“We are thrilled to welcome the new MS in Business Analytics Class of 2025. These students represent a talented group from all around the world,” says Zuzana Hlavacova Gurung, associate dean of specialized masters programs. “The program now offers four curriculum tracks in AI in Business, Business Analytics, Marketing Analytics, and Supply Chain Analytics. We are excited to provide students the opportunity to further tailor their academic experience and personalize their analytics career path.”

Goizueta’s 2025 cohort of the MS in Business Analytics program is a globally diverse group. The program’s 74 students represent 13 countries and bring with them an average of 3.2 years of work experience. In addition, nearly half of the students are women (47 percent), and 85 percent of the cohort hail from outside of the United States. Also an ambitious group, 14 percent of the students are pursuing a dual degree at Goizueta, one of the only business schools in the country to offer such a pairing. 

The 2025 Master of Science in Business Analytics cohort includes:

• – A competitive badminton player who has traveled the world to compete
• – A 76^th generation descendant of Confucius, with a hand-written family genealogy book
• – A professional-level Overwatch (video game) player
• – A member of a dance crew that has performed in front of audiences as large as 5000
• – The director of two theater plays as an undergraduate student
• – A programmer who re-created the core features of the Pokémon game using C++

Project-based Learning

Project-based learning is at the heart of the MS in Business Analytics program. Every student in the program takes part in a semester-long experiential learning opportunity. This practicum project puts the students’ foundational coursework and training to task. As part of this project, student teams join forces with corporate sponsors to solve current, real-world business problems. Ramnath Chellappa, professor of information systems and operations management and academic director for MS in Business Analytics, calls the practicum the “crown jewel” of the program. He refers to the practicum as “a kind of internship.”

“The students go on to solve a real business problem that really matters to our client,” Chellappa explains. “That way, the students verify that all the techniques that they’ve learned are applicable to what the industry cares about.”

Each year, the business analytics program hosts the day-long Business Analytics Conference. This past April, more than 200 industry practitioners, alumni, academics, and students gathered to network, share insights, and discuss emerging trends.

Goizueta’s STEM-designated MS in Business Analytics combines business, data, and technology to make you an effective business data scientist for a data-driven world. Learn more.

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This year’s theme was “Deploying Large Language Models (LLMs): Opportunities and Challenges for Business.” The conference explored innovations in artificial intelligence (AI) and machine learning (ML). It also provided an opportunity to celebrate the students’ accomplishments throughout the program. In between practitioner-led discussions, several student teams showcased their practicum projects. During these semester-long endeavors, the students worked with client companies to provide solutions to specific challenges the companies face.

“This conference bridges the gap between industry and students,” explains Scott Radcliffe, managing director, MS in Business Analytics program.

Professionals share real-world applications of generative AI. This aligns with our practicum projects where students tackle similar challenges for sponsor firms. It fosters industry connections, equipping students with practical skills and exposure to cutting-edge AI trends. This benefits both students and businesses.

Scott Radcliffe

Experts Explore Emerging AI Technologies

During this year’s conference, various discussions provided insight on emerging technical tools. Experts explored how industry is using these technologies and how businesses can best prepare to incorporate them. The discussions also covered what these emerging trends—and integrating them into one’s enterprise—”means for hiring students like ours,” says Ramnath Chellappa, associate dean and academic director of the MS in Business Analytics program.

Three industry-expert-led discussions focused on current issues regarding large language models:

• + “Unlocking Global Opportunities: Leveraging a Large Language Model for Business Success,” led by Wael Kdouh, principal cloud solution architect, Microsoft.

• + “How to Bring Models to Life—Understanding the product ionization, security, robustness, and transparency of AI and ML models,” led by Ashrith Barthur, principal security data scientist, H20.ai.

• + “Large Language Models’ potential use cases and challenges in healthcare,” led by Yubin Park, chief builder, mimilabs.ai; adviser, Astrana Health; and adjunct professor, Emory University.

The Power of Personal Connections

The day also included panel discussions on the topics of “Empowering Adoption: Preparing your Organization for LLMs,” “LLM Risks and the Law: Navigating Risk, Ethics & Compliance,” and “Taming the Tech: Vendor Selection for LLMs.”

