THERE is a strong and growing conversation around the pace and speed of innovation in today’s banking model and how banks can pivot to take advantage of the latest advances in FinTech innovation and Big Data. However, many feel that if banks are to achieve success in innovation, more than just technology acquisition must take place. They point out that banks must also consider how they can be prepared as an organizational culture to be ready and equipped to fully embrace the challenges and benefits of innovation, and, ultimately, business transformation.
In the same vein, when Alex “Sandy” Pentland published his research on social physics last year, business leaders in a variety of sectors paid attention. People had already been talking about Sandy’s team at the Massachusetts Institute of Technology; his approach to social physics helped his team win the highly publicized Darpa Network Challenge in 2009, proving that social networks can be leveraged as a powerful source of information and sharing.
His recent book on the topic, entitled Social Physics: How Social Networks Can Make Us Smarter, was selected by Strategy + Business as Best Book in Business Innovation.
The Economist described the book as “filled with rich findings about what makes people tick…a fascinating look at a new field by one of its principal geeks.” In 2012 Forbes named Sandy as one of the seven most powerful data scientists in the world.
I recently exchanged views with Sandy to talk about his book and to find out how his powerful ideas can be applied to the banking sector. Here is what he had to say:
DS: Your book has received fantastic reviews from business leaders and publications around the world. What exactly is “social physics,” and why is the concept becoming increasingly important to business leaders today? To be continued