This document discusses how companies can make advanced analytics work for them. It identifies three key capabilities: 1) Choosing the right data, including both internal and external sources, and asking how available data can help key decisions. 2) Building predictive models that optimize outcomes simply, focusing on the least complex model that improves performance. 3) Transforming company capabilities by embedding analytics in tools for front-line use and making analytics central to daily operations.

1. Making Advanced Analytics Work for You
-by Dominic Barton and David Court

2. As data-driven strategies take hold, they will
become an increasingly important point of
competitive differentiation.

3. Leaders are understandably leery
of making substantial investments
in big data and advanced analytics.
No wonder skepticism abounds.

4. However, it is found that that fully
exploiting data and analytics requires
three mutually supportive capabilities.

5. 1. Choose the Right Data

6. Bigger and better data give
companies both more-panoramic
and more-granular views of their
business environment.

7. but managers simply don’t
know how the information
can be used for key
decisions.
Often companies already
have the data they need
to tackle business
problems,

8. Managers also need to get creative about the
potential of external and new sources of data.
and get the necessary IT support for faster
decision-making.

9. One way to prompt broader
thinking about potential data
Is to ask,
“What decisions could we make
if we had all the information
we need?”

10. 2. Build Models That Predict and
Optimize Business Outcomes.

11. Data are essential, but performance
improvements and competitive
advantage arise from analytics models
that allow managers to predict and
optimize outcomes.
Unfortunately, not all model building
follows this course.

12. For example, a
predictive model with
30 variables may
explain historical data
with high accuracy, but
managing so many
variables will exhaust
most organization’s
capabilities.

13. And that’s why, Companies should repeatedly ask, “What’s the
least complex model that would improve our performance?”

14. 3. Transform Your Company’s Capabilities

15. Many companies grapple with problems of a mismatch
between the organization’s existing culture and capabilities
and the emerging tactics to exploit analytics successfully.

16. Develop business-relevant analytics that can be put to use.
Embed analytics into simple tools for the front lines.

17. Managers need transparent methods for
using the new models and algorithms on a
daily basis. By necessity, terabytes of data
and sophisticated modelling are
required to sharpen marketing,
risk management, and operations.

18. Managers must come to
view analytics as central to
solving problems and
identifying opportunities—to
make it part of the fabric of
daily operations.
Efforts will vary depending
on a company’s goals and
desired time line.

19. Jahanvi Khedwal
National Institute of Technology, Raipur
jahanvikhedwal.nitrr@gmail.com