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Ikhlaq	Sidhu,	content	author
Ikhlaq Sidhu
Founding Faculty Director
Sutardja Center for Entrepreneurship & Technology
Department of Industrial Engineering & Operations Research
IEOR Emerging Area Professor Award
Innovation	&	Entrepreneurship	
and	AI
Ikhlaq	Sidhu,	content	author
What	is	happening	at	Sutardja Center	(SCET)?
Ikhlaq	Sidhu,	content	author
Answer	#1:	Lots	of	students	and	activity
Undergraduate:	Over	1500
Graduate:	Over	100
Executive:	Over	100
Global	Partners	ā€“ Now	10
Ikhlaq	Sidhu,	content	author
Answer#	2:	Many	News	Stories	about	our	Curriculum
5/27/2017 Meat substitutes are on the curriculum at UC Berkeley - San Francisco Chronicle
http://www.sfchronicle.com/business/article/Meat-substitutes-are-on-the-curriculum-at-UC-10881462.php 1/5
By Jonathan Kauffman | January 24, 2017 | Updated: January 25, 2017 2:44pm
0
Meat substitutes are on the
curriculum at UC Berkeley
BizĀ &Ā Tech
IMAGE 1 OF 4
Ricardo San Martin, a chemical engineering professor, leads the Challenge Lab researching meat substitutes.
Photo: Scott Strazzante, The Chronicle
5/27/2017 Meat substitutes are on the curriculum at UC Berkeley - San Francisco Ch
Banking Un
Course - Stu
Singapore
Most UC Berkeley students will tell you that theyā€™re
shooting for an A. But the 45 young men and women
packing a Barrows Hall classroom this Monday were
pursuing more ambitious goals: saving the world,
and perhaps winning $5,000 in the process.
The students are enrolled in a four-credit Challenge
Lab at the Sutardja Center for Entrepreneurship &
Technology, a practicum that pits teams against one
another to develop the most innovative plant-based
meat.
At the labā€™s second gathering, there were no Tofurky
samples on hand. Instead, Christie Lagally, a senior scientist with the Go
the students a PowerPoint crash course on the reasons the world needs m
ā€œFactory farming allows us to have an afļ¬‚uence of meat,ā€ she told them,
several dozen charts illustrating the downside of our omnivorous appetit
ļ¬gures, animal agriculture produces up to 24 percent of greenhouse gase
About	7	Stories	about	our	plant	
based	meat	focus	area	including	
Vice	Magazine	and	SF	Chronicle
Ikhlaq	Sidhu,	content	author
Answer	#3:
And	a	lot	more..
Actually,	we	have	lost	track..
Ikhlaq	Sidhu,	content	author
Our	Approach
Ikhlaq	Sidhu,	content	author
Misconception:	We	used	to	think	that	learning	
business	and	management	would	help	technology	innovators
Reading	business	
cases	studies	
on	innovation
Studying	
business	
frameworks
Management	
Practices		and	
financial	
statements
Waiting	for
a	great	idea
Making	a	
business	plan
Making	a	
presentation	to	
raise	funds
6 things		are	not	the	main	ingredient	
to	deploy	innovation	or	start	ventures!
Ikhlaq	Sidhu,	content	author
Our	Model	Has	Adapted:	
Business	training	is	not	the	key.		
The	New	formula	is:
>	depth	in	an	valued	area
> entrepreneurial	ā€œbehaviors	
and	mindsetā€ā€
Our	programs	and	projects	
provide	this.
Innovation	Behaviors	and	Mindset
ā€œPsychology	of	Innovationā€
Skill	in	a	
Core	Area
Too	
Narrow
Street	Smart,	but	
lacking	depth
High	
Potential
Ikhlaq	Sidhu,	content	author
ā€¢ Wide	Comfort	Zone
ā€¢ Generate	Trust
ā€¢ Good	Connectors
ā€¢ Inductive	Learning:	
Experiments	and	Reflection
ā€¢ Self	awareness	and	
Emotional	Intelligence
ā€¢ And	a	few	more	..
Innovation	Behaviors	and	Mindset
Skill	in	a	
Core	Area
Too	
Narrow
Street	Smart,	but	
lacking	depth
High	
Potential
What	are	the	Behaviors	and	Mindsets?
