Economist or Iconomist?

February 17, 2010

Have you heard the joke about economists? Most of them are saying iconomist seeing the 2009 global credit crisis.

As volatility increases – such as oil prices, foreign currency exchange rates, and commodity prices – the task of macro-economic analysis becomes more challenging. The world is becoming more complicated in part due to the speed at which information flows. The same challenges apply to micro-economics, and that directly impacts the decisions individual commercial companies and public sector government agencies must deal with.

What is an executive to do? There is more uncertainty and risk. My belief is there is not much of an alternative than to become much more analytical. This means digging deeper into the mountains of data one already has as well as becoming more proficient at predicting the future. Unfortunately most companies are far from where they want and need to be when it comes to implementing analytics. They are still relying on gut feeling