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People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. Chapter 4 focuses on memory. Only memories that the brain considers to be relevant features of reality are stored. Memory systems include sensory storage, information we can work on, and long-term memories; the hippocampus is essential for storing memories as well as transferring stored memories. Several factors cause certain events or features to be more memorable to us. These factors include visualization, having recently experienced something, and emotion. Because emotions are personal, they can distort memories, storing some details without other important details. Deeply processed information-information built into a narrative and that is actively related to previous memories-sticks with us as well. Context is vital in retrieval of memories; we access more memories when the current context overlaps with that of the memories' contexts.

People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. Chapter 5 covers a variety of biases that are directly tied to our memory systems. Some of these memory biases have to do with the likelihood of later recall, others with the undue influence of things we have seen before affecting our thinking about current positions. While these biases can ultimately be helpful, they can also result in critical errors when it comes to analyzing our positions. The biases covered are the availability bias, primacy effect, recency bias, endowment effect, consistency bias, sunk cost effect, affect bias, and expectancy bias. Definitions, background research, and relevant brain mechanisms are all explained for each bias along with that bias's relevance to investing and how to avoid falling into the bias.

People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. This chapter gives an overview on brain functions related to knowledge. Knowledge is constantly being accumulated, bridging the gap between attention and memory. Patterns are found by the brain and then automatically grouped together; identifying these patterns allows us to take shortcuts by acting similarly toward whole sets of information, gaining speed and accuracy. However, this process has the potential to lead us to find meaning that does not actually exist in incoming information. By noticing similarities and differences between environments and situations, we form mental models and schemas. Priming occurs when prior information quickly and automatically influences our current thinking; however, the difficulty with fast associations like this is realizing when they are incorrect.

People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. Chapter 7 goes into the different types of knowledge bias. Sometimes what we know matches the context we are dealing with, but sometimes we impose incorrect patterns onto a situation. Our knowledge-and perception of our knowledge-can influence our way of thinking, and having a deep knowledge about a subject leaves us vulnerable to a set of biases that are rooted in knowing too much. We overreach our assumptions because we believe we know how things will play out, leading to mental laziness and the failure to question ourselves. Some of these biases come from believing we understand more than we actually do, others happen due to our becoming blind to key information based on our considerable degree of knowledge and still others are driven by social behavior.

People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. Chapter 8 provides guidance offering best practices and advice geared toward enhancing the decision-making process and minimizing the undue influence of heuristics and biases in the investment process. The main strategies discussed are using a rules-based investment process, active management, and limiting bias in the idea generation process. Further techniques within each of these strategies are also given. Taking an active role with this chapter will bring about the most benefit in improving the investing process. Employing these techniques will enable vigilance and objectivity without having to take on each individual bias one-by-one. Becoming a better investor is a constant endeavor; part of the challenge is recognizing how personal thinking is influenced by bias and adjusting processes to compensate. Knowledge about bias is only the first step.

Malcolm Turner becomes the new athletic director at Vanderbilt University, tasked with increasing athletics-related revenue and improving on-field performance, while maintaining Vanderbilt's academic rigor for student-athletes.

Set in February 2019, Stark Resorts Hotel ('Stark Resorts') is a case based on the real-world experiences of the authors. The hotel, a USD155 million investment, had been plagued by insects since its grand opening 15 months earlier. Of even more concern was the avid social media influencer who had stayed in the resort a year ago and was diagnosed for Dengue fever, which she allegedly caught at the hotel poolside. It didn't take time for the negative word of mouth to spread. While the staff tried their best to handle the problem and were vigilant about initiating and overseeing the administration of pest control, even they were losing confidence and morale. Stark Resorts' revenue rate per available room (RevPAR), a key hotel metric, had fallen 6% over the past six months. Other resorts in the area had pest problems as well, but they did not seem to be experiencing the same reputational and financial damage. Jack Lim, the manager at Stark Resorts has his work cut out for him - he has to tackle the pest issue at hand, repair the reputational damage, and win over customer loyalty of his guests.

