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The Transformational Power of Recommendation
Article

The Transformational Power of Recommendation

Recommendation engines are revolutionizing how customers buy and employees work.



Editorial Rating

9

Qualities

  • Eye Opening
  • Concrete Examples
  • Engaging

Recommendation

Recommendation engines have come a long way since the early days of Last.fm and Pandora. Expert Michael Schrage offers an overview of recommenders’ role in e-commerce and workplace productivity in a helpful article in MIT Sloan Management Review. The article covers recommenders’ uses, benefits and risks, and offers examples of recommenders’ outsize role in the growth of companies such as Spotify and Stitch Fix. 

Take-Aways

  • Recommendation engines create value by shaping people’s choices.
  • Recommendations have been central to building profitability and customer loyalty for e-commerce sellers.
  • Recommenders have played a dominant role in Spotify’s growth.

About the Author

Michael Schrage is a research fellow at the MIT Sloan School of Management’s Initiative on the Digital Economy. 


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