This is a review of a chapter from ""Competing on Analytics"-
Touching first on an omnipresent example of analytic prowess Netflix. The Company, created a culture of analytics and a "test and learn" approach to its business. They use a combination of quantitative and qualitative data (like surveys) to present a better customer experience. Netflix makes recommendations of movies and shows based on history.
My Thoughts: This is something that Netflix does much better than Amazon Prime- which enables watching the same types of online streaming of movies and shows. My personal experience has been that Netflix does a much better job of making recommendations. This gives it an advantage over Amazon that will take some time to catch up. But, Amazon eventually will have a solution- in fact they were one of the pioneers of the strategy- "Customers who bought this item also bought..."
What are Analytics?
"Analytics" is the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions. Chapter touches on "Moneyball" and its use of analytics. Which was the concept that traditional baseball metrics didn't describe the entire value of a player - and that wins could be generated on undervalued attributes that describe performance, like "on base percentage, "on base plus slugging percentage".
My Thoughts: I have the movie "Moneyball" in my queue on Amazon Prime. Need to watch it, perhaps tonight... My thought here is that what Moneyball teaches is that there may be different metrics than what is the standard in the industry. There can be hidden and undervalued trends that describe performance better than the outward and obvious "box scores".