#244: Data Is Everywhere. Why Do We Limit Ourselves by Default?
Apr 30, 2024
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Jason DeRise shares stories on using alternative data for analyses, including tearing down a Tesla. The episode explores the power of diverse data sets and methodologies, emphasizing the value of unconventional sources. It discusses challenges faced during the pandemic, data acquisition for business decisions, transitioning into the insurance sector, and the benefits of data meetups and mathematical decision-making. The chapter also includes humorous anecdotes and insights into data analysis and interpretation.
Exploring alternative data sources can enrich analyses and provide unique perspectives beyond traditional datasets.
Being early and adaptable in data analysis offers a competitive edge in dynamic environments like financial markets.
Articulating desired outcomes and uncertainties is crucial for tailoring data analysis approaches to extract meaningful insights.
Deep dives
Exploring Unconventional Data Sources
In the podcast episode, the discussion delves into the importance of considering data from unconventional sources, rather than solely relying on familiar tools like digital analytics platforms. The conversation highlights the potential limitations of sticking to standard data and emphasizes the value of exploring different data sets to broaden the scope of analysis and tackle new questions. Using examples from the financial sector, the episode showcases how thinking outside the box with data collection, such as analyzing satellite imagery of tank depths for trade insights, can provide valuable and unique perspectives for decision-making.
Early Advantage and Adaptability in Data Analysis
The podcast episode underscores the competitive advantage of being early and adaptable in data analysis, particularly in fast-paced environments like financial markets. It emphasizes the significance of asking the right questions that can lead to actionable insights and being able to pivot based on evolving circumstances. The discussion showcases examples of leveraging diverse data sources, like web scraping for real-time information during the pandemic, to gain valuable insights ahead of traditional data reporting timelines. This proactive and dynamic approach allows for staying ahead of the curve and making informed decisions in rapidly changing landscapes.
The Process of Data Exploration and Insight Generation
The episode outlines a systematic process for tackling big questions and complex data analysis tasks. It encourages stakeholders to articulate their desired outcomes and uncertainties rather than just focusing on obtaining data. By identifying gaps in knowledge and uncertainties, analysts can tailor their approach to extract meaningful insights. The examples shared, such as dismantling electric vehicles to understand production costs and consumer behaviors, demonstrate a holistic approach to data analysis that involves combining traditional methods, like surveys, with innovative techniques, such as app monitoring and location tracking, to build a comprehensive understanding of complex issues.
Using Early Adopters as Social Proof
Early adopters helped create social proof and a fear of missing out, leading to more questions and experimentation. Some questions led to dead ends, which was celebrated as a learning opportunity. The process of addressing questions was highlighted as crucial in driving progress.
Optimizing Budgets and Strategic Data Collection
Initial budget constraints led to strategic decision-making and the adaptation of zero base budgeting. As the value and demand for data analytics grew, the budget expanded. Prioritizing optimization over cost-cutting allowed for reallocating funds to more impactful projects based on performance metrics.
In order to produce a stellar analysis, have you ever requested a team to teardown a Tesla and count every last washer and battery cell? No? Well our guest this week, Jason DeRise, joined Tim, Julie, and Val to share that story and others on how alternative data can be used to enrich analyses. Luckily you don’t have to have a Wall Street-sized budget in order to tap into the power of alternative data. Looking just outside your tried and true data sets and methodologies to see how you might be able to add to your mosaic of understanding a business question can be powerful! In this episode we talk about some of the considerations and approaches when you put down that hammer and see the world around you is more than just a bunch of nails. For complete show notes, including links to items mentioned in this episode and a transcript of the show, visit the show page.
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