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The predictive analytics process
There is a common misunderstanding about predictive analytics: that it is all about models. In fact, that is actually just part of doing predictive analytics. Practitioners of the field have established certain standard phrases that different authors refer to by different names. However, the order of the stages is logical and the relationships between them are well understood. In fact, this book has been organized in the logical order of these stages. Here they are:
- Problem understanding and definition
- Data collection and preparation
- Data understanding using exploratory data analysis (EDA)
- Model building
- Model evaluation
- Communication and/or deployment
We will dig deeper into all of them in the following chapters. For now, let's provide a brief overview of what every stage is about. I like to think about each of these phases as having a defined goal.