Moumi Panja, senior AI consultant, Google, participated in the “Empowering Adoption” panel discussion. “The conference was an unmatched platform for students and professionals to gain cutting-edge insights from industry leaders,” says Panja.

I was privileged to share my expertise in large language models and engage with the next generation of AI-driven innovators. I also had the opportunity to learn and be inspired by the wealth of knowledge and experience shared by my fellow speakers.

Moumi Panja, senior AI consultant, Google

“It’s one thing seeing people on a webcast. It is a completely different ballgame when you meet them in person,” says Owden “O.G.” Mwangama 24MSBA.

In his native Tanzania, Mwangama founded EMET Healthcare. The company uses data analytics and smart technologies to highlight key issues around products such as medical oxygen, IV liquids, and distilled water across Africa. Mwangama spoke with Google’s Panja and several other practitioners regarding cybersecurity in healthcare. “It was a very good opportunity for me,” he says.

Mwangama’s team was unable to showcase the practicum project it completed in partnership with Equifax. This was due to the proprietary nature of the company’s data (everyone who worked on the project went through a background check and signed an NDA). Mwangama describes the project, however, as “the best part of my time at Goizueta. It was a real-life interaction in a business setting,” he says.

Students Showcase Practicum Projects for Industry Leaders

Over the course of the spring semester, students apply what they’ve learned throughout the 10-month program to provide solutions to a problem that is relevant to clients such as The Home Depot, Bank of America, Paramount+, Best Buy, and Focus Brands.

Students convert the business problem to a data problem, apply the latest data techniques to gather information, and then translate their discoveries into actionable business solutions. “We are business school students, and we solve business problems,” explained Chellappa. Three student teams, chosen by Radcliffe and Chellappa, presented overviews of their practicum projects to the audience.

The practicum projects showcased during the conference were:

               + Delta Airlines, Enhancing Airline Catering Efficiency: A Predictive Model for Special Meal Planning on Flights

               + NCR Voyix, LLM Knowledge Base Enhancement

               + GoTo Foods, Store Net Unit Growth and Closure Early Intervention Indicator Model

Several other student teams stood at dedicated tables where attendees could learn about their practicum projects.

Career Insights and Industry Networking

A career and alumni panel followed. This included Pratishtha Shukla, manager, marketing data science, The Home Depot, as well as alumni Janvier Nshimyumukiza 23MSBA, senior data scientist, CONA Services, and Jent LaPalm 22MSBA, data scientist, The Home Depot. The three shared their experience and wisdom with current students.

“Our students made great connections at the conference this year,” notes Christina Wan, senior associate director of student affairs, MS in Business Analytics program. “We appreciate our corporate partners and sponsors for their time spent with us.”

Maliki Uwase 24MSBA, calls the conference “an enriching experience.”

Engaging in discussions on data bias, integration, and responsible AI development broadened my perspective. Networking with industry leaders, professionals, and fellow students inspired new ideas for my career. It was a valuable opportunity for growth and learning.

Maliki Uwase 24MSBA

In addition to the client companies for the practicum projects, attendees included C-level executives, data scientists, and consultants from a variety of other firms. These included Mercedes-Benz USA, Sogeti, NVIDIA, Travelers, PwC, Amazon, and McKinsey & Company. Gareth James, John H. Harland Dean of Goizueta Business School, also stopped by to address the audience and speak with participants and students.

On to the Next Problem

Radcliffe and Chellappa are currently working to identify sponsors for the class of 2025’s practicum projects. The pair is looking for companies, explains Radcliffe, with “doable yet complex” problems that the students can tackle with the skills they have learned in the program. Radcliffe and Chellappa hope to have the next slate of sponsors signed by the end of October 2024. In addition to the practicum projects, companies can sponsor various aspects of the Business Analytics Conference.

To learn more about sponsoring a practicum project, contact Nicole Saltau at nicole.soltau@emory.edu.

Goizueta’s STEM-designated Master’s in Business Analytics combines business, data, and technology to make you an effective business data scientist for a data-driven world. Learn more.

