The document discusses the emergence of analytical competition as a new form of competition where companies analyze extensive data and make fact-based decisions. It analyzes 32 companies that have successfully adopted analytical strategies across various industries such as financial services, consumer products, and sports teams. These companies compete by optimizing key business processes like customer management and supply chains using analytics to gain a competitive advantage.
This paper briefly describes what competitive intelligence is, then proposes a competitive intelligence initiative along with suggestions for a structural framework, scope, and individual skills and tools necessary to be successful.
Initial public offerings: Improve the process and improve firm performance The University of Alabama
This white paper summarizes extensive research on the drivers of firms post initial public offering (IPO). It highlights the importance of the first year post IPO and the core strategic advantage of an agile,fast and responsive human resource strategy.
This document presents a framework for assessing the maturity level of Competitive Technology Intelligence (CTI) activities in organizations. It consists of three key components: 1) purpose and strategic orientation, 2) quality of the CTI process, and 3) strategic alignment of CTI activities. The framework was tested on two large companies in Latin America. Results showed the effectiveness of the framework in evaluating CTI activities and identifying opportunities for improving resource allocation. However, further testing is needed given the limitations of the case study methodology used.
This document summarizes literature on uncertainty management strategies for large companies and small-to-medium enterprises (SMEs). It finds that most research focuses on large firms and high-tech industries, while uncertainty management by SMEs in mature industries remains understudied. The document develops an analytical framework to explore how SMEs build strategic postures to manage uncertainty through innovative projects and building technological capabilities. It aims to provide a tool to help SMEs assess if projects strategically maintain competitiveness under uncertainty.
The value of information systems to small and medium sized enterprisestHari Rajagopalan
This document summarizes a research study that examined the role of information and communications technology (ICT) in helping small and medium enterprises (SMEs) establish legitimacy and attract customers. The study conducted interviews with SME founders and potential customers to understand their perspectives on how ICT signals affect perceptions of firm legitimacy and purchase decisions. The results indicate that customers compare the ICT information provided in SME sales pitches to their expectations about appropriate technology use. Violations of these ICT expectations can negatively impact perceived legitimacy and the likelihood of a purchase. The study provides insights into how ICT can symbolize legitimacy from both the founder and customer viewpoints.
360 degree ei implementation business model – tool to achieve competitiveIAEME Publication
The document summarizes a research paper that developed a 360 Degree Emotional Intelligence (EI) Implementation Business Model. The paper conducted a comparative analysis of the EI-based stakeholder practices of 5 large, successful companies - Tata Steel, Walmart, British Petroleum, Toyota Motors, and Samsung Electronics. Across practices related to human resources, consumers, society, government/environment, investors, and third parties, the analysis found many similarities in how the companies prioritize satisfying stakeholders through EI initiatives, contradicting the hypothesis that EI is not a common factor in their success. Based on these findings, the research proposes a business model for new and small enterprises to implement EI strategies to achieve competitive advantages and sustainable growth
Outsourcing Research and analytics processes can help gain actionable insight...WNS Global Services
Winning companies know that the right research and analytics enable them to gather, synthesize and extract data-based insights about their customers and their rivals, with the resulting insights provide them with monumental, actionable competitive advantage. In the article, the author, breaks the myth that analytics is only for the marketing function. The fact is that every corporate function in just about every industry benefits from the insights research and analytics yields. The author lucidly explains, through examples, how almost every corporate function can benefit from applying research and analytics – from HR to R&A to Sales and even Finance & Risk Management.
Read more such articles at http://www.wns.com/Insights/Articles/tabid/81/Default.aspx
This paper briefly describes what competitive intelligence is, then proposes a competitive intelligence initiative along with suggestions for a structural framework, scope, and individual skills and tools necessary to be successful.
Initial public offerings: Improve the process and improve firm performance The University of Alabama
This white paper summarizes extensive research on the drivers of firms post initial public offering (IPO). It highlights the importance of the first year post IPO and the core strategic advantage of an agile,fast and responsive human resource strategy.
This document presents a framework for assessing the maturity level of Competitive Technology Intelligence (CTI) activities in organizations. It consists of three key components: 1) purpose and strategic orientation, 2) quality of the CTI process, and 3) strategic alignment of CTI activities. The framework was tested on two large companies in Latin America. Results showed the effectiveness of the framework in evaluating CTI activities and identifying opportunities for improving resource allocation. However, further testing is needed given the limitations of the case study methodology used.
This document summarizes literature on uncertainty management strategies for large companies and small-to-medium enterprises (SMEs). It finds that most research focuses on large firms and high-tech industries, while uncertainty management by SMEs in mature industries remains understudied. The document develops an analytical framework to explore how SMEs build strategic postures to manage uncertainty through innovative projects and building technological capabilities. It aims to provide a tool to help SMEs assess if projects strategically maintain competitiveness under uncertainty.
The value of information systems to small and medium sized enterprisestHari Rajagopalan
This document summarizes a research study that examined the role of information and communications technology (ICT) in helping small and medium enterprises (SMEs) establish legitimacy and attract customers. The study conducted interviews with SME founders and potential customers to understand their perspectives on how ICT signals affect perceptions of firm legitimacy and purchase decisions. The results indicate that customers compare the ICT information provided in SME sales pitches to their expectations about appropriate technology use. Violations of these ICT expectations can negatively impact perceived legitimacy and the likelihood of a purchase. The study provides insights into how ICT can symbolize legitimacy from both the founder and customer viewpoints.
