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Free Webinar, Organizing for IoT

In a free webinar, James Heppelmann, president and chief executive officer of PTC, discusses how IoT is transforming companies’ organizational structures. He’ll illustrate the new need for companies to coordinate across product design, cloud operation, service improvement, and customer engagement, and some of the models for making the transition to a new structure, including centers of excellence and steering committees. The presentation is followed by a Q&A session with the presenter.

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Why We Need New Measures of the U.S. Economy

The Information Age has revolutionized how we shop, travel and entertain ourselves—and yet we know little about how digitization has impacted the economy. That’s because the main gauge of economic growth, Gross Domestic Product, doesn’t capture much of the value created by “information goods.”

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Image courtesy of Flickr user Keith Allison

Stephen Curry, the Golden State Warriors, and the Power of Analytics at Work

Organizations across an increasing number of sports and levels of competition are capitalizing on data to gain a competitive edge. Indeed, few industries have implemented data-driven decision making as successfully as sports. And learnings from the sports analytics revolution are applicable to a broad range of other industries.

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Six Lessons From Amsterdam’s Smart City Initiative

The city of Amsterdam is becoming a model for “smart cities” through its innovation efforts to improve the lives of its employees and inhabitants. This case offers insights into what it takes to achieve these goals, including: taking the crucial step of doing an initial inventory of data available; using and integrating data from the private sector; and experimenting and learning from pilot projects.

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Lessons from Kunduz: Prevent Disaster by Paying Attention to the Little Picture

  • Read Time: 7 min 

Debates about assigning responsibility and meting out punishment rarely address the bigger issue: how to prevent major failures from happening in the first place. Indeed, when we focus primarily on punishment, without addressing the precipitating factors—both technological and organizational — we are inadvertently exposing ourselves to risk of recurrence.

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Are You Using the Return on Investment Metric Correctly?

  • Read Time: 3 min 

The biggest challenge with ROI isn’t a technical deficiency but confusion over how it is used. “To calculate ROI accurately, you need to be able to estimate the fraction of profits attributable to the investment,” write Neil T. Bendle and Charan K. Bagga. “In order to calculate ROI, there must be a return (a profit associated with the investment) and an investment. Unless you have both, you cannot calculate ROI.”

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Sales Gets a Machine-Learning Makeover

New advances in machine learning are allowing sales teams to manage huge amounts of data to become more effective and efficient. Our research suggests three main ways machine learning is being successfully integrated into sales processes. First, it allows for a scientific approach that clarifies opaque parts of the sales process. Second, it enables more-effective data-driven experimentation. Third, it automates administrative duties that take time away from higher-value tasks.

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How Should You Calculate Customer Lifetime Value?

  • Read Time: 3 min 

Should marketers subtract the cost of acquiring a customer before assessing that customer’s lifetime value (CLV)? Most of the time, no. “CLV is easier to understand, and in our view more useful, if marketers don’t subtract the acquisition cost from their calculation of CLV before reporting it,” write Neil T. Bendle and Charan K. Bagga. “Imagine that a company is selling an old machine. In this scenario, the company’s managers would expect to receive the machine’s current value, not the current value less what the company paid to buy the machine when new.”

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Free Webinar: Integrating Sales and Operations

On May 12 at 1 pm ET, Professor Theodore Stank, co-author of “Integrating Supply and Demand” from MIT SMR’s Summer 2015 issue, joins contributing editor Steven Paul to present his research on how some companies have bridged the perennial divide between demand generation and the supply chain in a way that maximizes the value to their customers and to themselves. Professor Stank describes how to avoid having sales generation become disconnected from the operations required to fulfill that demand

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