasts, and analyze financial trends. Data on Participant
a company’s cash flows, assets, and debts is constantly gathered, which financial
analysts use to manually or algorithmically detect trends in financial growth or
decline.
• Streamline manufacturing: Manufacturing machines gather data from production
processes at high volumes. In cases where the volume of data collected is too
high for a human to manually analyze it, an algorithm can be written to clean, sort,
and interpret it quickly and accurately to gather insights that drive cost-saving
improvements.
• Predict future market trends: Collecting and analyzing data on a larger scale can
enable you to identify emerging trends in your market. By staying up to date on the
behaviors of your target market, you can make business decisions that allow you to
get ahead of the curve.

Data Science vs. Data Analytics: What’s the Difference? 5

Data Analytics in Business
BUSINESS INSIGHT
The main goal of business analytics is to extract meaningful insights from
data that an organization can use to inform its strategy and, ultimately, 4 Types of Analytics
reach its objectives. Business analytics can be used for: Analytics is used to extract meaningful
• Budgeting and forecasting: By assessing a company’s historical insights from data that can drive decision-
revenue, sales, and costs data alongside its goals for future growth, making and strategy formulation. There
an analyst can identify the budget and investments required to make are four types of analytics you can leverage
those goals a reality. depending on the data you have and the type
• Risk management: By understanding the likelihood of certain of knowledge you’d like to gain.
business risks occurring—and their associated expenses—an analyst
can make cost-effective recommendations to help mitigate them. 1. Descriptive analytics looks at data
to examine, understand, and describe
• Marketing and sales: By understanding key metrics, such as lead-
something that’s already happened.
to-customer conversion rate, a marketing analyst can identify the
number of leads their efforts must generate to fill the sales pipeline. 2. Diagnostic analytics goes deeper
• Product development (or research and development): By than descriptive analytics by seeking
understanding how customers reacted to product features in the to understand the “why” behind what
past, an analyst can help guide product development, design, and happened.
user experience in the future.
3. Predictive analytics relies on historical
data, past trends, and assumptions to answer
questions about what will happen in the
future.
Now that you have an understanding of the difference between
4. Prescriptive analytics identifies specific
data science and data analytics and their business applications,
actions an individual or organization should
you can dive deeper into the world of data. The next section covers
take to reach future targets or goals.
basic concepts to build your data literacy.

Data Science vs. Data Analytics: What’s the Difference? 6

Data Literacy
101: Familiarizing
Yourself with the
Data Landscape
Data literacy is the ability to read, understand, and utilize data in different ways. Being
data-literate can help non-data professionals read and understand data, and use it to
inform their decision-making. Here’s a breakdown of key areas of the data landscape.

Data Literacy 101: Familiarizing Yourself with the Data Landscape 7

Data Ecosystem &
Lifecycle
The term data ecosystem refers to the
programming languages, packages,
algorithms, cloud-computing services, and
general infrastructure an organization uses to
collect, store, analyze, and leverage data. No
two organizations leverage the same data in
the same way. As such, each organization has
a unique data ecosystem.
While the data ecosystem encompasses
everything that handles, organizes, and
processes data, the data life cycle describes
the path data takes from when it’s first
generated to when it’s interpreted into
actionable insights. This life cycle can be
split into eight steps: generation, collection,
processing, storage, management, analysis,
visualization, and interpretation.
A data project’s steps are often described as a
cycle because the lessons learned and insights
gleaned from one project typically inform the
next. In this way, the final step of the process
feeds back into the first, enabling you to start
again with new goals and learnings.