Iconoclasts with strongly held beliefs and a willingness to buck orthodoxy, Apple's Steve Jobs and the Chicago Bulls' Phil Jackson shared similarities in character, leadership style, and life experience that extended beyond the extraordinary successes they achieved in their chosen fields. Both came of age in the United States of the mid-20th century, a time and place characterized by Americans' growing interest in philosophical traditions outside of the Western mainstream. In their teens and twenties, both men became interested in Eastern religious practices. As young men, Jobs (who would as a teenager travel to India to study Buddhism) and Jackson (whose interest in Eastern practices earned him the nickname "The Zen Master") developed a particular affinity for the Zen tradition of Buddhism, which had a lasting influence on each man's worldview. Although Jackson and Jobs were very different leaders operating in remarkably different industries, both men's rise to the top of intensively competitive fields were influenced by their commitment to three Zen principles: nondualism, practical wisdom, and inherent enlightenment. This note gives a brief overview of the history of Zen and the philosophical framework that underpins it, then describes the potential that these three tenets hold for unlocking strategic insights.

The case describes how the Italian multinational Enel Group, one of the largest power utilities companies in the world, embraced the transformation of the energy sector, combining open innovation with sustainability - or what the company calls "Innovability"). CEO Francesco Starace believes that technology and business model innovation are the key to reducing CO2 emissions and creating a more sustainable future by boosting renewable energy production. From 2014, he makes innovation and sustainability his strategic pillars, embracing the notion of 'open innovation' - harvesting ideas externally (rather than just in-house) from an ecosystem of start-ups, SMEs, universities, researchers, suppliers, other corporations, and employees.

"The case describes how three INSEAD alumni founded a fintech company called Prodigy Finance and created a new market of international student loans by solving a long unaddressed problem in the finance industry. Lack of access to financing was a major barrier impeding international students' pursuit of advanced education outside their home countries, especially for those aspiring to study in "high-earning advanced degree programs" at top universities where tuition fees were steep and few scholarships were available. Traditional banks were oblivious to the burning need of the international student population as their practice focused on domestic borrowers and their local past credit records. The founders of Prodigy Finance challenged the assumptions of the finance industry by creating a lending platform based on a forward-looking and cross-border risk assessment model, thereby effectively connecting international student borrowers with individual and institutional investors. Prodigy Finance has so far helped over 11,200 students from 132 countries, who have borrowed more than US$538 million. The strategic move of Prodigy Finance constitutes an illustrative example of new market creation through nondisruptive creation, a concept coined by W. Chan Kim and Renée Mauborgne, authors of international bestsellers Blue Ocean Strategy and Blue Ocean Shift. By identifying and solving a burning problem that had never been addressed before, Prodigy Finance created a new market beyond existing industry boundaries, unlocking and capturing a burgeoning new demand without challenging or displacing the existing businesses of the finance industry. This case comes with a teaching note and three short videos. The latter can be downloaded for free for teaching purposes from https://www.blueoceanstrategy.com/

Jason Calacanis described himself as a serial entrepreneur, angel investor, and podcaster - and someone who had come a long way from the time he had to talk his way into Fordham University. Later, when finances were tight, he talked the dean into getting the bursar to cut him a break. These early experiences with "being bold," he believed, encouraged him to keep being bold - and creative. This case study explores Calacanis' path to entrepreneurship, a route that took him first into publishing, and later into angel investing, then hosting influential incubator and networking events for investors and entrepreneurs. Throughout all of these activities there was a strong creative thread - Calacanis events were not just about connecting investors and entrepreneurs, but also provided entertainment.

