Analyzing Credit, Bargain Hunting and Harvard, and More – Boston News
Let’s explore some of the most interesting stories that have emerged from Boston business schools this week.
What an MIT Professor Learned Analyzing 1 Million Credit Card Offers – MIT Sloan Newsroom
MIT Sloan Professor of Finance Antoinette Schoar used her appearance on Sloan’s “Data Made to Matter” podcast to discuss what analyzing one million credit card offers revealed.
“What we seemed to find in our study is that the [credit card] offers that are offered to less educated people rely in their pricing much more on these additional fees. Late fees, over limit fees, maybe default APRs that switch on once you’ve had a default,” she says on the podcast.
Schoar adds, “While people that are more educated, their cards seem to rely much more on the quite straightforward features, like they are paying an annual fee, and they’re paying an interest rate, but they are relying much less on these late fees and over limit fees.”
She also offers this takeaway for consumers:
“The more companies can model our behavioral biases, the more they can use them in extracting rents from us or catching us in moments when we’re inattentive or when we are not necessarily focused enough on choosing the right credit card, the right mortgage, or any of these products.”
You can read the full article here.
Bargain Hunters Beware: A Store’s ‘Original Price’ Might Not Be After All – Harvard Business Week
In a new working paper, Donald Ngwe, a Harvard Business School Assistant Professor, found that the “original price” many retail stores advertise in relation to an item’s hot bargain rate is often completely made up. In fact, the practice is much “more common than shoppers might realize.”
Ngwe says, “They never even tried to sell the product at that price. Consumers could never have bought that product at that price even if they tried.”
On Amazon, for instance, he notes that almost every item has a “struck-out price, but if you look at the policy behind that price, it’s incredibly vague. This makes me think that the fake prices are working to mislead the customers who know the brand the least, and who have the least information about the brand, into making a decision they would not have made otherwise.”
Ngwe’s research found that if customers “were given verifiably fake prices,” it actually does not change people’s “evaluation of quality” since we have gotten so used to the practice.
He concludes, “My results show that customers don’t see through the ruse. Even in outlet stores where they might expect some level of false discounting, they are still very influenced by these signals.”
You can read Ngwe’s paper Fake Discounts Drive Real Revenues in Retail here or the original HBW article here.
From Sheet Music to Spreadsheets – Sawyer Business School Blog
Sawyer Business School recently profiled Craig Pellet, MST ’18, a classically trained composer who ended up with a career at Boston firm Back Bay, from a Craigslist ad he answered on a whim.
Ten years after joining the firm, Pellett feels he had a number of major gaps that made it difficult to “solve client issues” so he decided to pursue Sawyer’s Master of Science in Taxation degree to “give [him] better tools to approach every problem.”
Craig Pellet, Sawyer Business School, MST ’18 / Photo via suffolk.edu
“Music teaches you how to practice, be committed, and be focused. It puts you in the mind-set: I want to get good at this, but it’s going to take me 10 years. So it’s time to start chipping away at it,” Pellett tells the Sawyer blog.
Pellett ended up working with his tax policy instructor Professor Michaele Morrow on a research paper that explored the notion of eliminating S-corporations to make taxation more fair. Morrow described Pellett’s notion as “pretty radical.”
“I somewhat believed him but wanted to really see. So I asked him to run the numbers. Turns out, he was right.”
Their paper was recently published in trade publication Tax Notes.
You can read the full interview with Pellett here.
Hot MBA Jobs: Computer and Information Systems Manager
For those looking to pursue a management career at the tech end of the business world, Computer and Information Systems Manager may be a promising career to pursue.
The U.S. Bureau of Labor Statistics estimates the growth rate for this job at 12 percent over the next eight years. But, are you not sure where to begin? Below, we’ve put together a guide to help you determine if this is the career for you.
What is a Computer and Information Systems Manager?
The Computer and Information Systems Manager (or IT Manager) runs the company activities related to computers and tech. They must assess the needs of an organization to determine the appropriate hardware and software to both meet demands of and enhance the efficiency of company business. In addition to installing and maintaining hardware and software, IT Managers must stay abreast of new tech developments so that they can pitch ideas to upper-management should they identify an opportunity to implement technology that would advance the company’s mission. The IT Manager also directs and organizes the efforts of the lower-level positions in the IT department.
