Business Driven Metrics Types Explained in Data Analysis

So far, you've learnt how to extract meaningful information from existing variables, e.g. extracting a "month" variable from the date variable. But what if you want to extract information that requires business expertise? For example, if you wish to know which students passed based on a list of scores in an exam, you need to know the criteria for passing the exam.

Let’s see how Anand approaches business-driven metrics. 

To summarise, there are three types of derived metrics:

1. Type-driven
2. Business-driven
3. Data-driven

Deriving metrics from the business perspective is not an easy task. It requires a decent domain experience. Without understanding the domain correctly, deriving insights becomes difficult and prone to errors. 

So you learnt how type-driven and business-driven metrics are created and used for deriving useful insights from existing variables. In the next lecture, you will learn about the third type of derived metrics - data-driven metrics.