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Analytics Enabled
Decision Making
Edited by
Vinod Sharma
Chandan Maheshkar
Jeanne Poulose
Analytics Enabled Decision Making
“Analytics has become critically important in all aspects of the business. If you
want to familiarize yourself with cutting-edge thinking on this topic, do read
‘Analytics Enabled Decision Making ’. It provides an excellent introduction to
analytics in key areas of decision-making.”
—Professor Jochen Wirtz, Vice Dean MBA Programmes, National University of
Singapore
Vinod Sharma · Chandan Maheshkar ·
Jeanne Poulose
Editors
Analytics Enabled
Decision Making
Editors
Vinod Sharma Chandan Maheshkar
Symbiosis Centre for Management East Nimar Education Society
and Human Resource Development Indore, Madhya Pradesh, India
(SCMHRD)
Symbiosis International (Deemed
University)
Pune, Maharashtra, India
Jeanne Poulose
CHRIST (Deemed to be University)
Ghaziabad, Uttar Pradesh, India
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Singapore Pte Ltd. 2023
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc.
in this publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for
general use.
The publisher, the authors, and the editors are safe to assume that the advice and informa-
tion in this book are believed to be true and accurate at the date of publication. Neither
the publisher nor the authors or the editors give a warranty, expressed or implied, with
respect to the material contained herein or for any errors or omissions that may have been
made. The publisher remains neutral with regard to jurisdictional claims in published maps
and institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature
Singapore Pte Ltd.
The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore
189721, Singapore
Foreword
The use of analytics can be found as far back as the nineteenth century
when Frederick Winslow Taylor initiated time management exercises.
Another example is when Henry Ford measured the speed of assembly
lines. In the late 1960s, analytics began receiving more attention as
computers became decision-making support systems.
Today, Data, undoubtedly, is what we get to see almost anywhere and
everywhere. Needless to say, the Data is enormous and does not stop
there; it is growing at a pace beyond imagination! Data is not just about
numbers; it is more than just digits! It is no longer just a tool for analysing
what has already happened. It is used to inform decisions and helps us
understand what may happen in the future. An enterprise needs to have a
data-driven culture so that it can make better decisions with confidence.
This book provides a valuable window on information assurance and
covers the necessary components of how today, owing to the amalga-
mation of an increasingly complicated world, the vast proliferation of
data and the pressing desire to stay at the forefront of competition has
prompted organizations to focus on using analytics for driving strategic
business decisions. The chapters provide an in-depth view of analytics,
with its far-reaching use cases and diverse applications now emerging as
the keystone of strategic business decision making. From enabling busi-
nesses to make consumer-oriented marketing decisions to helping them
address key operational inefficiencies, analytics is radically changing the
perception of the importance of data. Advanced statistical models are
v
vi FOREWORD
Vinod Sharma
Symbiosis Centre for Management
and Human Resource
Development
Symbiosis International University
Pune, India
Chandan Maheshkar
Centre of Internal Quality
Assurance
Madhya Pradesh Bhoj (Open)
University
Bhopal, India
Jeanne Poulose
School of Business
and Management
CHRIST (Deemed to be
University)
Ghaziabad, India
Acknowledgements
xiii
xiv ACKNOWLEDGEMENTS
xv
xvi CONTENTS
Index 281
Notes on Contributors
xvii
xviii NOTES ON CONTRIBUTORS
Woei-jyh Lee received BSE degree from the National Taiwan Univer-
sity, M.S. degree from the Courant Institute at New York University and
Ph.D. degree from the University of Maryland at College Park (UMD).
Chandan Maheshkar is a Senior Consultant at the Centre for Internal
Quality Assurance (CIQA), Madhya Pradesh Bhoj (Open) University,
Bhopal, India. He has served several management institutes in central
India including the University of Indore, India, in various academic roles.
Also, he is one of the founders of the East Nimar Society for Education
(2019) dedicated to quality improvement in higher education and the
development of educator competencies. Dr. Maheshkar earned his MBA
and Ph.D. from the University of Indore, India. In 2014, the Univer-
sity of Indore awarded him Golden Jubilee Research Scholarship on the
occasion of the completion of its successful 50 years. Business education,
HRD, Cross-Culture Business, and organizational behaviour are his core
areas of research interest.
Namita Mangal is working as an assistant professor at SGT University.
She has done her Ph.D. from FAM, University of Delhi. Her research is in
the field of Cross-cultural management and organizational development.
She has expertise in statistical tools like SPSS, AMOS, R and Tableau. She
has taught HR Analytics at several reputed institutes. She has a passion for
research and has several publications on her name. She has around four
years of academic and industry experience.
Manikandan M. K. Manicka is a seasoned teacher of marketing subjects.
He has eighteen years of teaching experience. Dr. Manikandan has done
his Ph.D. from Anna University Chennai, in the area of Private Label
Brands. He has published 14 research articles and has presented papers
at international and national conferences. He is currently associated with
CHRIST (Deemed to be University), Bengaluru as Assistant Professor.
