When You Should Use Analytics for Decisions

Victims of Success:
model
Victims of Success: When should you use analytics for decisions?
Getting the most from Strategic Sourcing, Vendor Management, Supplier Development, and Contracts
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for
Decisions?
Analytics Discernment
When should you use
Analytics

YOU COLLECTED ALL THE DATA…
SO NOW WHAT?
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…VALUE OF BI ANALYTICS WERE TO INCREASE
WITH DATA’S AVAILABILITY TO MORE EMPLOYEES.

DID WE WIN THE DATA BATTLE?
…BUT LOSE THE WAR?
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INTEREST IN ANALYTICS MAY BE TAILING OFF
Credit: Image capture of Google Trends for ‘analytics’ March 11, 2015 http://www.google.com/trends/explore#q=analytics
Trend noted by Tom Davenport (2015, February 6) Pulse "Analytics and Big Data: The New Kale?"
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Big Data is giving way to Fast Data
“
- Jason Stamper, Analyst, 451 Research
Opportunities are in self-service BI. More power in the hands
of business users exploring and answering their own questions.
“
- Joe Cellucci, CEO of Enable Consulting
insight requires asking valuable questions and, better still,
taking valuable actions for true success.
It’s the relevance of the data not the
relationships
Only 12% of enterprise data is used
for information and decisions
“
Businesses don’t have the right models of relationships
and attributes.
- Boris Evelson, Vice President, Principal Analyst
Forrester Research

If we have data problem,
we have a even BIGGER Analytics Problem.
LESS THAN 1/3RD* OF EMPLOYEES BELIEVE THEY:
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HAVE ACCESS TO THE DATA THEY NEED
EXTRACT RELEVANT INSIGHTS FROM DATA
*Source: The Virtuous Circle of Data: Engaging employees in data and transforming your business (2015). The Economist Intelligence Unit. Boko G., Fisher,
B., Glass, R., et. al. http://live.wavecast.co/virtuouscircleofdata/
HINT: WE NEED MORE EMPLOYEES WITH
SKILLS TO MAKE SENSE OF AND USE ANALYTICS.

SO, WHEN SHOULD YOU APPLY ANALYTICS TO A DECISION?

Discernment:
BUSINESS INTELLIGENCE &
ANALYTICS EXPAND HUMAN
DISCERNMENT POTENTIAL.
the ability to see and
understand people, things,
or situations clearly and
intelligently.
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Analytics
Discernment
Model:
Cadence
REPEATED DECISIONS THAT REQUIRE EVALUATION
OF ALTERNATIVES BENEFIT FROM ANALYTICS,
MORE THAN INFREQUENT DECISIONS.
1

Duration
SUFFICIENT TIME FOR DATA COLLECTION, ANALYSIS, AND
VISUALIZATION ARE MORE APPROPRIATE FOR ANALYTICS THAN
THOSE UNDER RUSH TO JUDGMENT CONDITIONS.
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2
Analytics
Discernment
Model:

Significance
THE GREATER THE VALUE AND SIGNIFICANCE OF THE
DECISION THE MORE APPROPRIATE IT IS TO SEEK
ANALYTICS TO ASSIST WITH THE DECISION.
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3
Analytics
Discernment
Model:

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• Upper Right: Frequent
decisions of great importance
and sufficient time for analysis
are ripe for analytics.
• Applying analytics to
situations without those
properties may offer less
utility.
• Lower Left: Decisions without
analytics rely on human
judgment, heuristics and
personal preferences; risks
human bias.
• Significant decisions with
little time for analysis
increase risk of
undesirable outcomes.
• BI tools, such as dashboards,
lowers the Indifference curve,
allowing analytics to be
applied to more situations.
ANALYTICS
DISCERNMENT
Significance: Decision Importance
Insignificant
Very
Significant
Analytic
Attentiveness
Analytic
Apathy
Duration: Time Available for Analysis
Infrequent
Frequent
Very Little Sufficient
Cadence:DecisionFrequency
Analytics Discernment Model
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Big impact decisions benefit
from analytics.
PREPARE EMPLOYEES TO CONSIDER IMPLICATIONS AND APPLY
ANALYTIC DISCERNMENT TO APPROPRIATE DECISIONS.

©Vessment,LLC
Sources
Tom Davenport (2015, February 6) Pulse "Analytics and Big Data: The New Kale?".
Tom Davenport (2015, January 27) Pulse "The Analytics of Things".
Lisa Earle McLeod (2015, January 26) Forbes "Why Metrics Drive Medocrity".
Joseph V. Cellucci (2015, January 13) McGladrey Growth Summit, Philadelphia "What are the New
Trends in Technology," Executive Panel Discussion.
"Discernment" (2015, Febaruary 9) Merriam-Webster.com
Boris Evelson, Analyst, Forrester Research (2015, February 24, 11:00am-12:00pm PT). “Leverage
Agile BI to Deliver the Next Wave in Business Intelligence.”
Jason Stamper, Analyst, 451 Research (2015, February 26, 1:00pm PT). “Top Trends in Embedded
Analytics, Self-service BI & Big Data.”
The Virtuous Circle of Data: Engaging employees in data and transforming your business (2015).
The Economist Intelligence Unit. Boko G., Fisher, B., Glass, R., et. al.

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When You Should Use Analytics for Decisions

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