Monthly Archives: April 2014

Strategic Analytics, Analytical Strategies, and Corporate Strategy

First Let Us Clarify Some Terminologies and Phrases:

– Moneyball showed that the whole organization’s strategic metric can be developed using analytics

– Analytical strategies, is a phrase that uses the word strategies as a plan of action for a given a set of hypotheses and data set, in the data analysis context

– In common usage, strategic analytics is a collection of analytical methods that helps implement an organization’s strategies

– Analytics could also support division level strategies which are shaped by the overall organization level executive strategy coming from vision.

– Being analytical means, using, being the orchestrator of “the decomposition of a substance into its elements, radicals, or other constituents in order to determine the kinds of constituents present ( qualitative analysis ) or the amount of each constituent ( quantitative analysis )” and understanding their value and putting them back together that maximizes that value. Now this means we have to bring in the concepts of non-standard thinking beyond statistical models and optimization techniques that include strategic games that encompasses special situation behavioral rules.

Can analytics help develop corporate level overall strategies? Steve Jobs did not do analytics!

First of all, analytics does not exclude what are called strategic games, part of game theory.  Many of the games here are simple matrix of pay-offs that need to be used with specific behavioral rules.  These games can literally be written and solved in simple paper and pencil, following the game theory structures.

Not all analytics need to be millions of observations related works and sophisticated multivariate models which well-trained people only can do, interpret, and implement.

Steve Jobs made quantum jumps and predicted where the trend is going having failed on Newton, the previous generation of iPhone/iPad technology, and failed miserably competing with Microsoft and Intel on challenges in managerial works, hiring a senior manager what he called as a “wrong decision”. All those well played in his heart and mind and he had nothing to lose when he embarked on Apple 2.0 – the new generation of tablets, but everything he got, to bet with his plans and vision, where the payoff was heavily loaded against failing. The bottom could go any lower; anything he recovered can only be success. It was such a clear binary decision.  Product innovation mattered so much in the initial success, he was willing to say only black and white colors for the products.

Ok, now with Tim Cook’s leadership and Samsung having seen the opportunity gaps offered by Apple and leveraging that to grow and become dominant in the opportunity gaps, it is a missed opportunity for Apple, because it was clear that people are looking for colors and different sizes, and now iWatch and its integration with smartphone.  Apple is now releasing different sizes and colors and it is late.   Of course, Apple’s segments are different; so it adds to the reason, why these changes do not matter, if you do not want to expand the market.  However, even a simple well scoped analysis of focus group discussions could have helped better to retain the market domination with expanded set of segments.

Corporate strategy is the plan to outcompete but it has to be taken by the divisions to put together a detailed execution plan which may involve division level strategies.

Do consumers drive an organization’s strategy?

Very good question.  If you believe in the competitive paradigm that consumers are ultimately determining, not as a wish, but situationally addressing their needs that also optimizes their product value and cost of buying, the answer to your question is yes.  That is the reason more and more companies start in the direction of “consumer centered approach” to their operations.  This means a corporation’s priorities and their goals to outcompete the competition is captured in their strategies which are in turn reflecting the consumer aligned innovations that are executable and deliverable with a price that could be mass appealing.

Here is the question for thought.

Often people also suggest that Facebook Mark Zuckerburg did not use analytics to decide on $19B purchase of Whatsapp?  Do you agree or disagree, and why?

Read, for interesting collection of some basic strategic game theory structures.

PRED402_SP2014 All Things Considered – Week3

Final – Internal and External Analytical Processes and Methods – Due 20, April, 2014 befor 11:55PM

Select two methodologies and write a maximum of 3 pages on each method. Adding a small example will help clarify the methods and cover the number of pages.

You can start with wikipedia to augment the material from the books; but please write it in your words, so that it will not become a discussion of plagiarism.  Some additional materials are available in my google shared directory in the folder.  For the list of analytical methods, see chapters 4 and 5 of Davenport and Harris.

Create the file using APAstyle, and name the file as FirstName_LastName_402_WI2014_SECXX_IE.docx.  XX refers to your section number.

This is not scored

PRED402_SP2014 All Things Considered – Week2

Assignment: Final – Review of Big Data and Big Data Analyrics – Due 13 APR, 2014 before 11:55PM CST

Review big data and big data analytics videos –

Write a critical summary for a total of maximum of 5 pages.

Create the summary using APAstyle (title, abstract, main body, conclusion, references), name the file as FirstName_LastName_402_WI2014_SECXX_BD.pdf.  XX refers to your section number.

Review big data and big data analytics videos – only first 10 identified for this project in the blog  –

Write a summary for a total of maximum of 5 pages.

Create the summary using APAstyle (title, abstract, main body, conclusion, references), name the file as FirstName_LastName_402_WI2014_SECXX_BD.docx.  XX refers to your section number.

Submit before 13APR14, 11:55PM CST.   100 points

Just watching the first 10 videos are good enough to create your summary about big data answering questions like,

Writing a paragraph as much as possible on these topics.

“What is big data and how is it different from traditional data?

What, why, and how big data scenarios are happening? – Discuss how and why location,mobile, and wearable equipments and sensors, instruments will all generate data in text, audio, video, voice form and that will become the new-normal in data collection resulting as big data

What is hadoop?

What is map-reduce?

What are machine learning methods that uses map-reduced data?

