Business Analytics Masters

Master’s Degree in Business Analytics

The Path to a Promising Career

Business Analytics: No Longer an Option for Success in 21st Century

• Focus is on developing new insights and understandings of business performance based on data and statistical methods

– Analyzes past performance to aid in better decision making

• Companies must embrace this because their competition is

[email protected] (865) 974-4116

Answers Big (Holy Grail) Questions

• 5% of my customers contribute 105% of my profits. Who are they and how do I create more of them?

• One third of my new sales people fail. How can I do a better job of recruiting the right people?

• Are we capturing all the relevant costs to our outsourcing decisions? How can I identify those choices that save a dime in cost, but sacrifice a quarter in revenue?

• How can I double the amount my customers spend on each visit to my store?


The Tennessee Business Analytics Model

• Apply big picture thinking to ask the right question

• Use analytics to answer the question

• Communicate the results in a clear and concise manner


Moneyball


The Standard Question in Major League Baseball

How can we maximizeQuality of Players/ $ Dollar Spent

Conventionally answered using four measurementsRunningFieldingThrowingHitting


The Oakland A’s Asked the Right Question

How do we Maximize

Wins/ $ spent?


The Oakland A’s Used Analytics to Answer the Question

Statistical Analysis (guided by process knowledge) revealed that:

–Runs lead to wins

–Getting on base leads to runs

–Walks, on-base percentage and slugging percentage are better predictors of a player’s value than stolen bases, rbi’s, and

batting average.


They Communicated the Answer in a Format Everyone Easily Understood

Question - Why do we want that player?

Answer - He gets on base.

Question - How can we replace Giambi, our best individual player?

Answer - We can’t . But we can create a winning TEAM.


Target Data Analyst Internship

Lisa Hill

Summer 2011

Asking the Right Question

• How does a customer’s target.combrowsing pattern influence them to make an in-store Target purchase?• If they browsed, would they then make an in-store

purchase?

• If they made an in-store purchase, how much were they expected to spend?

• Is this something we can predict?


The Data-Driven Process to Answer the Question

• Because we are trying to predict customer behavior, must use statistical method called predictive analysis.

• Need to determine what browse factors influence store purchases and sales amounts.

• Merge 2 datasets:

• Guest online browse data

• In-store purchase data ?


Findings

• Successful model that predicts how groups of customers will behave based on their target.com browse behaviors

– Whether or not they made a purchase

– How much we expect them to spend if they DO make a purchase

• Results can be put into action in many ways

– Online personalization, coupons, etc.


Cummins Global Lean Initiative Group Internship

Tony Beal

Summer 2011

Asking the Right Question

• Is it possible to predict the accuracy of a line picker in the warehouse?• Will the Hays Aptitude Test accurately predict how an

associate will perform?

• How can we go about determining this?


The Data-Driven Process to Answer the Question

• Needed to find correlation between test results and associate performance

• Two Possible Methods

• Run longitudinal test to determine how new hires perform at line picking positions

• Have current line picking associates take tests and calculate correlation value


Findings

• Not 1 of the 4 sections of the test had any correlation with associate performance

– Saved company $75 per new associate hire

– Started new project to determine what factors have strongest influence on performance


Companies that Hire Our Students


2012 Graduate Salaries

$61,000 - $95,000


Why number of companies and salaries will significantly increase

1. CEOs recognize business analytical talent is critical to success and are demanding this talent in their organizations


Why number of companies and salaries will significantly increase

1. CEO’s are demanding this talent in their organizations

2. Supply and Demand


Business Analytics

By 2018, the U.S. will face a shortage of 1,500,000 managers who can use data to shape business decisions

May, 2010 McKinsey and Co. Study reported in Wall Street Journal 8/4/11


UT’s Business Analytics Master’s is a Path to a Promising Career

• High and Increasing interest by top companies

• Very attractive starting salaries

• Recognition by CEO’s of importance to maintain competitive advantage

• Projected high demand and low supply


Contact Us

• Please reach out to us with any questions.

• Department of Statistics, Operations and Management Science

• Email: [email protected]

• Phone: 865-974-4116

• Web: soms.utk.edu/analytics


mailto:[email protected]

http://bus.utk.edu/soms/analytics/index.htm?utm_source=slideshare&utm_medium=presentation&utm_campaign=msba

Business Analytics Masters

Education

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