3. ERP in Game Theory

Game Theory

study of the ways in which interacting choices of agents produce outcomes with respect to the preferences of those agents, where the outcomes in question might have been intended by none of the agents.

Game Theory

study of the consequences of your actions

Game Theory

introduced von Neumann & Morgenstern (1944)

Game

All situations in which at least one agent can only act to maximize their utility through anticipating the responses to his actions by one or more other agents

Game

where a player tries to predict the effects of their actions against or with another player

Players

agents involved in games

The Prisonners Dilemma

A standard example of a game in which two players must choose between cooperation and betrayal, with the outcome dependent on the simultaneous choice of both players.

Analytics

a field in com sci that uses math, statistics, & machine learning to find meaningful patterns in data.

Descriptive Analytics

Presents its findings using reports, pivot tables, & visualization: histograms, line graphs, pie charts, & box & whisker plots

Descriptive Analytics

What happened?

Diagnostic Analytics

Why it did happen?

Diagnostic Analytics

Focus on the root cause & effect (root cause analysis)

Diagnostic Analytics

It aims to identify & explain anomalies & outliers

Predictive Analytics

What might happen in the future

Predictive Analytics

Uses deep learning, machine learning algorithm to find patterns

Prescriptive Analytics

What should we do next?

Prescriptive Analytics

“the future of data analytics”

Business Analytics

analytics applied to business data

Short term data collection

barely allows researchers to develop a deep understanding of participants’ characteristics, experiences, & beliefs

Long term data collection

dropout data is high

Marketing and Sales Inputs

Customer data, Order data, Sales trend data, Per-unit cost, Company travel expense policy

Marketing and Sales Outputs

Sales strategies, Product pricing, Employment needs

Supply Chain Management Inputs

Product sales data, Production plans, Inventory levels, Layoff and recall company policy

Supply Chain Management Outputs

Raw material orders, Packaging orders, Resource expenditure data, Production and inventory reports, Hiring information

Accounting and Finance Inputs

Payments from customers, Accounts receivable data, Accounts payable data, Sales data, Production and inventory data, Payroll and expense data

Accounting and Finance Outputs

Payments to suppliers, Financial reports, Customer credit data

Human Resources Inputs

Personnel forecasts and Skills data

Human Resource Output

Regulation compliance, Employee training and certification, Skills database, Employee evaluation and compensation