Profit Driven Business Analytics

CHAPTER 1A Value-Centric Perspective Towards Analytics

INTRODUCTION

In this first chapter, we set the scene for what is ahead by broadly introducing profit-driven business analytics. The value-centric perspective toward analytics proposed in this book will be positioned and contrasted with a traditional statistical perspective. The implications of adopting a value-centric perspective toward the use of analytics in business are significant: a mind shift is needed both from managers and data scientists in developing, implementing, and operating analytical models. This, however, calls for deep insight into the underlying principles of advanced analytical approaches. Providing such insight is our general objective in writing this book and, more specifically:

• We aim to provide the reader with a structured overview of state-of-the art analytics for business applications.
• We want to assist the reader in gaining a deeper practical understanding of the inner workings and underlying principles of these approaches from a practitioner's perspective.
• We wish to advance managerial thinking on the use of advanced analytics by offering insight into how these approaches may either generate significant added value or lower operational costs by increasing the efficiency of business processes.
• We seek to prosper and facilitate the use of analytical approaches that are customized to needs and requirements in a business context.

As such, we envision that our book will facilitate organizations ...