Analytics, SPRING 2009<br />
DRIVING BETTER BUSINESS DECISIONS<br />
<br />
HOW TO SELL ANALYTICS TO SKEPTICS<br />
A CONSULTANT'S GUIDE TO FINDING BUSINESS, MANAGING PROJECTS AND SUCCEEDING IN A DIFFICULT ENVIRONMENT.<br />
<br />
ALSO INSIDE:<br />
* FINANCIAL FIASCO FORUM: Were mathematical models to blame for the economic meltdown?<br />
* ABCs OF SIMULATION PRACTICE: Alphabet soup of components for applying knowledge and judgment.<br />
* HARD SELL FOR SOFT O.R.: U.S. slow to warm up to methodologies that tackle messy problems.<br />
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BGLB=>LMHKR<br />
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FH=>ELF>EM=HPG<br />
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Given the worldwide economic<br />
meltdown that weighs so heav-<br />
ily on just about everyone’s mind<br />
these days, it should come as<br />
no surprise that many of the ar-<br /><a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 1" href="http://viewer.zmags.com/publication/7c795aa6?page=1">Analytics, SPRING 2009DRIVING BETTER BUSINESS DE</a> Analytics, SPRING 2009DRIVING BETTER BUSINESS DE<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 2" href="http://viewer.zmags.com/publication/7c795aa6?page=2">BGLB=>LMHKRFH=>ELF>EM=HPG Given the wor</a> BGLB=>LMHKRFH=>ELF>EM=HPG Given the wor<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 3" href="http://viewer.zmags.com/publication/7c795aa6?page=3">TABLE OF CONTENTSBy Warren LiebermanA cons</a> TABLE OF CONTENTSBy Warren LiebermanA cons<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 4" href="http://viewer.zmags.com/publication/7c795aa6?page=4">DEPARTMENTSINSIDE STORY VIEWPOINT FORUM PE</a> DEPARTMENTSINSIDE STORY VIEWPOINT FORUM PE<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 5" href="http://viewer.zmags.com/publication/7c795aa6?page=5"></a> <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 6" href="http://viewer.zmags.com/publication/7c795aa6?page=6">OB>PIHBGMMA>K>ÌL:EP:RLËFH=>EKBLDÌ </a> OB>PIHBGMMA>K>ÌL:EP:RLËFH=>EKBLDÌ <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 7" href="http://viewer.zmags.com/publication/7c795aa6?page=7">OB>PIHBGM HG>H?MA>;B@@>LM • What transf</a> OB>PIHBGM HG>H?MA>;B@@>LM • What transf<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 8" href="http://viewer.zmags.com/publication/7c795aa6?page=8">FORUM: ECONOMIC CRISISDID FAULTY MATHEMATICAL MO</a> FORUM: ECONOMIC CRISISDID FAULTY MATHEMATICAL MO<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 9" href="http://viewer.zmags.com/publication/7c795aa6?page=9">and then price all derivative securities usingth</a> and then price all derivative securities usingth<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 10" href="http://viewer.zmags.com/publication/7c795aa6?page=10">FORUM: ECONOMIC CRISISIF PRESTIGIOUSPROFESSI</a> FORUM: ECONOMIC CRISISIF PRESTIGIOUSPROFESSI<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 11" href="http://viewer.zmags.com/publication/7c795aa6?page=11">market bubble. For example, in calculating thema</a> market bubble. For example, in calculating thema<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 12" href="http://viewer.zmags.com/publication/7c795aa6?page=12">management science community and otheranalysts n</a> management science community and otheranalysts n<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 13" href="http://viewer.zmags.com/publication/7c795aa6?page=13">REAL WORLDHOW TO SELL ANALYTICS TO SKEPTICSA C</a> REAL WORLDHOW TO SELL ANALYTICS TO SKEPTICSA C<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 14" href="http://viewer.zmags.com/publication/7c795aa6?page=14">Based on how the consultant respondedto the ques</a> Based on how the consultant respondedto the ques<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 15" href="http://viewer.zmags.com/publication/7c795aa6?page=15">the SVP’s perception and expectationthat this co</a> the SVP’s perception and expectationthat this co<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 16" href="http://viewer.zmags.com/publication/7c795aa6?page=16">through my files (and admittedly, I mighthave mi</a> through my files (and admittedly, I mighthave mi<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 17" href="http://viewer.zmags.com/publication/7c795aa6?page=17">typically agree to pay our standard feeand not s</a> typically agree to pay our standard feeand not s<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 18" href="http://viewer.zmags.com/publication/7c795aa6?page=18">SOFTWARE SOLUTIONSTHE ABCs OF SIMULATION PRACTIC</a> SOFTWARE SOLUTIONSTHE ABCs OF SIMULATION PRACTIC<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 19" href="http://viewer.zmags.com/publication/7c795aa6?page=19">simulation textbook. What we are presentinghere </a> simulation textbook. What we are presentinghere <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 20" href="http://viewer.zmags.com/publication/7c795aa6?page=20">G is for graphics. It is said that “apicture is </a> G is for graphics. It is said that “apicture is <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 21" href="http://viewer.zmags.com/publication/7c795aa6?page=21">the material handling system. Thisrepresents a v</a> the material handling