The Numerati, by Stephen Baker

"The Numerati" is a fascinating look into the analysis of mountains of data collected from online activity and the people and companies engaged in making sense of this information with the idea to convert it into products, services and even votes.

The author's venture into this field comes at a junction in time when the analysis tools and ideas are still in their infancy. The science is not perfect and there will be more hits than misses. However, as some of the people interviewed in the book suggest, even imperfect information is better than what is available at present through conventional means. For example, in the case of targeted political marketing, a slight improvement in messaging can deliver a tight district to a party using the new data analysis techniques.

The book needs to be viewed from a larger perspective. Data analysis techniques should augment and complement business strategies, not replace them. They are tactics for improvement. For example, a politician who does not have the right message for voters will lose even if he is an expert at identifying swing voters.

Tags: technology statistics