Data Literacy 101: Familiarizing Yourself with the Data Landscape 8

Data Privacy & Ethics
Data privacy, also known as information privacy, is a It’s imperative that customer privacy is at the forefront of
subcategory of data protection that encompasses the your mind during the data analysis process. Data scientists
ethical and legal obligation to protect access to personally and business professionals alike need to maintain a set
identifiable information (PII), which is any information that of ethical tenets that guide their data privacy policies.
can be linked to a specific individual. Some examples of PII Two pointers: Always ask for consent before collecting
include full name, address, Social Security number, and data, and research the privacy laws that apply to your
passport number. geographic regions and market segments. To gain a robust
understanding of the intersection of privacy and technology,
In the online course Data Science Principles, taught by
consider taking a course, such as Data Privacy and
Harvard Professor Dustin Tingley, it’s explained that data
Technology.
privacy is made up of three key questions:
While the privacy and ethical use of data are everyday efforts,
1. What data is collected? knowing that your subjects’ safety and rights are intact is
worth the work.
2. How is the data stored?

3. Who can access the data?

The ethics of data privacy can be boiled down to the fact that
an individual’s consent is necessary to collect, store, and use
their personal information.
As a data handler, you have a responsibility to be transparent
with your subjects about your intentions, what their data will
be used for, and who will have access to it. In addition, you
need to ensure your use of data doesn’t cause harm to an
individual or group of people. This is referred to as disparate
impact and is unlawful.

Data Literacy 101: Familiarizing Yourself with the Data Landscape 9

Data Integrity
Data integrity is the accuracy, completeness, and quality of data as it’s maintained
over time and across formats. Preserving the integrity of your company’s data is a
constant process.
Threats to a dataset’s integrity include:
“This is a topic that people in any
• Human error: For instance, accidentally deleting a row of data in a spreadsheet. industry should have at least basic
• Inconsistencies across formats: For instance, a dataset in Microsoft Excel that knowledge of in order to create
relies on cell referencing may not be accurate in a different format that doesn’t more efficient and competitive
allow those cells to be referenced. businesses, tools, and resources.”
• Collection error: For instance, data collected is inaccurate or lacking Carlos E. Sapene
information, creating an incomplete picture of the subject. Data Science Principles
Participant
• Cybersecurity or internal privacy breaches: For instance, someone hacks into
your company’s database with the intent to damage or steal information, or an
internal employee damages data with malicious intent.

To maintain your datasets’ integrity, diligently check for errors in the collection,
formatting, and analysis phases, monitor for potential breaches, and educate your
team about the importance of data integrity.

Understanding the way data must be handled, processed, and protected is

an imperative step on your way to becoming data-literate. The next section
explores the data skills you need to succeed and how to build them.

Data Literacy 101: Familiarizing Yourself with the Data Landscape 10

Building Your
Data & Analytical
Skill Set
Data and analytics are important skills to have in any industry because they enable
you to support decisions with data, learn more about customers, and predict future
trends. Here are seven skills for success and ways to develop them.

Building Your Data & Analytical Skill Set 11

7 Data & Analytics Skills You Need
1. Critical Thinking 3. Data Wrangling
If you’re interested in using data to solve business problems, Data wrangling is the process of cleaning raw data in
you need to be adept at thinking critically about challenges preparation for analysis. It involves identifying and resolving
and solutions. While data can provide many answers, it’s mistakes, filling in missing data, and organizing and
nothing without a human’s discerning eye. transferring it into an easily understandable format.
“From the first steps of determining the quality of a data This is an important skill for anyone dealing with data to
source to determining the success of an algorithm, critical acquire because it leads to a more efficient and organized
thinking is at the heart of every decision data scientists—and data analysis process. You can extract valuable insights
those who work with them—make,” Tingley says in Data from data more quickly when it’s cleaned and in its optimal
Science Principles. “Data science is a discipline that’s built viewing format.
on a foundation of critical thinking.”
4. Mathematical Ability
2. Hypothesis Formation and Testing You don’t have to be a mathematician to become data
At the heart of data and analytics is the desire to answer literate, but strong math skills become increasingly important
questions. The proposed explanations for these leading as you deal with more complex analyses.
questions are called hypotheses, which must be formed
A seasoned data professional needs a solid understanding
before analysis takes place.
of statistics, probability, linear algebra, and multivariable
An example of a hypothesis is, “I predict that a person’s calculus. Data scientists often call on statistical methods
likelihood of recommending our product is directly to find structure in data and make predictions, and linear
proportional to their reported satisfaction with the product.” algebra and calculus can make machine-learning algorithms
You predict the data will show this trend and must prove easier to comprehend.
or disprove the hypothesis through analysis. Without a
If you’re not a data scientist or analyst, your work may not
hypothesis, your analysis has no clear direction.
require you to understand the more complex mathematical
concepts, but having a basic understanding of statistics can
go a long way.