system. Thisrepresents a v<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 22" href="http://viewer.zmags.com/publication/7c795aa6?page=22">Q is for queueing. The measurementof the number </a> Q is for queueing. The measurementof the number <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 23" href="http://viewer.zmags.com/publication/7c795aa6?page=23">or more of these events in each modelexperiment </a> or more of these events in each modelexperiment <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 24" href="http://viewer.zmags.com/publication/7c795aa6?page=24">STATISTICAL SOFTWAREA LONG WAY FROM FLIP CHART</a> STATISTICAL SOFTWAREA LONG WAY FROM FLIP CHART<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 25" href="http://viewer.zmags.com/publication/7c795aa6?page=25">As we observe the centennial year forGosset’s pu</a> As we observe the centennial year forGosset’s pu<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 26" href="http://viewer.zmags.com/publication/7c795aa6?page=26">the underlying variation consists of groupsof re</a> the underlying variation consists of groupsof re<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 27" href="http://viewer.zmags.com/publication/7c795aa6?page=27">credit fraud. In both cases it is desired toisol</a> credit fraud. In both cases it is desired toisol<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 28" href="http://viewer.zmags.com/publication/7c795aa6?page=28">OPERATIONS RESEARCHTAMING HARD PROBLEMS WITH SOF</a> OPERATIONS RESEARCHTAMING HARD PROBLEMS WITH SOF<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 29" href="http://viewer.zmags.com/publication/7c795aa6?page=29">dancing, a procession and street tradingorganize</a> dancing, a procession and street tradingorganize<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 30" href="http://viewer.zmags.com/publication/7c795aa6?page=30">Action”) is wholly concerned with applicationsof</a> Action”) is wholly concerned with applicationsof<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 31" href="http://viewer.zmags.com/publication/7c795aa6?page=31">• Use the models as a way of questioningand expl</a> • Use the models as a way of questioningand expl<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 32" href="http://viewer.zmags.com/publication/7c795aa6?page=32">point and has to generate a consensusbetween the</a> point and has to generate a consensusbetween the<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 33" href="http://viewer.zmags.com/publication/7c795aa6?page=33">SUPPLY CHAIN MANAGEMENTHUMANITARIAN LOGISTICS</a> SUPPLY CHAIN MANAGEMENTHUMANITARIAN LOGISTICS<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 34" href="http://viewer.zmags.com/publication/7c795aa6?page=34">3. High uncertainty in location. Wemay know wher</a> 3. High uncertainty in location. Wemay know wher<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 35" href="http://viewer.zmags.com/publication/7c795aa6?page=35">8. Limited telecommunications andinformation inf</a> 8. Limited telecommunications andinformation inf<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 36" href="http://viewer.zmags.com/publication/7c795aa6?page=36">BEST PRACTICESUNLEASH THE POWER OF ANALYTICSIN</a> BEST PRACTICESUNLEASH THE POWER OF ANALYTICSIN<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 37" href="http://viewer.zmags.com/publication/7c795aa6?page=37">quality and coherence of analysis usedin practic</a> quality and coherence of analysis usedin practic<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 38" href="http://viewer.zmags.com/publication/7c795aa6?page=38">$715 (by April 6) when they send threeor more at</a> $715 (by April 6) when they send threeor more at<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 39" href="http://viewer.zmags.com/publication/7c795aa6?page=39">PROFILE: DON KLEINMUNTZINFORMS PRESIDENT HAS A</a> PROFILE: DON KLEINMUNTZINFORMS PRESIDENT HAS A<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 40" href="http://viewer.zmags.com/publication/7c795aa6?page=40">have limited data on which to base their models.</a> have limited data on which to base their models.<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 41" href="http://viewer.zmags.com/publication/7c795aa6?page=41">CORPORATE PROFILEGENERAL ELECTRICGLOBAL RESEAR</a> CORPORATE PROFILEGENERAL ELECTRICGLOBAL RESEAR<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 42" href="http://viewer.zmags.com/publication/7c795aa6?page=42">and enabled it to make the most profitable useof</a> and enabled it to make the most profitable useof<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 43" href="http://viewer.zmags.com/publication/7c795aa6?page=43">have a vested interest that we can help solvein </a> have a vested interest that we can help solvein <a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 44" href="http://viewer.zmags.com/publication/7c795aa6?page=44">LAST WORDTHE NETWORK IS THE RISKGIVEN ALL TH</a> LAST WORDTHE NETWORK IS THE RISKGIVEN ALL TH<a title="Analytics: Selling Analytics, Economic Models, Simulation Practice & Software Survey page 45" href="http://viewer.zmags.com/publication/7c795aa6?page=45">we seek to explain. There is also complexitymode</a> we seek to explain. There is also complexitymode