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Competing on Analytics
The new science of winning
Higher Performance
Frontier for using data
to make decisions had
shifted dramatically
Netflix
Progressive
Capital One
What are Analytics?
Optimization - What’s the best that can happen?
Predictive Modeling - What will happen next?
Forecasting - What if these trends continue?
Statistical Analysis - Why is this happening?
Why Compete on
Analytics?
High Performance business practices are
among the last remaining points of
differentiation.
Unique geo-location advantage doesn’t matter
in global competition
Utilizing Analytical data can increase revenue
and or improve business processes
4 Characteristics to be
analytically sophisticated
Analytics must support a strategic, distinctive
capability
Approach and management of analytics must
be enterprise-wide
Senior management must be committed to the
use of analytics
The company must make a significant
strategic bet on analytics-based competition
“In God we trust; all
others bring data”
Analytics do not work by themselves
Require CEO-level sponsorship
Decisions should not be based on intuition
Five Stages of Analytical
Competition
Analytical
Competitors
Analytical Companies
Analytical Aspirations
Localized Analytics
Analytically Impaired
Questions?

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5035453.ppt

  • 1. Competing on Analytics The new science of winning
  • 2. Higher Performance Frontier for using data to make decisions had shifted dramatically Netflix Progressive Capital One
  • 3. What are Analytics? Optimization - What’s the best that can happen? Predictive Modeling - What will happen next? Forecasting - What if these trends continue? Statistical Analysis - Why is this happening?
  • 4. Why Compete on Analytics? High Performance business practices are among the last remaining points of differentiation. Unique geo-location advantage doesn’t matter in global competition Utilizing Analytical data can increase revenue and or improve business processes
  • 5. 4 Characteristics to be analytically sophisticated Analytics must support a strategic, distinctive capability Approach and management of analytics must be enterprise-wide Senior management must be committed to the use of analytics The company must make a significant strategic bet on analytics-based competition
  • 6. “In God we trust; all others bring data” Analytics do not work by themselves Require CEO-level sponsorship Decisions should not be based on intuition
  • 7. Five Stages of Analytical Competition Analytical Competitors Analytical Companies Analytical Aspirations Localized Analytics Analytically Impaired