Role of analytics in to get edge solution in a business environment

1. ADVANCE
ANALYTICSIN
YOURBUSINESS
THE ROLE OF
WEEK4 DAY4

2. C OMPANIES THAT INJEC T
BIG DATA AND ANALYTIC S
INTO THEIR OPERATIONS
SHOW PRODUC TIVITY
RATES AND PROFITABILITY
THAT ARE 5% TO 6% HIGHER
THAN THOSE OF THEIR
PEERS
A C C O R D I N G T O
R E S E A R C H B Y
A N D R E W M C A F E E
A N D E R I K
B R Y N J O L F S S O N ,
O F M I T

3. THE ERA OF BIG
DATA IS EVOLVING
RAPIDLY, AND
EXPERIENCES
SUGGESTS THAT
MOST COMPANIES
SHOULD ACT NOW.

4. TIME HAS C OME TO
DEFINE A PRAGMATIC
APPROAC H TO BIG
DATA AND ADVANC ED
ANALYTIC S— TIGHTLY
FOC USED ON HOW TO
USE THE DATA TO
MAKE BETTER
DEC ISIONS.

5. THEREARETHREE
MUTUALLY
SUPPORTIVE
CAPABILITIES
CHOOSE THE RIGHT DATA
BUILD MODELS THAT PREDICT AND OPTIMIZE
BUSINESS OUTCOMES
TRANSFORM YOUR COMPANY’S CAPABILITIES
01
02
03

6. 01First, companies must be
able to identify, combine,
and manage multiple
sources of data.
CHOOSETHE
RIGHTDATA
RIGHT DATA IS KEY
Bigger and better data give
companies both more-
panoramic and more-granular
views of their business
environment.

7. 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?”
01

8. 02
Corralling huge data sets allows
companies to run dozens of statistical
tests to identify submerged patterns, but
that provides little benefit if managers
can’t effectively use the correlations to
enhance business performance.
MODELSTHAT OPTIMIZE
BUSINESS
OUTCOMES

9. 02
Statistics experts sometimes design
models that are too complex to be
practical. For example, a predictive
model with 30 variables may explain
historical data with high accuracy, but
managing so many variables will exhaust
most organizations’ capabilities.
Companies should repeatedly ask,
“What’s the least complex model that
would improve our performance?”

10. 03
TRANSFORM YOUR
COMPANY’S CAPABILITIES
The new approaches don’t align with how
companies actually arrive at decisions, or
they fail to provide a clear blueprint for
realizing business goals.

11. 03
Many companies grapple with such
problems, often because of a mismatch
between the organization’s existing
culture and capabilities and the emerging
tactics to exploit analytics successfully
1. Develop business-relevant analytics that can
be put to use.
2. Embed analytics into simple tools for the front
lines.
TWO SOLUTIONS

12. #1
Managers must come to
view analytics as central
to solving problems and
identifying opportunities
—to make it part of the
fabric of daily operations.
#2
Manager must organize the
“field and forum” approach to
indulge data playing capability,
in real-world and analytics-
based workshops that allow
them to learn by doing.
MANAGERIAL
RELEVANCE

13. THANKS
ALOT