Taught	in	situation,	during	the	journey
Ikhlaq	Sidhu,	content	author
My	newest	course:	
IEOR	135	
Applied	Data	Science	
(Data-X)
Ikhlaq	Sidhu,	content	author
Sample	Project	from	the	First	Data-X	Course
ā€¢ Detection	of	fake	news
ā€¢ Prediction	of	long-term	energy	prices	to	solve	am	
Wall	Street	problem
ā€¢ Prediction	applications	stock	market,	sports	betting,	
and	more
ā€¢ AI	for	Crime	detection,	traffic	guidance,	medical	
diagnostics,	..	etc
ā€¢ A	version	of	Zillow	that	is	recalculated	with	the	
effects	of	AirBnB income
ā€¢ and	many	moreā€¦
Ikhlaq	Sidhu,	content	author
Propose
Low Tech
Solution (1)
Brainstorm Challenge
and Validate (4)
Demo
or Die
(1)
Execute * Iterate
BMoE Reflections
Agile Sprint (8)
Insightful Story Solution
How	the	Data-X	Course	Works:
Team:	typically	5	students,	with	available	advisor	network
Ikhlaq	Sidhu,	content	author
The	Data-X	System	View:	Itā€™s	more	than	ML
Web	Scrape
Possible	Input Code	Blocks
Download
Crawl
ā€¦
Stream	or	Poll
Social	Net	/	IoT
Application	with	
Automated	Decisions
Algorithm	Options	w/	
Tables/Matrix
Prediction	/	Classification
Test,	train,	split
Keep	state
Pandas:	Short	Term	Storage
Long	Term	Storage:	SQL	and	File	
Formats	(JSON,	CSV,	Excel)
Web
Possible	Output	Code	Blocks
Email
Control
Decision
ā€¦
Chatbot
Feedback	from	
External	System	(World)
Pre-
process
Natural	
Languag
e,	State	
Features
Blockchain (public	ledger	or	crypto-lock)APIs,	Services APIs,	Services
ML
Ikhlaq	Sidhu,	content	author
Our	Newest	
Course	
contributed	
to	IEORā€™s	
core	Area:
IEOR	135	
Applied	
Data	
Science	
(Data-X)
5/27/2017 Data-X: An Experimental Course Model that is Working - UC Berkeley Sutardja Center
Search
8
MAY 2017Data-X: An Experimental Course Model that is
Working
by Ikhlaq | posted in: ariti cial intelligence, big data, Sutardja Center News, undergraduate classes |
Iā€™d like to start by congratulating all the teams that participated in our rst Data-X course this spring. We just watched the
nal presentations, and it has been a great experience. Three months ago, we were just introducing the basic frameworks.
And now, by the end of the semester, the projects have included running code and insightful approaches to topics such as:
Detection of fake news
Prediction of long-term energy prices to solve a Wall Street problem
Prediction applications for the stock market and sports betting
AI for Crime detection, traf c guidance, and medical diagnostics
A version of Zillow that is recalculated with the effects of AirBnB income
and many moreā€¦
Students presenting at Data-X nals
Ā 
These are technically dif cult projects, not to mention creative and inspiring. Everyone has come up a very large learning
curve.
I want to thank Kevin Bozhe Li and Alexander Fred Ojala for being part of the teaching team. And our guests, such as Rob
von Behren from Google who spoke on TensorFlow and entrepreneurs like Antonio Vitti who brought real life problems
and context to the course.
Today, the world is literally reinventing itself with Data and AI. However, neither leading companies nor the worldā€™s top
students have the complete knowledge set or access to the full networks they need to participate in this newly
developing world. Data-X is a UC Berkeley course and a global project designed to x this problem.
Undergraduate Courses and
Certi cate
Graduate Program
The Berkeley Method of
Entrepreneurship
BMoE Bootcamp
Engineering Leadership
Professional Program
Startup Semester at Berkeley
Innovation Collider
2017 Spring Newton Lecture
Series
About the Center
Login
Recent Posts
Free Ventures Demo Day: From
Seed to Startup
Why You Should Learn Data-X
Engineered In uence: Weak Data,
Machine Learning & Behavioral
Economics
Students serve up next generation
plant-based seafood
Data-X: An Experimental Course
Model that is Working
Home About Courses People Insight News Explore Contact
Q:	What	Are	you	getting	from	this	class?
A:	I	feel	like	I'm	really	learning	how	powerful data	science	tools	can	be.	When	we	
were	brainstorming	project	ideas,	I	didn't	think	any	of	the	ideas	were	feasible.	
However,	with	each	week,	I'm	learning	how	pre	existing	libraries	and	tools	can	be	
easily	used	and	combined	to	create	really	powerful	products.
