Oh how times change! I am reading a good book at the moment called "Competing on Analytics – The New Science of Winning" and I hit one particular quote that I have to share with you. It’s one of those statements that makes perfect sense at the time, but is kind of funny when you look at it in the context of recent world events in the financial markets.
…But in other cases, analytics can permanently transform an industry or process. As Money-ball and Liar’s Poker author Michael Lewis points out in talking about investment banking. "the introduction of derivatives and other new financial instruments brought unprecedented levels of complexity and variation to investment firms. The old-school, instinct guys who knew when to buy and when to sell were watching young MBA’s – or worse, PhD’s from MIT – bring an unprecedented level of analysis and brain power to trading. Within 10 years the old guard was gone".
I love that line "analysis and brain power", given the contribution of derivatives to the prospect of a "teensy weensy" global recession. Mind you, how much ‘analytics’ do you think is going into current decisions and company valuations on the stock market?
Where are those old school guys? I want ’em back!! 🙂