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For someone who once thought college was out of reach, Jonathan Gomez Martinez 19C 24PhD knows how to take advantage of every opportunity that comes his way.  

Years ago, his older brother was accepted to college and then couldn’t go due to financial constraints. So, Gomez Martinez spent his high school years building on his computer skills and focused on job readiness.

But several events would change the trajectory of his career. He scored well on standardized tests, benefitted from a persistent high school career counselor, and received help from two nonprofits.

This month, Gomez Martinez receives his second degree from Emory University. He graduates from Goizueta Business School with a PhD in Information Systems and Operations Management. This fall, he moves to the West Coast to begin teaching as an assistant professor of data sciences and operations at the University of Southern California’s Marshall School of Business.

The irony of his position is not lost on him.

“Despite the fact I thought I wouldn’t go to school, I ended up getting my choice of schools for undergraduate then decided to pursue a PhD. Now, I will be teaching at a school,” he muses.

Early Passion for Computers Sparks Academic Journey

The road to Emory, much less obtaining a doctorate degree, was far from a straight line Gomez Martinez. His interest in computers, however, began early.  

For his eighth birthday, he surprised his parents by asking for a computer. His fascination for making the computer “do stuff,” led him to dive into Excel. It resulted in a side hustle by the time he reached his late middle school and high school years. For a fee, he would perform statistical analysis for clients, selling his services on Craigslist.

“Customers didn’t know how old I was, and there was no Zoom,” he says.

His computer prowess grew in high school. There, he learned programming and SAS, statistical software, which combines programming with data. He and a classmate even presented a poster at the SAS Global Forum, a major conference in the industry.

“Most people were just interested in our age, not the project,” he says of the experience. “In hindsight, it makes sense. Nobody is going to believe our stats.”

Chasing a Dream

Even with his academic success, the goal remained to graduate and get a job. Born in Mexico, Gomez Martinez came to the United States with his mother and siblings in 2000, joining his father. Their move fulfilled one of his father’s dreams. He had become enamored with the American education system, and had been working in the United States already—saving to create a home for the family in North Carolina. While Gomez Martinez’s parents stressed the importance of education, financing college was out of reach.

His high school counselor would guide Gomez Martinez to resources that would open doors for him. These included Golden Door Scholars, which is an organization for undocumented students, and QuestBridge, a nonprofit that connects the nation’s most exceptional, low-income youth with leading colleges and opportunities.

“Between the two organizations, I could apply to schools for free,” he says. “So, I just applied to both programs, and to eight partner schools for each of them. If I got matched with either organization and a partner school, I would get a full ride. At the end of the day, I ended up with my choice of full rides.”

Ultimately, he chose Emory for its innovation and research. A visit to campus during Essence of Emory helped seal the deal. The invitation-only program is for admitted students from underrepresented backgrounds with high academic achievement, just like Gomez Martinez.

Finding His Own Path on the Academic Journey

The transition to college wasn’t easy, especially since his high school focused on work readiness, not college preparedness. But some soul-searching and extra-curricular events would help in his adjustment. Gomez Martinez began to make friends and took on leadership roles in Emory’s Jiu-Jitsu club. He also began dating a girlfriend who supported his study habits, and he immersed himself in a new quantitative theory program.

Originally, Gomez Martinez wanted to focus on computer science. However, the theoretical classes and math weren’t his favorite. Enter Cliff Carrubba, Samuel Candler Dobbs Professor and department chair for Quantitative Theory and Methods—or QTM. Carrubba pitched there was going to be a big market for data scientists. He said the new QTM program would equip undergraduate students for jobs that used to require a higher degree.

“I was still thinking workforce preparedness. So, if I could get a master’s degree job after four years, that seemed like a good deal,” he adds.

The program offered Gomez Martinez the perfect balance. It involved a variety of coursework, including bioinformatics, calculus, regression analysis, data structure, and algorithms, along with artificial intelligence, with room to “churn through computer science courses.”  

A Mentor Lights the Way

The search for an internship would introduce him to Goizueta Business School.

