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    Business of Baseball-1

    Uploaded by

    raisa

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    © All Rights Reserved
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    of 2

    Case Application #2

    The Business of Baseball


    Topic: Big data

    Baseball has long been called “America’s national pastime” (although according to a Harris
    Interactive survey, the NFL has been, hands down, the favorite sport of Americans).65 Now, the
    game of baseball can probably be better described as America’s number crunchers. For instance,
    the general manager of the New York Mets, explained the team’s decision to trade one of its best
    players to another team. “I’m happy with the analysis we used and the strategy we pursued.” As
    he made this announcement, three members of his baseball operations staff stood by with their
    laptops open and ready to provide any needed data. A baseball writer has described the sport’s
    move to data analysis this way, “Don’t overlook the increasing value of facts, figures, and other
    data . . . and the people who interpret them.”

    As the film Moneyball (based on an earlier book by the same name) emphasized, statistics—the
    “right” statistics—are crucial aspects of effective decision making in the sport of baseball. The
    central premise of Moneyball was that the collected wisdom of baseball insiders (players,
    managers, coaches, scouts, and the front office) had pretty much been flawed almost from the
    onset of the game. Commonly used statistics such as stolen bases, runs batted in, and batting
    averages that were typically used to evaluate players’ abilities and performances were inadequate
    and poor gauges of potential. Rigorous statistical analysis showed that on-base percentages and
    slugging percentages were better indicators of a player’s offensive potential. The goal of all this
    number crunching? To make better decisions. Team managers want to allocate their limited
    payroll in the best way possible to help the team be a winner.

    Players also are using the information from all the data analytics.66 In 2015, MLB launched
    Statcast in all 30 ballparks. The system uses high-resolution cameras and radar equipment to
    record the movement and location of the ball and every player on the field. Although the system
    was primarily for fans’ benefit, players have used it to learn how to be better at what they do as it
    shows their every movement in every situation. And it’s also turned into a powerful player
    evaluation tool for decision makers in teams’ front offices.

    The GAME of Baseball . . . number crunching, statistical analysis, and data.

    But do all those data have a downside?67 At a meeting of team owners to discuss why baseball
    games have become so “ploddingly” slow, officials and a statistician had a surprising answer for
    them. The embrace of data analytics was bringing the sport to a standstill. The data were driving
    the action . . . or inaction . . . to the point that games were suffering from a slower pace of play . . .
    to the tune of almost 20 minutes longer. Since pace of play is “central to baseball’s future,” MLB
    and team decision makers are looking at ways to bring back the fun and keep fans happy. And to
    keep the data flowing!
    Discussion Questions
    1. 4-18 In a general sense, what kinds of decisions are made in baseball? Would you
    characterize these decisions as structured or unstructured problems? Explain. What
    type(s) of decision-making conditions would you consider this to be? Explain.
    2. 4-19 Is it appropriate for baseball managers to use only quantitative, objective criteria in
    evaluating their players? What do you think? Why?
    3. 4-20 Describe how baseball front office executives—maybe even college baseball
    coaches—could use each of the following to make better decisions: (a) rationality, (b)
    bounded rationality, and (c) intuition.
    4. 4-21 Can there be too much information in managing the business of baseball? In your
    answer to this question, be sure to explain both sides of the issue and state YOUR
    conclusion.

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