360 degree ei implementation business model – tool to achieve competitiveIAEME Publication
The document summarizes a research paper that developed a 360 Degree Emotional Intelligence (EI) Implementation Business Model. The paper conducted a comparative analysis of the EI-based stakeholder practices of 5 large, successful companies - Tata Steel, Walmart, British Petroleum, Toyota Motors, and Samsung Electronics. Across practices related to human resources, consumers, society, government/environment, investors, and third parties, the analysis found many similarities in how the companies prioritize satisfying stakeholders through EI initiatives, contradicting the hypothesis that EI is not a common factor in their success. Based on these findings, the research proposes a business model for new and small enterprises to implement EI strategies to achieve competitive advantages and sustainable growth
Outsourcing Research and analytics processes can help gain actionable insight...WNS Global Services
Winning companies know that the right research and analytics enable them to gather, synthesize and extract data-based insights about their customers and their rivals, with the resulting insights provide them with monumental, actionable competitive advantage. In the article, the author, breaks the myth that analytics is only for the marketing function. The fact is that every corporate function in just about every industry benefits from the insights research and analytics yields. The author lucidly explains, through examples, how almost every corporate function can benefit from applying research and analytics – from HR to R&A to Sales and even Finance & Risk Management.
Read more such articles at http://www.wns.com/Insights/Articles/tabid/81/Default.aspx
Mtm4 white paper industry analysis (featuring the 5 forces)IntelCollab.com
This document provides an overview of Michael Porter's five forces industry analysis framework. It describes the five competitive forces that shape industry competition and profitability - threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry. The document outlines how to apply the five forces analysis to understand an industry's structure and attractiveness. Analysts are advised to define the industry properly, assess each force individually, and consider the aggregate impact to determine profitability.
The document analyzes benefits realized from enterprise resource planning (ERP) systems based on a database of ERP implementation information from various companies. Some key findings include:
1) Both tangible and intangible benefits were identified, with intangible benefits varying more across industries. Tangible benefits like reduced inventory and personnel costs were more consistent.
2) The study found additional intangible benefits beyond those in an earlier Deloitte Consulting study, indicating ERP benefits may be more varied than previously thought.
3) Statistical tests found the study results were generally consistent with the earlier Deloitte study but identified more intangible benefits, suggesting the potential value of ERP may be greater than initially
This document discusses competitive intelligence and provides an overview of the topic. It covers the following key points:
1. The history and evolution of competitive intelligence over the past 30 years due to changes in technology and difficulties justifying large CI departments.
2. An overview of competitive intelligence, defining it as more than just information about competitors and emphasizing its role in developing winning strategies through leveraging knowledge assets.
3. The competitive intelligence process involving planning, collection from internal and external sources, analysis using techniques like SWOT and modeling, and dissemination of insights.
4. Categories of competitive intelligence like market intelligence, competitor intelligence, and customer intelligence.
Mtm9 white paper macro-environmental (steep) analysisIntelCollab.com
This document provides an overview of macro-environmental (STEEP) analysis, which examines the external social, technological, economic, environmental, and political factors that influence an organization. STEEP analysis involves scanning these macro-level factors to identify opportunities and threats in order to understand the overall context surrounding an industry. The results of STEEP analysis provide insights into how these external forces could impact a company. While useful for strategic planning, challenges in applying STEEP analysis include difficulties interpreting factors, inaccuracies in forecasts, short-term orientations, and lack of acceptance by management.
A brief introduction to Competitive IntelligenceNeharica Sharma
Competitive intelligence (CI) involves ethically gathering information about competitors to make strategic business decisions. CI data provides context about a company's performance and industry trends for insights. It allows companies to anticipate rather than just react to market changes. CI is done by collecting information, analyzing it alongside other data, communicating findings, and countering competitors. While many companies utilize CI, some are ignorant of its benefits or overconfident in their own strategies. Regular CI analysis of competitors is important for any organization's long-term success.
This document provides an overview of scenario analysis as a strategic planning method. Scenario analysis involves developing multiple potential scenarios for how the future may unfold based on trends and uncertainties. It is meant to help companies explore different possible futures rather than anchoring to a single view. The method involves defining the scope, identifying stakeholders and trends, uncertainties, and scenario themes. Scenarios typically include an end state, story, driving forces, and logics. Developing multiple plausible scenarios can help organizations better prepare for an uncertain future and adapt more quickly.
The survey found that pharmaceutical companies expect R&D spending and clinical drug pipelines to increase in the coming years, which would be positive for CROs. Outsourcing penetration is also expected to rise as strategic partnerships between large pharma and CROs grow. Covance was the most frequently cited favorite CRO due to its broad capabilities and global reach. The survey responses suggest sponsors have a more optimistic outlook than investors, which bodes well for CROs.
The document provides an overview of product life cycle (PLC) analysis, which describes how sales of a product evolve over time through four distinct stages: introduction, growth, maturity, and decline. It explains the characteristics and appropriate marketing strategies for each stage. For example, during introduction sales are low but advertising is high, while growth focuses on increasing sales and consumer loyalty. The document also cautions that PLC analysis has limitations and provides a case study analyzing the retail coffee industry through the PLC framework.
The document discusses competitive intelligence analysis tools for economic development. It introduces competitive intelligence and why analysis is important. It then describes the top 5 analysis tools: SWOT analysis, competitor profile, STEEP analysis, Porter's Five Forces model, and SPACE matrix. For each tool, it provides a description, objective, and details on the type of information needed to conduct the analysis. It concludes by offering some tips to remember and providing information about Intelegia, the company discussing the tools.