My friends in consulting told me I needed to get an internship after my junior year because that opens up the door for full-time jobs.

Jonathan Gomez Martinez

The problem was he didn’t know how to approach the search. Specifically, his computer science colleagues all wanted to work for Google. However, Gomez Martinez had other plans in mind.

With nothing to lose, he turned to the business school and “threw a hail Mary.” He sent a cold email for help to Ramnath Chellappa, professor of information systems and operations management and associate dean and academic director, MS in Business Analytics.

The two would hit it off, and Gomez Martinez would become Chellappa’s teaching assistant for the business analytics program and, later, his research assistant.

At this point, [Professor Chellappa] was already talking to me about getting a PhD, but in my mind, the goal was to get a job.

Jonathan Gomez Martinez

Plus, Gomez Martinez had landed an internship with Equifax, the global data, analytics, and technology company, which had an interesting problem for him to solve. Still, Chellappa advised him to keep an open mind and to take the GRE.

Changing Course

The internship would provide another course correction. Gomez Martinez was tasked to help ensure the company didn’t suffer another security breach.  

“The Equifax internship was really cool for about a month,” Gomez Martinez says.

That’s when I finished the project, and they didn’t have another project. I think they expected it to take me a lot longer.

Jonathan Gomez Martinez

Indeed, a year before, a team of students had attempted to solve the problem but didn’t get far. With nothing more pressing to do than run reports, Gomez Martinez spent the down time studying for the GRE.

When he returned to campus from summer break, Gomez Martinez shared the experience with his mentor. “So, are we doing this?” Chellappa asked.

At that point, I said, ‘If y’all will pay me to stay at school for a while. Sure, why not?’

Jonathan Gomez Martinez

Decision made, he set off for the latest path in his journey.

Notes Gomez Martinez: “When I started the program, I took a research seminar where we would discuss papers with the dean of the program, which at that time was Kathryn Kadous, Schaefer Chaired Professor of Accounting. After submitting our first paper for the semester, her answer was something along the lines of ‘Jonathan, this is a lovely essay, but this is not what research is about.’ I always remember that. It was such a small thing, but she was there to redirect me at just the right time.”

Pursuing Impactful Work

Over the years, several faculty members at Goizuteta helped him refine his research and hone in on an area of focus. In addition to Chellappa, Gomez Martinez lists Anand Swaminathan, Roberto C. Goizueta Chair of Organization & Management as instrumental in this process. “I feel the two of them have co-parented me into learning what research is,” he adds.

Currently, he is working with Emma Zhang, associate professor of information systems and operations management, “who is helping me with statistical methods for modeling how users interact online across multiple social media platforms,” he says.

Gomez Martinez wants his work to have impact. His research examines the unintended consequences of digital platform strategy. In addition, he is exploring the social cost of AI-based automation, Microsoft’s release strategy, Apple’s privacy policy, and the efficacy of content moderation.

Examples of his work include a paper with Chellappa entitled “Content Moderation and AI: Impact on Minority Communities,” which explores the use of AI in social media. Specifically, the research examines how X (formerly Twitter), could disadvantage LGBTQ+ users, or other groups, by automatically censoring certain words or phrases that are deemed bias, but may, in fact, be ways in which a particular group interacts with each other. A possible result, Gomez Martinez shared in an Emory Business article, is that some voices might not be truly heard or “…You start reinforcing biases because you are using a time-saving technology that is not equipped yet to understand the complexity and nuance of human interaction.”

In addition, his research project with Chellappa entitled “Platform Policy Changes: Impact of Auto Moderation on Minority Community Rights,” has received two awards. The work received first place in the 2023 INFORMS DEI Best Student Paper Award competition and runner-up for the Workshop on Information Systems and Economics (WISE) 2023 Best Student Paper Award.

Ultimately, Gomez Martinez notes, “I would like to either start working directly with platforms to see how their methods, in particular, can be readjusted or work with government entities in order to determine what a path forward should look like in determining legal liability and [other issues surrounding] platforms and AI.”

For now, he plans to spend the months between graduation and starting his new role at USC pursuing his research.

