Monday, March 19, 2007
Thomas Davenport and Jeanne Harris (Harvard Business School Press, $29.95)
The TV show NUMB3RS uses math to calculate parameters about crimes and find the perpetrator. The same analytics allow businesses to hone their processes. Examples from real life:
Netflix, the DVD rental company, uses logistics to ensure customers aren't charged to return DVDs. Its Cinematch search engine provides a personalized Web page for each user based on ordering preferences.
And it offers a $1 million prize to any outsider who can improve its algorithmic performance by at least 10 percent.
Capital One knows "what's in your wallet," thanks to analytics. Its proprietary software helps it assess, for example, the creditworthiness of subprime customers. And if you're not good at math, don't apply there. Capital One stresses analytics in hiring at all levels. .
Sprint uses analytics in its HR process. Its processes measure morale, plan training and assess performance reward systems.