There are different types of Computer and Information System Managers, so duties may be more specifically tailored depending on the specific title. For example, an IT Security Manager would work with the tech as it pertains to protecting an organization’s security interests.
Am I A Good Fit?
IT Managers possess solid analytical skills. People in this role need to be able accurately evaluate a company’s needs and determine which products would enhance productivity. They must also be able to analyze any tech and management issues to ensure that their department runs smoothly. They are solid, decisive leaders and creative thinkers. Communication skills are essential, as IT Managers must communicate directions to those working under them, as well as deliver presentations to higher-level execs.
In 2017, the average base pay for a Computer and Information Systems Manager, according to Glassdoor, was $106,092 in the United States.
Education and Where to Begin
The minimum degree requirement for a Computer and Information Systems Manager is generally a bachelor’s with a tech-related major. However, according to the U.S. Bureau of Labor Statistics, companies often require graduate degrees, and earning an MBA could prove to be a huge asset. If you are looking to pursue this title, it may be beneficial to start with entry-level tech positions in your field to gain a few years of experience before applying to a manager position.
An MBA program with a top-notch tech education may be a good place to start if you’re hoping to become an IT Manager. In 2018, U.S. News made a list of the best MBA Information Systems programs. Below, we’ve pulled some of our favorite MBAs from the list:
Sloan School of Management – MIT
It should come as no surprise that MIT Sloan tops the list of best Information Systems programs. MIT has long been hallowed ground for the technologically-inclined, so it makes sense that the school’s MBA program also caters to those with a bent toward tech, with 26.2 percent of the 2017 graduating class pursuing careers in the software and internet industries.
McCombs School of Business – University of Texas at Austin
McCombs, which has a nationally-ranked MBA in Information Systems program, is a desirable choice for the STEM-savvy. According to the McCombs employment report, 30 percent of the class of 2016 pursued jobs in the tech industry.
Scheller College of Business – Georgia Tech
Georgia Tech’ Scheller College of Business is an excellent choice for aspiring IT Managers. Forbes states, “Because many students are interested in more quantitative and technical areas, such as operations management and information technology management, Scheller is often viewed as a heavily quantitatively based program.” Roughly 21 percent of the Scheller class of 2017 landed tech-related jobs.
Leavey School of Business – Santa Clara University
For Silicon Valley hopefuls, the Leavey School of Business may be a wise school to consider. With flexible options like the Online and Evening MBA’s, Leavey allows students to tailor the program to their schedule. This may be desirable for those trying to balance internships or work and family life.
MIT Sloan Introduces New “Blockchain and Money” Class
A decade ago, only a few people knew what blockchain was. Now, blockchain is a practical part of the financial sector with tremendous potential for transformation. That’s why this fall, MIT’s Gary Gensler, a Senior Lecturer and Senior Advisor with the MIT Media Lab, will teach a new course entitled “Blockchain and Money.”
The new course at MIT Sloan will show students how to use blockchain technology, covering fundamentals such as distributed ledgers and smart contacts. In addition, the course will offer real-world examples that cover global issues including regulatory concerns.
“This technology has real potential as a catalyst for change in the world of finance and the broader economy,” Gensler said in a recent MIT news story. “I view the course as one piece of the broader ecosystem at MIT where people can explore blockchain technology and its real-life possibilities.”
About the Blockchain and Money Course
The 12-week “Blockchain and Money” course will be valuable not only for entrepreneurs interested in initial coin offerings, but also for students who are just curious about the intricacies of blockchain. The course will be broken down into two parts:
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Part One: The Foundation of Blockchain
The first part of the course will offer an in-depth look at the history of bitcoin and other cryptocurrencies. Then, Gensler will dive into smart contracts in open-sourced and private applications alongside distributed ledgers, which he feels are critical pieces of blockchain technology. The class will also examine numerous policy issues arising from this technology.
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Part Two: Practical Applications in the Financial Sector
The second part of the course will focus on real-world application of theory. Gensler calls it a “real how-to course.” Mainly, students will focus on blockchain applications in the financial industry. The goal is to get them to think creatively about blockchain application and devise their own original blockchain opportunities.