“I look forward to continuing to enjoy the remainder of my doctoral program and pushing out ongoing research in preparation for my new role in Los Angeles.”

The future of business education is here, and it’s bold. Goizueta has transformed the traditional classroom into a dynamic digital ecosystem with virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and holographic capabilities. Learn more about innovation at Goizueta here.

Interested in pursuing a business degree? Learn more about the unique programs Goizueta has to offer.

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Ramnath Chellappa is professor of information systems and operations management and associate dean and academic director of the MSBA program. He calls the practicum the “crown jewel” of the 10-month MSBA program. “You can think of the analytics practicum as a kind of internship,” Chellappa explains. “The students go on to solve a real business problem that really matters to our client. And in this way, the students verify that all the techniques that they’ve learned are applicable to what the industry cares about.”

Scott Radcliffe, MSBA managing director, believes the course separates Goizueta’s MSBA program from other business school analytics programs. “It’s part of what gives our students a holistic and realistic experience,” explains Radcliffe. “The output isn’t just a deck. It’s a piece of software. It’s an application the clients can use.” The practicum also showcases the MSBA program’s focus on the integration of technology, data, and business context. “We take that really seriously,” says Radcliffe. “That integration is a different value proposition.”

Collaborating with Corporate Sponsors

Before the practicum begins, Radcliffe and Chellappa spend a significant amount of time in preparation with potential company sponsors. They start by identifying and clarifying the types of problems the sponsors are facing. “There’s a commitment from the company’s side to put time into this in order that it be successful,” says Radcliffe. The best corporate sponsors have, according to Radcliff, “doable yet complex” problems that the students can solve utilizing the skills they’ve learned in the MSBA program.

This semester, 20 teams of five students each are collaborating with corporate sponsors to solve real business challenges. Companies included The Home Depot, Delta Air Lines, Bank of America, Paramount +, Best Buy, and Focus Brands.

During the practicum, companies grant the students access to proprietary data and data support (students and Goizueta faculty sign non-disclosure agreements), as well as access to one business resource and one technical resource at the company. In addition to frequent contact with the student teams, sponsors often arrange site visits and stakeholder meetings with the students.

The interaction between students and the client is a critical success factor for both sides.

Scott Radcliffe

“We ensure the students have solid consulting and project management processes to follow,” explains Radcliffe. “However, having a passionate, engaged client is the most critical element in the equation. It provides the students with the right learning environment. It also gives them the required domain knowledge to generate real outcomes from their code and recommendations.”

From Pitch to Presentation

The practicum begins with a “pitch day” event in the fall where each corporate sponsor has 15 minutes to pitch its issue to students. “The pitch day serves as a bridge connecting students with companies, providing a gateway to a diverse range of data projects spanning industries from finance to telecommunications,” says Jenevieve Zhang MSBA24. Zhang is currently working with a global provider of software, hardware, and digital commerce solutions. Her project aims to “reduce device downtime by proactively dispatching repair technicians before device failures,” she explains.

In an effort to form balanced teams, students first must rank each of the company pitches. An algorithm then takes into account the student’s GPA, country of origin, technical ability, and gender to form teams.

Every student on the team has an additional role—just like in the consulting world. Project manager, primary technical person and so on. Everything we do is about creating real world experiences.

Scott Radcliffe

Student teams meet weekly with Radcliffe, an academic advisor, and with professional coaches. These regular meetings help ensure that the teams are on track and that the students are getting the support they need from the client. Faculty grade the projects based on professionalism, final presentation, the quality and timeliness of the work, peer feedback, and the team’s ability to demonstrate an understanding and application of data mining methodology. Student team deliverables consist of a technical package with empirical models, code, and documentation, as well as a deck that illustrates the business benefits of the technology.

For Zhang, the practicum is a way for students to “seize the opportunities” that are presented to them, she says, adding: “I am beyond excited at the prospect of applying the advanced technical skills and knowledge I’ve acquired during the fall semester into the real-world business landscape.”

Learn More:

Goizueta’s STEM-designated Master’s in Business Analytics combines business, data, and technology to make you an effective business data scientist for a data-driven world. Find out how Goizueta can prepare you to launch a career in data science in some of the fastest-growing fields in business.

