COMPETING ON ANALYTICS SANDJAI BHULAI
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Het begint met een idee
INTRODUCTION Prof. dr. S. (Sandjai) Bhulai Full Professor of Business Analytics Faculty of Sciences Vrije Universiteit Amsterdam Department: Mathematics
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Business Analytics: Optimization of Business Processes
Research / Education: Decision making under uncertainty Control of complex high‐dimensional systems Stochastic optimization
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
WHAT IS BIG DATA?
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
WHAT IS BIG DATA?
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
WHAT IS BIG DATA?
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
WHAT IS BIG DATA?
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
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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Sandjai Bhulai (
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THE FOUR V’S OF BIG DATA
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
THE FOUR V’S OF BIG DATA
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
THE FOUR V’S OF BIG DATA
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
THE FOUR V’S OF BIG DATA
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
THE FOUR V’S OF BIG DATA
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
THE FOUR V’S OF BIG DATA
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
BUSINESS 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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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
BUSINESS 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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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
BUSINESS ANALYTICS Big data is more than simply a matter of size: it is also about creating insights!
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
BUSINESS ANALYTICS Big data is more than simply a matter of size: it is also about creating insights!
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
WHY IS BUSINESS ANALYTICS IMPORTANT?
“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 Sunstein review of Moneyball
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Sandjai Bhulai (
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ANALYTICS AS INTELLIGENCE AUGMENTATION
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Sandjai Bhulai (
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EXAMPLE 1: PUZZLING RELATIONSHIPS 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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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
EXAMPLE 1: PUZZLING RELATIONSHIPS 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
married 21
unknown
unmarried
Sandjai Bhulai (
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EXAMPLE 2: THERE’S SOMETHING ABOUT LINDA
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Sandjai Bhulai (
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EXAMPLE 2: THERE’S SOMETHING ABOUT LINDA 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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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
EXAMPLE 2: THERE’S SOMETHING ABOUT LINDA 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.
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Linda is a bank teller
Sandjai Bhulai (
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EXAMPLE 3: DECISION FATIGUE
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Sandjai Bhulai (
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THE MORAL OF THESE EXAMPLES
There are two types of mental operations:
1.
Type 1: automatic, effortless, associatively coherent
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Type 2: controlled, effortful, logically coherent
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Sandjai Bhulai (
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THE 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.
Sandjai Bhulai (
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ANALYTICS: SHIFTING PARADIGMS
Do computers play more intelligently than humans?
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
ANALYTICS: SHIFTING PARADIGMS
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
ANALYTICS: SHIFTING PARADIGMS
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
ANALYTICS: SHIFTING PARADIGMS
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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
Sandjai Bhulai (
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ANALYTICS: SHIFTING PARADIGMS
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
ANALYTICS: SHIFTING PARADIGMS
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Sandjai Bhulai (
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TOWARDS ANALYTICS MATURITY
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Sandjai Bhulai (
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THE BIG PICTURE
logistics
health care
retail
data telecom
energy
webshop
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
THE ENERGY SECTOR
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0 23-12-11 -5
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11-02-12
01-04-12
21-05-12
10-07-12
29-08-12
-10 0 23-12-11 11-02-12 01-04-12 21-05-12 10-07-12 29-08-12
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Sandjai Bhulai (
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THE ENERGY SECTOR KNMI data has 22 factors: Windspeed Highest wind gust Temperature Dew temperature Duration of sunshine Global radiation Duration of precipitation Air pressure Daily cloud cover …
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Sandjai Bhulai (
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THE ENERGY SECTOR
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Sandjai Bhulai (
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THE RETAIL SECTOR winter tires
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Sandjai Bhulai (
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THE RETAIL SECTOR
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Sandjai Bhulai (
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THE RETAIL SECTOR
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Sandjai Bhulai (
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THE RETAIL SECTOR
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Sandjai Bhulai (
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SOCIAL MEDIA IN OUR LIFE
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
SOCIAL MEDIA IN OUR LIFE
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
SOCIAL MEDIA IN OUR LIFE
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
SOCIAL MEDIA IN OUR LIFE
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
SOCIAL MEDIA IN OUR LIFE Social listening:
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Sandjai Bhulai (
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FROM NU.NL TO STRAKS.NL
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Sandjai Bhulai (
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TWITTER FOR TAXI
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
BUSINESS ANALYTICS
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
QUESTIONS
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Sandjai Bhulai (
[email protected]) Vrije Universiteit Amsterdam
