COMPETING ON ANALYTICS - AG & AIpresentatie...COMPETING ON ANALYTICS SANDJAI BHULAI [email protected]...
Transcript of COMPETING ON ANALYTICS - AG & AIpresentatie...COMPETING ON ANALYTICS SANDJAI BHULAI [email protected]...
Vrije Universiteit Amsterdam
Prof. dr. S. (Sandjai) BhulaiFull Professor of Business AnalyticsFaculty of SciencesVrije Universiteit AmsterdamDepartment: [email protected]
Business Analytics: Optimization of Business Processes
Research / Education:Decision making under uncertaintyControl of complex high‐dimensional systemsStochastic optimization
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INTRODUCTIONINTRODUCTION
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WHAT IS BIG DATA?WHAT IS BIG DATA?
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WHAT IS BIG DATA?WHAT IS BIG DATA?
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WHAT IS BIG DATA?WHAT IS BIG DATA?
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WHAT IS BIG DATA?WHAT IS BIG DATA?
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BIG DATA … BIG CHANGES!BIG DATA … BIG CHANGES!
“… most managers receive much more data (if not information) than they can possibly absorb […]. Hence
they suffer from an information overload...”
Management Misinformation Systems, R.L. Ackoff,
Management Science/December 1967
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THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
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THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
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THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
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THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
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THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
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THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
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BUSINESS ANALYTICSBUSINESS ANALYTICS
Big data is more than simply a matter of size: it is also about creating insights!
Discovering what you don’t know you don’t know……
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BUSINESS ANALYTICSBUSINESS ANALYTICS
Big data is more than simply a matter of size: it is also about creating insights!
Business Analytics Scientific process of transforming data into insight for making better decisions
Used for data‐driven decision making, which is often seen as more objective than other alternatives for decision making.
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BUSINESS ANALYTICSBUSINESS ANALYTICS
Big data is more than simply a matter of size: it is also about creating insights!
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BUSINESS ANALYTICSBUSINESS ANALYTICS
Big data is more than simply a matter of size: it is also about creating insights!
Vrije Universiteit Amsterdam
“Why do professional baseball executives, many of whom have spent their lives in the game, make so many colossal mistakes? …
It takes time and effort to switch from simple intuitions to careful assessments of evidence.”
Thaler and Sunsteinreview of Moneyball
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WHY IS BUSINESS ANALYTICS IMPORTANT?WHY IS BUSINESS ANALYTICS IMPORTANT?
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ANALYTICS AS INTELLIGENCE AUGMENTATIONANALYTICS AS INTELLIGENCE AUGMENTATION
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Question: Jack is looking at Anne, but Anne is looking at George.
Jack is married, but George is not.
Is a married person looking at an unmarried person?
A. Yes
B. No
C. Cannot be determined
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EXAMPLE 1: PUZZLING RELATIONSHIPSEXAMPLE 1: PUZZLING RELATIONSHIPS
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Question: Jack is looking at Anne, but Anne is looking at George.
Jack is married, but George is not.
Is a married person looking at an unmarried person?
A. Yes
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EXAMPLE 1: PUZZLING RELATIONSHIPSEXAMPLE 1: PUZZLING RELATIONSHIPS
married unknown unmarried
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EXAMPLE 2: THERE’S SOMETHING ABOUT LINDAEXAMPLE 2: THERE’S SOMETHING ABOUT LINDA
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Examine the following profile:
Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti‐nuclear demonstrations.
Which of these scenarios is more likely?
A. Linda is a bank teller
B. Linda is a bank teller and is active in the feminist movement
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EXAMPLE 2: THERE’S SOMETHING ABOUT LINDAEXAMPLE 2: THERE’S SOMETHING ABOUT LINDA
Vrije Universiteit Amsterdam
Examine the following profile:
Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti‐nuclear demonstrations.
Which of these scenarios is more likely?
A. Linda is a bank teller
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EXAMPLE 2: THERE’S SOMETHING ABOUT LINDAEXAMPLE 2: THERE’S SOMETHING ABOUT LINDA
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EXAMPLE 3: DECISION FATIGUEEXAMPLE 3: DECISION FATIGUE
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There are two types of mental operations:
1. Type 1: automatic, effortless, associatively coherent
2. Type 2: controlled, effortful, logically coherent
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THE MORAL OF THESE EXAMPLESTHE MORAL OF THESE EXAMPLES
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Behavioral economics teaches us that the value of analytics is often in avoiding biased judgments and flawed decisions.
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THE MORAL OF THESE EXAMPLESTHE MORAL OF THESE EXAMPLES
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ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
Do computers play more intelligently than humans?
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ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
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ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
Vrije Universiteit Amsterdam
Panama papers (2.6 TB, 11.5 billion documents)> 5 billion emails
> 3 billion databases
> 2 billion PDF documents
> 1 billion images
> 320,166 text files
> 2,242 other files
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ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
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ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
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ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
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TOWARDS ANALYTICS MATURITYTOWARDS ANALYTICS MATURITY
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THE BIG PICTURETHE BIG PICTURE
data
logistics
retail
energy
webshop
telecom
health care
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THE ENERGY SECTORTHE ENERGY SECTOR
0
5
10
15
20
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THE ENERGY SECTORTHE ENERGY SECTOR
KNMI data has 22 factors:WindspeedHighest wind gustTemperatureDew temperatureDuration of sunshineGlobal radiationDuration of precipitationAir pressureDaily cloud cover…
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THE ENERGY SECTORTHE ENERGY SECTOR
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THE RETAIL SECTORTHE RETAIL SECTOR
winter tires
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THE RETAIL SECTORTHE RETAIL SECTOR
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THE RETAIL SECTORTHE RETAIL SECTOR
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THE RETAIL SECTORTHE RETAIL SECTOR
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SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
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SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
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SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
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SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
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SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
Social listening:
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FROM NU.NL TO STRAKS.NLFROM NU.NL TO STRAKS.NL
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TWITTER FOR TAXITWITTER FOR TAXI
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BUSINESS ANALYTICSBUSINESS ANALYTICS
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QUESTIONSQUESTIONS