Posted at 10.04.2018
The booklet of Money ball is mainly concern with the thought of detailing way the Oakland Athletics (Oakland A's), one of the poorest groups in baseball, received so many game titles in 2002.
The main character of the booklet, is Billy Bean, the supervisor of the Oakland A's. Billy by using his assistant Paul DePodesta's and inspire by Costs James tries to find ways to rethink the overall game of baseball and create new knowledge that helps as a basis to measure the baseball players and determine their respected value.
Billy wanted to change the way traditional baseball has been thought until this minute. He chosen Paul DePodesta's, a Harvard economics graduate a and mathematician, along with his help, both started analyzing reports of baseball to decide which players will be the most undervalued.
The Scouts inclination was to investigate players for what they could see with the own eyes and predict their future (like the way they physically look. Ex: Jeremy Dark brown), in the other palm Billy and Paul thought that a player is not what he bodily appears like or what they could become in the future, but rather, the players are what they have done.
Billy's first contact to knowledge baseball was at 1993, when he signed up with the front office of the Oakland A's manage by Sandy Alderson (an informed lawyer from SAN FRANCISCO BAY AREA). Anderson by using Erik Walker and inspired by Bill Wayne began to analyze and understand the data of football.
Bill James is definitely the dad of Sabremetrics (The study of truth and certainty of baseball), he started out posting since 1997 the Baseball Abstract, where he included statistical information of baseball. James thought that courting things was the only way to understand the truth in football, he wanted to change just how baseball figures where measure today, they were one time established by a British isles Journalist called Chadwick. Adam created a model to predict how many runs each team makes:
This model was concentration in the worthiness of walks and extra base hits, instead of batting average and taken basis. Bill James also concluded that "college players are a better investment than high school players"
In 1983 Bill James also referred to regulations of competitive balance in his baseball abstract: 1. -Every form of strength includes one weakness and create another, every form of power is also a form of weakness, 2. -The balance of strategies always favors the team in back of, 3. -Psychologytends to pull winners down and drive the losers upwards.
There were other people interested in football, which also target in the evaluation of the activity. Cramer and Palmer also created another model. Cramer showed that baseball players didn't perform different in several circumstances
Pau finance two statics that correlated mainly in a winning percentage that is situated in the on base-percentage and the slugging percentage. He figured a supplementary point of the on-base ratio will probably be worth more than three times an extra point of slugging percentage. This helped measure the offense.
The solution to analyze the defense arose from financial market. Mauriello and Armbruster created a way evaluated the defense by quantifying every event. The Oakland A's received the machine and examine it pitfalls to understand in a better way the worthiness of the protection. With all of this new knowledge, they changed the loos of Damon's security with more criminal offense.
The knowledge help Billy and Paul realized that if indeed they could not find the money for a player, they could replace it by recreating its aggregate.
Another strategy that the team made was to replace Giambi with Hatterberg, who later in 2002, became the best criminal offense in football. Hatterberg think that every hitter experienced a weakness that needs to be found.
Another important part of Billy's success, was his capacity to trade. The Oakland A's got a strategy for the second half of the season, that are made up in the acquired of players whose price dropped because of the reduce in expense of other clubs who had lost. Billy got 5 principle rules in trading that he always applied: Change is usually good, your day you say you should do something you are screwed, because you are going to make a deal, Know exactly how much every player value, Know what you want and go after it, Every offer will be criticize by general public opinion.
Billy Bean made other changes and trades, like changing Giambi by his sibling Jeremy, trading with Omar Minaya, the Montreal Expo's Standard Manager ( Arrojo, Seung-jun Music and Youkilis-The god of Strolls).
The book also mentions the story of Chad Branford's to create a means of analyzing pitchers. Branford was an undervalue player. Paul began being thinking about him after reading the task of Voros McCracken (A paralegal in Chicago) who analyze baseball statics and came up with a solution called DIPS (security impartial pitch statics) to analyze pitchers.
In the regular season of 2002 the A's won 103 game titles in the American League Western. This showed that even with the lowest payroll a team may become successful. Billy bean and his new management style in football changed just how baseball group is monitored.
The regular season of 2002 the A's won 103 game titles in the North american League West this turned out that even although players with the cheapest payroll can find the best players if they know how to choose. Billy Bean and his new management style, change the way organizations are being supervised. An example of this is actually the Blue Jays and Red Sox, who implemented the Sabremetrics knowledge.
As seen in the course, Jeff Hawks define intelligence as predictions, then business brains can be describe as the use of the info to better forecast the future. We can see through Moneyball that Expenses Adam, Billy Bean, Paul DePedesta plus some others have used business intellect to understand and predict the future of their players in the football game.
The reserve demonstrate that organizations with a data-driven culture and the use of business cleverness (BI) tools are able to create a competitive gain. Taking the reserve such as a basis we can see how Billy Bean went through a process of rational decision making that combined with the use of BI applications led the Oakland's to achieve success. The rational decision process that he used was the following
The procedure for rational decision making along with quantitative tools can be used by many enterprises to become better and enhance their performance finding valuable signals to analyze their resources. The book shows how Billy Bean changes the subjective analysis to an objective one.
Two important aspects of the booklet and lessons can be employed to any sort of business and companies:
The problem that many corporations are facing nowadays is that we as people tend to relay in rules of thumbs, habits or traditions instead of finding ways to improve their organizations and obtain knowledge through our data. Even though these organizations are reluctant to change, each time is more evident that change is important and analysis of the data will avoid subjective thinking and can bring success.
Due to the progress in technologies there's been and increment in the quantity of tools in the market that help create analytics and business intelligence, this makes it easier to get more organizations to put into practice the theory behind the Moneyball book.
The future of business brains is very promising, many establishments like health care, government, education and so many more needs to understand the benefits of this tools and the importance of acquiring new type of knowledge.
Based in a media article (Gartner Reveals Five Business Brains Predictions for 2009 and Beyond, 2009) the future of business intelligence is likely to be as used:
The e book of Moneyball is very interesting and made me reflect a lot. Even though it is a little bit technical and some parts where hard to understand, the publication broadens my perspective of the importance of using data and business brains as a tool to understand some hidden aspects of business without matter which kind of industry business are in.
I believe that given that I am on my previous semester of my MBA and I'm going to enter a professional world, it is very important to understand the huge benefits that reports and analytical tools bring in a company environment. This recognition, will help me concentrate on the areas of business brains, mainly the data gathering and statistic and quantitative examination to generate KPI that help in the measure of business performance
The book kept on me the desire to investigate something new, to consider habits in everything around me, in order to understand the world with some other perspective and make a change in people's life.
"In God we trust; all others must bring data. " - W. Edwards Deming
Gartner Reveals Five Business Brains Predictions for 2009 and Beyond. (2009, 01 15).
Lewis, M. M. (2003). Moneyball: The Skill of Earning an Unfair Game. NY.