ONTOLOGY DRIVEN KNOWLEDGE MAP FOR ENHANCING BUSINESS PROCESS REENGINEERINGcseij
It has been a constant human desire to be dissatisfied with the status quo as there is always need to
improve upon the way business is being done. As a result, Business process reengineering is introduced
into organization in order to overcome these challenges of inefficiencies and high running cost. A lot of
problems were encountered during the process of reengineering programmes. One of many factors that are
identified as the possible reason for the failures in most business process reengineering is the lack of giving
much emphasis on the knowledge available within the environment in which the business process is taking
place. In this paper therefore we propose a methodology that addresses this issue through the use
knowledge source map and formal organizational ontology. The organization and business process are
model together to provides most efficient way of utilizing the knowledge in the organization in the event of
business process reengineering.
The role of information systems by Emanuel BaisireEmanuel Baisire
Firms are constantly investing in information technology infrastructure to maintain a competitive edge and survive in a dynamic business environment. The paper focuses on the role played by information system’s components like organization’s strategy, technology and management to improve a firm’s competitive advantage . In this case, Information systems are referred to as those elements capturing data and process it into valuable information for decision-makers.
The motivation for this topic is based on the dominant role played by information systems in shaping new industry structures and increasing the rate of first-mover advantage. It is also important to note that firms investing in new or advanced information technology and ignore organizational changes in other complementary assets are not likely to rip the maximum benefits of information systems. Firms integrating technology with organization changes yield more returns in terms of high productivity and innovation than those without an expanded view of information systems.
The role of information system is also important because it enables organizations to identify and deploy new strategies and cost reduction techniques in a timely manner than competitors (Loudon, 2007). Firms need to integrate their business processes in order to gain a competitive advantage. For instance there is a need for technology within different departments like human resource, sales and marketing, production and research to complement each other to yield a competitive advantage.
This document discusses the importance and benefits of business analytics for organizations. It defines analytics as the discovery and communication of meaningful patterns in data to quantify and improve business performance. Analytics can help organizations better understand customers, detect fraud, reduce risks, and optimize processes. The document outlines different types of analytics like descriptive, predictive, clustering and affinity grouping. It argues that while organizations now have large amounts of data, analytics is needed to extract useful insights and make better decisions. Overall, the document promotes the use of business analytics for sustainability, differentiation, and as a critical success factor for organizations.
The document summarizes the results of a 2012 survey of the pharmaceutical industry. It finds that three-quarters of respondents ranked changing the commercial business model as a top priority. Companies are increasingly focusing on market access strategies, realigning sales forces, and managed markets. Respondents also reported widespread adoption of tablets and increased use of social media like LinkedIn and Facebook.
This document provides an overview of the SWOT analysis method. It defines SWOT as an acronym for strengths, weaknesses, opportunities, and threats. The method involves identifying internal strengths and weaknesses and external opportunities and threats and determining the strategic fit between an organization's internal capabilities and the external environment. The document outlines how to apply the SWOT method and provides an example of a completed SWOT analysis for Winnebago Industries.
Issue analysis aids strategic intelligence efforts by helping companies anticipate changes in their external environments and shape public policy. It involves identifying issues, analyzing them based on factors like impact and probability, and selecting issues for action. Key steps are issue identification through methods like media scanning, assessment using matrices to evaluate impact and probability, and selecting a response strategy like altering behavior, contesting the issue, or ignoring it. Issue analysis supports decision-making by prioritizing issues and recommending where to focus resources.
Value chain analysis (VCA) is a method used to identify a company's potential sources of competitive advantage. It examines the range of activities involved in creating and delivering a product or service, including inbound logistics, operations, outbound logistics, marketing and sales, and services. VCA involves mapping a company's value chain, analyzing costs and differentiation within each activity, and comparing the company to competitors. The goal is to find ways to reduce costs or create greater customer value at each stage in order to strengthen competitive position.
This document summarizes research on how corporate foresight and innovation management can help companies adapt to the transition to a knowledge-based economy. It first discusses how information and knowledge are becoming more important resources, and how this changes industry competition. It then reviews literature establishing corporate foresight and innovation management as key ways for companies to gain competitive advantages. Specifically, it looks at how futures research methods can contribute to the innovation process. Finally, it discusses how the concept of foresight has evolved and is now seen as a broader activity than just futures studies.
Win/Loss Analysis (WLA) is a technique used to understand why a company wins or loses bids. It involves interviewing new and lost customers to understand their decisions. WLA can help a company identify its strengths and weaknesses compared to competitors to improve sales performance. The process includes determining target customers, developing interview questions, conducting interviews, analyzing results, and disseminating findings within the company. Regular use of WLA provides insights to increase win rates and guide business strategy and product development.
1) Managed print services (MPS) can help organizations achieve cost savings, increased efficiency and environmental benefits by optimizing their printing fleets and processes.
2) Implementing an MPS program typically reduces printing costs by 30% on average and cuts carbon emissions from printing fleets by 60% on average.
3) MPS providers help organizations improve processes like document scanning, routing, archiving and automated workflows to further increase benefits beyond just cost savings.
State Of The Hispanic Blogosphere Report 09Bitacoras.com
Bitacoras.com publishes the results of a study based on the platform’s internal data, with the intention of offering a broader perspective about the reality of the blogosphere in Spanish. This report extends and supports previous studies and tries to promote and spread the phenomenon of blogs beyond their own borders.
The document describes a trip to Italy visiting landmarks in Rome like the Colosseum and Trevi Fountain, then traveling to Venice to go on a gondola ride and see a small part of the Carnival celebration.
