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Advanced analytics can help companies solve a host of management problems, including those related to marketing, sales, and supply-chain operations, which can lead to a sustainable competitive advantage. But as more data becomes available and advanced analytics are further refined, managers may struggle with when, where, and how much to incorporate machines into their business analytics, and to what extent they should bring their own judgment to bear when making data-driven decisions. In general, humans are better at decisions involving intuition and ambiguity resolution. Machines are far superior at decisions requiring deduction, granularity, and scalability. How can you find the right balance? There are three common approaches to analytics: descriptive, where decisions are made mainly by humans; predictive, which combines aspects of the other two; and prescriptive, which usually means autonomous management by ma- chines. This article describes when and how to use each approach and examines the trade-offs and limitations. Although the focus is on marketing and sales, the principles may be applied more broadly. INSET: The Evolution of Price Markdowns at Event Network. [ABSTRACT FROM AUTHOR]

During economic slowdowns, consulting, law, and accounting firms often start offering services and taking on clients they really shouldn’t, just to keep the lights on. This path is perilous. If a firm’s practices have a diffuse mix of clients and unclear strategic positioning, it will weaken the firm’s market profile and lead to internal conflicts, especially about the organization’s future direction. This article presents two tools that professional service firms can use to manage their client mix and optimize their strategic position. The first is the practice spectrum. All practices fall on a continuum of sophistication that ranges from “commodity” to “rocket science.” Any position on this spectrum can be profitable, though the forces driving profits change as you move along it—as do the capabilities and skills required. Successful practices understand their true position on the spectrum and know which performance levers to pull. The second tool is the client portfolio matrix, which separates clients into four categories on the basis of cost to serve and willingness to pay. Rather than spreading clients across all four, firms should focus their acquisition efforts and follow different relationship strategies for each type of client. [ABSTRACT FROM AUTHOR]

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Companies spend heavily on executive education but often get a meager return on their investment. That’s because business schools and other traditional educators aren’t adept at teaching the soft skills vital for success today, people don’t always stay with the organizations that have paid for their training, and learners often can’t apply classroom lessons to their jobs. The way forward, say business professors Mihnea Moldoveanu and Das Narayandas, lies in the “personal learning cloud”—the fast-growing array of online courses, interactive platforms, and digital tools from both legacy providers and upstarts. The PLC is transforming leadership development by making it easy and affordable to get personalized, socialized, contextualized, and trackable learning experiences. INSETS: The Problems with Traditional Executive Education;The Skills Transfer Gap: What Is Learned Is Rarely Applied. [ABSTRACT FROM AUTHOR]

This article presents an overview of the study "Managing Customer-Initiated Contacts with Manufacturers," conducted by Douglas Bowman and Das Narayandas which focused on managing customer-initiated contact. New technologies and changing customer attitudes mean customers are contacting manufacturers more frequently and for reasons beyond complaints. The authors defines customer-initiated contact as any communication with a manufacturer initiated by a customer or prospect. Findings of the research indicates that loyal customers value how they are treated more than whether they walked away from the contact having received something valuable from the company.