Blog

When Analytics Doesn’t Rule

Apr 2, 2015

There is a certain objectivity that many believes to exist in the world of analytics. Merely pour the data into a series of models and algorithms and answers to your questions will appear. Regrettably this is not true. All data has context, and that context is defined in the Business rules of the organizations that use the data.

Understanding the business rules is essential in building good models and finding useful recommendations. For example, in healthcare, fraud detection analytics look for patterns that may indicate something shady is afoot such as:

  • An unusually high number of rehabilitation cases are seen by this doctor. Each case has a shorter duration than average.

Unknown to the analyst, was that the organization had implemented policy changes that resulted in the following business rule:

  • People are encouraged to use the identified physicians that can rehabilitate them quicker and return to work.

So before calling the police, make sure the nuances of the business rules are understood as pure math may lead you astray.

Recent Articles

Should You Search for a New Job in an Uncertain Market?

Don’t quit your day job: that’s the argument Business Insider appears to be making in a recent article about finding a job in 2025. They point to dwindling job openings and cautious companies revising their plans for the year. Though we understand why some people want...

3 Success Stories to Inspire Your Financial Services AI Strategy

A mature AI strategy isn’t just a nice-to-have—it’s table stakes, driving insights that transform customer experiences, boost operational efficiency, and maximize profit margins. That said, many banks still struggle to turn their vast stores of data into actionable...

4 of the Fastest Growing Healthcare Jobs to Consider If Changing Careers

If you’re part of the “laptop class,” chances are good you’re reexamining your career options these days. Lots of professionals recognize that AI agents and other tools will be able to handle more of their workload, decreasing the demand and stability for these types...

How Advanced Analytics and AI Are Re-Shaping Risk Management in Banking

Banks have always been at the vanguard of risk management, but only in recent decades has technology approached the level of confidence leaders desire as they make lending and investment decisions. Thanks to advanced analytics and AI, financial institutions now have...

Ready to Find a New Job in 2025? Your Worn-Out Strategies Won’t Cut It

You’ve set your job alerts. You’ve updated your LinkedIn profile. If you haven’t searched for a new job in a while, it might feel these actions are enough to find new opportunities. Unfortunately, that’s not true in the current market. According to The Wall Street...

How Low-Code No-Code Platforms Can Transform Complex Industries

The ability to access and leverage structured and unstructured data has empowered organizations to understand challenges, predict outcomes, and prepare for a better future. However, unlocking the insights hidden in that data requires alignment between the analytical...

Share via
Copy link