The finishing touches of the syllabus are still being put together, but Gensler has already secured a few exceptional guest speakers to come in and talk, including crypto expert Christian Catalini and Jeff Sprecher, CEO of Intercontinental Exchange and Chairman of the New York Stock Exchange.
This article has been edited and republished with permissions from our sister site, Clear Admit.
MIT Announces 9 African Startup Challenge Finalists, and More – Boston News
Let’s explore some of the most interesting stories that have emerged from Boston business schools this week.
These 9 African Startups are Working Toward a More Inclusive World – MIT Sloan Newsroom
MIT Sloan recently announced the nine African startup finalists of The Initiative on the Digital Economy’s Inclusive Innovation Challenge, all of which use technology to “reinvent the future of work.”
Initiative Director Erik Brynjolfsson writes, “If we employ inclusive innovation globally, it could be the best thing that ever happened to humanity. We can have more wealth, better health, and widely held prosperity.”
Here are the 9 African finalists:
- Wefarm provides a “mobile network accessed through SMS, where millions of small-scale farmers can share information.”
- PrepClass connects students and tutors.
- Wesabi connects “skilled laborers to individuals and businesses.”
- Lynk is an “online platform that operates as a hiring service and also a showcase for artisans.”
- Brave Venture Labs provides “talent sourcing software for growing companies.”
- Moringa School “teaches software development and offers professional skills training.”
- Safi Organics “provides small-scale farmers with affordable fertilizer for their crops.”
- Solar Freeze “offers mobile cold-storage units for small farmers to help reduce crop spoilage.”
- AgroCenta is a “digital platform for rural, small-scale farmers to connect with buyers and access financial services.”
The finalists, who will travel to Nairobi, Kenya in late August to “pitch their ideas at a regional competition,” were selected from almost 200 entrepreneurs from 16 countries.
You can read more about the African startup contenders here.
Collaborate, But Only Intermittently, According to New Study by Harvard Business School Professor and Colleagues – Harvard Business School News
HBS has published new PNAS research, which suggests that always-on technologies like Slack, email, and social media are less effective at complex problem solving than “intermittently on.”
HBS’s Ethan Bernstein, along with BU Questrom’s Jesse Shore, and Northeastern’s David Lazer believe their research could have widespread implications on the workplace, such as “alternating independent efforts with group work over a period of time to get optimal benefits.”
Bernstein writes, “As we replace those sorts of intermittent cycles with always-on technologies, we might be diminishing our capacity to solve problems well.”
You can read more about the research here.
Sizing up Markets, Peering into the Future – Carroll School News
BC Carroll recently hosted its annual Finance Conference in which financial experts delivered a surprisingly “upbeat forecast” on global investment, tech innovations, and cryptocurrencies.
Of the conference’s goals, John and Linda Powers Family Dean Andy Boynton ’78 writes, “We want our students to become lifelong learners, people who look for ideas in many different places. We want them to think both deeply and broadly, and to become great leaders for the future.”
Despite the relative stasis of the larger economy, Harvard’s Kennedy School of Government Professor Nicholas Burns ’78 described this particular moment in American history “consequential” and “chaotic” from a global economy standpoint.
Burns explains that “high on his list of global challenges for the United States is the rising dominance of nations to the East, especially China and India,” particular when the U.S. has not employed “skillful diplomacy and strategic thinking” to accommodate this “coming shift in global power.”
Nicholas Burns (’78), speaking recently at BC Carroll / Photo via bc.edu
He said, “There’s no question that by the next century, we’ll be a Pacific world,”
You can read more about the conference here.
Employee Surveillance, Startup Contests, and More – Boston News
Let’s explore some of the most interesting stories that have emerged from Boston business schools this week.
The Surprising Effects of Employee Surveillance – Questrom School of Business Blog
BU Questrom School of Business professor Michel Anteby recently co-authored new research that explores the ways in which increased surveillance of employees can lead “to workers’ strikes and sometimes even quitting their jobs altogether.”