Ikhlaq	Sidhu,	content	author
We	are	developing	a	large-scale,	
holistic,	data-related	skill	base
ā€¢ The	Data-X	Project is	program	
and	open	course	model	
ā€¢ Offers	deep	skills,	the	powerful	
open	source	CS	tools,	and	the	
real-life	applications	
ā€¢ Ready	to	scale	and	include	
more	stakeholders
Ikhlaq	Sidhu,	content	author
Data, AI, and Business Models
Ikhlaq	Sidhu,	content	author
Scoring	Wine
Wine	quality	=	12.145	+	0.00117	x	(winter	rainfall	)+	0.0614	x	(ave growing	
season	temperature)	ā€“ 0.00386	x	(harvest	rainfall),	Oren	Ashenfelter,	
Princeton.			Now	used	by	Christies	Auction	House
Ikhlaq	Sidhu,	content	author
Real-life Example: ZestCash
ā€¢ ā€œAll data is credit dataā€
Online Loan Application
Name: JOE SMITH
Online Loan Application
Name: Joe Smith
The data says: greater credit risk! The data says: lesser credit risk!
Reference:	Shomit Ghose
Example:	Data	and	information	is	a	competitive	advantage
Ikhlaq	Sidhu,	content	author
Harrahā€™s	Casino:	Knowing	your	customer
Service	provider	of	
Gambling	and	Casinos
Entry	Card
Pain	points
Intervention
Reference:	Supercrunchers
Example
Ikhlaq	Sidhu,	content	author
1. Knowing	your	customer,	better	targeting	and	relationship.	
E.g.	Target,	Disney,	Netflix
2. Improving	physical product	or	servicer	with	complimentary	information:	
E.g.	UPS,	FedEx
3. Data-driven	reliability or	security		
E.g.	GE,	BMW,	Siemens
4. Information	Brokers,	Arbitrage,	and	Trading Opportunities:	
E.g.	Investment	funds.
5. Improving	the	customer	journey/experience..		
E.g.	Harrahā€™s
6. Functional	Applications:	HR/Hiring,	Operations	etc..	
Eg Walmart,	Baseball,	Sports
7. Efficiency	or	better	performance	per	dollar	cost.	
E.G.	General	IT,	SAP,	etc
8. Risk	Management,	regulation,	and	compliance
Eg.	Compliance	360
Top	8	Business	Models	Using	Data
Ikhlaq	Sidhu,	content	author
Top	Business	Models	for	Using	Data
1. Knowing	your	customer,	leading	to	
better	targeting	and	relationship.		E.g.	
Target,	Disney
2. Information	based	better	services.		
E.g.	UPS,	FedEx
3. Data	driven	reliability.	E.g.	GE	and	
Siemens
4. Information	Brokers,	Arbitrage,	and	
Trading	Opportunities:	Investment	
funds.
5. Improving	the	customer	
journey/experience..		E.g.	Harrahs
6. Functional	Applications:	HR/Hiring,	
Operations	etc..
7. Efficiency	or	Better	Performance	per	
dollar	cost
8. Risk	Management,	regulation,	and	
compliance
Usage	Models
ā€¢ Efficiency	
(save	money)
ā€¢ Wallet	Share
(top	customers	
spend	more	time	
and	money	with	
you)
ā€¢ Brand	alignment
(It	reinforces	how	
people	think	
positively	about	
the	company)
Value	to	Business	Customers
More	
Value
Ikhlaq	Sidhu,	content	author
The	two	key	components	of	a	business	are	
resources	(assets)	and	information	(data)
= +
Less	value	
over	time
More	value
Over	time
Information	and	
automated	decisions
If	you	buy	data,	then	everyone	else	has	it	also.
Ikhlaq	Sidhu,	content	author
University Researcher Perspective
Ikhlaq	Sidhu,	content	author
Misconception
Work	in	Lab	for	
5	years
Show	World
They	Love	it
And	adopt	it
Ikhlaq	Sidhu,	content	author
Misconception
Work	in	Lab	for	
5	years
Show	World
They	Love	it
And	adopt	it
Instead:
Invite	World	
(Industry)	to	
collaborate	with	
you
Let	them	tell	
you	where	the	
industry	will	be	
in	5	years
Intersect	with	
their	roadmap	
in	2-3	years
They	Love	it
And	adopt	it
a)	And	train	yourself	and	your	students	to	have	the	corresponding	mindsets	and	behaviors	during	the	journey
b)	work	on	deployment	first	and	effectiveness	first
Ikhlaq	Sidhu,	content	author
Data and AI Fundamentals
Ikhlaq	Sidhu,	content	author
Basic	Concept	of	Big	Data
*	Data	Wrangling
*	In	Production
Ikhlaq	Sidhu,	content	author
Human	Interpretation	of	Data
Human
Machines
Large	Sets	of	Data
Insight
Ikhlaq	Sidhu,	content	author
An	ML	High	Level	Framework	
Objects
Events/Experi
ments
People/Custo
mers
Products
Stocks
ā€¦
In	Real	Life
Features,	but	also	
loss	of	information
In	Sample
Out	of	Sample
Person	1
Person	2
Person	3
.
