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The Economics of Data, Analytics, and Digital Transformation

You're reading from   The Economics of Data, Analytics, and Digital Transformation The theorems, laws, and empowerments to guide your organization's digital transformation

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Product type Paperback
Published in Nov 2020
Publisher Packt
ISBN-13 9781800561410
Length 260 pages
Edition 1st Edition
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Author (1):
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Bill Schmarzo Bill Schmarzo
Author Profile Icon Bill Schmarzo
Bill Schmarzo
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Table of Contents (14) Chapters Close

Preface 1. The CEO Mandate: Become Value‑driven, Not Data-driven 2. Value Engineering: The Secret Sauce for Data Science Success FREE CHAPTER 3. A Review of Basic Economic Concepts 4. University of San Francisco Economic Value of Data Research Paper 5. The Economic Value of Data Theorems 6. The Economics of Artificial Intelligence 7. The Schmarzo Economic Digital Asset Valuation Theorem 8. The 8 Laws of Digital Transformation 9. Creating a Culture of Innovation Through Empowerment 10. Other Books You May Enjoy
11. Index
Appendix A: My Most Popular Economics of Data, Analytics, and Digital Transformation Infographics
1. Appendix B: The Economics of Data, Analytics, and Digital Transformation Cheat Sheet

Chipotle Use Case

We will now apply the framework and supporting process outlined in this paper to a real-world organization. We selected a public company so that we could use publicly available data to demonstrate the paper's concepts. The company that we selected was Chipotle Mexican Grill Inc.[citation 4]

Step 1: Identify a Targeted Business Initiative

A Business Initiative is a cross-functional plan or program that is typically 9 to 12 months in duration, with well-defined financial or business metrics. One of the business initiatives highlighted in Chipotle's 2012 annual report was increasing same-store sales.

"Last year we opened 183 restaurants, grew our revenue by 20.3% to $2.73 billion, and saw comparable restaurant sales grow 7.1% for the year. Our restaurant-level margins were among the highest in the industry at 27.1%."

This goal of increasing same-store sales by 7% will be the business initiative upon which we will apply our data valuation...

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