Comments on: F|R: What Startups Can Learn From Billy “Moneyball” Beane http://gigaom.com/2008/08/23/what-startups-can-learn-from-billy-beane-and-moneyball/ Trusted Insights and Conversations on the Next Wave of Technology Wed, 25 Nov 2009 11:44:25 +0000 http://wordpress.com/ hourly 1 By: Contextures Blog » What Business Can Learn From Baseball http://gigaom.com/2008/08/23/what-startups-can-learn-from-billy-beane-and-moneyball/#comment-897029 Contextures Blog » What Business Can Learn From Baseball Tue, 02 Sep 2008 04:04:07 +0000 http://gigaom.com/?p=17551#comment-897029 <p>[...] their sales process by using his data analysis techniques. In the GigaOM blog, Carleen Hawn outlines their five tips for “managing by the [...]</p> [...] their sales process by using his data analysis techniques. In the GigaOM blog, Carleen Hawn outlines their five tips for “managing by the [...]

]]> By: Raymond Padilla http://gigaom.com/2008/08/23/what-startups-can-learn-from-billy-beane-and-moneyball/#comment-895502 Raymond Padilla Sun, 24 Aug 2008 19:56:56 +0000 http://gigaom.com/?p=17551#comment-895502 <p>Beane's strategy wasn't simply going after players with high OBP. That's really simplifying things. At the time OBP was underappreciated and undervalued. Beane saw that he could sign or acquire high-OBP players for a relatively cheap price. A lot of people incorrectly think that Beane was just obsessed with stats. That's only part of the story. He was able to see which stats other executives were overpaying for and which ones they undervalued.</p> Beane’s strategy wasn’t simply going after players with high OBP. That’s really simplifying things. At the time OBP was underappreciated and undervalued. Beane saw that he could sign or acquire high-OBP players for a relatively cheap price. A lot of people incorrectly think that Beane was just obsessed with stats. That’s only part of the story. He was able to see which stats other executives were overpaying for and which ones they undervalued.

]]> By: Ben Smith http://gigaom.com/2008/08/23/what-startups-can-learn-from-billy-beane-and-moneyball/#comment-895458 Ben Smith Sun, 24 Aug 2008 03:25:00 +0000 http://gigaom.com/?p=17551#comment-895458 <p>Focusing on the right metrics that drive the business is core to success. While you first have to determine the strategic direction you believe will win, you have to also look at the metrics that show you are headed in this direction. And as said before, CMU was famous years ago for pushing this point of view. From Nobel Prize winning Herb Simon to the more recent and practical, Bob Kaplan...CMU has pushed your strategy is defined by what metrics you act on.</p> <p>Now having said this...winning (the hated Yankees) is also about passion and vision ( Joe T of the Yankees) and of course resources (big baseball markets like New York). You can have good performance based on execution ( the A's wins per dollar spent is the best in baseball) but the ultimate vistory must also come from vision and passion.</p> <p>Now as a 20 year A's season ticket holder, I pray for the ultimate victory...but without the resources provided by a major market like the South Bay, the A's are doomer to good performance based on great execution.</p> Focusing on the right metrics that drive the business is core to success. While you first have to determine the strategic direction you believe will win, you have to also look at the metrics that show you are headed in this direction. And as said before, CMU was famous years ago for pushing this point of view. From Nobel Prize winning Herb Simon to the more recent and practical, Bob Kaplan…CMU has pushed your strategy is defined by what metrics you act on.

Now having said this…winning (the hated Yankees) is also about passion and vision ( Joe T of the Yankees) and of course resources (big baseball markets like New York). You can have good performance based on execution ( the A’s wins per dollar spent is the best in baseball) but the ultimate vistory must also come from vision and passion.

Now as a 20 year A’s season ticket holder, I pray for the ultimate victory…but without the resources provided by a major market like the South Bay, the A’s are doomer to good performance based on great execution.

]]> By: Curtis http://gigaom.com/2008/08/23/what-startups-can-learn-from-billy-beane-and-moneyball/#comment-895416 Curtis Sat, 23 Aug 2008 18:41:32 +0000 http://gigaom.com/?p=17551#comment-895416 <p>@Zo,</p> <p>The Red Sox use the same approach which not only ended their "curse" but has resulted in 2 world series championships. To be clear, i'm not a proponent of the strategy per se, however I do believe that there are elements of the approach that have merit.</p> <p>@Carleen,</p> <p>I must point out that modeling and measurement of correct business metrics is not new. The business school at Carnegie Mellon was founded on the fundamental premise of identification and measurement of the effective business metrics that drive the performance of a business, and not just any business metrics. Full disclosure, I have an MBA from Carnegie Mellon, which I received in the same year that the A's won their last world series, 1989. This predated Billy Beane's role as GM, and clearly the publishing of MoneyBall.</p> <p>Kudos to Zach and the team at NetSuite for identifying and measuring the business metrics which affect the performance of NetSuite.</p> <p>Best,</p> <p>Curtis</p> @Zo,

The Red Sox use the same approach which not only ended their “curse” but has resulted in 2 world series championships. To be clear, i’m not a proponent of the strategy per se, however I do believe that there are elements of the approach that have merit.

@Carleen,

I must point out that modeling and measurement of correct business metrics is not new. The business school at Carnegie Mellon was founded on the fundamental premise of identification and measurement of the effective business metrics that drive the performance of a business, and not just any business metrics. Full disclosure, I have an MBA from Carnegie Mellon, which I received in the same year that the A’s won their last world series, 1989. This predated Billy Beane’s role as GM, and clearly the publishing of MoneyBall.

Kudos to Zach and the team at NetSuite for identifying and measuring the business metrics which affect the performance of NetSuite.

Best,

Curtis

]]> By: Zo http://gigaom.com/2008/08/23/what-startups-can-learn-from-billy-beane-and-moneyball/#comment-895399 Zo Sat, 23 Aug 2008 16:59:46 +0000 http://gigaom.com/?p=17551#comment-895399 <p>How many world series have the A's won using this strategy?</p> How many world series have the A’s won using this strategy?

]]>