Learning to Love Washington

Analytics professionals should love the Obama administration. This is not a political statement (really). As the speculation machine cranks up in anticipation of the fall mid-term elections, much will be made of what has been accomplished by the current occupant of the White House and the Democrat-controlled Congress. Whether you are from the “Yes We Can” clan or the Tea Party tribe, you must admit that the U.S. government is pushing analytics to the fore.

How so? The health care reform legislation that will reshape how Americans get and give health care is enthusiastic about evidence-based medicine, quality metrics, and basically data, data, and more data about anything that can possibly help drive down costs and improve outcomes. Time will only tell how much will just be the collection of “dumb data” versus insightful dissection and predictive analytics, but the stage has never been better set for analytics to have a positive impact on 16% of the U.S. economy.

The about-to-be-finalized overhaul of the financial markets will reset risk calculation and recast the formulation and marketing of that industry’s products and services. The details will unfold as the final bill is turned into actual regulations but it is clear that the cards aren’t merely being reshuffled – the game is being changed and with that so too will the ways that banks and other financial institutions think about every aspect of their businesses. Analysts who can sift through these shifting sands to help their firms create value will the heroes of 2011 and beyond.

Most recently, the Senate seems to be gaining energy to try to pass a carbon cap bill. This would be a companion to the Waxman-Markey climate change bill passed by the House in 2009. A cap-and-trade system will establish new markets with a fresh roster of players as well as competition among legacy firms to capitalize whatever new structure emerges. Like other markets, this one will likely turn to find advantage through data and superior analytics.

So, whether you love or loathe what’s been happening inside the Beltway, the desire of Washington to tackle big issues and shake up the status quo is likely to result in greater demand for smart analysts, the software packages they use to ply their craft, and the powerful hardware that enables those programs to run. Not to mention the need for all of the above to drive the campaigns to keep the current team in control or send them packing back to their districts. This election season, analytics looks to be the clear winner. What do you think?

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