When Anders Eriksson was appointed CEO of Bonnier News in June 2016, he took the helm of a storied Swedish media business in the midst of a momentous transformation. Bonnier News included three of Sweden's most important newspapers-Dagens Nyheter (DN), the national paper of record; Dagens Industri (DI), the top business daily; and Expressen, a tabloid that reached roughly half of the country's population-and the southern Swedish daily HD-Sydsvenskan. But the digital age had presented multiple challenges to each of these entities, and to media enterprises worldwide, and Bonnier had grappled with its response to the changing environment. It was Eriksson's task to set Bonnier News on a growth trajectory that would eventually lead to take-off. This case explores Bonnier's restructuring; group level strategic leadership; development of group-level digital competencies; and business-level strategies.

Away, a direct-to-consumer, digital native e-commerce seller of travel luggage, is debating how to invest its latest round of venture funding. How quickly could and should Away scale and what were the most promising growth trajectories to maximize its potential? Three decisions face the founders. Should Away continue to invest in driving growth in suitcases and other travel bags or was it time to begin to expand into other adjacent travel categories? How should they use the results of the company's first customer segmentation study to select target segments and quantify their growth aspirations? What were the right distribution strategies moving forward following a series of pilots that included company-owned stores, temporary airport kiosks, and pop-up experiences with retailer partners?

Grupo Éxito, a leading South American retailer, faced declining market shares in Colombia in 2019 with the arrival of low-cost competitors and emerging digital trends. Originally founded in Medellín, Éxito had over the course of its seventy-year history evolved from a small textile shop into a retail powerhouse, with 1,533 stores and operations in 2018 across four countries in South America and $18.6 billion in consolidated revenues. In its home country, Éxito had grown through a series of acquisitions, consolidating a multi-brand and multi-store format strategy to cater to customers across all income segments. By 2018, the company had a total of 554 points of sale across the country. However, with the arrival of hard discount retailers, Éxito began to gradually experience a decline in its market shares, particularly at its low-cost store brands. Colombian consumers were also changing their grocery shopping habits, as they became more digitalized. Not only were retailers beefing up their digital retail platforms by launching new applications with personalized services, but they were also allying with partners such as Rappi-Colombia's largest last-mile delivery company- to speedily deliver products to customers' homes. Carlos Mario Giraldo, Éxito´s Chief Executive Officer since 2013, and top management were faced with the challenge of simultaneously maintaining Éxito´s vast operations in the country and battle the current and upcoming threats in the competitive Colombian grocery retail market. Should the company battle head to head with discounters or bet on differentiated strategies at its more premium stores and digitalized ways to serve customers? Would these strategies pay off and allow Éxito to gain more market share in the future?

This case describes the transformation of the UK's oldest financial services franchise from a product-aligned and brick-and-mortar traditional banking institution to a customer-aligned and digital-first technology organization. The case parallels Lloyds' business transformation with the growth of its digital-focused Transformation division - which commenced as a small hundred-person task force and ultimately grew to comprise one third of the bank's 70,000 employees.

On October 7, 2019, the Shiseido Group announced that it would acquire clean skincare brand Drunk Elephant for $845 million, a valuation of 8.5 times sales. Did Shiseido pay too much or too little for this brand asset? Every acquisition had to be measured against the cost of developing and building a look-a-like brand internally. Would Drunk Elephant prove to be an integral part of Shiseido's future success and what would it take to unlock its full brand value? Would Drunk Elephant thrive under Shiseido's management? How much further investment would Shiseido need to make to realize the new brand's potential?

ZURICH (SWITZERLAND), MAY 2018 - Cristian Grossmann arrived early in the office that day. It had not been a breeze for Beekeeper to reach its current situation: a quickly expanding company with over 130 employees across the world, with a plethora of large clients. It was not so long ago that he had started a side-project with a university friend to develop an anonymous flirting platform for students. Several pivots later, the project had started getting a lot of traction and disrupting the hospitality industry's way of working. The last 12 months had been much more turbulent than expected, and Grossmann was mulling over how the next 12 months would look like. It was crucial for Beekeeper to continue growing, yet there were more and more indications of the organization's rapid growth leading to overwhelming complexity. So how could Grossmann steer the company towards even more growth while staying agile and exciting?

