New Cornell certificate helps create the ethical data science workplace of the future

We increasingly place our trust in algorithms, whether applying for a mortgage, a new job; or making personal health decisions. But what about the security system that uses facial recognition and locks out a 55-year-old office custodian from her night shift? Or the groups of people automatically cropped out of photos on social media? These are the unintended, and often unfair, consequences of data science tools amplified across millions of users. They’re also highly preventable.

This is the lesson that lawyer and epidemiologist M. Elizabeth Karns embeds in every data science and statistics course she teaches in the Department of Statistics and Data Science. Her students will be deciding how to use data in the future, and while bad decision-making in business isn’t new, Karns says it’s the accelerated and aggregated effect of today’s data science applications that’s so dangerous: individual, team or even a whole company’s worth of decisions, can instantly affect the lives of millions of people. Moreover, the torrent of new technologies is moving faster than our regulatory systems, leaving a gap in accountability. Even data scientists themselves often don’t know exactly what’s happening inside their algorithms.

Read the full story on the Cornell Chronicle website.

Johnson offers a new degree via eCornell: the Master of Science in Business Analytics

The Samuel Curtis Johnson Graduate School of Management, in collaboration with eCornell, is launching a new, online, STEM-certified degree program, the Master of Science in Business Analytics (MSBA).

Johnson’s MSBA is designed for working professionals who seek to build a career in analytics with the skills employers say they desire most: a comprehensive understanding of the language and concepts of business, strong communication and teamwork skills, and the ability to apply the tools of data science to real problems and real data. In this hands-on program, students will collaborate in diverse teams and build a portfolio of data analytics projects as they learn to use essential analytics tools like Excel, Python, R, SQL, and Tableau to collect, visualize, and analyze data to optimize business decisions and evaluate results.

“Success in business analytics requires technical skills, creativity, and critical thinking,” says MSBA program director Vishal Gaur, Emerson Professor of Manufacturing Management, professor of operations, technology and information management. “Our first goal for students in the MSBA program is to excel at these skills by learning from their Cornell University professors who have deep expertise across a wide range of fields. Working with data also poses new challenges and requires awareness of its limitations with regard to bias, fairness, privacy, and ethics. So our second goal for our students is to become careful about the implications of analytics for society and to be aware of the incredibly transformative power of data, so that they can be responsible and effective problem solvers.”

The MSBA degree program offers students a flexible curriculum that allows them to specialize in a concentration aligned with their professional goals. The four concentrations include:

● Marketing Analytics—designed for students seeking careers in fields such as digital marketing, marketing analytics for consumer and business-to-business products, and product marketing.

● Finance Analytics—designed for students seeking careers in fields such as corporate finance, fintech, lending and credit analytics, banking and investment analytics, and fraud detection.

● Operations and Supply Chain Analytics—designed for students seeking careers in fields such as retailing operations, supply chain analytics, revenue management, manufacturing, and digital businesses including marketplaces and gig economy firms.

● Business Analytics—designed for students seeking careers in fields such as healthcare, human resources, and education.

“Data-driven problem solving is at the heart of the Cornell MSBA,” says Mark Nelson, Anne and Elmer Lindseth Dean of Johnson. “Our program features an extensive business core, a choice of specialized concentrations, an emphasis on communications and collaboration, and an applied, hands-on curriculum to instill creative and resourceful problem solving. We designed the program this way because our research with practicing business-analytics professionals and employers indicated a pressing need for talent that combines those capabilities.”

All courses will be taught by Johnson faculty and faculty in the broader Cornell SC Johnson College of Business. Faculty and industry practitioners will also serve as mentors for the capstone projects.

Instruction for the first intake of the 16-month MSBA program will begin online on May 16, 2022, and run through August 2023. The degree program includes two one-week, intensive summer residency sessions, the first in Ithaca, New York in summer 2022, and the second in New York City in summer 2023. It also entails a substantial capstone project which will unfold over the duration of the program and culminate in industry-ready final deliverables.

Applications for the program are now open.

Learn more about Cornell’s MSBA

This story first appeared on the Cornell SC Johnson College of Business news site, BusinessFeed.

Cornell Johnson Launches STEM Master In Business Analytics

Cornell Johnson College of Business is the latest US business school to launch a Master in Business Analytics (MSBA) program.

