Kelley Blue Book usually would update their information once every five months and they realized that that just was not good enough and that they wanted to step up their game. "Until recently, the numbers were largely educated conjectures that Kelley analysts arrived at by running a handful of car sales and other metrics through a rudimentary pricing algorithm". Kelley Blue Book now adopted the use of data analytics tool that sift through volumes of historical and current data to give the best estimate for the automobile. For Kelley Blue Book this really was an intelligent decision especially because it is low cost to them and will make their company as a whole more reliable. Relating this article to class they went from using megabytes of data to determine the value of a car to now using terabytes of information to determine the same thing that is a huge improvement! Now that they have all of this updated technology they went from having one sole worker to 23, talk about some stress off of your shoulders!
Alyssa,
ReplyDeleteI too read the article on Kelley Blue Books valuation of new and used cars and found it very informative. I found it very interesting that previous to this new system they based the value of cars mainly on what they describe as “educated guesses”. I think this was a very large step in the right direction, especially because of how cost effective it is for the company. This new data analyst system that they are using will come especially handy when valuing the nearly twenty thousand cars that they value almost each and every day rather than the months that would go by before they would revalue the vehicle. All in all though I found it to be a very informative article and was glad to see that you found it interesting as well as saw some of the same key facts that I found to make the new system a viable solution for their problem.