Many businesses leaders don’t know how to understand, manage and exploit data. Strategic business experts Tomasz Tunguz and Frank Bien explain why companies face internal conflicts about harnessing data. They show how you can work toward changing your culture to use data more effectively. And, they detail how to use data to transform your daily operations instead of just analyzing historical performance. Tunguz and Bien also provide a workable framework for understanding and exploiting data. getAbstract recommends their overview to businesspeople who lack IT chops, but who’d like to upgrade their data management infrastructure and practices.
From “Mad Men to Math Men”
Marketing today has little in common with the Mad Men era of 1950’s Madison Avenue advertising agencies. Today’s marketing professionals use “algorithms” – formulations that help businesses decide where to display an ad and, in some cases, how to set product prices according to the probability of consumers making purchases.
This shift in business practice transcends advertising. The use of data can drastically alter selling, management and products. For example, software can provide salespeople with a list of prospects to contact each day. Companies who are selecting new hires can refer to their social media activities. Managers can track how shoppers decide to buy.
A few companies have restructured how they operate to take advantage of data optimization. In many ways, these firms represent the future. In time, other companies will embrace these methods. Sophisticated firm exploit data instead of treating it as a historical record. For example, Uber’s data management system gives it a market advantage. Uber sets prices for rides according to market demand. It tells drivers the best times to...
Redpoint venture capitalist Tomasz Tunguz worked at Google. Frank Bien, president and CEO of Looker Data Sciences, was senior vice president of strategy at Virsto Software Corporation.