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IES<br />
BOUNDAR<br />
SUSAN ATHEY “Management clearly is changing.”<br />
TECHNOLOGY<br />
The Data<br />
Explosion<br />
Economist Susan Athey says digital<br />
information is reshaping competition —<br />
and management.<br />
INTERVIEW CONDUCTED BY<br />
KATHLEEN O’TOOLE<br />
The explosion in digital data allows<br />
managers to measure and know radically<br />
more about their businesses, which they<br />
can then translate into improved products<br />
or entirely new ones. Stanford GSB<br />
economics professor Susan Athey, who<br />
consults for Microsoft and other technology<br />
companies, discussed with Stanford<br />
Business how voluminous data collection,<br />
cheap storage, and machine learning from<br />
data troves is changing the management<br />
of organizations — not just internet-driven<br />
newcomers but also traditional businesses.<br />
Here are excerpts from the interview.<br />
How do you see Big Data technology<br />
reshaping management skills in Silicon<br />
Valley and beyond? At the internet-related<br />
firms, most of which have a significant<br />
presence in the Silicon Valley, there is an<br />
enormous demand for new and different<br />
skill sets created by Big Data. Clearly, there<br />
is a need for large-scale data analytics.<br />
Within analytics, there are people who<br />
write the code to pull data from very large<br />
data sources and aggregate it into a form<br />
that’s more useful. There are people who<br />
do the fairly simple statistical analysis<br />
on that data, and then there are people<br />
who do much more complex statistical<br />
analysis involving machine learning or<br />
econometrics, such as modeling that<br />
predicts which link on a web page is<br />
going to get clicked on or which products<br />
consumers should be offered when they<br />
come to a web page.<br />
Susan Athey is a professor of<br />
economics at Stanford GSB.<br />
She received her PhD from the<br />
school in 1995.<br />
Peter Tenzer