Two dynamics are poised to transform the way companies operate: the exponential increase in data and the realization on the part of executives that predictive models and algorithms produce better decision guidance than human intuition alone.

While most managers agree on the importance of using data, many believe that the big data hype often associated with companies like Google and Amazon doesn’t apply to them. Or perhaps they are intimidated with the internal resources and hefty investment required to tap into that data. Others may be skeptical that the use of predictive models can actually lead to better business performance.

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