Mtm4 white paper industry analysis (featuring the 5 forces)IntelCollab.com
This document provides an overview of Michael Porter's five forces industry analysis framework. It describes the five competitive forces that shape industry competition and profitability - threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry. The document outlines how to apply the five forces analysis to understand an industry's structure and attractiveness. Analysts are advised to define the industry properly, assess each force individually, and consider the aggregate impact to determine profitability.
The document analyzes benefits realized from enterprise resource planning (ERP) systems based on a database of ERP implementation information from various companies. Some key findings include:
1) Both tangible and intangible benefits were identified, with intangible benefits varying more across industries. Tangible benefits like reduced inventory and personnel costs were more consistent.
2) The study found additional intangible benefits beyond those in an earlier Deloitte Consulting study, indicating ERP benefits may be more varied than previously thought.
3) Statistical tests found the study results were generally consistent with the earlier Deloitte study but identified more intangible benefits, suggesting the potential value of ERP may be greater than initially
This document discusses competitive intelligence and provides an overview of the topic. It covers the following key points:
1. The history and evolution of competitive intelligence over the past 30 years due to changes in technology and difficulties justifying large CI departments.
2. An overview of competitive intelligence, defining it as more than just information about competitors and emphasizing its role in developing winning strategies through leveraging knowledge assets.
3. The competitive intelligence process involving planning, collection from internal and external sources, analysis using techniques like SWOT and modeling, and dissemination of insights.
4. Categories of competitive intelligence like market intelligence, competitor intelligence, and customer intelligence.
Mtm9 white paper macro-environmental (steep) analysisIntelCollab.com
This document provides an overview of macro-environmental (STEEP) analysis, which examines the external social, technological, economic, environmental, and political factors that influence an organization. STEEP analysis involves scanning these macro-level factors to identify opportunities and threats in order to understand the overall context surrounding an industry. The results of STEEP analysis provide insights into how these external forces could impact a company. While useful for strategic planning, challenges in applying STEEP analysis include difficulties interpreting factors, inaccuracies in forecasts, short-term orientations, and lack of acceptance by management.
A brief introduction to Competitive IntelligenceNeharica Sharma
Competitive intelligence (CI) involves ethically gathering information about competitors to make strategic business decisions. CI data provides context about a company's performance and industry trends for insights. It allows companies to anticipate rather than just react to market changes. CI is done by collecting information, analyzing it alongside other data, communicating findings, and countering competitors. While many companies utilize CI, some are ignorant of its benefits or overconfident in their own strategies. Regular CI analysis of competitors is important for any organization's long-term success.
This document provides an overview of scenario analysis as a strategic planning method. Scenario analysis involves developing multiple potential scenarios for how the future may unfold based on trends and uncertainties. It is meant to help companies explore different possible futures rather than anchoring to a single view. The method involves defining the scope, identifying stakeholders and trends, uncertainties, and scenario themes. Scenarios typically include an end state, story, driving forces, and logics. Developing multiple plausible scenarios can help organizations better prepare for an uncertain future and adapt more quickly.
The survey found that pharmaceutical companies expect R&D spending and clinical drug pipelines to increase in the coming years, which would be positive for CROs. Outsourcing penetration is also expected to rise as strategic partnerships between large pharma and CROs grow. Covance was the most frequently cited favorite CRO due to its broad capabilities and global reach. The survey responses suggest sponsors have a more optimistic outlook than investors, which bodes well for CROs.
The document provides an overview of product life cycle (PLC) analysis, which describes how sales of a product evolve over time through four distinct stages: introduction, growth, maturity, and decline. It explains the characteristics and appropriate marketing strategies for each stage. For example, during introduction sales are low but advertising is high, while growth focuses on increasing sales and consumer loyalty. The document also cautions that PLC analysis has limitations and provides a case study analyzing the retail coffee industry through the PLC framework.
The document discusses competitive intelligence analysis tools for economic development. It introduces competitive intelligence and why analysis is important. It then describes the top 5 analysis tools: SWOT analysis, competitor profile, STEEP analysis, Porter's Five Forces model, and SPACE matrix. For each tool, it provides a description, objective, and details on the type of information needed to conduct the analysis. It concludes by offering some tips to remember and providing information about Intelegia, the company discussing the tools.
ONTOLOGY DRIVEN KNOWLEDGE MAP FOR ENHANCING BUSINESS PROCESS REENGINEERINGcseij
It has been a constant human desire to be dissatisfied with the status quo as there is always need to
improve upon the way business is being done. As a result, Business process reengineering is introduced
into organization in order to overcome these challenges of inefficiencies and high running cost. A lot of
problems were encountered during the process of reengineering programmes. One of many factors that are
identified as the possible reason for the failures in most business process reengineering is the lack of giving
much emphasis on the knowledge available within the environment in which the business process is taking
place. In this paper therefore we propose a methodology that addresses this issue through the use
knowledge source map and formal organizational ontology. The organization and business process are
model together to provides most efficient way of utilizing the knowledge in the organization in the event of
business process reengineering.
The role of information systems by Emanuel BaisireEmanuel Baisire
Firms are constantly investing in information technology infrastructure to maintain a competitive edge and survive in a dynamic business environment. The paper focuses on the role played by information system’s components like organization’s strategy, technology and management to improve a firm’s competitive advantage . In this case, Information systems are referred to as those elements capturing data and process it into valuable information for decision-makers.
The motivation for this topic is based on the dominant role played by information systems in shaping new industry structures and increasing the rate of first-mover advantage. It is also important to note that firms investing in new or advanced information technology and ignore organizational changes in other complementary assets are not likely to rip the maximum benefits of information systems. Firms integrating technology with organization changes yield more returns in terms of high productivity and innovation than those without an expanded view of information systems.