Cornell follows other top US schools like MIT Sloan School of Management and UCLA Anderson School of Business, who offer top-ranked MSBAs.

The STEM-designated program will be taught part-time over 16-months and will be predominantly online.

Cornell Johnson MSBA: The curriculum
Demand for data analytics skills is growing. According to the GMAC Corporate Recruiters Survey, 37% of recruiters hired MSBA grads in 2018, compared with a projected figure of 62% in 2021.

This increase means MSBA grads are likely to be able to land roles across a wide range of industries, with the vast majority of companies implementing data into their business models.

“The need for data analytics in organizations and society is increasing rapidly,” says Vishal Gaur (pictured), program director for the new MSBA. “We have been working towards this program for the last two years, meeting with alumni and recruiters to assess the requirements from business analytics professionals.”

Cornell’s new MSBA looks to capitalize on this trend, offering students the chance to develop their analytics skills and knowledge of analytical tools.

The program is scheduled to begin in May 2022, and will run until August 2023. It will be delivered through Cornell’s award-winning online learning platform eCornell.

Teaching will be delivered asynchronously, giving students the flexibility to view online sessions at a time that suits them. But there will be some in-person requirements; Cornell’s MSBA curriculum includes two week-long residency sessions in the summers of 2022 and 2023. These will be held in Ithaca and New York City.

The program is also designed to encourage students to work together, Vishal says.

“It will be run like a residential Johnson program with small cohorts, extensive interaction with faculty and fellow students, and co-curricular activities that allow students to expand their knowledge and network outside of the classroom,” he explains.

The curriculum covers core business elements along with soft skills such as communication and teamwork. This is combined with a focus on analytics skills; students will learn to use tools like Python, SQL, and Tableau to gather, analyze, and visualize data.

Industry-focused specializations
Along with the flexible teaching delivery, the curriculum also features six elective modules covering topics like Machine Learning for Investment and Customer Analytics and Strategy.

During a specialization period, students can choose from one of four different concentrations. These include Marketing Analytics, Finance Analytics, Operations and Supply Chain Analytics, and Business Analytics.

Each specialization is designed for students aiming to launch careers in their chosen field, and so covers a range of analytics functions within that industry. The Finance Analytics specialization, for example, includes teaching on subjects including corporate finance, fintech, and lending and credit analytics.

The program also requires students to work together in teams on a variety of projects. During the program each student will work on a Capstone Project where they will seek to solve a real-world issue using a large data set and analytics tools. They’ll present their findings to MSBA faculty members.

Applications for the Cornell MSBA are now open. If you’d like to enroll in this cutting-edge program, Cornell estimates tuition will amount to around $78,000.

Master data science programming in R with new certificate program

In a world run by data, the demand for this skill has never been higher. Data analytics is essential to almost every facet of decision-making across any organization. Glassdoor recently named it the #1 job in America, and in the top 3 must-have skills. Cornell’s new certificate program, Data Analytics in R, is designed to help take a fundamental understanding of analytics to a mastery of programming in R.

Ideal for any professional looking to scale their skills and knowledge, this program will teach techniques for understanding, modeling and visualizing data using R, including predictive and prescriptive analytics, machine learning, the Monte Carlo simulation and optimization methods for making both small and large scale decisions.

“The world has really progressed when it comes to data analytics. Today it is being used across all organizations and verticals, be it financial services or consumer goods or travel, to enable informed decisions on a daily basis,” said Chris Anderson, faculty author and Professor at the School of Hotel Administration within Cornell’s SC Johnson College of Business. “We’re now at a place where these are critical skills for people who want to set themselves apart.”

The program consists of three three-week courses:

  • Predictive Analytics in R
  • Clustering, Classification, and Machine Learning in R
  • Prescriptive Analytics in R

Upon completion, participants will receive a Data Analytics in R certificate from Cornell University. Learn more about this program by visiting the eCornell website.

Want Better Data? Build from the Bottom Up.

At Cornell University’s Center for Hospitality Research, one of the main aims is to make research available in a digestible format for those in the hospitality and service industries. A large part of that work involves helping the industry not only collect significant data but to make sense of it in order to make better business decisions.

