Data is growing exponentially. What should business managers do to make better business decisions? I explain three key things step by step. Just start today!

1. How to be
Data savvy Managers
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Toshifumi Kuga CEO of TOSHI STATS SDN. BHD
3 June 2014

2. The status quo
• Data, Data and Data
• The internet on things : A lot of devices and parts will be
connected to internet
• The number of smartphone and tablet is increasing rapidly
• Wearable devices will be available with reasonable price soon
• Model, Model and Model
• Machine Learning, Statistical models are available as a service
with reasonable costs through internet
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3. The digital universe is
increasing exponentially
3
4.4
zetta
bytes
44
zetta
bytes
2013 2020
Source : EMC Digital Universe with Research & Analysis by IDC, April 2014

4. How can we consume data ?
• Although a lot of data is available for
data analysis, It is not obvious that how
we can analyze it in order to make better
business decisions
• At the result of that, most of data may
not be analyzed for decision making
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5. Data savvy managers are needed
• Someone in the company should take an
initiative to lead the project for big data
analytics all over the company
• Someone should take actions to obtain better
business decisions based on the results of
data analysis
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6. Data scientist vs Data savvy manager
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Data savvy
manager
Data scientist
Data
knowledge on data
in the business
data cleaning
make it structured
Statistical
Models
ensure models are
relevant to make
business decisions
develop models
validate models
Output from
analysis
ensure the results are
relevant to make
business decisions
ensure calculation is
accurate

7. How to be data savvy managers
• No need to pay a lot of money to be the managers
• A lot of useful information are available through
internet for free
• Statistical tools and data visualization tools (such as
R) are also available free or with reasonable costs
• A lot of universities provide their courses about data
analysis through internet for free (called "MOOCs")
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8. R language and RStudio
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It is free !

9. Key three things
to be data savvy mangers
• Data
• Model
• Output from analysis
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10. First : Data
• Starting point of data analysis
• Business managers should know what kind
of data are available for their businesses
• Make the list of available data
• Discuss data which are available with data
scientists
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11. Second : model
• Data savvy managers should know what kind of
models exist for data analysis
• Statistical model (regression, time series analysis,
optimization, etc.)
• Machine learning (neural network, decision tree, etc.)
• Genetic Programming
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12. No need to develop models by yourself
Just discuss it with data scientists
ML<-function(a){
!
x=matrix(c(1,1,1,1,2,3),3,2)
y=matrix(c(5, 7, 9),3,1)
t=matrix(1,2,1)
m=length(y)
h=x%*%t
j=1/(2*m)*(t(h-y)%*%(h-y))
!
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for (i in seq(1,1000)){
h=x%*%t
tnew=t-a/m*t(x)%*%(h-y)
hnew=x%*%tnew
jnew=1/(2*m)*(t(hnew-y)%*%(hnew-y))
if (abs(jnew-j)<=10^(-8)) break
t=tnew
j=jnew
end }}
An example of Liner regression model by R

13. Third : Output
• Outputs from data analysis are critically important
• Outputs are numerical numbers (price,
population, revenue, etc.)
• Outputs are probability of events (explain later)
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14. To make better business decisions
• Marketing strategy (target, product, price, etc.)
• Resource and cost allocations
• Risk management (credit, market, liquidity, etc.)
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15. Predictive analytics
• Logistic regression model is used to calculate probability of events
• Output means probability of events (buy products, come to
shops, cure diseases, be in default, etc)
• Logistic regression model generates numbers between 0 and 1
as the result of calculations
• These outputs are considered as probability of occurring
events
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16. Let us start today !
• Data is increasing every day
• New services of data analysis and
visualizations will be available going
forward
• Download "R language" and try it !
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17. Website of R and RStudio!
• R is a language and environment for statistical computing. R
Foundation for Statistical Computing, Vienna, Austria. ISBN
3-90005107-0 URL http://www.R-project.org
• I prepare short movie about how to use R.
http://www.toshistats.net/introduction-to-r-language/
• RStudio is one of the best IDE for R.
http://www.rstudio.com/products/rstudio/download/
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18. Thanks for your attentions!
• TOSHI STATS SDN. BHD, Digital-learning center for statistical computing in Asia
• CEO : Toshifumi Kuga, Certified financial services auditor
• Company web site : www.toshistats.net
• Company blog : http://toshistats.wordpress.com/aboutme/
• Company FB page : www.facebook.com/toshistatsco
• Please do not hesitate to send your opinion and massages about our courses to us !
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19. Disclaimer
• TOSHI STATS SDN. BHD. and I do not accept any responsibility or
liability for loss or damage occasioned to any person or property
through using materials, instructions, methods, algorithm or ideas
contained herein, or acting or refraining from acting as a result of
such use. TOSHI STATS SDN. BHD. and I expressly disclaim all
implied warranties, including merchantability or fitness for any
particular purpose. There will be no duty on TOSHI STATS SDN. BHD.
and me to correct any errors or defects in the codes and the
software.
© 2014 TOSHI STATS SDN. BHD. All rights reserved
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