When a new technology arrives, consulting companies can quickly add staff and expertise to build institutional capacity centered around the technology in ways companies focused on delivering their own products and services cannot. Large consulting companies like Booz Allen and McKinsey, as well as smaller analytics-centric firms like Elder Research, thus constitute a significant jobContinue reading “Industry Spotlight: Consulting”
Monthly Archives: February 2019
Good to Great
In 1994, Jim Collins and Jerry Porras, former and current Stanford professors, published the best-seller Built to Last that described how “long-term sustained performance can be engineered into the DNA of an enterprise.” It sold over a million copies. Buoyed by that success, Collins and a research team set out to find the characteristics of companiesContinue reading “Good to Great”
Selection Bias
Selection bias is a sampling or data collection process that yields a biased, or unrepresentative, sample. It can occur in numerous situations, here are just a few:
Space Shuttle Explosion
In 1986, the U.S. space shuttle Challenger exploded several minutes after launch. A later investigation found that the cause of the disaster was O-ring failure, due to cold temperatures. The temperature at launch was 39 degrees, colder than any prior launch. The cold caused the O-rings to become stiff and brittle, losing the flexibility thatContinue reading “Space Shuttle Explosion”
Alaskan Generosity
People in Alaska are extraordinarily generous – that’s what a predictive model showed, when applied to a charitable organization’s donor list. A closer examination revealed a flaw – while the original data was for all 50 states, the model’s training data for Alaska included donors, but excluded non-donors. The reason? The data was 99% non-donors,Continue reading “Alaskan Generosity”
Industry Spotlight – The Military
Abraham Wald, a persecuted Jewish mathematician who fled Austria just before World War II, led an analysis of allied bombers returning from missions. Hitherto, the Air Force had focused on reinforcing areas that showed the most damage on return. Wald convinced them instead to focus on the areas that consistently showed no damage. He reasonedContinue reading “Industry Spotlight – The Military”
Why Analytics Projects Fail – 5 Reasons
With the news full of so many successes in the fields of analytics, machine learning and artificial intelligence, it is easy to lose sight of the high failure rate of analytics projects. McKinsey just came out with a report that only 8% of big companies (revenue > $ 1 billion) have successfully scaled and integratedContinue reading “Why Analytics Projects Fail – 5 Reasons”