Machine Learning Is a Money ball Moment For Companies. Big companies like FACEBOOK, AMAZON, and UBER are adopting big-league strategies by stealing the best talent, winning over everyone’s customers, and creating the most investor values. To be the best in the market the companies need to use big data for ML and become data-driven. Moreover, Regardless of what industry you are in, it’s time to upgrade your business model, not just try to operationally improve an old one and this is how you can compete in the market and gain profit.
Put succinctly, the Oakland A’s baseball club was able to pick up undervalued players in order to overcome their capital constraints and competitors with deeper financial pockets. Beane reshaped his organization, using data-driven decisions that went counter to established thinking and action at the time – coaches and advisors using instinct and experience. Today, the story is not much different in corporations. Advisors, mostly high-priced consultants, study the trends in small teams, and make recommendations to their clients based on their own personal experience and pattern recognition.
According to a recent HBR article and research by Tom Davenport and Randy Bean, companies are finally embracing analytics, but still have shown little appetite to be data-driven, let alone use ML and AI to help them understand the key drivers of value in today’s highly competitive environment: capital allocation and business model design. As our research has shown, business models cross industry boundaries and focus on how an organization creates value—for example by manufacturing cars like Ford, or by connecting users via a platform like Uber.
How can you Moneyball” your company’s strategy and corporate capital allocation? Start putting your data to good use and use AI to start informing your decision-making. You know, like all the big powerful platforms do. Some good steps to follow:
- Play the big league. Every organization under the sun thinks in terms of which industry they are in and how they rank relative to their peers. Too bad that perspective makes less and less sense as today’s digital platforms are eating away at the incumbent’s across industry boundaries. Companies like Amazon, Apple, Facebook, Uber, and Airbnb are stealing the best talent, winning over everyone’s customers, and creating the most investor value. A company that defines success relative to old industry standards is like playing the minor leagues. It’s time to start adopting big-league strategies.
READ MORE ON(Machine Learning Is a Money ball Moment For Companies): Forbes