Analytics: The End of Intuition?

I read an article above from Newsweek's September issue called "Era of the Super Cruncher". Very interesting read so it is worth a read (after reading this post of course). This is based on the book "Super Crunchers: Why Thinking-by-Numbers Is the New Way to Be Smart" by Ian Ayres. It sounds like the "Competing on Analytics" booked I reviewed here.

Newsweek:- "... a powerful trend that will shape the economy for years to come: the replacement of expertise and intuition by objective, data-based decision making, made possible by a virtually inexhaustible supply of inexpensive information."

So we go from Malcolm Gladwell's "Blink" (Jan 2005) to intuition & expertise is being replaced in 2.5 years. I have not read Super Cruncher but I would support the view that they need to both co-exist. Expertise and experience is always necessary, but having the latest and relevant information is definitely better than not having it. And even the more informed novice still would not know which is the best solution in the medium to long term, after all information is about what HAS happened and not what WILL happen.

NW:- "Those who control and manipulate this data will be the masters of the new economic universe."



He-Man and She-Ra - that's what those of us uber-geeks will become.


NW:- "Super-crunchable data can be broadly statistical or profoundly personal. Illustrating the former, Ayres chose the title of his book by running two Google ads that appeared in random order when someone searched for phrases like 'data mining.' The decision was made by the plurality who clicked on the ad for 'Super Crunchers' rather than the competing title, 'The End of Intuition.' "

KEWL!! Though I prefer "The End of Intuition"

NW:- "Increasingly, jobs that used to call for independent judgment, especially about other people, are being routinized and dumbed down. Banks no longer care about a loan officer's assessment of whether a borrower is a good risk; everything they need to know is in the numbers."

Right.. so those loan officers' assessments were good to begin with? If they were good, then they wouldn't have been replaced right? But then, some one.. some person has to come up with the algorithms and program these computers right?

He has a point though in this case though. I am getting pre-approved offers for unsecured loans and credit cards - which must have been initiated after an automated credit check. There is no need for a loan officer now.

I am still not convinced that this is the death of intuition, but then I guess I should read the book... Will check back later after I read this.