.
.
Person	
N
Characteristics
Patterns
Models
Predictions
Similarities
Differences
Distance	
Some	data	
has	observed	results
Ikhlaq	Sidhu,	content	author
An	ML	High	Level	Framework	
Objects
Events/Experi
ments
People/Custo
mers
Products
Stocks
ā€¦
In	Real	Life
Features,	but	also	
loss	of	information
In	Sample
Out	of	Sample
Person	1
Person	2
Person	3
.
.
.
Person	
N
Characteristics
Patterns
Models
Predictions
Similarities
Differences
Distance	
CS:		Table
Math:	Matrix	X,	which	is	
N	rows	ā€“ each	person
m	columns,	each	feature	(age,	salary,	..)
X	=	
Some	data	
has	observed	results
Ikhlaq	Sidhu,	content	author
A	Fundamental	Idea:	From	Table	to	Score
Element F1 F2 F3
A 4 2 2
B 4.5 1.5 3
C 3 3 5
D 1 2 2
E 3 1.5 5
F 3.5 3.5 1
.. .. .. ..
F(X)
Element Credit	Score
A 552
B 381
C 760
D 330
E 452
F 678
.. ..
X Y
Ikhlaq	Sidhu,	content	author
A	Fundamental	Idea:	From	Table	to	N- Dimensional	Space
A
B
CD
E
F
G
H
1										2										3										4										5
5
4
3
2
1
Element F1 F2 F3
A 4 2 2
B 4.5 1.5 3
C 3 3 5
D 1 2 2
E 3 1.5 5
F 3.5 3.5 1
.. .. .. ..
X	=
Ikhlaq	Sidhu,	content	author
Clustering	to	Classification
33
A
B
CD
E
F
G
H
Feature	1
Feature	2
1										2										3										4										5
5
4
3
2
1
Target	customers?
Pictures	of	Cats	and	Dogs
Speech	recognition
Recognize	Letters:	A,	B,	C..
Ikhlaq	Sidhu,	content	author
Machine	Learning:	Learning	from	Data
Input	Data	=	Matrix	X
Customer	1:		[Name,	income,	x,	y,	..	Features	..z]
Customer	2:		[Name,	income,	x,	y,	..	Features	..z]
Customer	N:		[Name,	income,	x,	y,	..	Features	..z]
Output	Data	=	Column	Vector	Y
Customer	1:		[20]
Customer	2:		[60]
Customer	N:		[05]
Purchases/year,	repaid	loan,	ā€¦
Target:	What	is	F(X)	=	Y a	formula	that	we	donā€™t	know
Sample	data	(training):	(x1,y1)	(x2,y2)	ā€¦	(xm,ym) we	have	this
Algorithm	A	
from	H
H:	Hypothesis	Set:
All	possible	
algorithms	or	formulas
Find	G(x)	which	is
approx.	F(x)
a)	Supervised	ML	ā€“ as	shown
b)	Unsupervised	- no	training	data
c)		Reinforced	learning	ā€“ done	by	simulation
Ikhlaq	Sidhu,	content	author
KNN	/	K	Means	Illustration	
12/19/2016 How to choose machine learning algorithms | Microsoft Docs
https://docs.microsoft.com/en-us/azure/machine-learning/machine-learning-algorithm-choice 17/19
A data set is grouped into 5 clusters using K-means
There is also an ensemble one-v-all multiclass classifier, which breaks the N-class
classification problem into N-1 two-class classification problems. The accuracy, training time,
and linearity properties are determined by the two-class classifiers used.
+ Options
https://docs.microsoft.com/en-us/azure/machine-learning/machine-learning-algorithm-choice
Tip
Flavors of machine learning
Supervised
Letter recognition.
To download and print a diagram that gives an overview of the capabilities
Studio, see Overview diagram of Azure Machine Learning Studio capabilitie
Supervised learning algorithms make predictions based on a set of e
historical stock prices can be used to hazard guesses at future prices
training is labeled with the value of interestā€”in this case the stock p
learning algorithm looks for patterns in those value labels. It can use
might be relevantā€”the day of the week, the season, the company's f
industry, the presence of disruptive geopolicitical eventsā€”and each
Illustration	Source:
KNN	Method:	Find	the	k	nearest	
images	and	have	them	vote	on	the	
label	(i.e.	take	the	mode)
Ikhlaq	Sidhu,	content	author
K	Means	/	KNN	Illustration	
12/19/2016 How to choose machine learning algorithms | Microsoft Docs
https://docs.microsoft.com/en-us/azure/machine-learning/machine-learning-algorithm-choice 17/19
A data set is grouped into 5 clusters using K-means
There is also an ensemble one-v-all multiclass classifier, which breaks the N-class
classification problem into N-1 two-class classification problems. The accuracy, training time,
and linearity properties are determined by the two-class classifiers used.
