Week 9 - Data Driven Decision Making

Maydison Ginting, Ph.D.

MJNR2W002 Data Driven Marketing

Why Data Driven Decision?
• The business world has become increasingly complex
• Almost every aspect of business today is based on data-driven decisions
• Large amount of data currently available
• Data have become a very vital foundation for productivity growth,
innovation, and richer customer insight
• Help company make a better business decision that makes companies stay
competitive
Why Data Driven Decision?
• Data Driven Decision making refers to the practice of basing decisions on
the analysis of data, rather than purely on intuition.
 Evolution of Business in
the 21st century
June 29, 2007
Face to face
1600-1980
Question &
Answer
1980-2000 Linear Forms
2000-2008

Big Data Price Markets

2008-2012 Data Driven

Analytic
Decision
2010+
What is Big Data?

Big data essentially means datasets that are too large for traditional data
processing systems, and therefore require new processing technologies.
Big Data
• Today, more than 5 billion consumers interact with data every day
• by 2025, that number will be 6 billion, or 75% of the world's
population
• In 2025, each connected person will have at least one data
interaction every 18 seconds.
• Many of these interactions are because of the billions of IoT devices
connected across the globe
• Expected to create over 90ZB of data in 2025.
Big Data

*One zettabyte is equivalent to a trillion gigabytes

Source: The Digitization of the World From Edge to Core, An IDC White Paper, 2018
Data is NOT information!
Reality of BIG DATA?
"Statistical thinking will one day be as necessary for efficient
citizenship as the ability to read and write."

Herbert G. Wells (1866 – 1946), English Writer

Why???
 Data Analytics Cycle
Predictive
Detect,
Explain,
Analytics Forecast,
Diagnose,
Understand Scale

Descriptive &
Diagnostic Prescriptive
Analytics Analytics

Observe, Optimize,
Measure, Decide,
Collect Data Operations, Execute
Management
65% of the jobs will be hired for the next
generation in the future do not even exist today
Source: Future of Jobs Survey 2020, World Economic Forum.

16
45% of the current job will be lost due to automation
Source: Future of Jobs Survey 2020, World Economic Forum.
 DATA SCIENCE
• Data science and Data mining
• often are used interchangeably
• Data science is a set of fundamental principles that guide
the extraction of knowledge from data
• Involves principles, processes, and techniques for
understanding phenomena via the (automated)
analysis of data
• Data mining is the extraction of knowledge from data,
via technologies that incorporate these principles
• Clustering, Prediction, Classification
Ingredients of Data Science
 DATA SCIENCE
Data Scientist Techniques Neural Networks
Support Vector Machine - (SVM)
Nearest Neighbors - (k-NN)
Feature Selection - (aka Variable Reduction)
Indexation / Cataloguing *
(Geo-) Spatial Modeling
Data science techniques Recommendation Engine *
Linear Regression Search Engine *
Attribution Modeling *
Logistic Regression
Collaborative Filtering *
Jackknife Regression * Rule System
Density Estimation Linkage Analysis
Confidence Interval Association Rules
Test of Hypotheses Scoring Engine
Pattern Recognition Segmentation
Predictive Modeling
Clustering
Graphs
Supervised Learning Deep Learning
Time Series Game Theory
Decision Trees Imputation
Random Numbers Survival Analysis
Monte-Carlo Simulation Arbitrage
Lift Modeling
Bayesian Statistics
Yield Optimization
Naive Bayes Cross-Validation
Principal Component Analysis - (PCA) Model Fitting
Ensembles Relevancy Algorithm *
Experimental Design
 DATA MINING
• Data mining is the extraction of knowledge from data, via
technologies that incorporate these principles
• Clustering, Prediction, Classification
• Widest applications of data-mining techniques are in
marketing
• for tasks such as targeted marketing, online advertising,
and recommendations for cross-selling
• analyze customer behavior in order to manage attrition
and maximize expected customer value
• for credit scoring and trading, and in operations via fraud
detection and workforce management
UNDERSTANDING DATA SCIENCE

The Primary Goals:

• to help you view business problems from a data perspective
• to understand principles of extracting useful knowledge
from data
UNDERSTANDING DATA SCIENCE
The Importance:
• Data-analytic thinking enables to evaluate proposals for data
mining projects.
• If an employee, a consultant, or a potential investment target proposes to
improve a particular business application by extracting knowledge from data,
you should be able to assess the proposal systematically and decide whether
it is sound or flawed
• This does not mean that you will be able to tell whether it will actually
succeed
• Often requires trying
• should be able to spot obvious flaws, unrealistic assumptions, and missing
pieces.
 Who Are Gen Z ?

1995-2010
Source: https://blog.google/topics/education/how-teach-gen-z-be-collaborative-innovative-and-responsive/
Thank You