Big Data and Fast Frugal Trees

In his excellent podcast episode with EconTalk’s Russ Roberts, psychologist Gerd Gigerenzer introduces the concept of “fast and frugal trees“. When someone needs to make decisions quickly, Gigerenzer says, they don’t take into account a large number of factors, but instead rely on a small set of thumb rules. The podcast itself is based on…

The nature of the professional services firm

This is yet another rejected section from my soon-t0-be-published book Between the buyer and the seller.  In 2006, having just graduated from business school, I started my career working for a leading management consulting firm. This firm had been one of the most sought after employers for students at my school, and the salary they offered…

Restaurants, deliveries and data

Delivery aggregators are moving customer data away from the retailer, who now has less knowledge about his customer.  Ever since data collection and analysis became cheap (with cloud-based on-demand web servers and MapReduce), there have been attempts to collect as much data as possible and use it to do better business. I must admit to…

Should you have an analytics team?

In an earlier post a couple of weeks back, I had talked about the importance of business people knowing numbers and numbers people knowing business, and had put in a small advertisement for my consulting services by mentioning that I know both business and numbers and work at their cusp. In this post, I take…

The Problem with Unbundled Air Fares

Normally I would welcome a move like the recent one by the Directorate General of Civil Aviation (DGCA) that allows airlines to decrease baggage limit and allows them to charge for seat allocation. While I’m a fan of checking in early and getting in a seat towards the front of the flight (I usually don’t…

The Trouble with Management Consulting

While I was pumping iron (I know, I know!!) at the gym on Wednesday evening, I got a call from a client seeking to confirm our meeting yesterday afternoon. “Why don’t you put together a presentation with all the insights you’ve gathered so far?”, he suggested, adding that he was planning to call a few…

Generalists and specialists

So you have generalists and specialists. Generalists are fundamentally smart people who can do a variety of things. They take a look at a problem, take some time to understand the basics, and then go about solving it. They get bored easily, and move from problem to problem. Generally, they don’t dig deep but are…