+ Options
https://docs.microsoft.com/en-us/azure/machine-learning/machine-learning-algorithm-choice
Tip
Flavors of machine learning
Supervised
Letter recognition.
To download and print a diagram that gives an overview of the capabilities
Studio, see Overview diagram of Azure Machine Learning Studio capabilitie
Supervised learning algorithms make predictions based on a set of e
historical stock prices can be used to hazard guesses at future prices
training is labeled with the value of interestā€”in this case the stock p
learning algorithm looks for patterns in those value labels. It can use
might be relevantā€”the day of the week, the season, the company's f
industry, the presence of disruptive geopolicitical eventsā€”and each
Illustration	Source:
KNN	Method:	Find	the	k	nearest	
images	and	have	them	vote	on	
the	label	(i.e.	take	the	mode)
from	sklearn.neighbors import	KNeighborsClassifier
knn =	KNeighborsClassifier(n_neighbors =	3)
knn.fit(X_train,	Y_train)
Y_pred =	knn.predict(X_test)
acc_knn =	round(knn.score(X_train,	Y_train)	*	100,	2)
acc_knn
#	or	compare	Y_pred with	Y_test
Ikhlaq	Sidhu,	content	author
Our	experiment	with	the	Titanic	Data	Set
Model Score
Random	Forest 86.76
Decision	Tree 86.76
KNN 84.74
Support	Vector	Machines 83.84
Logistic	Regression 80.36
Linear	SVC 79.01
Perceptron 78.00
Naive	Bayes 72.28
Stochastic	Gradient	Decent 72.28
More	Accuracy
Generally	more	training	time
More	risk	of	overfitting
Less	Accuracy
Generally	less	computation
Ikhlaq	Sidhu,	content	author
Accuracy	Increases	with	amount	of	Training	Data
Ikhlaq	Sidhu,	content	author
X Y
X Y
Input	Data	=	Matrix	X
Customer	1:		[Name,	income,	x,	y,	..	Features	..z]
Customer	2:		[Name,	income,	x,	y,	..	Features	..z]
Customer	N:		[Name,	income,	x,	y,	..	Features	..z]
Output	Data	=	Column	Vector	Y
Customer	1:		[20]
Customer	2:		[60]
Customer	N:		[05]
Purchases/year,	repaid	loan,	ā€¦
Target:	What	is	F(X)	=	Y
a	formula	that	we	donā€™t	know
Ikhlaq	Sidhu,	content	author
Neural	net	results	are	close	t	human	results
Ikhlaq	Sidhu,	content	author
This	means
accuracy
Trade-offs:
Training		complexity/time		vs	Accuracy	
Sometimes	good	enough	is	good	enough
Ikhlaq	Sidhu,	content	author
All	our	course	materials:
ā€¢ Slides
ā€¢ Code	samples
ā€¢ References
are	available	at	
data-x.blog
Free	to	use.
Course	Material
Ikhlaq	Sidhu,	content	author
Anticipating the Next Industrial
Revolution
Industrial Revolution 1.0 Industrial Revolution 2.0
ā€¢ Winner was whoever
made something most
cheaply
ā€¢ Leveraged scale
ā€¢ Winner will be
whoever makes best
sense of the data
ā€¢ Leveraging scale Shomit Ghose
Ikhlaq	Sidhu,	content	author
Data	and	AI	Effects	Everything	We	Know	
Every	Business:	Will	deconstructed by	Data,	AI,	and	Automated	
Decisions
Society: Danger	of	even	larger	gap	between	the	highly	skilled	and	the	
lessor	skilled
Government: Must	adapt	to	a	new	level	of	transparency	and	
efficiency or	face	trouble	from	their	people
People: Will	change	their	behaviors (like	cell	phone	to	the	power	10).		
Work	like	balance,	social	structure,	and	hybrid	human	machine.
Ikhlaq	Sidhu,	content	author
Contact:
Ikhlaq	Sidhu
Chief	Scientist	&	Founding	Director,	Center	for	Entrepreneurship	&	Technology
Faculty	Director,	Engineering	Leadership	Professional	Program	(ELPP)
IEOR	Emerging	Area	Professor,	UC	Berkeley
sidhu@berkeley.edu
scet.berkeley.edu

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