The role of information system is also important because it enables organizations to identify and deploy new strategies and cost reduction techniques in a timely manner than competitors (Loudon, 2007). Firms need to integrate their business processes in order to gain a competitive advantage. For instance there is a need for technology within different departments like human resource, sales and marketing, production and research to complement each other to yield a competitive advantage.
This document discusses the importance and benefits of business analytics for organizations. It defines analytics as the discovery and communication of meaningful patterns in data to quantify and improve business performance. Analytics can help organizations better understand customers, detect fraud, reduce risks, and optimize processes. The document outlines different types of analytics like descriptive, predictive, clustering and affinity grouping. It argues that while organizations now have large amounts of data, analytics is needed to extract useful insights and make better decisions. Overall, the document promotes the use of business analytics for sustainability, differentiation, and as a critical success factor for organizations.
The document summarizes the results of a 2012 survey of the pharmaceutical industry. It finds that three-quarters of respondents ranked changing the commercial business model as a top priority. Companies are increasingly focusing on market access strategies, realigning sales forces, and managed markets. Respondents also reported widespread adoption of tablets and increased use of social media like LinkedIn and Facebook.
This document provides an overview of the SWOT analysis method. It defines SWOT as an acronym for strengths, weaknesses, opportunities, and threats. The method involves identifying internal strengths and weaknesses and external opportunities and threats and determining the strategic fit between an organization's internal capabilities and the external environment. The document outlines how to apply the SWOT method and provides an example of a completed SWOT analysis for Winnebago Industries.
Issue analysis aids strategic intelligence efforts by helping companies anticipate changes in their external environments and shape public policy. It involves identifying issues, analyzing them based on factors like impact and probability, and selecting issues for action. Key steps are issue identification through methods like media scanning, assessment using matrices to evaluate impact and probability, and selecting a response strategy like altering behavior, contesting the issue, or ignoring it. Issue analysis supports decision-making by prioritizing issues and recommending where to focus resources.
Value chain analysis (VCA) is a method used to identify a company's potential sources of competitive advantage. It examines the range of activities involved in creating and delivering a product or service, including inbound logistics, operations, outbound logistics, marketing and sales, and services. VCA involves mapping a company's value chain, analyzing costs and differentiation within each activity, and comparing the company to competitors. The goal is to find ways to reduce costs or create greater customer value at each stage in order to strengthen competitive position.
This document summarizes research on how corporate foresight and innovation management can help companies adapt to the transition to a knowledge-based economy. It first discusses how information and knowledge are becoming more important resources, and how this changes industry competition. It then reviews literature establishing corporate foresight and innovation management as key ways for companies to gain competitive advantages. Specifically, it looks at how futures research methods can contribute to the innovation process. Finally, it discusses how the concept of foresight has evolved and is now seen as a broader activity than just futures studies.
Win/Loss Analysis (WLA) is a technique used to understand why a company wins or loses bids. It involves interviewing new and lost customers to understand their decisions. WLA can help a company identify its strengths and weaknesses compared to competitors to improve sales performance. The process includes determining target customers, developing interview questions, conducting interviews, analyzing results, and disseminating findings within the company. Regular use of WLA provides insights to increase win rates and guide business strategy and product development.
1) Managed print services (MPS) can help organizations achieve cost savings, increased efficiency and environmental benefits by optimizing their printing fleets and processes.
2) Implementing an MPS program typically reduces printing costs by 30% on average and cuts carbon emissions from printing fleets by 60% on average.
3) MPS providers help organizations improve processes like document scanning, routing, archiving and automated workflows to further increase benefits beyond just cost savings.
State Of The Hispanic Blogosphere Report 09Bitacoras.com
Bitacoras.com publishes the results of a study based on the platform’s internal data, with the intention of offering a broader perspective about the reality of the blogosphere in Spanish. This report extends and supports previous studies and tries to promote and spread the phenomenon of blogs beyond their own borders.
The document describes a trip to Italy visiting landmarks in Rome like the Colosseum and Trevi Fountain, then traveling to Venice to go on a gondola ride and see a small part of the Carnival celebration.
Seminário: Dia Internacional da Segurança em Informática "A Internet e os Paradoxos do Controle de Segurança"
Dia: 30 de Novembro de 2009
Auditório - 4ª andar Edifício da FIESP
Saão Paulo, SP
Apresentação: Manuel Matos , presidente Camara-E-Net, para o Seminário "A Internet e os paradoxos do controle da segurança"
This document discusses the effectiveness of "naming and shaming" as a policy tool for enforcing international human rights law. It hypothesizes that less developed and autocratic states are more likely to violate human rights laws because they have less to lose from negative international reputation effects. The author aims to analyze if naming and shaming is less effective on these states compared to developed democracies that are more dependent on global economic participation. Prior research is examined that finds naming and shaming can sometimes increase violations or be strategically ignored. The study will consider political and economic characteristics that impact a state's responsiveness to such enforcement techniques.
Understanding the america's shift to the east using the foreign policy decisi...jpeterson2058
This document analyzes the Obama administration's strategic "pivot" toward East Asia using the foreign policy decision-making model. The model has three components: 1) considering global conditions and problems, 2) internal state characteristics, and 3) the leader's personal characteristics. The document discusses the rising economic and military power of China as a key global condition prompting the US shift toward Asia to counter China's influence and reassure allies. It also examines internal debates within the US on balancing engagement with a powerful China against protecting American economic and security interests.
- The document describes a machine learning project that analyzed data from wearable sensors to predict the manner in which exercises were performed.
