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Analytics: How to Win with Intelligence

Analytics: How to Win with Intelligence

By : John Thompson, Shawn P. Rogers
4.7 (19)
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Analytics: How to Win with Intelligence

Analytics: How to Win with Intelligence

4.7 (19)
By: John Thompson, Shawn P. Rogers

Overview of this book

Today, business is moving into an era where information is more valuable than services. Organizations that connect information with their products will have a huge advantage. This book helps people understand the power of data analytics and explains how some of the tools available can be applied to a wide range of applications. It begins with a brief history of analytics and explains how it all began. You'll learn about several common analytical approaches and the tools that data scientists use to analyze data. You'll gain insight into some staffing models, technologies, organizational structures, and analytical approaches used in the previous two eras of analytics. As you progress through the chapters, you'll also get a glimpse into the future of the analytical marketplace. After reading this book, you will be able to help your team deploy analytical elements into your operations and become competitive in your business.
Table of Contents (11 chapters)
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1
Foreword by Tom Davenport

CHAPTER 3
The Age of the Algorithm Economy

“The price of light is less than the cost of darkness.”
– Arthur C. Nielsen, market researcher and founder of ACNielsen

How much would any specific algorithm be worth to a company? Maybe $1,000? Or perhaps $10,000, or even $50,000? For Netflix, the answer was a cool $1 million.

More than 10 years ago, the online entertainment company was looking for a way to improve its video recommendation system for customers. It established the “Netflix Prize,” an open competition with a $1 million purse. The cash would be awarded to anyone or group of individuals who could best improve the performance of Netflix’s existing algorithm, called “Cinematch,” by at least 10 percent.

The competition began on October 2, 2006, and three years later the winner was announced: BellKor’s Pragmatic Chaos, a team that had developed an algorithm that was 10.06 percent better than Cinematch.1

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Analytics: How to Win with Intelligence
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