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Concerns about the unchecked rise of AI are not new, and global media is increasingly sounding the alarm, citing concerns that range from invasion of privacy to an existential threat to human existence. 

Weighing in on this with compelling new evidence around the “unintended consequences” of AI is research by Goizueta’s Ramnath Chellappa and Information Systems PhD candidate, Jonathan Gomez Martinez.  

Uncovering the Threat 

Their paper, Content Moderation and AI: Impact on Minority Communities, takes a hard look at how the use of AI in social media could disadvantage LGBTQ+ users. And what they find is worrying.  

Chellappa, who is Goizueta Foundation Term Professor of Information Systems & Operations Management, explains that he and Gomez Martinez homed in on Twitter to explore how unchecked artificial language moderation might (mistakenly) censor the use of “otherwise toxic” language by failing to understand the context or nuanced use of the LGBTQ+ lexicon. Examples of this include “reclaimed language”—verbiage that would be a slur in other contexts—but is reclaimed and prosocial if used by the originally targeted community.  

“This is a community that has ‘reclaimed’ certain words and expressions that might be considered offensive in other contexts. Terms like ‘queer’ are used within the community both in jest and as a marker of identity and belonging. But if used by those outside the community, this kind of language could be deemed inflammatory or offensive.” 

Jonathan Gomez Martinez

Gomez Martinez adds: “We wanted to measure the extent to which AI’s lack of a nuanced understanding of what is ‘acceptable’ affects minority users’ online interactions. As humans, we understand that marginalized communities have long used ‘reclaimed words’ both in jest and as a kind of rallying cry. Our intuition was that the machine simply wouldn’t understand this without context—context that is more immediately apparent to people.” 

Determining the Impact of AI-Based Moderation 

To test this, he and Chellappa looked at data from social media behemoth, Twitter. During the pandemic in 2020, the platform made a significant shift to AI-based content moderation to accommodate stay-at-home measures. Data from Twitter’s proprietary Academic Research API afforded Gomez Martinez and Chellappa access to a complete listing of historical tweets and replies before, during and after this period. Together they analyzed a total of 3.8 million interactions (1.8 million tweets and 2.0 million replies) from a panel of 2,751 users, of which 1,224 self-identified as LGBTQ+ in their Twitter bios. Their study ran over four months, from January to May 2020, before, during and after the switch to machine-based moderation.  

Using the same tools that Twitter moderators deploy to moderate interactions, Gomez Martinez and Chellappa were able to measure any increase or decrease in pro-social, in-group teasing and toxic language among LGBTQ+ users: terms such as “bitch” or “queer,” which research shows to be a form of ritualized insults—dubbed “reading” by the community—which can appear inappropriate or incoherent to outsiders, says Chellappa.  

“Analyzing the language, we find a notable reduction in the use of terms that could be considered toxic. When the AI moderation is in effect, you see these users’ language become more vanilla,” he adds. Quantifiably so, in fact.  

Chellappa and Martinez find a 27 percent reduction in the use of reclaimed language among LGBTQ+ users. And while that doesn’t sound like much, it’s significant for the community, says Gomez Martinez. 

“Using in-language and reading each other is one way for this marginalized group to create a sense of community and social status. Not just that, we know from research that LGBTQ+ people use slurs and insults as a way of preparing themselves emotionally and psychologically for hostile interaction with heterosexual individuals. This kind of teasing and playing helps build resilience, so any reduction in it is significant.” 

Jonathan Gomez Martinez

Good Intentions May Breed Unexpected Consequences 

So what does this mean for social media, for the LGBTQ+ community or any marginalized group for that matter, that might be prone to automated censorship? And how does any of this play out in the context of broader concerns around AI? 

For Chellappa and Gomez Martinez, there is a major hazard in granting technology any degree of control over how human beings interact. And it’s rooted in the mismatch between good intentions and unexpected consequences. Their paper, one of the first to dig into the impact of AI on actual business and society, lays bare some of the real-world impact AI has already had on marginalized people. While this study looks at the LGBTQ+ community, it could equally apply to any group that is prone to bias or exclusion—racial minorities or any other underrepresented demographic. 

