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Business Analytics Revolution: Harnessing Data-Driven Decision Making for Maximum Profit

Sociometrics Solutions, a spinoff from MIT, functions akin to "Moneyball for business". Leveraging behavioral analytics, this company examines employee behaviors to discover strategies that enhance workplace productivity and satisfaction.

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Business analytics firm Sociometrics Solutions, a spinoff from MIT, is akin to the "Moneyball...
Business analytics firm Sociometrics Solutions, a spinoff from MIT, is akin to the "Moneyball approach for businesses": Using behavioral analysis of employees, they discover methods to enhance productivity and satisfaction within the workplace.

Business Analytics Revolution: Harnessing Data-Driven Decision Making for Maximum Profit

In the realm of business, analytics are no longer just for baseball teams. MIT spinoff Sociometric Solutions, inspired by Michael Lewis' "Moneyball", is bringing data-driven decision making to the workplace with their system, creatively dubbed "Moneyball for Business". This ingenious system tracks employee behaviors using sensor identification badges, feeding data into clever algorithms that reveal patterns and trends, ultimately boosting productivity.

Ben Waber, PhD '11 and co-founder of Sociometric, explains, "It's about putting numbers on behavior and using that data to build a productive environment where everyone thrives." The system's foundation stems from years of meticulous research at MIT.

These badges are equipped with a host of sensors. For example, they detect location, direction an employee is facing, and engagement levels in conversations. Accelerometers monitor speed, indicating bursts of lethargy or vigor, while microphones register speaking patterns, like speed, volume, and tone of voice.

This data is collected by readers scattered around the office and funneled to the cloud. Employees have access to their personal data via a web dashboard or smartphone, but businesses receive only anonymous, aggregated results, showcasing patterns and trends in behavior.

"By combining this information with employee-performance data from surveys, interviews, and objective metrics, we can pinpoint areas where management can create a more productive office," Ben Waber says. The insights gleaned from this system now help more than 20 retail, sales, and consulting firms increase productivity and employee satisfaction.

Intriguingly, the team's findings sometimes lead to counterintuitive solutions, such as installing larger lunch tables or moving coffee stations to incite more interaction. "The difference this can make might seem trivial," Waber admits. "But the CEO isn't typically thinking about how the size of the lunch table affects productivity – it's the biggest drivers of how people communicate with one another."

Relocating the workplace dynamics game, Sociometric promises a 20% boost in productivity and employee satisfaction on average, and a proportional decrease in employee turnover. The company got its start when Waber, along with fellow researchers, developed prototypes for a management study, eventually spinning off into a viable startup after refining the system and learning how to market it to potential customers.

  1. In the realm of business, data-driven decision making, inspired by Michael Lewis' "Moneyball", is extending beyond baseball teams, thanks to MIT spinoff Sociometric Solutions.
  2. The system, known as "Moneyball for Business", uses sensor identification badges to track employee behaviors, feeding data into algorithms that reveal patterns and trends, boosting productivity.
  3. Ben Waber, PhD '11 and co-founder of Sociometric, explains that the system aims to put numbers on behavior and create a productive environment where everyone thrives.
  4. The system's foundation stems from years of meticulous research at MIT, with badges equipped with sensors detecting location, direction, engagement levels, speed, speaking patterns, and more.
  5. Data is collected by readers scattered around the office and funneled to the cloud, with employees having access to their personal data via a web dashboard or smartphone, while businesses receive only anonymous, aggregated results.
  6. By combining this information with employee-performance data from surveys, interviews, and objective metrics, Sociometric helps businesses pinpoint areas for management to create a more productive office.
  7. Intriguingly, the team's findings sometimes lead to counterintuitive solutions, such as installing larger lunch tables or moving coffee stations to encourage more interaction.
  8. Relocating workplace dynamics in this manner, Sociometric promises a 20% boost in productivity and employee satisfaction on average, along with a proportional decrease in employee turnover.
  9. The company got its start when Waber, along with fellow researchers, developed prototypes for a management study, eventually spinning off into a viable startup after refining the system and learning how to market it to potential customers, venturing into fields as diverse as public, campus, fashion-and-beauty, home-and-garden, business, technology, finance, entrepreneurship, lifestyle, and data-and-cloud-computing.

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