Test your understanding: Why did the insurance company business unit choose the path of having a small team use inexpensive tools to pursue quick, actionable wins instead of launching a large, formal analytics program?
Explore: In your own experience, what have been the practical obstacles to launching “food truck”–type programs?
Test your understanding: What’s an example of a benefit that a company might gain from using “alternative data” from the investment world, such as anonymized credit-card transaction data?
Explore: What kinds of companies would benefit the most from using alternative data? For example, do you think using alternative data requires a large number of data scientists, a large number of customers, an experimental culture, other?
Test your understanding: According to this section, what factors determine whether an idea will successfully spread throughout a network?
Explore: The author says, “Stay close enough to your external network to know what’s going on, but far enough away that you’re pursuing a differentiated strategy that plays to your company’s unique strengths and data assets.” In your industry, what’s a practical way to achieve both of these objectives?
Test your understanding: When creating a customer survey, should you start with a list of data elements that you want to collect, or a list of hypotheses that you want to test? Why?
Explore: If you could very easily scrape the Internet and collect and organize the data at low cost, what are some sites that you would want to scrape, and what would you do with that data in your organization that you are not already doing today?
Test your understanding: In the pay-TV example in this section, what was the benefit that came from putting together anonymized information about the TV channels that customers were watching? Why were TV-viewership-measurement companies willing to pay for this information?
Explore: What do you think are the main challenges that companies run into when they first try to monetize their data by selling it to external companies?
Test your understanding: What is the role of a data steward in making sure that data is well governed inside a large organization?
Explore: When you want to search your organization to find a specific kind of data that would help you, do you go to a tool (such as a link to a data catalog on the company’s intranet), talk to a human expert, or do something else? Does this approach typically work well for you?
Test your understanding: In the pursuit of “data sustainability” and robust analytical practices, why is it useful to collect multiple data sources that provide redundant information about your customers?
Explore: What is a data set that you rely upon today that is in danger of being unavailable in the future? What steps can you take to mitigate this risk?
Test your understanding: What is an example of an unintended consequence of the European General Data Protection Regulation (GDPR)?
Explore: If you had to write a regulation that protected consumers’ privacy and data rights without stifling innovation, what would be the main area you would focus on (e.g., what type of company behavior would you restrict or regulate)?
Test your understanding: What is one problem with using the Net Promoter Score as a metric outside of the U.S.?
Explore: Recall the explanation of Goodhart’s Law: “When a measure becomes a target, it ceases to be a good measure.” What’s an example of a metric that has this problem within your organization? What might be done to fix this?