“Wherever you have user-generated content, you are likely to find communities with their own, unique way of interacting. We looked at LGBTQ+ Twitter users, but you could also look at the African American community, for instance.”

Ramnath K. Chellapa

At a time when social media platforms have become almost newslike in their influence, this is a concern. On the one hand, censoring certain demographics might earn Twitter et al an unwanted reputation for being anti-LGBTQ+ or racist, he adds. But there are even bigger stakes here than bad publicity. 

“Twitter has long aspired to be a kind of global town square,” says Gomez Martinez. “But you end up pretty far from that scenario if only some voices are truly heard, or if you start reinforcing biases because you are using a time-saving technology that is not equipped yet to understand the complexity and nuance of human interaction.” 

AI isn’t there yet, say Chellappa and Gomez Martinez. And they caution against using AI indiscriminately to expedite or streamline processes that impact human communication and interchange. If we don’t keep track of it, their research shows that AI has the potential to start dictating and moving people into normative behavior—effectively homogenizing us. And that’s a problem. 

Goizueta faculty apply their expertise and knowledge to solving problems that society—and the world—face. Learn more about faculty research at Goizueta. 

Ready to learn more about AI or level up your career? Learn more about Emory’s full-time MS in Business Analytics—now offering an AI in Business track—for early career professionals, or Emory’s advanced part-time MS in Business Analytics for Working Professionals. 

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However, new research by Ramnath K. Chellappa, professor of Information Systems & Operations Management; associate dean and academic director for the MS in Business Analytics at Goizueta Business School, and Rajiv Mukherjee, assistant professor of information and operations management, Texas A&M University Mays Business School, shows that these types of preannouncements, no matter how informative, may not always be in a company’s best interests. 

According to Chellappa and Mukherjee, the value of preannouncing the latest and greatest features of a gaming console isn’t nearly as straightforward as the value gained by alerting customers to a new version of a Ford F150. While it may sound counterintuitive, as Chellappa and Mukherjee explain in their recent paper, “Platform Preannouncement Strategies: The Strategic Role of Information in Two-Sided Markets Competition,” sometimes the best way to announce new features in a platform-based world is by saying nothing at all. “We’re dealing with an ecosystem when we buy platforms,” Chellappa explains. “There’s a big difference between how products provide utility to an end-user versus how platforms provide utility to two sides of a market, one of which might be end-users.”  

When a company unveils a new version of a bicycle or television, there isn’t an ecosystem associated with those products. “But when you buy a gaming console, the value of you owning that console goes up as more of your friends play the same console,” Chellappa says. In their paper, the authors refer to this type of value as “same-side network effects.” In the platform world, Chellappa adds, there are also “cross-side network effects” in play—that the value of the gaming console goes up as more games are developed for that console.  

While many studies in marketing have focused on product preannouncements, the pair’s paper, published in Management Science earlier this year, is the first to study the use of preannouncements as a strategic lever for platforms rather than products. To conduct their research, the authors used game theoretic analysis to study three specific preannouncement strategies: formal (advertising, participating in tradeshows, developer training programs); informal (releasing information on a user or developer forum); and no announcement at all.  

The authors use Microsoft’s Xbox and Sony’s PlayStation gaming consoles as the primary setup in their paper (although their findings are generalizable to similar platforms). What Chellappa and Mukherjee found was that there were scenarios where it made sense to preannounce, but other scenarios where companies would be better off making either a lackluster preannouncement or none at all. “You would think that if I’m going to put out a new platform that has a lot of new features, I should inform the market about all those things,” explains Chellappa. “But what we find is that sometimes the competitive effects can force you not to announce much about the products you’re releasing because it might create a kind of a price competition.”  

For instance, a headline in an August 2020 blog in tomsguide.com comparing Xbox One X to Sony’s PlayStation 4 Pro, stated: “The Xbox One has more power than the PlayStation 4 Pro, but Sony fights back with an incredible game lineup and a lower price.”  

