Before companies can profit from big data, they often must deal with bad data. There may indeed be gold in the mountains of information that firms collect today, but there also are stores of contaminated or “noisy” data. In large organizations, especially financial institutions, data often suffer from mislabeling, omissions, and other inaccuracies. In firms that have undergone mergers or acquisitions, the problem is usually worse.
Contaminated data is a fact of life in statistics and econometrics. It is tempting to ignore or throw out bad data, or to assume that it can be “fixed” (or even identified) somehow. In general, this is not the case.
Compared to five years ago, the amount of data we now generate is huge. Some companies collect that data, but more often than not they don’t do anything with it. Business analytics is an important tool to help organizations harness the power of that data. By unlocking its value, you can do things like improve profits, predict consumer behavior, better understand markets, and make more informed decisions. Most importantly, it can give you a competitive edge.
For those of us in the field of operations research, data analytics is a huge and exciting area. It’s a critical tool for businesses moving forward. As a result, we’re offering MIT Sloan’s popular Analytics Edge course on the MITx online, interactive learning platform this spring. We want to share the cutting-edge knowledge generated at MIT on this important topic with people around the world. Read More »
Have you tried to apply for a mortgage lately? If so, you might have some rather unpleasant memories of filling out endless forms and – if you had a question — trying to navigate through a voice recognition telephone system that didn’t understand you. If you were able to actually reach a real person, that employee might have been more focused on the procedure than actually listening to you. What is the result of this automation of processes? Not surprisingly, it’s disconnected and frustrated customers. Read More »
Recently MIT Sloan alumna Judy Lewent was inducted into the Financial Executives International Hall of Fame. A former executive vice president and chief financial officer of Merck, Lewent was recognized for her performance, leadership and integrity as a financial professional who has made significant contributions to the betterment of her organization and profession. The following is an excerpt of her remarks at the event:
“It is a momentous time for finance. As the global economy teeters on the brink, much of the world stands by holding its collective breath. This is, no doubt, a time of great anxiety. That anxiety is shared, not just by 50% of the public or 75% or even 99%. Everyone shares it.
The business pages are filled with examples of companies that have taken big hits to their brands because they’ve made marketing decisions that ran afoul of customer expectations. Take Netflix, and its aborted scheme to divide its streaming and DVD video offerings. Netflix could have avoided its embarrassing reversal if it had experimented on this decision before publically announcing the change.