As part of eCornell’s webcast series, the center’s director, Professor Chris Anderson, joined eCornell’s Chris Wofford for a discussion on data analytics and why industry professionals should adopt a bottom-up approach to data. What follows is an abridged transcript of their conversation.

Wofford: Welcome. Let’s talk about data-driven analytics and what the bottom-up approach means.

Anderson: The first thing to note is that good analytics is not necessarily new. I’ve been in this space for a little more than 25 years now. What’s really happened in the last five to ten years is that analytics have become much more accessible — and with that new accessibility comes lower costs. As a result, it’s become much more widely adopted.

But I think we’ve kind of lost a bit of what I refer to as the bottom-up approach, which is involving those who are critically close to the business itself in the data analytics. You need to have an understanding of where that data came from, what potential variables you’re missing, and how it was sampled. In order to get the most out of data analytics, you need a firm understanding of the business itself and how things should be working towards some sort of outcome. In the opposite scenario, the top-down approach, we let technology tell us what’s going on and we sort of let the data drive the solution.

Wofford: Can you give us a real-world example of what you mean?

Anderson: I come at this historically from the hospitality space, from the demand and pricing side of things. That space to me has always been fascinating because, in order to price and control a hotel or an airline, you really have to have a fundamental understanding of where demand comes from, how the business manages that demand, and what kind of decisions they can make. You really get this deep insight into how you make money.

So for a lot of data analytics, that becomes this core set of skills and once we’re good at it, then we really understand our business well and it brings a lot of opportunities for us.

Wofford: What kinds of data analytics are relevant to the hospitality and service industries?

Anderson: There are three basic forms of data analytics. The first is what we refer to as descriptive, where we’re just describing what has happened or just reporting. It’s kind of a backward view of the world.

Our second is the predictive world, it’s the forward-looking part of analytics where we’re trying to use our insight from reporting to help us look at relationships and make predictions about the future. And then predictive analytics goes one step further and tries to see what factors resulted in us achieving previous metrics, what we might do to impact those and what the future outcome might be.

The third part is prescriptive analytics. Once you understand where you’ve been and have a good sense of how to go forward, then you want to use some tools and techniques to make sure you’re going forward in the profit-maximizing or cost-minimizing sort of way.

It’s about using a set of tools to help us do the best going forward, given the insight that we’ve been able to extract from this both descriptive and predictive framework.

Wofford: What are those tools? What are you looking for within the data?

Anderson: We use things like optimization, where we are looking at making multiple decisions at a time. We use things like decision analysis and programming.

We work on incorporating uncertainty into our decisions. No decision is made out of certainty, so we don’t want to just ignore that. We want to make decisions knowing that there is some uncertainty and once I make one decision I can adjust to those uncertainties and make subsequent decisions.

We use different tools if there’s a lot of uncertainty that’s evolving over time and we might use another set of tools if there’s so much complexity that it’s hard for us to map out how things are all working together.

We think about the starting block as being reporting. Your goal is really to understand how well you’ve been doing, so you’re focused on key performance indicators. How was I pricing? How was my competitor pricing? We are just looking at some of these things together in concert with our backward-looking metrics.

This really lays the groundwork of the predictive part, in which we are trying to understand that these things may be impacting some of our key performance indicators, and we may look at those in different ways.

Even before we can start to do this we’ve got to collect the data, put it in a data warehouse, and have it organized in some sort of centralized way. One of the trickiest parts about this is we have to make sure that we have a lot of integrity around that data. We want to have a secure process from which we can extract, pull and analyze, but we don’t want to necessarily change that underlying structure.

There are a lot of pieces we have to make sure are lined up so that if we have lots of users, they are not going to distract from the quality of that data.

Wofford: In your experience, do you find that most companies have their data in order or when you go to work with them, or do you find you have a lot of work to do right out of the gate?

Anderson: For most organizations, it’s about getting their data house together. It’s often not well organized.

Wofford: So getting that data organized is almost always the biggest challenge?

Anderson: That’s right.

Wofford: Once things are put in order, are we then looking at the predictive component? You mentioned using this to reduce uncertainty – how do we do that?