Agents and Developers Create Business Model for Two-Sided Markets 

The market for platform-based products isn’t made up of one set of consumers. It’s made up of “agents,” broken into users (in the gaming example, those who play the games), and developers (those who create and improve the games and consoles themselves). Xbox and PlayStation earn money by not only selling to gamers but by charging licensing fees to developers. This two-sided market is an artifact of platform-based business models such as gaming, ridesharing (Uber/Lyft with riders and drivers), or marketplaces (eBay/Amazon with sellers and buyers). 

Given that developers often develop the same or similar games for the competing platforms or release their games as exclusives, Chellappa and Mukherjee had to consider the effects of single-homing (exclusives) versus multi-homing (released for multiple platforms). The authors also incorporated users’ taste preferences for individual consoles into their model. Taste preferences were defined as strong, moderate or weak indications of loyalty to a specific console. They also considered the agents ability to switch between consoles. 

Strategic Preannouncements Push Prices and Licensing Fees Higher 

The best time to make a formal preannouncement, according to Chellappa’s and Mukherjee’s research, formal preannouncements work best in “single-homing markets where the agents do not switch, and where they possess strong taste preferences,” they write. “Firms need to make a formal preannouncement even if it increases competitive intensity because they have to offset the disutility created by the strong taste preferences.” Though companies that indulge in a full preannouncement strategy may be burdened by the upfront costs of preannouncing, they will benefit by allowing users and developers to take into account all the network aspects of the new version, note the authors.  

Surprisingly, the strategy of no preannouncement allows the firms to charge the highest prices and licensing fees and therefore the firms also derived higher profits compared with the other two strategies.” 

Ramnath K. Chellappa

However, in single-homing markets where agents don’t switch and “where they possess weak taste preferences, firms will pursue no preannouncement strategies,” they note, adding, “among the three cases, surprisingly, the strategy of no preannouncement allows the firms to charge the highest prices and licensing fees and therefore the firms also derived higher profits compared with the other two strategies.” 

In a single-homing, non-switching situation where taste preferences are moderate, the pair’s model indicates that a casual or informal preannouncement will work best. By not engaging in a full-on preannouncement, competitive intensity is lessened with the company’s rival and, therefore, prices and licensing fees are higher.  

In the most common gaming situation—a multi-homing scenario where agents do not switch consoles, “firms will pursue a no-preannouncement strategy, an informal preannouncement strategy, and a formal preannouncement strategy in markets defined by weak, moderate and strong agent preferences, respectively,” the pair write. “Note that even in the case of multi-homing developers, the appropriateness of the pre-announcement strategy continues to be characterized by the strength of preferences.” 

The authors state that they can “categorically conclude that preannouncement strategies have a consistent impact on the marketplace independent of loyalty of installed bases and/or the opportunity to multi-home.”  

Does Chellappa believe that strategists at these companies already understand the effects of preannouncements? Perhaps implicitly, he answers, but not explicitly. “At the end of the day, they don’t have that many strategic levers—price is one of the major strategic levers and this is why it always comes back to what price should we charge,” says Chellappa. As he and Mukherjee state in their paper: “From a managerial perspective, it is indeed important to understand the drivers and implications of preannouncement strategies in a platform setting. How do market characteristics impact preannouncement strategies? What is the impact of a loyal consumer base on preannouncement? How is the prelaunch decision affected by the presence of platform-agnostic developers?” 

As the world becomes more platform-based, Chellappa believes managers will need to determine the nature of the market they’re dealing with in order to use preannouncements as a strategy. “Are users really particular about their preferences or are they loosey-goosey about their preferences?” Chellappa asks. “If they’re not wedded to exactly what they want, meaning they’re ‘mobile’ in some sense, then we’re saying don’t preannounce.”   

Goizueta faculty research like Chellappa’s digs deep into business as we experience it today and imagines what key players will need to navigate in the future. Interested in exploring more expert research on topics impacting the corporate landscape? Learn more here.  

Goizueta’s STEM-designated Master’s in Business Analytics combines business, data, and technology to make you an effective business data scientist for a data-driven world. Learn more about this program. 

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