The article points to a 2011 experiment where TSA managers installed cameras to monitor officers “as an attempt to stop the disappearance of baggage in airports.” According to TSA officers, they felt they “as though their managers were merely looking for a reason to discipline them.”
New BU research finds that workplace scrutiny often leads to a worse work environment, even if it is inadvertently / Photo via bu.edu
According to Anteby’s research, “under such scrutiny, one tends to lose sight of the bigger picture, which ends up with employees feeling undervalued and over scrutinized.”
You can read the full article here.
These 12 European Startups Are Using Technology to Improve Opportunities For Low-And Middle-Income Workers – MIT Sloan Newsroom
The MIT Initiative on the Digital Economy’s Global Inclusive Innovation Challenge announced its 12 European finalists, all of which are working to improve economic opportunity for workers. According to the article, “the competitors are judged on vision, impact, participation, and scalability.”
Initiative Director Erik Brynjolfsson writes, “If we employ inclusive innovation globally, it could be the best thing that ever happened to humanity. We can have more wealth, better health, and widely held prosperity.”
According to the article, the European finalists will travel to “Darmstadt, Germany, in early September, where they will pitch their ideas at a regional competition. The winner of each category then goes on to compete in November during the Global Grand Prize Gala at MIT. The gala includes four $250,000 prizes, one for each category.”
The 12 European finalists, organized by category, are as follows:
Skills Development and Opportunity Matching
- Data4You, an all-ages coding boot camp.
- Jobiri, which “assists people with finding jobs through an AI-driven career adviser.”
- micro:bit, which “provides tiny programmable computers for students and teachers.”
Income Growth and Job Creation
- ABURY’s “Design meets Craft” connects “designers and artisans through a digital platform to find creative project partners, and connect with the global market.”
- mecasa is an “online platform connecting caretakers with senior individuals who need daily support.”
- ProGlove is a “smart glove designed to scan and streamline manufacturing and logistics work.”
Financial Inclusion
- hiveonline is a “mobile platform offering small- and micro-businesses administrative help and access to financial services.”
- Trezeo, which “provides a mobile financial platform for independent workers.”
- Sherpa, which “offers insurance to people who are self-employed, freelancers, contractors, and other entrepreneurs.”
Technology Access
- BLITAB, a “tactile tablet designed for blind and visually-impaired users.”
- Pangea Electronics “builds sustainable and eco-friendly technology.”
- Teqmine Analytics uses “AI to help customers with their research and development questions.”
You can read more about the event here.
Think You’re Having a Heart Attack? If You’re a Woman, Insist on a Female Physician – Harvard Business School News
New PNAS research co-authored by HBS Associate Professor Laura Huang, along with the University of Minnesota-Twin Cities’ Brad Greenwood and Washington University in St. Louis’ Seth Carnahan finds that of “more than 500,000 heart attack patients admitted to hospital emergency departments in Florida between 1991 and 2010, female patients treated by male physicians were less likely to survive than patients of either gender treated by female physicians or male patients treated by male physicians.”
Moreover, “survival rates among female patients treated by male physicians improved with an increase in the percentage of female physicians in the emergency department and an increase in the number of female patients previously treated by the physician.”
In “Patient-Physician Gender Concordance and Increased Mortality Among Female Heart Attack Patients,” the researchers write:
“These results suggest a reason why gender inequality in heart attack mortality persists: Most physicians are male, and male physicians appear to have trouble treating female patients. If female patients tend to be more challenging for male and female doctors to diagnose and treat, the patterns we document may reflect the fact that the most skillful physicians (i.e., female physicians) provide the highest return to their skills when treating the most challenging patients (i.e., female patients).”
You can read more about the research here.
MIT Sloan Celebrates 4th Annual Women’s Week in 7 Cities Worldwide
The MIT Sloan School of Management’s #MITSloanWomen campaign just celebrated its fourth anniversary. One of the cornerstone events of the campaign, which offers female prospective applicants and current MBA students new ways to interact with the school and build their post-graduation careers, is the annual Women’s Week.
Since 2014, Women’s Week has brought female MIT Sloan alumnae and the Sloan admissions team to cities across the United States and abroad to interact with women interested in the Sloan MBA. The events are designed specifically for female MBA applicants and offer deep-dives into what it means to be a Sloan woman.