Building Your Data & Analytical Skill Set 12

5. Data Visualization
It’s crucial to know how to transform
raw data into compelling visuals that
DATA VISUALIZATION TECHNIQUES
tell a story.
Rather than simply presenting a list of
Pie Chart
Timeline
values to your stakeholders, it’s more
effective to visually communicate data
in a way that’s easily digestible. Some
popular data visualization techniques
that all business professionals should
know include pie charts, bar charts,
and histograms.
To create these visualizations, use
a data visualization tool, a form of
software designed to present data.
Each tool’s capabilities vary but, at
Bar Graph
Area Graph
their most basic, allow you to input
a dataset and visually manipulate it.
Most, but not all, come with built-in
templates you can use to generate
basic visualizations. Examples include
Microsoft Excel and Power BI, Google
Charts, Tableau, Zoho Analytics, Data
Wrapper, and Infogram.

Building Your Data & Analytical Skill Set 13

6. Programming
Programming languages, like Python and R, are commonly used to solve
complex statistical problems with data. Proficiency in a database querying
language, like SQL, can also help you more easily extract and change data
in a database.
While programming skills are immensely valuable, they’re not necessary
for beginners dabbling in data. It’s more important to focus on effectively
analyzing and visualizing data to draw conclusions.

7. Machine Learning
As artificial intelligence grows in popularity,
machine learning is a highly valuable skill for
professionals working with big data.
Machine learning refers to the use of computer
algorithms that automatically learn from and adapt
in response to data. Some business applications
of machine learning include risk management,
performance analysis, trading, and automation.
Even if you’re not responsible for writing code,
knowing the basics of machine learning can
help you gain a deeper understanding of your
organization and boost efficiency through
automation.

Building Your Data & Analytical Skill Set 14

How to Improve Your Skills
1. Embrace the Challenge For instance, imagine you track users who click a button on
The first step is to confront any mental barriers surrounding your site to download an e-book. The data shows that the
your ability to learn and develop data skills. user’s age is positively correlated with their likelihood to
click the button; as age increases, downloads increase. At
“Data science isn’t scary, and it shouldn’t be intimidating,” first glance, you may interpret this trend to mean that a user
says Data Science for Business Professor Yael Grushka- downloads the e-book because of their age.
Cockayne. “Combining your business know-how and intuition
with data science can set you and your company up for This conclusion doesn’t take into consideration the variables
success.” that change with age. For instance, perhaps the real reason
older users are more likely to download the e-book is their
Although data science has a reputation for being code-based higher level of responsibility at work, average income, or
and complex, its concepts are accessible if you have the likelihood of being parents.
desire and drive to learn and put in the work.
This example illustrates the need to consider multiple
“Some folks are under the impression that unless they were interpretations of data, and it specifically shows the
trained as a data scientist and have been coding for years, difference between correlation (the trending of two or more
they don’t stand a chance,” Grushka-Cockayne says in a variables in the same direction) and causation (when a trend
recorded webinar. “But that’s not accurate. It’s never too in one variable causes a trend to occur in one or more other
late.” variables).

