Introduction
In March 2007, Tom Davenport and Jeanne Harris wrote the groundbreaking book Competing on Analytics (Wiley, 2007). Google Trends (discussed in Chapter 36) tells us that Internet searches for the word analytics tripled by May 2011! If you have picked up or downloaded this book, I am pretty sure you have heard the word analytics in the workplace or in the media.
A great description of analytics is given on the SAS Institute website (see www.sas.com/en_us/insights/analytics/what-is-analytics.html). Simply stated, analytics is the use of mathematics and/or statistics to transform data and/or mathematical models into a better understanding of the world. Most applications of analytics involve answering at least one of the following questions:
- What happened?
- Why did it happen?
- What will happen?
- How do we make good things happen?
In my 40+ years of teaching MBAs, I have won over 40 teaching awards and leaned heavily on teaching concepts by example. This book is no exception. Through a discussion of over 60 analytics applications (most successful, some unsuccessful), we will enhance your understanding of analytics. You can perform all calculations discussed in Microsoft Excel. In order to not disrupt the discussion flow in our stories, we placed Excel instructions for most examples at the end of the chapter. In each story, we focus on the following issues:
- State the problem of interest.
- What data, if any, is needed to attack the problem?
- How do we analyze the data or ...
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