← Analytics Thinking Course

Lesson 1

What Is Analytical Thinking?

Before you learn Excel, SQL, Python or Power BI, you need one important skill: knowing how to think about a problem.

THINK LIKE AN ANALYST

Sales dropped 20%.

Your manager asks:

“Why did this happen?”

An inexperienced analyst may immediately give an answer. An analytical thinker first asks:

  • • When did the decline begin?
  • • Which products were affected?
  • • Did customer numbers change?
  • • Did average order value change?
  • • What evidence supports each possible explanation?

What is analytical thinking?

Analytical thinking is the ability to break a problem into smaller parts, examine evidence, question assumptions, compare possible explanations and reach a conclusion supported by evidence.

01

Question

What exactly is the problem?

02

Evidence

What do the facts tell us?

03

Analyze

What patterns or relationships exist?

04

Conclude

What does the evidence support?

One rule to remember

“Don't confuse what you know with what you think.”

“Sales decreased by 20%” is evidence. “Customers hate our product” is an explanation that still needs evidence.