Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    predictive analytics risk management
    How Predictive Analytics Is Redefining Risk Management Across Industries
    7 Min Read
    data analytics and gold trading
    Data Analytics and the New Era of Gold Trading
    9 Min Read
    composable analytics
    How Composable Analytics Unlocks Modular Agility for Data Teams
    9 Min Read
    data mining to find the right poly bag makers
    Using Data Analytics to Choose the Best Poly Mailer Bags
    12 Min Read
    data analytics for pharmacy trends
    How Data Analytics Is Tracking Trends in the Pharmacy Industry
    5 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: The Hegemony of Large Numbers – Ignoring Common Sense
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Quality > The Hegemony of Large Numbers – Ignoring Common Sense
AnalyticsData QualityData VisualizationStatistics

The Hegemony of Large Numbers – Ignoring Common Sense

Jim MacLennan
Jim MacLennan
4 Min Read
SHARE

Ok, maybe I’m stretching the meaning there, but that’s a cool sounding title, and what I see as an interesting phenomenon. People get excited about Large Numbers, and think they have meaning and importance simply because they are Large Numbers.

The Law of Large Numbers …

Ok, maybe I’m stretching the meaning there, but that’s a cool sounding title, and what I see as an interesting phenomenon. People get excited about Large Numbers, and think they have meaning and importance simply because they are Large Numbers.

The Law of Large Numbers …

Big Errors

For example – years ago, when an application manager was whirling around the office in a minor uproar, worrying that that someone accidentally keyed in a $1B line item on an invoice.

That’s $1,000,000,000,000 – for the Unit Price.

Well, come on, that number is so ludicrously high, the error condition sticks out like a sore thumb. A single order like that is 1000 times our annual sales, for goodness sake – no one would let an error like that get all the way through to the month-end closing documents, or the daily sales report, or the AR reports. And no one would believe it if they saw it there.

So just calm down an reverse the error – maybe add a little data entry validation to prevent another such “catastrophic event”. (Note – this was in the days of the S/36 and the AS/400 – the user tabbed out of the data entry field, didn’t use field exit).

We should be more afraid of the small data errors – what if you mistakenly introduced a 10% error by transposing a few numbers – what happens then? Cranky customers, lots of backing out, and a difficult needle in the haystack to find.

Big Benefits

Projects these days need lots of business justification to prioritize above the many others vying for attention. But a benefits statement that claims $100M in costs aren’t getting allocated correctly? Where’s the real benefit here? Not $100M, but making the overall profitability of the products or customers in question more accurate. Not a lot of quantifiable benefit there – but $100,000,0000 looks so impressive.

Or maybe the classic “sales force automation” justifier. If I can make my sales reps just 1% more productive, and annual sales are $100M, then surely we can justify spending $1,000,000 on the Fancy Software System. The big numers make for compelling math – but will you get the sales force to commit to the incremental revenue? A difficult task, typically.

Common Sense Helps

Everyone is busy, everyone working hard and trying to make things happen – and unplanned interruptions or competition for scarce resources (including time!) can lead to interesting reactions to such Large Numbers. Unfortunately, most folks also do not have enough time to pause and reflect on the reality that those numbers are trying to express. Realistic? Rarely.

Just count to 10 … slowly …
(that’s not too large of a number …)



All articles, blog entries, and other content on this site are licensed under a Creative Commons License    Creative Commons License

Share This Article
Facebook Pinterest LinkedIn
Share
ByJim MacLennan
Follow:
Jim MacLennan is Senior Vice President and Chief Information Officer at IDEX Corporation, a Fortune 1000 manufacturer that sells highly engineered products in a variety of markets worldwide. MacLennan has responsibility for Corporate IT services for all IDEX business units, and also drives innovation through initiatives that leverage Information and Technology as growth drivers for the industrial manufacturing space. He regularly publishes his observations and insights on the intersection of business and technology - check out his work at www.cazh1.com.

Follow us on Facebook

Latest News

microsoft 365 data migration
Why Data-Driven Businesses Consider Microsoft 365 Migration
Big Data Exclusive
real time data activation
How to Choose a CDP for Real-Time Data Activation
Big Data Exclusive
street address database
Why Data-Driven Companies Rely on Accurate Street Address Databases
Big Data Exclusive
predictive analytics risk management
How Predictive Analytics Is Redefining Risk Management Across Industries
Analytics Exclusive Predictive Analytics

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Success for the Data Scientist = Happiness

1 Min Read

Designing performance measurements to identify and reduce warranty waste

5 Min Read

The analyst did it

2 Min Read

Putting your ultimate asset to work with decision management

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

data-driven web design
5 Great Tips for Using Data Analytics for Website UX
Big Data
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?