I was lucky enough this week to be able to attend the CSRSA general meeting.
The topic was “Conceptual frameworks for a future analytic game changer?” by Larry Rosenberger, former CEO of FICO.
His view was that as we move into a world with greater access to information; the role of customer contact and using the data from this customer contact, will become ever more important.
This is critical information, that can represent a competitive advantage for companies if tracked and used in the right way (within the context of models, in this case).
Interestingly, despite being high profile, social network data was not seen as necessarily rich data. Also information gained from customer care and collections processes whilst useful is expensive to collect.
This pointed to a sweet spot in between where targeting and asking the right questions to the right people at the right time, could yield very rich data helping target offers, and actions to best match the customer needs.
The design of this process to gather information will be crucial and may indeed represent a larger challenge than the modelling itself…..this is the new frontier.
For me I was left thinking about chaos theory and the linkage to modelling. The more you drill down the more complex it becomes, however all of this seeming chaos is driven by the interaction of a few simple parameters, highly sensitive to initial starting conditions.
Understand those and you can attempt understand the system itself…..
…..a thought provoking talk.