2. Consider Opposing Viewpoints To practice this skill, question your assumptions and ask
While engaging with opposing viewpoints can help you others for their opinions. The more you actively engage with
expand your perspective, combat bias, and show your fellow different viewpoints, the less likely you are to get stuck in a
employees their opinions are valued, it can also be a useful one-track mindset when analyzing data.
way to practice analytical skills.
When analyzing data, it’s crucial to consider all possible
interpretations and avoid getting stuck in one way of thinking.

Building Your Data & Analytical Skill Set 15

3. Play Games or Brain Teasers
If you’re looking to sharpen your skills on a daily basis, there are many simple, enjoyable
ways to do so.
Games, puzzles, and stories that require visualizing relationships between variables,
examining situations from multiple angles, and drawing conclusions from known data
points can help build the skills needed to analyze data. Some fun ways to practice
analytical thinking include crossword puzzles, riddles, mystery novels, Sudoku, and “I enjoyed how the principles in the
logic puzzles. course were grounded in concrete
applications to the real world. I
These options can supplement your analytics coursework and on-the-job experience. majored in engineering and minored
Some also allow you to spend time with friends or family. Try engaging with one each in economics as an undergraduate,
day to hone your analytical mindset. but the content showed me new
ways for using the theoretical
4. Learn From Real-World Examples foundations I already had.”
By exploring how other business professionals use data to solve problems, you can
Carolina Ragolta
imagine what you’d do in their scenarios, evaluate the impact of their actions, and put
Business Analytics
that knowledge into practice.
Participant
Case-based learning is one of the foundations of HBS Online courses. Each offers
several examples of business leaders at well-known organizations who used data to solve
problems.
“You need to make it real,” Grushka-Cockayne says in a recorded webinar. “You need
to make it relevant and ask, ‘Why do I care about this?’ or ‘Why do I want to look at a
summary statistic?’ or ‘How is this going to be meaningful for a specific decision?’ By
exposing yourself to cases from various industries, the richness of the variety allows you
to put yourself in a decision-maker’s position and understand how actual decisions get
made.”

Building Your Data & Analytical Skill Set 16

5. Find a Community 6. Engage with and Ask Big Questions of Your Data
On your path to learning data and analytics, a community of To engage with data further, ask questions. With each
fellow professionals with the same goal can be a motivating, question comes an opportunity to uncover more insight
supportive force. You can turn to online forums, social media, and gain skills. These questions can lead you to learn a
affinity groups within your organization or geographic area, or new coding language, analysis method, regression, or
a cohort of learners in an online class. visualization tool to help solve a specific business problem.
Here are examples of questions to ask yourself when
For instance, the HBS Online Community is a global
handling data:
network of learners dedicated to furthering their business
education. Having this kind of community allows you to ask • What am I hoping to understand?
for feedback and advice, and engage with others on new • What do I need to know to make a certain business
concepts as you work toward goals. decision?
• What story is this data telling?
• What do the relationships between variables mean for
____ at my company?
• What if ____ changed? Which variables, trends, or
forecasts would be impacted?
• What needs to change in the data to get the desired
outcome?
• Why does the data trend in this direction, and what does it
mean for the future?
• How can I further analyze the data to get the answers
needed to make important decisions?

Make the data work for you by determining what you need to
know and the best way to answer questions using available
data. Improving your data and analytical skills is an ongoing
process, and each experience offers a chance to learn more.

17
 BUSINESS INSIGHT
The Data-Driven Decision-Making Framework
There are various tools and frameworks that can be beneficial when using data. One is the data-driven decision-making
framework, which is explained in Data Science for Business. This framework presents six steps for using data to drive
business decisions:
1. Understand the business problem: What are you
looking to understand or accomplish?
Data-Driven Decision-Making Framework
2. Wrangle data: Clean, validate, and organize the data.

3. Create visualizations: Present the data in a way that

shows trends and relationships of interest.

4. Generate hypotheses: Formulate predictions based on

emerging trends.

