EvD Theorem #5: Predictions Enable "Do More with Less"
Trying to optimize across a diverse set of objectives can yield more granular, higher fidelity business and operational outcomes that enable "doing more with less."
As we discussed in Chapter 3, A Review of Basic Economic Concepts, the challenge with the Economic Value Curve is the Law of Diminishing Returns. The Law of Diminishing Returns is a measure of the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant. We can transform the organization's Economic Value Curve by applying fine-grained predictive and prescriptive analytics in order to focus investments on those aspects of the independent variables that have the highest impact on the business outcomes (dependent variables).
This enables the organization to "do more with less"...
