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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
2 Sandjai Bhulai ([email protected])
INTRODUCTIONINTRODUCTION
Vrije Universiteit Amsterdam7 Sandjai Bhulai ([email protected])
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
Vrije Universiteit Amsterdam8 Sandjai Bhulai ([email protected])
THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
Vrije Universiteit Amsterdam9 Sandjai Bhulai ([email protected])
THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
Vrije Universiteit Amsterdam10 Sandjai Bhulai ([email protected])
THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
Vrije Universiteit Amsterdam11 Sandjai Bhulai ([email protected])
THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
Vrije Universiteit Amsterdam12 Sandjai Bhulai ([email protected])
THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
Vrije Universiteit Amsterdam13 Sandjai Bhulai ([email protected])
THE FOUR V’S OF BIG DATATHE FOUR V’S OF BIG DATA
Vrije Universiteit Amsterdam14 Sandjai Bhulai ([email protected])
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……
Vrije Universiteit Amsterdam15 Sandjai Bhulai ([email protected])
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.
Vrije Universiteit Amsterdam16 Sandjai Bhulai ([email protected])
BUSINESS ANALYTICSBUSINESS ANALYTICS
Big data is more than simply a matter of size: it is also about creating insights!
Vrije Universiteit Amsterdam17 Sandjai Bhulai ([email protected])
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
18 Sandjai Bhulai ([email protected])
WHY IS BUSINESS ANALYTICS IMPORTANT?WHY IS BUSINESS ANALYTICS IMPORTANT?
Vrije Universiteit Amsterdam19 Sandjai Bhulai ([email protected])
ANALYTICS AS INTELLIGENCE AUGMENTATIONANALYTICS AS INTELLIGENCE AUGMENTATION
Vrije Universiteit Amsterdam
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
20 Sandjai Bhulai ([email protected])
EXAMPLE 1: PUZZLING RELATIONSHIPSEXAMPLE 1: PUZZLING RELATIONSHIPS
Vrije Universiteit Amsterdam
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
21 Sandjai Bhulai ([email protected])
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
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
B. Linda is a bank teller and is active in the feminist movement
23 Sandjai Bhulai ([email protected])
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
24 Sandjai Bhulai ([email protected])
EXAMPLE 2: THERE’S SOMETHING ABOUT LINDAEXAMPLE 2: THERE’S SOMETHING ABOUT LINDA
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EXAMPLE 3: DECISION FATIGUEEXAMPLE 3: DECISION FATIGUE
Vrije Universiteit Amsterdam
There are two types of mental operations:
1. Type 1: automatic, effortless, associatively coherent
2. Type 2: controlled, effortful, logically coherent
26 Sandjai Bhulai ([email protected])
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?
Vrije Universiteit Amsterdam29 Sandjai Bhulai ([email protected])
ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
Vrije Universiteit Amsterdam30 Sandjai Bhulai ([email protected])
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
31 Sandjai Bhulai ([email protected])
ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
Vrije Universiteit Amsterdam32 Sandjai Bhulai ([email protected])
ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
Vrije Universiteit Amsterdam33 Sandjai Bhulai ([email protected])
ANALYTICS: SHIFTING PARADIGMSANALYTICS: SHIFTING PARADIGMS
Vrije Universiteit Amsterdam34 Sandjai Bhulai ([email protected])
TOWARDS ANALYTICS MATURITYTOWARDS ANALYTICS MATURITY
Vrije Universiteit Amsterdam35 Sandjai Bhulai ([email protected])
THE BIG PICTURETHE BIG PICTURE
data
logistics
retail
energy
webshop
telecom
health care
Vrije Universiteit Amsterdam36 Sandjai Bhulai ([email protected])
THE ENERGY SECTORTHE ENERGY SECTOR
0
5
10
15
20
25
23-12-11 11-02-12 01-04-12 21-05-12 10-07-12 29-08-12 -20-15-10
-505
101520253035
23-12-11 11-02-12 01-04-12 21-05-12 10-07-12 29-08-12
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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
Vrije Universiteit Amsterdam41 Sandjai Bhulai ([email protected])
THE RETAIL SECTORTHE RETAIL SECTOR
Vrije Universiteit Amsterdam42 Sandjai Bhulai ([email protected])
THE RETAIL SECTORTHE RETAIL SECTOR
Vrije Universiteit Amsterdam43 Sandjai Bhulai ([email protected])
SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
Vrije Universiteit Amsterdam44 Sandjai Bhulai ([email protected])
SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
Vrije Universiteit Amsterdam45 Sandjai Bhulai ([email protected])
SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
Vrije Universiteit Amsterdam46 Sandjai Bhulai ([email protected])
SOCIAL MEDIA IN OUR LIFESOCIAL MEDIA IN OUR LIFE
Vrije Universiteit Amsterdam47 Sandjai Bhulai ([email protected])
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
Vrije Universiteit Amsterdam50 Sandjai Bhulai ([email protected])
BUSINESS ANALYTICSBUSINESS ANALYTICS