5. Conduct analysis: Run statistical tests to determine if

your hypotheses are correct.
6. Communicate results: Present your findings in the
context of the original business problem.

Understanding data frameworks like this one gives you the capability to take a raw dataset, interpret its story, and use it
to answer relevant business questions.

Like all skills, those pertaining to data and analytics require practice to master. If you’re ready to take your learning to
the next level, consider enrolling in a data science or data analytics course. The next section outlines some options.

Building Your Data & Analytical Skill Set 18

Which Data &
Analytics Course
Is Right for You?
Whether you want to learn the basics, brush up on your skills, or expand your knowledge,
taking a data or analytics course is an effective way to improve. Take stock of your current
data and analytics knowledge and the goals you have for the future. Then, explore the course
comparison table to help determine which HBS Online Data and Analytics
course is right for you.

19
HBS Online Data & Analytics Courses
Basic Info What You’ll Learn Who Will Benefit

Business Analytics • Interpret data and analyze relationships

between variables
• College students and recent graduates aiming to
start their career with analytical skills
Faculty: Jan Hammond • Develop and test hypotheses and draw • Those considering graduate school for business or
conclusions a data-focused discipline
Course Length: 8 Weeks
• Implement regression analysis and other • Mid-career professionals who want to gain the
Learn More analytical techniques in Excel skills to interpret data and use it to drive decision-
making

Data Science • Understand the modern data science

landscape and technical terminology for a
• Students and recent graduates looking to gain a
foundational understanding of the data landscape
Principles data-driven world • Early- and mid-career professionals who want the
• Recognize major concepts and tools in the skills to handle their organization’s data
Faculty: Dustin Tingley field of data science and determine where • Marketing and product management professionals
Course Length: 4 Weeks they can be appropriately applied who want to leverage the power of data
Learn More • Appreciate the importance of data
organization, privacy, and ethics

Data Science for • Gain a foundational understanding of data

science and how it relates to organizational
• Aspiring managers aiming to level up their data-
driven decision-making skills
Business success • Managers and rising leaders who want to learn to
Faculty: • Create a data-driven framework for your increase revenue while mitigating risk
organization • Product managers who want a better handle on
Yael Grushka-Cockayne
• Understand key techniques and learn how customer data and its applications
Course Length: 4 Weeks to read basic code to comprehend the
Learn More syntax that informs data requests

20
 Basic Info What You’ll Learn Who Will Benefit

Big Data for • Examine historical income, education

and family support, and geography to
• Community activists and nonprofits that want to
leverage data in their efforts toward social good
Social Good understand how these economic factors • Policy advocates and public sector employees
lead to upward mobility seeking data to address systemic changes
Faculty: Raj Chetty • Understand how big data is used to identify • Students and recent graduates looking to make an
Course Length: 4 Weeks the causes of socioeconomic disparities impact using data
and how it can lead to evidence-based
Learn More action and outcomes

Data Privacy and • Understand the various attempts to

define privacy and the ongoing conflict of
• IT, programming, and marketing professionals
who handle data and need to understand privacy
Technology privacy laws and norms within technology implications
advancements • Managers and decision-makers aiming to
Faculty: Michael D. Smith
• Explore the impacts of emerging understand the intersection of privacy and
and Jim Waldo technologies on the future of privacy, technology
Course Length: 5 Weeks protection, and law • Advocates and policy makers interested in
Learn More • Think critically about privacy issues from consumer privacy and technology
multiple angles, exploring policy, cultural,
and societal impacts

A Foundation in Data
After reading this e-book, you have a basic level of data literacy. You now understand the multifaceted data landscape, along with
the skills necessary for data analytics and how to hone them. Finally, you took stock of your goals and determined which HBS
Online course could be the next step in your data and analytics education.
Data is a powerful tool. As you move forward, you can level up your skills and use it to drive critical business decisions.

21
To learn more about what HBS Online
can do for you, visit online.hbs.edu.