Anderson: Well, let’s say you are looking at what your sales were last year. That would provide a naive estimate for the next year, right? But while you might be able to take last year’s average, there is a lot of variance around that average. So our goal is to generate a better estimate for the future that has less variance around it, so it’s a more refined guess. We try to make less naive guesses by using information from other attributes that may be impacting sales. If we know those factors going forward, that will help us refine the estimate for whatever that metric is, whether it’s sales or some other key performance indicator. The predictive part is all about reducing uncertainty and we do that through different kinds of relationships.

Wofford: Like competitive analysis, for instance?

Anderson: Right. How my competitor is pricing relative to how I’m pricing. But we have to be cautious because there’s no point in looking at the impacts of relationships unless you know those factors in the future. My sales are a function of how I price and how my competitors price but I don’t necessarily know how my competitors are going to price tomorrow or next week or next year.

Once we’ve got those two parts under our belts – the reporting and the predictive – then we can start to make better decisions going forward instead of just shooting from the hip. And that entails using a lot of these mathematical tools, along with our knowledge, intuition and expertise, to look at some of this complexity.

The prescriptive part is getting us beyond just making obvious logical decisions and trying to look at how things are interconnected. We don’t necessarily jump into this part unless we have our foundations in the information because the prescriptive modeling component is going to need inputs from reporting or inputs from our predictive components. They’re the critical first two steps before we get into part three.

Wofford: And the prescriptive element involves running a simulation in some way?

Anderson: Yes, you could think of it like that. You can think of a hotel trying to set optimal prices to maximize revenue. To do that, the hotel owners have to have some estimate of future demands and ideally some estimate of future price-dependent demand. That estimate of future price-dependent demand from our predictive analysis will then be input into our optimization models to help us formulate those decisions going forward.

Wofford: We hear a lot about things like “text analysis” and other new techniques that help us look beyond simple numeric data. Can you tell me about that?

Anderson: Think of Amazon reviews. We’re selling products on Amazon and we’re looking at what consumers are saying. We have to be cognizant that other consumers are reviewing that content. They’re paying attention to that average review score on Amazon but they’re also actually looking at what people said about the product. So we need to look for keywords and repetition of those keywords.

Yes, I could read all that information manually, but we can now use tools to help us pull up keywords and their frequencies to help us get a sense of what’s going on.

Wofford: I’m guessing this is probably common across all industries at this point.

Anderson: Yes, because now you can review anything. And there’s hardly any business that doesn’t have some sort of online chat service where consumers are typing information. So it’s about trying to look at what questions they’re asking, what problems they’re having with your product and then asking yourself how you can use that data to improve the product.

There’s just so much unstructured text today so we’re trying to look for ways to streamline how we extract insight because we don’t have infinite time to read it. Most of the tools for analyzing text are pretty standardized and most of the algorithms that we can use have been well developed. We’re ten-plus years into things like sentiment analysis so it’s not like we have to reinvent the wheel. There are a lot of off-the-shelf approaches.

Wofford: I’d like to turn to a question from the audience. Peter, who identifies himself as a “non-analytics person” posed this question: “In terms of decisions, I sometimes hear, ‘The numbers don’t support that.’ But it’s often on content that I know has not been marketed. So it seems the decision may be made on numbers that are correct, but that the decision comes from a faulty premise. Is this something you see often?”

Anderson: One of the classic things that I see is that organizations think price is going to impact demand, and they think they are changing prices but what they’re really doing is moving prices seasonally. And when things move together, you can’t really tell the impact of the season versus the price, because those are both adjusting together.
So one of the things we see in that data is that we may not have created the right kind of variance in order to see the outcomes.

Most of us don’t experiment with our business on a regular basis but in order to get insight from data, we have perturb those inputs. It’s just like the science experiments with two petri dishes, where you pour bleach on one and not on the other one to see what kind of bugs grow.

We have to have that experimental mindset when generating this data, because if we’re not making those little perturbations to our business practices, then it’s very hard for us to see how A leads to B because we’ve never manipulated A. Or we’ve only manipulated A at the same time we’ve manipulated B, C and D. If I always drop prices and spend more on marketing together, it’s hard for me to unravel which of those was the driving factor. Our data will not tell us that unless we’re cognizant from the business standpoint of having manipulated those things in such a fashion to generate that variance.

Wofford: So to glean real insight, you’ve got to be willing to take risks?