“Women’s Week is a great chance to hear stories from MIT Sloan female alumnae who are making an impact,” explained Shauna LaFauci Barry, the associate director of admissions at MIT Sloan. “It is a unique opportunity to network with a community of women who are exploring the MBA.”
Women’s Week took place this past July in seven cities around the world: Washington, DC; Cambridge, MA; San Francisco, Chicago, Seattle, New York City, and London. Women gathered at each location to enjoy a featured TIMTalk (Think. Inspire. Motivate), as well as a panel of local female alumnae from the two-year MBA, Sloan Fellows MBA, and Executive MBA programs.
The events were a resounding success.
“This year’s events surpassed 1,000 women registered,” explained Barry. “There were 1,600 registrants for over seven events including one live stream. This even included two new cities: Seattle and London.”
To learn more about the success of Women’s Week and what it was like to attend, we reached out to Shauna LaFauci Barry for an in-depth chat.
Women’s Week 2018 Theme
The theme of this year’s events was “MIT Sloan Women: Creating Ideas Made to Matter,” and their focus was on celebrating Sloan women who are making an impact.
According to Barry, all of the alumnae panelists were “incredibly accomplished, articulate, thoughtful, [and] authentic. Each one brought something unique to the event. We were so grateful to have such great MIT Sloan Women Ambassadors.”
Meet the San Francisco Women’s Week TIMTalk Speaker
Barry was particularly impressed by Sephora Innovation Lab Senior Manager Nelly Mensah (MBA ’15), the San Francisco’s TIMTalk speaker. In her talk, Mensah discussed the importance of creativity, collaboration, and being value-driven.
“I am still singing her praises in my mind,” said Barry. “She was agile and adaptable. When my computer started rebooting right before her slide presentation, she rolled with everything. She brought a great sense of humor to her talk—a vulnerability and honesty on the importance of creating a culture at Sephora Innovation Labs where innovation ripples through.”
Mensah tied everything in her talk into the culture of MIT Sloan, her activities while in school (Retail Club, internship in Milan, etc.), and how they contributed to where she is now. There were three key takeaways:
- Cross-Cultural Collaboration: At MIT Sloan, Mensah was part of the Hacking Arts. Now, she runs Hackathons at Sephora.
- Creating Space and Time for Creativity: There is always an opportunity to be creative; make time for it and make sure you get input from people throughout the organization.
- Be Value-Driven: Sephora feels strongly about their value of empowering women, and all of their activities align with this (i.e. Women Who Code).
Women’s Week Takeaway
Barry explained what she hoped attendees would take away from not just the San Francisco event, but every Women’s Week event. “We want them to be energized about their own ideas and to see how an MBA from MIT Sloan can help them achieve their goals,” she said. “We want them to learn something new and come away from the event wanting to explore more.”
Why Women’s Week?
Here are just a few reasons why a prospective female MBA candidate should attend next year’s MIT Sloan Women’s Week:
- It offers excellent exposure to a variety of stories from MBA women at various stages of their careers.
- It showcases how the MIT Sloan MBA has served as a gateway to making women’s ideas matter.
- It inspires attendees to imagine what might be possible in their future.
Coming Soon
Fret not if you missed this year’s Women’s Week. You still have a chance to attend a few female-focused events by registering for one of MIT Sloan’s Women’s Ambassadors Days this fall. The first event, MBA Women’s Visit Day, occurs on October 12 and will feature faculty member Gita Rao discussing finance and action learning at MIT Sloan. You can register here.
Other events include the Women’s Ambassadors visits, which allow women to come to class for an on-campus visit, attend a class, and join a member of the Admissions Office for a presentation about the school.
- October 29: MBA Women’s Ambassadors Program Morning Visit
- October 29: MBA Women’s Ambassadors Program Afternoon Visit
- November 19: MBA Women’s Ambassadors Program Morning Visit
- November 19: MBA Women’s Ambassadors Program Afternoon Visit
- December 6: MBA Women’s Ambassadors Program Morning Visit
- December 6: MBA Women’s Ambassadors Program Afternoon Visit