- The author tested decision trees, random forests, and boosted regressions on the data, and found that random forests had the lowest error rate at 0.06%. Random forests was thus used as the optimal predictive model.
BUSINESS ANALYTICS, BACKBONE OF ORGANIZATIONS - A LITERATURE REVIEW.pdfAdheer A. Goyal
Business analytics is the process by which businesses use statistical methods and technologies based on historical data in order to attain organizational goals and make profit. Analytics are now regularly used in multiple areas of life. It should come as no surprise that business analytics is one of the fastest growing markets in enterprise software landscape. This article discusses about history and terminology of analytics. There is also a brief discussion about how business analytics gives opportunities not only to large scale and multinational companies but also to small and medium enterprises. In this conceptual paper major types of business analytics i.e., decision analytics, descriptive analytics, predictive analytics and prescriptive analytics are included. We also noted how business analytics can help you in supply chain management, analyze the key performance indicators which further helps in decision making, boost relationship with consumers and improve efficiency in the basis of product data. Then it consists of brief description about advantages and disadvantages of business analytics, difference between business analytics and business intelligence. This paper concludes with challenges in business analytics posed by the big data analytics, data scientists, business organization etc. and thoroughly researched the impact of business analytics on innovation.
This document discusses why organizations should become analytics-driven. It argues that analytics can help organizations reinvent their business, achieve operational excellence, improve customer experience, ensure trust and compliance, and identify new opportunities. It provides examples of how analytics has helped companies in areas like drilling, customer listening, and purchase prediction. The document also outlines the key dimensions needed for an organization to truly become analytics-driven, including leadership, strategy, culture, capabilities, skills, data, technology, processes, and rules. It proposes that organizations should start on an analytics journey and assess their current analytics maturity.
WNS outsourcing consulting & professional services help executive search firms outperform through lower costs and faster turnaround times. Learn more Visit- https://www.wns.com/industries/hi-tech-and-professional-services/executive-search-firms
The document is a report from the Economist Intelligence Unit that discusses the challenges of building a data-centric culture in organizations. It is based on a global survey of 395 executives. Some key points:
- Building the right organizational culture to realize business value from data analytics is now a priority for companies, as they have already invested in technology and talent.
- CEOs face the challenge of transforming company culture and how data is used. They must implement strategies from the top-down and engage employees.
- Successful data-driven companies are inspired by leaders who communicate a strong vision of how data can help the business and drive values like customer service. Leaders also provide expertise and education to help employees apply data.
Driving A Data-Centric Culture: The Leadership ChallengePlatfora
Embracing data as a corporate asset—and a source of competitive advantage—is not just a “good idea” that companies should consider. Such adoption will help determine the winners and losers across multiple markets and industries in the future.
In the last couple of years, corporate focus has shifted: first, from investing in the right technology and tools; then to acquiring the right talent and skills; and now to building the right organizational culture that can realize the business value of powerful big-data analytic tools.
Most organizations today are still focused on putting in place the right technology and talent, but others have evolved further and are working toward fostering a data-centric corporate culture.
This document provides an overview of business research methodology and ethics. It discusses why business research is important, how it helps guide business decisions and reduce risk. It also covers the research process, characteristics of good research, who conducts research like business firms, trade associations and communication agencies. Finally, it outlines important ethics considerations around informed consent, privacy, deception and codes of conduct. The goal is to ensure research is designed to do no harm and obtain voluntary participation through full disclosure of the research process.
This document summarizes an IBM executive report on using business analytics to gain competitive advantage. It discusses how analytics can help organizations understand customer behavior, risks, and regulations to inform strategic decision making. The report finds that while technology barriers to analytics are decreasing, organizational culture challenges remain, such as integrating data across departments and establishing a leadership mandate to make decisions based on facts. It recommends that organizations lay the foundation for fast responses, extract value by aligning objectives with integrated data, and use predictive analytics to detect opportunities. When applied to understanding customers, risks, and regulations, analytics can help optimize performance in today's complex environment.
Business analytics uses data to help organizations make better decisions and craft business strategies. As companies generate vast amounts of data, there is a need for professionals with data analysis skills. Leading companies are using analytics not just to improve operations but launch new business models. While some industries and digital natives have captured opportunities, much potential value from analytics remains untapped, especially in manufacturing, healthcare, and the public sector. For companies to succeed in an increasingly data-driven world, analytics must be incorporated strategically and supported by the right talent, processes, and infrastructure.
Using Business Intelligence: The Strategic Use of Analytics in GovernmentIBM Government
IBM Center for the Business of Government addresses the value of analytics for measurably improving each of four government sector: health care, logistics, revenue management, and intelligence. Using the business strategy of leveraging analytics to promote promote change, these sectors can run as efficiently as any successful business.
This document summarizes findings from a study of over 12,000 C-suite executives from around the world. It finds that industry incumbents, rather than new entrants, are now seen as the leading drivers of disruption in most industries. While some predicted widespread disruption from digital technologies, the C-suites report more stability and less urgency to transform. The document identifies three archetypes of organizations - Reinventors, Practitioners, and Aspirations - based on their stage of digital reinvention. Reinventors are outperforming peers and see opportunities in ecosystems and partnerships. Many organizations are looking to platform business models. Disruption is ongoing but incumbents have strengthened their ability to transform themselves.
Workforce Analytics-Big Data in Talent Development_2016 05Rob Abbanat
1) The document discusses how workforce analytics uses big data approaches to improve talent management and recruiting. It outlines a 5-step process for implementing workforce analytics: clarifying the problem, determining metrics, gathering data, analyzing the data, and presenting results visually.