Anderson: Right. Be like a scientist and do some experimenting. You know, the online world has dramatically changed because of what we call A/B testing. Now it’s so easy to tweak something, so we can do all of these little A/B experiments. It’s very easy to create variances and see the outcome.

Wofford: So in some ways, you describe this as a linear process, but at the same time, it’s not. It’s iterative.

Anderson: It is. One minute to the next. The goal of predictive analysis is to look for robust insight into the future. And that is where, for me, the bottom up approach is critical. Yes, we’re trying to understand your business model but nothing is constant. There could be a new competitor, underlying changes in dynamics or some sort of disruption happening. In order to be robust to those changes, the models that we build from the predictive framework have to be grounded in our business practices.

And that comes from this bottom-up approach, versus just letting the data tell us what’s going on. For me, as a data analyst, it’s always about thinking about my two minute elevator pitch. How do I justify my models and can I clearly explain those models in layman’s terms? If I need to use statistical terminology to explain my insight and my models, that is going to tell me that I’m not necessarily grounded, that I’m relying on the data versus relying on my intuition.

It’s some give and take. You have to go back and forth, but the more bottom-up you are, the easier it is for you to justify models and to communicate those models to other people.

Wofford: I want to thank Chris Anderson for joining us today.

Anderson: Thank you, Chris, this was great.

 

Want to hear more? This interview is based on Chris Anderson’s live eCornell WebSeries event, A Bottom Up Approach to Data-Driven Analytics and Why We All Need to Be Involved. Subscribe now to gain access to a recording of this event and other Hospitality topics. 

eCornell’s New Data Analytics Certificate Equips Professionals to Translate Big Data into Actionable Business Insights

— Program is essential step in data science career, ranked best job in America for 2017 —

Data scientists and data analysts are hot commodities; they were ranked the #1 job in America for 2017 by Glassdoor and named the sexiest job of the 21st century by Harvard Business Review. Demand for these roles—and their intersecting skills in business, statistics, and programming—is driven by organizations swimming in data but hamstrung by a shortage of employees with the critical mindset needed to translate it into meaningful decisions. Yet educational institutions lag in preparing students for these jobs. To close the gap, Cornell University is now offering professionals the opportunity to earn an executive certificate in Data Analytics so they can build core fluency in data analysis and a foundation for further technical study.

“Data analysis requires professionals to be informed consumers of data. Technical knowledge is necessary, but it’s actually even more valuable to know which questions to ask, how to ask them, test them, and translate them into business intelligence. Done well, data analysis provides a valid narrative business leaders can follow to make more successful strategic decisions,” said Chris Anderson, Ph.D., the certificate’s faculty author from Cornell University.

The Data Analytics certificate consists of three intensive courses that provide professionals with an essential understanding of how and why data is used to create value in business: Understanding and Visualizing DataImplementing Scientific Decision-Making, and Using Predictive Data Analysis. Each three-week course builds the analytical mindset, starting with what data is, and moving into how to visualize data and build predictive models and reporting. Students strengthen their ability to connect data to decisions—learning how to make inferences about data samples and analyze relationships across data to predict future outcomes, with the option to use datasets from their own companies.

Courses offer step-by-step “How Tos” for all statistical processes and teach universal Excel-based analysis tools. From data visualization to predictive analytics, Professor Anderson combines accessible terminology with his wide-ranging experience in management science and statistics to teach skills that translate across software platforms.

The Data Analytics certificate is a critical credential for today’s professionals across many industries, complementing several eCornell certificate programs in marketing, leadership, revenue management, and human resources. For students new to statistics, courses expose them to the fundamentals and remove barriers to getting started. Professionals with deeper statistical knowledge will learn to ground data in the language of business decisions, and current data analysts will enhance their ability to communicate with key audiences and make meaning out of data. Senior executives will also become more critical consumers of data, and better able to guide and manage analysts productively.

Students who complete the program receive an Executive Certificate from Cornell University and will earn 0.6 Professional Continuing Education Units (CEUs) for each course completed.

 

About eCornell
As Cornell University’s online learning unit, eCornell delivers online professional certificate courses to individuals and organizations around the world. Courses are personally developed by Cornell faculty with expertise in a wide range of topics, including hospitality, management, marketing, human resources and leadership.  Students learn in an interactive, small cohort format to gain skills they can immediately apply in their organizations, ultimately earning a professional certificate from Cornell University. eCornell has offered online learning courses and certificate programs for 15 years to over 130,000 students at more than 2,000 companies.