Dr. Manikandan strongly feels that the activities of Marketing are in tran-
sition due to the disruption caused by technology. Marketing will embrace
more concepts and techniques that are specific to operations management
for better value creation for the customers. Dr. Manikandan MK Manicka
has handled courses related to operations like Supply Chain Manage-
ment, Material Management, and Operations Management. He is keen
to explore the opportunity that is provided by Services Operations. There
is a big scope to create more value for both the company and customers
through better design of services operations.
xxii NOTES ON CONTRIBUTORS
Algorithms as Decision-Makers
Fig. 1 Supply chain of decision-making algorithms
and the emphasis of the systematic review 35
Fig. 2 The interaction and power of human being vs. algorithm
in decision making 37
xxvii
xxviii LIST OF FIGURES
Algorithms as Decision-Makers
Table 1 The orientation of studies between DSA and DMA 29
xxxi
xxxii LIST OF TABLES
1 Introduction
Each day, 2.5 quintillion bytes of data is being created with each click,
swipe, or press of a button across the globe (Akter et al., 2019; Marr,
2018). From outer space to the drawing room, data is getting generated
continuously, be it through the Mars orbiters relaying data back to Earth
at a staggering speed of 160 bits per second (NASA, 2022) or through
the 24 million e-commerce websites generating a huge amount of data
every second when a customer clicks or scrolls (Gennaro, 2022). Data is
undoubtedly the new ammunition that can both win and prevent wars in
V. Sharma (B)
Symbiosis Centre for Management and Human Resource Development
(SCMHRD), Symbiosis International (Deemed University), Pune, India
e-mail: [email protected]
J. Poulose
School of Business and Management, CHRIST (Deemed to Be University),
Delhi NCR, India
e-mail: [email protected]
C. Maheshkar
East Nimar Society for Education, Khandwa, India
2 Decision-Making Framework
The human mind does not have the ability to comprehend completely
a complex problem and take precise decisions within a limited time
using inadequate resources (Simon, 1972). Usually, decision making is
approached in the manner documented below (Fig. 1):
Strategic Problem
Implementation Identification
Reveiw of Past
Model Building
Data
Data Collection
& Processing
who were moving across teams and maintaining relationships with all were
able to leverage an initiative of one department and apply it in another.
The problem thus was not a lack of creativity but the lack of interaction
and networking that is much needed for triggering the creative thought
process (Leonardi, 2018). The cross-movement of individuals between
teams was found to be an important predictor of creativity among the
individuals.
Delving into the case of big basket should help establish this point
beyond doubt. The online grocery market was small but had a huge
potential to grow in India. It was estimated by EY that the Indian
online grocery market would reach $350 billion mark by 2015. This
sector was growing by 35 percent and had a penetration of 2.3 percent.
This potential led to the establishment of Bigbasket.com by a group of
entrepreneurs Hari Menon, Vipul Parekh, V. S. Ramesh, V. S. Sudhakar,
and Abhinay Choudhary in 2011. Initially, there were no leaders in
this sector. A small number of big players like bigbasket.com, Amazon,
Flipkart, Grofer, EkStop, and LocalBanya, etc. was serving the market.
Gradually Bigbasket.com attained a market share of 35 percent and
became the largest online grocery store in India. It now processes around
20,000 orders a day (Department, 2022).
Bigbasket.com was the first online store in India. It initiated its oper-
ations in tier one cities such as Bengaluru, Delhi, Mumbai, Pune, etc.
where traveling time is high and therefore, the unique selling propo-
sition of Bigbasket.com, to begin with, was to offer convenience to
its customers. As stated by Mr. Hari Menon, CEO and Co-founder of
Bigbasket.com, ‘We need to continuously improve the shopping experience
of our customers . With more and more customers choosing mobile hand-
sets to place orders, browsing the entire merchandise is challenging, we need
innovative ideas to make Bigbasket customer friendly’ (Customer Analytics
at Bigbasket—Product Recommendations, 2016).
Subsequently, Bigbasket.com came up with additional interesting
features like ‘did you forget ’. Many customers have the tendency to forget
items they intended to buy. It was found in one of the studies conducted
by Fernandes et al. (2016) that more than 30 percent of customers forget
to include items while shopping online. This forgetfulness may translate
into financial loss to these online grocery stores. Customers may proceed
to buy these forgotten items either from another online store or from
physical store situated in nearby location. If they opted to buy online,
they would have to bear a higher logistic cost considering the smaller
8 V. SHARMA ET AL.
order size and this cost would have to be borne by either the customers
or e-tailers. Customers would be discouraged to shop if they had to bear
the brunt and may opt to shop these forgotten items at a nearby physical
store. When these customers shop at the physical store, they generally end
up buying more items which would result in a reduction in the next order
from the online stores. Thus, Bigbasket.com came up with an algorithm
with the ability to predict the items that a customer may have forgotten to
order and introduce ‘did you forget ’ feature in the application (Customer
Analytics at Bigbasket—Product Recommendations, 2016).