2) Most companies are still only reporting workforce analytics data, while few are able to forecast or simulate results. Examples are given of how some companies have used workforce analytics to optimize retention, promotions, and talent acquisition strategies.
3) The meeting discussed how workforce analytics can help move companies from decisions based on hunches to data-driven models, showing clearer links between talent expenditures and organizational performance.
Business Intelligence for Consumer Goods CompaniesCognizant
Despite the focus that the Consumer Goods industry places on business intelligence and data insights, not many companies are truly leveraging this valuable resource to its full potential.
Chapter 3: Data Analysis or Interpretation of DataEmilyDagami
This is for Inquiries, Investigation, and Immersion Senior High School grade 12 learners and teachers: Chapter 3: Data Analysis or Interpretation of Data. Data analysis is the process of cleaning, analyzing, interpreting, and visualizing data using various techniques and business intelligence tools. Data analysis tools help you discover relevant insights that lead to smarter and more effective decision-making. "It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts," Sherlock Holme's proclaims in Sir Arthur Conan Doyle's A Scandal in Bohemia.
This idea lies at the root of data analysis. When we can extract meaning from data, it empowers us to make better decisions. And we’re living in a time when we have more data than ever at our fingertips.
This document discusses business research, including:
1) Defining business research and distinguishing it from business decision support systems and business intelligence systems.
2) Exploring trends affecting business research like the emerging hierarchy of business decision makers.
3) Examining the distinction between good quality professional business research versus subpar research.
4) Outlining the nature of the business research process.
This document discusses business research, including:
1) Defining business research and distinguishing it from business decision support systems and business intelligence systems.
2) Exploring trends affecting business research like the emerging hierarchy of business decision makers.
3) Examining the distinction between good quality professional business research versus subpar research.
4) Outlining the nature of the business research process.
This document discusses business research, including:
1) Defining business research and distinguishing it from business decision support systems and business intelligence systems.
2) Exploring trends affecting business research like the emerging hierarchy of business decision makers.
3) Examining the distinction between good quality professional business research versus subpar research.
4) Outlining the nature of the business research process.
Predictive and prescriptive analytics: Transform the finance function with gr...Grant Thornton LLP
As all businesses continue to collect, store and analyze more data than ever before, they face growing data challenges to support decision-making. Those who can leverage predictive and prescriptive analytics will differentiate themselves in the marketplace and gain a competitive advantage. In this report by Financial Executives Research Foundation Inc. and Grant Thornton LLP, we highlight insights from in-depth interviews with senior-level executives. These organizations use advanced analytics in their businesses to gain significant profit improvements. See more at - http://gt-us.co/1vv2KU9
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EMERGING TRENDS IN DATA ANALYTICS AND BUSINESS INTELLIGENCE 1 .docxgidmanmary
EMERGING TRENDS IN DATA ANALYTICS AND BUSINESS INTELLIGENCE 1
Emerging Trends in Data Analytics and Business Intelligence
List Names of The People in your group
Business Intelligence (ITS-531-20)
University of the Cumberlands
Professor Kelly Bruning
EMERGING TRENDS IN DATA ANALYTICS AND BUSINESS INTELLIGENCE 2
Table of Contents
Introduction ..................................................................................................................................... 3
Emerging Trends in Data Analytics and Business Intelligence ...................................................... 4
Increasing Operational Efficiency with Business Intelligence and Analytics ................................ 5
Business Intelligence .................................................................................................................. 5
Practical implications of BI ........................................................................................................ 7
Example .................................................................................................................................. 7
Future of BI ................................................................................................................................. 8
Positive and Negative impact of BI ............................................................................................ 9
Recommendations ....................................................................................................................... 9
Data Analytics and Business Intelligence in Cloud computing .................................................... 10
Practical Implications................................................................................................................ 11
Example ................................................................................................................................ 11
Example ................................................................................................................................ 12
Future of Cloud Computing ...................................................................................................... 13
Positive and Negative Impacts .................................................................................................. 14
Recommendations ..................................................................................................................... 15
Location Based Analytics ............................................................................................................. 15
Real time implementation of location analytics........................................................................ 18
Example ................................................................................................................................ 18
Example ................................................. ...
EMERGING TRENDS IN DATA ANALYTICS AND BUSINESS INTELLIGENCE 1 .docx
Competing on Analytics
1. W O R K I N G K N OW L E D G E R E S E A R C H R E P O RT
Competing on Analytics
THOMAS H. DAVENPORT, DON COHEN, AND AL JACOBSON MAY 2005
Executive Summary On What Basis Do business performance and making
ex post facto adjustments, they seek to
This report describes the emergence of Companies Compete Today?
understand how optimum nonfinancial
a new form of competition based on the In virtually every industry, many former per formance drives optimum financial
extensive use of analytics, data, and strategic alternatives are no longer viable per formance, and to make accurate
fact-based decision making. The analytics— or likely to be successful. Today, there forecasts of future per formance so they
quantitative or statistical models to analyze are few regulated monopolies, or compa- can react in advance of situations.
business problems—may be applied to a nies with unique geographical access. Instead of throwing money at business
variety of business problems, including cus- Proprietary technologies are rapidly copied problems, they seek to optimize their
tomer management, supply chains, and by competitors, and breakthrough inno- use of capital.
financial performance. The research assessed vation in either products or services is
32 firms with regard to their orientation to rare. Most of the competitive strate- But strateg ies involving optimization
analytics; about one-third were classified as g ies organizations are employing today require something different than those
fully engaged in analytically oriented strate- involve optimization of key business based on taking business as it comes.
