Book Image

The Economics of Data, Analytics, and Digital Transformation

By : Bill Schmarzo
5 (2)
Book Image

The Economics of Data, Analytics, and Digital Transformation

5 (2)
By: Bill Schmarzo

Overview of this book

In today’s digital era, every organization has data, but just possessing enormous amounts of data is not a sufficient market discriminator. The Economics of Data, Analytics, and Digital Transformation aims to provide actionable insights into the real market discriminators, including an organization’s data-fueled analytics products that inspire innovation, deliver insights, help make practical decisions, generate value, and produce mission success for the enterprise. The book begins by first building your mindset to be value-driven and introducing the Big Data Business Model Maturity Index, its maturity index phases, and how to navigate the index. You will explore value engineering, where you will learn how to identify key business initiatives, stakeholders, advanced analytics, data sources, and instrumentation strategies that are essential to data science success. The book will help you accelerate and optimize your company’s operations through AI and machine learning. By the end of the book, you will have the tools and techniques to drive your organization’s digital transformation. Here are a few words from Dr. Kirk Borne, Data Scientist and Executive Advisor at Booz Allen Hamilton, about the book: "Data analytics should first and foremost be about action and value. Consequently, the great value of this book is that it seeks to be actionable. It offers a dynamic progression of purpose-driven ignition points that you can act upon."
Table of Contents (14 chapters)
10
Other Books You May Enjoy
11
Index
Appendix A: My Most Popular Economics of Data, Analytics, and Digital Transformation Infographics

The Economic Multiplier Effect

The Economic Multiplier Effect refers to the increase in value arising from any new injection of usage. The size of the multiplier effect depends upon Marginal Propensity to Consume (MPC).

The Economic Multiplier Effect is one of the most important economic concepts developed by J.M. Keynes to explain the impact of an incremental increase in input (investment) on the resulting incremental increase in output (value). From a data and analytics perspective, the Economic Multiplier Effect manifests itself in the realization that data and analytic assets can multiple their value as they are reapplied beyond their initial use case to other use cases.

For example, when retailers installed Point of Sale (POS) systems in the early 1980s, their primary motivation was a desire to reduce labor costs while ensuring consistent pricing at the cash register. Few imagined the add-on benefits from being able to reapply the same POS dataset across numerous sales...