Bigbasket.com is a great example to manifest the importance of asking
the right question and that identifying the right business problem is the
key to success in making in-time and accurate decisions. Data with the
right set of questions is thus the first and foremost skill requirement of
data scientist. The problem identified rightly is half solved right away and
data analytics aids in improving the efficiency of this process. The clarity
in problem statement is essential to produce accurate results. Bigbasket
had large amount of unstructured data, which it used to comprehend the
relationship between various data attributes. It used descriptive analytics
to understand the data better and with tools like Tableau and Power BI it
was able to gain further insights by simplifying the data (Rangaiah, 2020).
Steve Jobs may have been right about intuitive decision making in a
certain context when he said, ‘Have the courage to follow your heart and
intuition; they somehow already know what you want to become’ (Page,
2021) but managers are better advised to back their intuition and passion
with analysis of past data to fill the informational gaps prior to taking any
major decisions. Intuitive decisions of the most experienced, confident
and skilled managers are to be tested in the real world in the back-
drop of data. Inappropriate decisions taken purely on instinct without
any data backup may cost the organisation and the individual alike. A
case in point would be Toyota’s decision based on historical data analysis,
to pay more attention to safety features that would make it difficult for
someone to hit the accelerator even if they wished to. The right deci-
sion at the right time helped the organization improve its efficiency and
save lives. A detailed analysis of historical data in Japan pertaining to road
accidents revealed that around 15 percent of the fatal accidents involved
people who were 75 years and above at the wheel. The analysis of this
data further revealed that the elderly were mostly involved in these acci-
dents as they hit the accelerator accidentally assuming it to be the brake.
This understanding gained from past data helped automaker Toyota to
invest heavily in safety features aimed at reducing the risks involved in
vehicles driven by the elderly and the policymakers to come up with strin-
gent driving norms and roll out policy initiatives to discourage the elderly
from driving (Reuters, 2020). Here descriptive analytics paved the way
for diagnosing the problem and prescribing the solution to the same.
Yet again we can refer to the growth story of big basket to understand
the significance of analytics at this stage. The company identified that
Amazon and Flipkart, the two major giants in the online business, feature
several items, as many as 100, on the screen. It takes a considerably long
time to search for all the items and place an order and thus, it discouraged
customers to shop online. Specifically, it becomes miserably difficult when
they are using smartphones to shop. Customers buy grocery online for
two major reasons, ease of use and time saving, therefore, Bigbasket.com
created a ‘smart basket ’ which is an Artificial Intelligence (AI) based
recommended basket, consisting of items that a customer is likely to buy.
This feature works on two types of recommendations, content based (use
historical data and recommend similar items purchase earlier by matching
the common features ) and knowledge based (use knowledge of the users,
items, and their relationships ), which help in reducing a good deal of time
needed to place the order (Customer Analytics at Bigbasket—Product
10 V. SHARMA ET AL.
Atlan started collecting data from the oil and gas companies but real-
ized quickly that it was not very useful. This data was typically sales data
through which taking a decision to reduce the distance traveled by the
villages was not feasible. To address this issue, they bought in all the data
from different sources and mapped all the 604,000 villages on the map.
Collecting and merging this data was not an easy task as it was captured
in the local regional languages and mostly old data is captured tradition-
ally in the physical registers. So, to manage it, the business intelligence
algorithm was used. This helped in merging this unstructured data and
permitted the data to talk to each other. Another challenge was to identify
12 V. SHARMA ET AL.
"Äiti niin tahtoo", jatkoi Beata luottavaisesti, iloisena että oli joku
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Syy kumminkin oli se, että hän ei voinut sietää Niilo Olavin
punakoita kasvoja, ulkonevine, sinisine silmineen — häntä jo niiden
ajatteleminenkin hermostutti. Hän tunsi häntä kohtaan salaista,
voittamatonta, oikeastaan järjetöntä ja aivan perusteetonta
vastenmielisyyttä, joka hetkittäin voi paisua melkein vihaksi, niin
sietämätön oli hänelle ajatus, että tuo hidas köntys kerran olisi
omaava Agnetan joka — sen vannoi hän useammin kuin kerran, oli
kaunein tyttö, minkä hän tunsi, huolimatta siitä, että hän vain oli
skånelainen maalaistyttö ja sitä paitse hänen oma likiserkkunsa,
jonka hän muisti niiltä ajoilta kun tämä kapalossa nukkui.
"Serkku Joachim…"
"Minä tiesin sen! Karin Marialta hävisi kampa, kun hän kampasi
tänä aamuna, ja harakat ovat nauraneet koko päivän. Se ennustaa
aina vieraiden tuloa".
"Ja miten ihailtu tuo Susen sitte on!" jatkoi Agneta samanlaisella
äänellä. "Hän on jo ollut kihloissa kahdentoista arvoasteikossa
kulkian kanssa!"
Mutta Joachim nauroi täyttä kurkkua — hän tunsi kuinka hän päivä
päivältä pääsi yhä enemmän serkkujensa "perille".