Leading Your Company’s Digital Transformation — George Westerman

From Sloan Management Review


George Westerman (MIT Center for Digital Business), interviewed by Michael Fitzgerald
October 29, 2012

Big traditional companies get overlooked when it comes to digital transformation. But companies across all industry sectors are remaking their operations, their customer interactions, and even their business models. George Westerman tells us how they’re doing it, whether they are technology champions or beginners.

Read more from MIT Sloan Management Review about Digital Transformation

George Westerman is a research scientist at the MIT Center for Digital Business

Erik Brynjolfsson on Big Data: A revolution in decision-making improves productivity

MIT Sloan Prof. Erik Brynjolfsson

There is a fundamental change underway in the way that companies make decisions. Instead of relying on a leader’s gut instincts, an increasing number of companies are embracing a new method that involves data-based analytics. This ‘Big Data’ revolution is occurring mainly because technology enables firms to gather extremely detailed information from and propagate knowledge to their consumers, suppliers, alliance partners, and competitors.

Companies that use this type of ‘data driven decision making’ actually show higher performance. Working with Lorin Hitt and Heekyung Kim, I analyzed 179 large publicly-traded firms and found that the ones that adopted this method are about 5% more productive and profitable than their competitors.  Furthermore, the study found a relationship between this method and other performance measures such as asset utilization, return on equity and market value. There is a lot of low-hanging fruit for companies that are able to use Big Data to their advantage. Read More »

MBA Craig Hosang answers questions about the 2012 Silicon Valley Tech Trek

Craig Hosang, MBA '13

From Thomson Reuters peHUB, January 12, 2012

An MBA on Becoming Relevant to an Industry “That’s Doing Fine Without You”

Connie Lozios

‘Tis the season for MBA students to begin looking for summer internships, and students at the MIT Sloan School of Management are no exception. In fact, just last week they took their annual “tech trek” to Silicon Valley to shake hands, flash smiles, and otherwise engage with executives at companies like Facebook, Intel, and eBay.

Read More »

Erik Brynjolfsson: New e-book outlines promise and peril of digital revolution

MIT Sloan Prof. Erik Brynjolfsson

From Economics of Information Blog

Andy McAfee and I have just released a short e-book, Race Against the Machine. In it, we try to reconcile two important facts. 1) Technology continues to progress rapidly. In fact, the past decade has seen the fastest productivity growth since the 1960s, but 2) median wages and employment have both stagnated, leaving millions of people worse off than before. This presents a paradox: if technology and productivity are improving so much why are millions being left behind?

In the book, we document remarkable advances in digital technologies in particular. Innovations like IBM’s Watson, Google’s self-driving car, Apple’s Siri are turning science fiction into reality. Machines are doing more and more tasks that once only humans could do.

Read More »

Paul Osterman: 'Moneyball' lessons for the economy

From USA Today

In the book (and now film) Moneyball, general manager Billy Beane transforms the Oakland Athletics by recognizing that overlooked players contribute value to a team. He overturns conventional wisdom, indeed upends baseball’s domination by wealthier teams,by using data to measure performance. What he learns can also apply to the economic challenges we face today.

When people think and write about what leads to economic success, they too often focus only on the most visible, highly paid players. In the case of the economy, it is the CEOs. The business press is full of praise for celebrity leaders such as Jack Welch and Steve Jobs. But even when the CEO is not movie-star famous, stories about whether a firm will succeed or fail usually focus on the personality and actions of the person at the top.

 

Read the full column in USA Today 

Paul Osterman is a professor at the MIT School of Management and co-author of Good Jobs America: Making Work Better For Everyone

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