Maybe the search for the Malaysian Airlines plane needed a chief data officer — Stuart Madnick

MIT Sloan Professor Stuart Madnick

MIT Sloan Professor Stuart Madnick

From Quartz

The search for an airplane lost on a 2,500-mile international journey requires consolidating information from many organizations, both public and private, from all over the world. It involves analyzing vast amounts of radar, sonar, and satellite data, coming from many diverse sources, including military bases, air traffic controllers, naval ships, and other airplanes.

What if the authorities investigating the missing plane had been prepared to manage big data the way many corporations do? What if the investigation had an executive level position responsible for collecting and analyzing all of the dispersed and diverse data that were available and potentially relevant to the search? What if a multinational chief data officer (CDO) had been in place to manage all of the information that was available?

Companies have recognized the value of just such a position for some time. The first reported chief data officer was established in 2003 by Capital One Financial Corp., Yahoo, and Microsoft Germany were early adopters. In little over a decade, hundreds of organizations, including US federal and state agencies, have created chief data officer positions, although the jobs often are given different titles. In time, the initials CDO may become as familiar as CEO, CFO, and CIO.

Driving the trend is the phenomenon of big data—the explosion of information made possible by the great advances that we have seen in recent years in communications, computers, and storage.

Read the full post at Quartz.

Stuart Madnick is co-head of the MIT Total Data Quality Management and MIT Information Quality programs. He is also a professor at MIT Sloan School of Management.

Is bitcoin a viable currency? It’s probably too volatile — Jonathan Parker

MIT Sloan Professor Jonathan Parker

MIT Sloan Professor Jonathan Parker

From The San Francisco Chronicle

While bitcoin remains a hot-button issue, most of the talk has centered on the technology of this virtual currency. There are lots of questions: Is bitcoin really secure? Is it truly anonymous? Can it be counterfeited? Are transaction costs actually lower?

I have a more fundamental question: Is bitcoin a viable currency?

My answer is no, and not just because of the wild fluctuations in the value but because these fluctuations are destined to continue. A good currency serves three purposes. It is:

A unit of account, used to measure and write contracts for income, wealth and goods.

A means of payment, used to avoid barter.

A store of value, held to be able to make future transactions.

Of these, the third historically has been the most important. People will be wary of accepting something that might lose lots of value, and something with a volatile price makes a bad unit of account.

Basically, bitcoin lacks a mechanism for setting the supply equal to the demand. That is needed in order for bitcoin to maintain its value.

History is replete with examples of what happens to currencies with fixed supplies. When governments tie their hands in the supply of their currencies, much like bitcoin has done, the value fluctuates.

Read the full post at SFGate

Jonathan A. Parker is the International Programs Professor in Management and a Professor of Finance at the MIT Sloan School of Management.

A bold new way to fund drug research — Roger Stein

MIT Sloan Senior Lecturer Roger Stein

MIT Sloan Senior Lecturer Roger Stein

From TED

Believe it or not, about 20 years’ worth of potentially life-saving drugs are sitting in labs right now, untested. Why? Because they can’t get the funding to go to trials; the financial risk is too high. Roger Stein is a finance guy, and he thinks deeply about mitigating risk. He and some colleagues at MIT came up with a promising new financial model that could move hundreds of drugs into the testing pipeline. (Filmed at TED@StateStreet.)

Roger Stein wants to bring financial engineering to the world of drug funding.

Watch the video on the TED site.

Roger Stein is a Senior Lecturer of Finance at the MIT Sloan School of Management. 

How Amazon transforms investor tension into creative tension — Lou Shipley

MIT Sloan Lecturer Lou Shipley

MIT Sloan Lecturer Lou Shipley

From Forbes

One of the big financial stories of 2014 has been Amazon versus its investors. The company’s stock, after climbing nearly 40% in 2013, started to slip early this year, then plunged 11% on the last day of trading in January. Throughout February, the stock remained in the doldrums.

Investors, it seems, are weary of Jeff Bezos’ practice of plowing Amazon’s oversized revenue into secret projects designed to grow the massive company even more. The stock’s big drop in January coincided with the company’s announcement that it planned to raise the price of Amazon Prime, a sign that investors don’t trust management to use whatever money the price hike might generate to benefit shareholders.

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Executive education opens its doors to the non-English speaking world — Peter Hirst and Laura Ziukaite-Hansen

The vast majority of executive education and business leadership programs in the U.S., Europe, and even parts of Asia are conducted solely in English. But for a large portion of global employees—about 40%*—this can be a significant barrier to learning and professional development.

While English may be considered the dominant language of global business**, it is certainly not the only language in which business is conducted. New poles of economic growth are emerging around the world, and a growing number of non-English speaking entrepreneurs and managers are creating new and exciting businesses in developing markets. They want to learn how to manage global teams, scale their existing businesses, expand their product lines, and develop their workforces. If they do not speak English with enough fluency to participate in executive education, everyone misses out—executives in all corners of the world have a lot to gain from and contribute to global management programs.

This past winter, MIT Sloan Executive Education piloted the Global Executive Academy. Held on the business school campus, the two-week multi-lingual program brought together 38 executives from 15 countries to share a learning experience based on four of MIT Sloan’s most popular open-enrollment programs.

The Academy provided faculty-led programs focused on innovation, management, marketing, and organizational performance, all conducted in English and simultaneously translated—“United Nations style”—into Arabic, Mandarin, Portuguese, Russian, and Spanish.

Participants listened to translations using wireless headsets. All classroom discussions, presentation materials, and in-class videos were translated into the individual languages.

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