Summary : Big Data – Viktor Mayer-Schonberger and Kenneth Cukier

Random sampling cannot capture the preferences of subgroups or other niches of the data

Knowing why might be pleasant, but it’s unimportant for stimulating sales. Knowing what, however, drives clicks.

Algorithm auditing will be needed – a new class of professionals will be needed who will trained in being able to analyze the integrity of data sources, the choice of analytical tools used and the soundness of the results generated. These auditors will be able to independently certify the accuracy or validity of big data predictions.

Salespeople in all sectors have long been told that they need to understand what makes customers tick, to grasp the reasons behind their decisions. Professional skills and years of experience have been highly valued. Big data shows that there is another, in some ways more pragmatic approach. Amazon’s innovative recommendation systems teased out valuable correlations without knowing the underlying causes. Knowing what, not why, is good enough.”

The MIT project has spun off a commercial venture called PriceStats which now does a similar exercise for more than 70 countries.