Mastercard's Singh on How Companies Can Help Cities Close the Data Gap
Recent advances in data analytics have revolutionized the way many companies do business. Starbucks, for example, rolls out new beverages and chooses its store locations by analyzing customer, economic and other data. And as Amazon's customers know so well, the company makes purchase recommendations to them in real time based on items they've viewed or bought. So why aren't more of our cities leveraging data in the same way to improve services for their residents?
According to a recent report by Bloomberg Philanthropies' What Works Cities initiative, city officials say they simply lack the capacity to do so. Nearly half pointed to a shortage of staff and financial resources dedicated to gathering and evaluating data.
This gap between companies' and cities' ability to use data is not surprising. Businesses have invested heavily in data and analytics in recent years, and they are spending an average of $7 million annually per company on data-related activities. These investments are made with the understanding that they will improve the companies' bottom line, and they have started paying off...