• Adjust business processes to leverage new information
• Empower themselves with a working knowledge of data science
First, leaders must be willing to adjust business processes based on information uncovered by big data analysis, even if it means a major change in business as usual. Second, and equally important, big data is useless unless leaders know what questions to ask of it.
He shared an example from healthcare: Imagine a hospital administrator who is considering purchasing a new ultrasound. She runs an analysis comparing time per procedure on the hospital’s two types of models: models from 2008 and models from 2013. The analysis finds the procedure time is 1 min shorter on the 2008 machines. So, should the administrator purchase 2013 machines to replace the older models? Not according to this analysis.
However, a different analysis finds that 85 percent of new technicians prefer and use the new models, while 90 percent of experienced technicians (who already perform speedier procedures because of their experience) use the 2008 models they’re more familiar with. Instead of comparing the machines, the administrator actually compared the experience of technicians. If she would have controlled for experience, however, the data would have been more valuable.
“The most important skills for [data analysis] are not technical skills at all, they’re thinking skills,” he said.
Well said.
