4. — Holger Kisker, Forrester Research
“Even after more than 20 years of
using BI, they still base nearly 45%
of business decisions on
qualitative decision factors
instead of quantitative, fact-based
evidence.“
5. If data is not used for decision
making, what is used then?
23. • Drill-down analysis … misunderstood or
distorted
• Metrics dashboards … contradictory and
confusing
• Monthly reports … ignored after two
iterations
• In-house analyst teams … overworked
and powerless
How Data-Driven Decisions
REALLY work
CO M M U N I C AT I O N
B R E A K D O W N
34. • Business rules are like programs – written by
non-programmers
• Business rules can be contradictory,
incomplete, and complex beyond
comprehension
• Business rules have no built-in feedback
mechanism:“It is the rule, because it is the rule”
Business rules are Programs,
just not very good ones.
35. — Mark Twain
“It ain’t what we don’t know
that causes trouble, it’s what we
know for sure that just ain’t so”
48. — Daniel Kahneman
“All of us would be better
investors if we just made fewer
decisions.”
49.
50. How we are making decisions
(Like the big apes we are)
Anchoring effect
IKEA effect
Confirmation bias
Bandwagon effect
Substitution
Availability heuristic
Texas Sharpshooter Fallacy
Rhyme as reason effect
Over-justification effect
Zero-risk bias
Framing effect
Illusory correlation
Sunk cost fallacy
Overconfidence
Outcome bias
Inattentional Blindness
Benjamin Franklin effect
Hindsight bias
Gambler’s fallacy
Anecdotal evidence
Negativity bias
Loss aversion
Backfire effect
51.
52. K-Means Clustering
Naive Bayes
Support Vector Machines
Affinity Propagation
Least Angle Regression
Nearest Neighbors
Decision Trees
Markov Chain Monte Carlo
Spectral clustering
Restricted Bolzmann Machines
Logistic Regression
Computers making decisions
(cold, fast, cheap, rational)
53. • A machine learning algorithm is a system that
derives a set of rules based on a set of data
• It is based on systematic observation, double-
checking and cross-validation
• There is no magic, just data – and without data
there is no magic either
Machine Learning means
Programs that write Programs
77. If you ordered 8,5 cases, you
would waste a lot of meat,
the ideal order amount is 8
cases.
78. Predictive Apps in a Nutshell
Batch and streaming data ingestion, batch
and streaming delivery (with real-time option)
Reduce risk and cost » increase revenue and profit
Trend Estimation Classification Event Prediction
Optimize Returns
Collect Data Predict Results Drive Decisions
79. — John Maynard Keynes
“When my information
changes, I alter my conclusions.
What do you do, sir?”
80. One Common Platform for
Predictive Applications
Your own and third-
party data, easily
integrated via API
Link
Build Machine
Learning and
application code
Build
Automatically run
and scale ML models
and applications
Run
Monitor and inspect
resource usage and
model quality
View
Your data stored in
high-performance
database as a service
Store
81. — Kevin Kelly
“The business plans of the next
10,000 startups are easy to
forecast: Take X and add AI”