Analysis as a journey

Data-Driven Decision Making for Business

Ted Kwartler

Data Dude

Know what you know and learn what you don't

The same is true for organizations

• Lack of data
• No technical personnel
• HIPPOs (Highest Paid Person's Opinion)

Maturing a data-driven culture - Descriptive

Maturing a data-driven culture - Diagnostic

Maturing a data-driven culture - Predictive

Maturing a data-driven culture - Prescriptive

Cost vs. benefit

• Analytically determine the cost of a decision
  • Cost : new software is expensive
• Analytically determine the expected benefit
  • Benefit : increased widget-making

$$

Risk vs. reward

• Analytically determine the risk of a scenario
  • Risk : startup fails, $0 left
• Analytically determine the reward of a scenario
  • Reward : if it works, you'll be rich!

Supply vs. demand

• Forecast the expected demand for personnel, material or system need
  • Supply : how many agents should be staffed?
• Analyze the needed supply of the personnel, material or system need to meet demand
  • Demand : how many calls will the company receive?

$$

Putting it all together

	Cost vs. benefit	Risk vs. reward	Supply vs. demand
Exploratory
Explanatory
Predictive

Examples

	Cost vs. benefit	Risk vs. reward	Supply vs. demand
Exploratory	Does social media indicate a product innovation X is needed vs. the cost to develop it?	This house's distance to a fire station explains something about fire risk.	Reviewing marketing spend across channels
Explanatory	Which content is most popular and best for paid traffic?	Tracking a popular investing site's stock mentions to explain retail investing patterns	Explaining specific market trends
Predictive	Which house will respond to a postcard?	Predict a fair price for a car	Predicting demand

Let's go!

Data-Driven Decision Making for Business