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)
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Appendix A: My Most Popular Economics of Data, Analytics, and Digital Transformation Infographics

Postponement Theory

Postponement is a decision to postpone a decision. Postponement occurs when one party seeks to either gain additional information and/or to delay the decision in search of better terms.

Postponement Theory is an economic strategy that maximizes possible benefits and minimizes risks by delaying a decision in order to gain additional data or analytic insights. That is, the decision maker believes that the benefits of delaying the decision while more data is acquired outweigh the cost of potentially making a suboptimal decision.

Data Ramifications: Postponement theory plays out when organizations decide to postpone a decision in order to gather more data and build more accurate analytics to improve the probability of making a "better" decision.


Postponement theory is heavily influenced by the costs associated with Type I Errors (False Positive) and Type II Errors (False Negative) associated with that decision...