Determine Your Customer Lifetime Value

Marketing is all about maximizing a customer’s financial contribution to your brand. The more a customer spends on your products or services, the better it is for your bottom line. But there’s more that goes into a customer’s value than a big purchase here and there. We’ve taken the formula for determining your customer’s lifetime value from our certificate in Data-Driven Marketing to give you a sneak peek into the Ivy League strategies we can offer to enhance your marketing campaign.

Customer Lifetime Value Equation

You can use a simple equation to determine exactly how valuable a customer is to your overall success as a company. By figuring out the customer lifetime value (CLV) for your top customers, you’ll be able to see just how much each contributes to your revenue goals.

The customer lifetime value calculation consists of three distinct parts, which are multiplied to give you a quantifiable figure that shows a customer’s overall worth. Use this formula to see how your top customers shape up or to analyze a specific segment to see how certain customers can become more valuable.

Average Spend

The first part of the equation is simple. How much does a given customer spend, on average, when he or she patronizes your business? This number can be easily calculated through any sort of internal database you may have. You can also help to drill down to the individual customer by using customer loyalty cards or personalized website logins for online purchases.

Repeat Sales

Knowing how much a customer spends is only valuable if placed in the right context. A customer who spends $1,000 for a one-time purchase is less valuable than someone who spends $100 each month over the course of a year. While you obviously want a customer to spend as much as possible, the frequency with which a customer shops is just as important. Furthermore, frequent visits show a measure of loyalty that can’t be quantified by looking solely at a customer’s average expenditure.

Retention Time

Let’s face it, there’s no such thing as a lifelong customer. You’d be foolish to expect a customer to stick around forever. But you can figure out how long the average customer supports your business and apply that to the general population. Again, the longer the retention time, the better off you are, but some businesses aren’t based around lengthy periods of retention. For example, a store that specializes in baby merchandise won’t be able to retain customers for as long as a store that targets adults.

When you multiply all three of these elements, you end up with a figure that can be used to represent a customer’s lifetime value to your business. This amounts to the present value of future cash flows, so you may end up getting more out of customers than you expect. In any case, customer lifetime value is a great tool to use as you attempt to identify and target your most important customers.

Alternate Calculations

The calculation described above is just one way to calculate CLV. Other formulas incorporate additional factors, such as acquisition costs, direct mailing costs, and your company’s margin rate.

If you’re interested in learning more about CLV and other marketing concepts, consider the Data-Driven Marketing certificate program offered by eCornell. You’ll learn about the elements that comprise customer lifetime value, as well as how it can best be used as part of a comprehensive marketing campaign.

Insightful Big Data Conversations

Many executives have read the articles touting that 90% of all data has been created in the past several years. While this news is exciting for data junkies like me, I think it opens the door to a new set of conversations executives and CEOs must have as Big Data and analytics become increasingly accessible and abundant. There are two conversations executives need to have to ensure they are on the right path toward data insight rather than data overload.

“Can we use Big Data to help drive better decision making?”  

According to McKinsey & Company, the productivity and profitability of firms that use Big Data and analytics is 5-6% higher than those of peer firms. However, the best analytics dashboard in the world means nothing if frontline employees do not use it to make informed decisions. It’s important to assess current skills, culture, and decision-making processes while planning any Big Data strategy.

“What data do we have and what data do we need?” 

Many executives mistakenly think the data they have in-house is all they will need. In most cases, data from outside sources add contextual insights that are simply nonexistent otherwise. The focus should be on the quality and relevance of each data point to address business challenges.

While Big Data and analytics can provide a lasting competitive advantage, the most important aspect of any Big Data and analytics initiative rests in the insights gleaned through the data. Once you have the insights, you can focus your attention on making those insights actionable.

 

3 Reasons Big-Data Has Big Relevance

To those who challenge the significance of big-data, I say, “Get real.”

Big-data absolutely matters for analytics and related disciplines such as market research and competitive intelligence. Why? Because it offers distinct benefits that can otherwise be hard, or even impossible, to come by.

I’m sure you’ve heard big-data described in terms of size, variety, and velocity, or what I call “real-timeliness.”Read More