2. Analytics
• The use of data, commonly referred
to as analytics, as a decision-making
tool has rapidly increased across
every type of industry.
• The book Analytics at Work: Smarter
Decisions, Better Results states that
“by analytical we mean the use of
analysis, data, and systematic
reasoning to make decisions.”1
3. Analytics
Many organizations are seeking to
become more analytical and use the
appropriate types of information to
make better decisions. There are
several necessary steps in this process
of implementing an analytical
capability throughout any
organization. . .
4. Steps to being Analytical…
High-Quality Transaction
Data
Support of Senior Executives
Application throughout the
Organization
Analytical Skills and Culture
in Place
Integrate Analytical
Capabilities into the Business
Source: Davenport, Thomas, Jeanne G. Harris, David W. De Long, and Alvin L. Jacobsen “Data to Knowledge
to Results: Building an Analytic Capability” California Management Review, 2001
5. “A company in the information age has
unprecedented access to transaction
data, but all too rarely is that data
sifted into the sort of knowledge that
can inform business decisions and
create positive results.”3 This
collection of data is the first step
towards creating knowledge that can
improve the results in your business.
6. They understand the importance of
running the business, not just on gut,
but by using powerful information to
make better decisions. Business
intuition should never be ignored, but
with the addition of fact-based
decision making the company could
reach new heights.
7. Thirdly, it is necessary to have a need
or application for this information
throughout an organization. It could
be said that some companies don’t
have a great need for the type of
transformation that we are talking
about.
8. Please note that ‘analytical skills’ does
not mean that one is a high-level
mathematician, but that we know
what decisions to make when
presented with various analytic
scenarios.
9. I have used the below graphic to depict this
transformation demonstrating that as your
ability to deliver and receive data improve
so do the results that are realized.
Results
Delivery
ReceiptData
Information
Knowledge
Source: Bellinger, Gene, Durval Castro, and Anthony Mills “Data, Information, Knowledge and Wisdom”, 2004,
www.systems-thinking.org
10. This is a continuous process of
educating new and existing members
of the company, as well as producing
valuable analytics. At that point your
organization can become an analytical
one that successfully combines
experience and insight with the
knowledge that really good
information can provide.
11. Where is your organization?
High-Quality Transaction
Data
Support of Senior Executives
Application throughout the
Organization
Analytical Skills and Culture
in Place
Integrate Analytical
Capabilities into the Business
Source: Davenport, Thomas, Jeanne G. Harris, David W. De Long, and Alvin L. Jacobsen “Data to Knowledge
to Results: Building an Analytic Capability” California Management Review, 2001
12. Thank You
Jess Wiley, President
Distributor Management Services
www.3dprofitability.com
13. References
1. Davenport, Thomas, Jeanne G. Harris, and Robert Morison
Analytics at Work: Smarter Decisions, Better Results, Harvard
Business School Publishing 2010
2. Pericle, Tony Transforming Data into Action: Using Analytics for
Better Distributor Sales Decisions, National Association of
Wholesaler-Distributors, 2010
3. Davenport, Thomas, Jeanne G. Harris, David W. De Long, and Alvin
L. Jacobsen “Data to Knowledge to Results: Building an Analytic
Capability” California Management Review, 2001
4. Viaene, Stijn and Annabel Van den Bunder, “The Secrets to
Managing Business Analytics Projects,” MIT Sloan Management
Review, Fall 2011
5. Bellinger, Gene, Durval Castro, and Anthony Mills “Data,
Information, Knowledge and Wisdom”, 2004, www.systems-
thinking.org