Who are the successful users and leaders in big data usage? Think of huge companies in any industry who have millions and millions of customers

Give examples of big data solutions in an industry of your choice (Retail/CRM/CPG/Technology/security/governing/education/travel and entertainment/hoteling/magazines), if it is possible.

Goto PRED402_SP2014 All Things Considered – Week3

PRED402_SP2014 All Things Considered – Week1

Syllabus, documents, and videos:  All sections have the same content, assignments, assessments, assignment submission days are all the same.  The only difference among sessions are sync session days.  They are in the same week but the day is different based on your Session Days.

Any one can attend any sync session that is suitable in a particular week.  All sync session videos will be posted as soon as possible in the “Connect Recordings” in the purple navigation area.

Again, all assignments and submission dates are the same for all sections.   So the following can be used as a generic syllabus (except for Sync Session Days)

NS – Syllabus PREDICT 402-SEC55-SP2014_WED

Your presentation decks are available in the google documents folder, which is

All the related documents, including presentation decks for the class that I teach, and the presentation decks for the videos made available for all of 402 are available here:

Also, for convenience, I made all videos available via, as unlisted so that it is only meant for my students only who knows the link.  Here they are:

Pre-course video:

  1. Week1 Strategic Data Assets, Tools, and Big Data –
  2. Week2_Part1 Analytics Impacts, Challenges, and Big Data –
  3. Week2_Part2 Analytical Competitiveness and What Help Move the Levers –
  4. Week3 Analytical Methods for Internal and External Processes –
  5. Week4 Strategic Metrics, KPIs, KLIs, Dashboards –
  6. Week5 – Development and Deployment of an Information Strategy –
  7. Week7 – Survey Methodology – Part 1 and Part II – (this is a 30 Minutes video, counted as 3 units of videos)
  8. Week8 – Sample size, Neyman Allocation, and Minimum Allocation –

The week numbers are generally meant to be aligned with weekly reading.

Assignment 1: Moneyball Review – Strategic Metric and Team Dynamics – Due Sunday, 6 APR, 11:55PM

See the Moneyball movie that is available in the Library Resources on the left purple panel. You can see this any number of times.

Summarize: (1) what drove the new business model, (2) what strategy was developed in hiring and training under the new approach, (3) how long it took to start seeing the results, (4) what team dynamics started happening between the analyst and the management, and (5) your opinion of whether this real life story bears truth in different industry verticals (profit or not-for-profit) and whether analytics can help redeem organizations.

Write approximately 3 to 5 sentences for each of the takeaway points and do not write more than two pages.  This is not scored.  I will provide the answer sheet.

Read also: Moneyball Labor Market Efficiency Explained By Economists – Very Interesting Regression Model That Explains The Strategic Metric

Goto PRED402_SP2014 All Things Considered – Week2

SAS Video Training Provided By Dr. Usha Sambamoorthi for ISPOR Organization

ISPOR – International Society for Pharmacoeconomics and Outcomes Research SAS training conducted by Dr. Usha Sambamoorthi, PhD.  Her profile is Usha_WVUhere:  She has published more than 200 papers, almost all of them using SAS across different operating systems.

This is tuned to health outcome research.  However, the approaches, concepts, tools are applicable in general.

The training uses MEPS and NHANES data sets as examples.

More than few hundred people attended this.  This is continuing.  There are few more sessions.

The recent sessions are on the top of the list.

March 26th
How to create variables when we have many variables involved using arrays (for example: One has to look at 32 different variables to create a single variable) Example: NHANES Oral health

March 19th
Once you have SAS data (multiple records per person), how to make it single record per person

March 12th
Combining datasets with SQL, Modifying and Combining SAS Data

February 26, 2014
SAS functions (SAS Dates), and combining datasets using Merge

February 19, 2014
Recap of Simple Basic Coding (e.g. data step, proc step, libname, conventions)



Simple PROC SQL Codes for Summarizing Multiple Records Per Person Dataset


data x;
101 3 08JUN01 90 92 97.83  DTN
101 3 25MAY01 88 92 95.65  DM
101 3 01JUN01 92 92 100.00 DM
102 3 30JUL01 93 97 95.88  DTN
102 3 06AUG01 97 97 100.00 HEART
102 3 13AUG01 93 97 95.88  HEART
103 4 31JUL01 74 89 83.15  DTN
103 4 07AUG01 80 89 89.89  DM
103 4 24JUL01 79 89 88.76  DM
103 4 14AUG01 89 89 100.00 DM
104 3 05SEP01 82 86 95.35  DTN
104 3 29AUG01 86 86 100.00 DTN
104 3 22AUG01 83 86 96.51  HEART
proc print data=x; run;

/*** want output

101      2        1          0
102      0        1          2
103      3        1          0
104      0        2          1


Proc Sql;
Create table t1 as
Select patient,
Sum(disease=”DM”) as dm,
Sum(disease=”DTN”) as dtn,
sum(disease=”HEART”) as heart
From x
group by 1;

proc print data=t1; run;

/*   See t1 output to be

The SAS System

Obs    PATIENT    dm    dtn    heart

1       101       2     1       0
2       102       0     1       2
3       103       3     1       0
4       104       0     2       1


Extension notes:

1.  You can use any type of function intead of SUM.  See

2.  Also, the following selection conditions are also available, on the left navigation page in the reference in (1).











Programming expert: Saibabu.P