By Steven A. Cohen and Matthew W. Granade | Aug 20, 2018
TOPICS: Business Models, Competitive Strategy
SUMMARY: The software revolution has transformed business. What's next? Processes that constantly improve themselves without need of human intervention. (Related article) There used to be a strict hierarchy: Traders made money and won glory while programmers wrote code and stayed out of sight. Those days are over.
CLASSROOM APPLICATION: There's an emerging intersection between computer science and business. Think about how you can prepare yourselves for this and leverage it as an opportunity in your careers.
1. (Introductory) In your own words, explain what a model is in the context of the article titled "Models Will Run the World".
2. (Advanced) Explain what is meant by this phrase: "A model-driven business is something beyond a data-driven business."
3. (Advanced) Select one of the companies featured in the article as an example of having a model, and explain more fully how that company has leveraged its model to outcompete its rivals.
4. (Advanced) Besides the companies and industries mentioned in the article, what's a company in a different industry that you would suggest could develop a model to achieve a competitive advantage?
5. (Advanced) What are the implications of the fact that programmers are gaining greater influence in the trading world? Is there any possibility that such a trend might also be occurring in marketing?