Location, Location, Location not Good Enough
Just when I start thinking that analytics are everywhere, I realize that we are just scratching the surface of what can be done with them. Yes, many industries have considerable analytical activity under way, and more and more companies are embracing the competitive potential of analytics. But there are far more that haven’t even begun to compete analytically.
A couple of weeks ago I had lunch with someone I met over 20 years ago at Pfizer—Russ Baris. In his last job there, Russ headed a very impressive group of IT/quantitative analysts in a Pfizer organization called Business Technology and Information Science. He has a strong quantitative background, and he did great work for Pfizer for more than two decades.
Now, however, he’s started a company (called Elumindata http://www.elumindata.com/) to develop analytical solutions for various industries where they are underleveraged. One is the residential real estate industry. Several of Russ’ family members are in that business, so he knows it well. Let’s just say that right now it’s not very analytical.
Think about it—you want to sell your house (who doesn’t these days?). You call a Realtor (I think the term is supposed to be capitalized and have a trade mark after it—please don’t arrest me). Do you know the average days on market for the houses being sold by that realtor? Do you know how frequently sellers re-signed with that realtor after the original contract period ran out? Do you know what percentage of appraised value the realtor tends to get for the houses he or she sells?
No, you don’t. Nobody does, except Russ and a few clients. Those analyses simply aren’t available to consumers. If it’s any consolation, realty office owners and managers don’t have them either. It’s an industry that has run in the past on charm and charisma and connections, but certainly not on correlations.
Russ is trying to fix this problem. He can take Multiple Listing Service (MLS) data for a particular town or region and quickly produce some very interesting reports about which companies and agents are doing well, and which are languishing. If you’re a realtor, you should seek out Russ and implement his solutions. Maybe someday the information will even be available to those who want to sell their houses.
I know, chances are good you’re not a realtor. But in your industry—whatever it is—there is likely to be some area of the business that could be much more analytical than it is today. If you’re smart and enterprising, you’ll find some way to transform that operation with the help of data and analytics.
