“Moneyball,” written by Michael Lewis and published in 2003, recounted how the Oakland Athletics baseball team used statistics and sophisticated analytical techniques to decide which players to sign—something no other team was doing at the time.
These decisions, which were previously made by baseball scouts who relied on experience and intuition, allowed a small team with limited resources to compete against organizations with far deeper pockets. The opportunities for Moneyball equivalents in the business world are enormous. More and more organizations are collecting data in unprecedented quantities (often called “big data”). By analyzing it using algorithms and statistical techniques, smaller companies can reveal previously undiscovered patterns and insights to help level the playing field between themselves and larger organizations.
Author: Alan S. Horowitz