Why the ‘Moneyball​’ philosophy can work in business

Posted by Justin Hesser on June 21, 2013

In 2002, the Oakland Athletics turned the baseball world on its head by changing the player evaluation process. By implementing the "Moneyball" philosophy, the A's were able to find quality ballplayers for less money by viewing their statistics from a different perspective. This allowed the financially challenged ballclub to compete with high-spending teams like the New York Yankees, despite a massive discrepancy in payrolls. 

The Moneyball philosophy has made a monstrous impact on the game in the past decade, as teams, analysts, journalists and fans have used different data analytics strategies to evaluate the performance of certain teams and players. Awards have been given out to players who would have traditionally been an afterthought because voters were able to look past the surface of their statistics. Teams that can't afford big-money players are more competitive now because they field teams based on statistics, rather than flashy names. 

This strategy isn't exclusive to baseball, or to sports in general. Businesses that know how to look deep into the heart of their information can unearth key insights that can help their organization succeed without having to use a substantial amount of their resources. Implementing solutions such as a custom database software system can give businesses the ability to analyze their information and use it to the best of their ability.

An article in ComputerWorld recently addressed this, comparing sports data analytics with that of traditional business. For example, by judging personnel the way the Athletics do, companies may be able to ensure a high level of productivity while keeping payroll costs to a minimum.

"Firms therefore need to look at the role of analytics to identify attributes that indicate success and then use techniques seen in sports to search the reams of external data available to identify potential candidates," the article says. "Once employed, the companies that are leading on analytics are increasingly using analytics to ensure high productivity, engagement and retention."

FileMaker development can give companies the ability to take their data analytics to the next level. By creating a robust software system designed to identify key bits of information and report them in real time, organizations will be able to ensure that their data is working for them. In highly competitive industries, the ability to discover new insights with the help of information management software can mean the difference between a success and failure at any organization.