Business analytics is an emerging area in modern business decision-making, gaining interest and popularity. This book discusses the models based on fact-based data to measure past business performance in order to guide organizations in visualizing and predicting future business performance and outcomes. Bringing terms, tools, and methods of analytics together, a comprehensive overview of analytics is given with an emphasis on predictive analytics. The book provides an introduction to and types of business analytics, the importance of analytics, and business intelligence. It also discusses the most widely used predictive models, including regression analysis, forecasting, data mining, and an introduction to recent applications of predictive analytics - machine learning, neural networks, and artificial intelligence. The current state, job outlook, and certifications in analytics are also examined. Chapter 1 gives an overview of the field of business analytics, which uses data, statistical analysis, mathematical and statistical modeling, data mining, and advanced analytics tools to explore, investigate, and understand business performance. The tools of business analytics give insight to and drive business planning and decisions. Descriptive analytics tools use statistical, graphical, and numerical methods to understand the occurrence of certain business phenomena; predictive analytics tools are used to predict future business phenomena; prescriptive analytics tools have applications in optimizing and automating business processes. Business analytics helps with informed decision-making in business and can be used to automate and optimize business processes. Data is an asset and can be leveraged for competitive advantage. Successful business analytics depends on data quality and skilled analysts. Business analytics is an organizational commitment to data-driven decision-making.

Business analytics is an emerging area in modern business decision-making, gaining interest and popularity. This book discusses the models based on fact-based data to measure past business performance in order to guide organizations in visualizing and predicting future business performance and outcomes. Bringing terms, tools, and methods of analytics together, a comprehensive overview of analytics is given with an emphasis on predictive analytics. The book provides an introduction to and types of business analytics, the importance of analytics, and business intelligence. It also discusses the most widely used predictive models, including regression analysis, forecasting, data mining, and an introduction to recent applications of predictive analytics - machine learning, neural networks, and artificial intelligence. The current state, job outlook, and certifications in analytics are also examined. This chapter offers an overview of business analytics and business intelligence and outlines the similarities and differences between the two. Business analytics, types of analytics, and the analytics process are all explained. Different tools used in each type of analytics are discussed as well as their relationship and interconnection. These tools overlap in applications and a combination of these tools can be used in many situations. In comparing business analytics and business intelligence, business analytics, data, analytics, and advanced analytics all fall under the wide scope of business intelligence. Business intelligence tools include the business analytics tools but also include data mining, online analytical processing, and business performance management among other things.

Business analytics is an emerging area in modern business decision-making, gaining interest and popularity. This book discusses the models based on fact-based data to measure past business performance in order to guide organizations in visualizing and predicting future business performance and outcomes. Bringing terms, tools, and methods of analytics together, a comprehensive overview of analytics is given with an emphasis on predictive analytics. The book provides an introduction to and types of business analytics, the importance of analytics, and business intelligence. It also discusses the most widely used predictive models, including regression analysis, forecasting, data mining, and an introduction to recent applications of predictive analytics - machine learning, neural networks, and artificial intelligence. The current state, job outlook, and certifications in analytics are also examined. Chapter 3 builds on chapter 2, discussing how analytics, business analytics, and data analytics all fit into business intelligence and going further into the comparison between business analytics and business intelligence. Business intelligence is a technology-driven process for processing and analyzing data to make sense from huge quantities of data that businesses collect and obtain from various sources. It is both visualization and analytics. Various functions and applications of business intelligence are described, including but not limited to reporting, online analytical processing, and business process management. Business intelligence can combine external and internal data in order to create an "intelligence" that cannot be derived by any one set of data. Business intelligence along with business analytics can empower organizations and give them a better understanding of the existing markets and customer behavior.