business analytics masters
TRANSCRIPT
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
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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?
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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
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Moneyball
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The Standard Question in Major League Baseball
How can we maximizeQuality of Players/ $ Dollar Spent
Conventionally answered using four measurementsRunningFieldingThrowingHitting
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The Oakland A’s Asked the Right Question
How do we Maximize
Wins/ $ spent?
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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.
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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.
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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?
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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 ?
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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.
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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?
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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
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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
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Companies that Hire Our Students
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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
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Why number of companies and salaries will significantly increase
1. CEO’s are demanding this talent in their organizations
2. Supply and Demand
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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
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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
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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
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