gies. Both demand and supply factors for processes. Instead of serving all customers, Above all, they require extensive data
analytical competition are described. Of the they want to serve optimal customers— on the state of the business environ-
two, demand factors are the more difficult those with the highest level of prof- ment and the company’s place within it,
to create. The presence of one or more itability and lifetime value. Instead of and extensive analysis of the data to
committed senior executives is a primary receiving goods and services whenever model that environment, predict the
driver of analytical competition. they happen to arrive, they attempt to consequences of alternative actions,
optimize supply chains to minimize and guide executive decision making.
disruptions and in-process inventory. Moreover, they require analysts and
About This Research Instead of looking backward at their decision makers who both understand
This research report is based on analysis of the value of analy tics
32 organizations from a variety of industries Figure 1: and know how best to
(Figure 1) that are successful both in terms Industries of Companies Surveyed apply these for driving
of their overall performance and in their enhanced per form-
use of business analytics. The research was ance. Companies that
I N DUSTRI ES RE PRESE NTE D N U M BE R
undertaken to investigate and document strive to optimize
Financial Services 10 their business per-
how and why these companies not only use
sophisticated analytics, but also make them Consumer Products and Retail 6 formance using
the basis of their competitive strategies, Travel, Transport, and Entertainment 5 this data-intensive
and adopt or move toward an enterprise- Pharmaceutical and Chemical 4 approach are compet-
level approach to business intelligence. ing on analy tics and
Information Technology and Communications 3
Telephone or in-person interviews were analy tical capabilities.
Health Care 2
conducted with either IT or business execu- Many companies are
Engineering 1 pursuing optimization-
tives at 30 firms; three firms were analyzed
solely on the basis of secondary research. Government 1
2. CO M P ET I N G O N A N A LY T I C S
based strategies, but most have failed to The Boston Red Sox baseball team is also Analytical competition is not only taking
develop the analytical capabilities neces- a convert to analytics (following, in many root in U.S. sports. Some soccer teams in
sary to make them succeed. ways, the lead of the pioneering but less Europe also have begun to employ similar
well-financed Oakland A’s). The ability techniques. AC Milan, one of the leading
The idea of competing on analytics is not to extract knowledge from data presum- teams in Europe, uses predictive models
entirely new. A few organizations—most ably helped the Sox win the World Series to prevent player injuries by analyzing
within financial services and particularly in in 2004 for the first time in 86 years. physiological, orthopedic, and mechanical
financial investment and trading businesses— Boston has begun to select players less data from a variety of sources. Bolton, a
have competed on this basis for decades. on traditional criteria such as batting aver- fast-rising English soccer team, is known
The trading of stocks, bonds, currencies, age, but rather on newer, more subtle for its manager’s use of extensive data to
and commodities has long been driven
evaluate player performance and team
by analytics. What is new is the spreading
strategies.
of analytical competition to a variety of Analytical cultures and
other industries—from consumer finance Analytical cultures and processes are
to retailing to travel and entertainment processes are appearing appearing not only in professional sports
to consumer goods—and within compa- teams, but in any business that can har-
nies from individual business units to
not only in professional ness extensive data, complex statistical
an enterprise-wide perspective. Even the
sports teams, but in any processing, and fact-based decision mak-
most traditionally intuitive industries are ing. Analytics is becoming a primary basis
moving in this direction—professional business that can harness for competition for these firms. They use
sports teams, for example. analytical tools to change the way they
extensive data, complex compete or to perform substantially better
Two of Boston’s sports teams have had
in the existing business model. The gam-
some enviable success of late, at least in statistical processing, and ing firm Harrah’s, for example, has chosen
part because of their analytical capabilities.
to compete on analytics for customer loy-
The New England Patriots football team, fact-based decision making.
alty and service, rather than on building
for example, won its third Super Bowl in
the mega-casinos in which its competitors
four years. The team uses data and analyt-
factors such as on-base percentage. Bill have invested. Its CEO, Gary Loveman,
ical models extensively, both on and off
James, considered the godfather of base- has commented, “We use database mar-
the field. In-depth analytics help the team
ball statistics or “sabermetrics,” was hired keting and decision-science-based analyti-
select its players, stay below the salary
by the Red Sox as an adviser. The Sox cal tools to widen the gap between us
cap, decide whether to punt or “go for it”
also have become more analytical off the and casino operators who base their cus-
on fourth down, and try for one point or
field. Like the Patriots, they map and tomer incentives more on intuition than
two after a touchdown. Both its coaches
monitor key aspects of the fan experi- evidence.” Amazon.com uses extensive
and players are renowned for their exten-
ence—from the decision to go to a game, analytics to predict what products will be
sive study of game films and statistics, and
to the routes taken by fans to the game, successful, and to wring every bit of effi-
Head Coach Bill Belichick peruses articles
to the effectiveness of the cleaning crew. ciency out of its supply chain. Amazon
by academic economists on statistical
The team’s management has maximized CEO Jeff Bezos notes, ”For every leader
probabilities of football outcomes. Off the
revenues from Fenway Park, the smallest in the company, not just for me, there
field, the team uses detailed analytics to
baseball park in the major leagues, by cal- are decisions that can be made by analy-
assess and improve the “total fan experi-
culating ticket price elasticities, establish- sis. These are the best kinds of decisions.
ence.” At every home game, for example,
ing an online market for season ticket They’re fact-based decisions.” At the
20 to 25 people have specific assign-
resales, and modeling revenue increases mutual fund company Dreyfus, analysis of
ments to make quantitative measurements
from adding seats in unused locations customer information defined segmenta-
of the stadium food, parking, personnel,
(including on top of the Green Monster, tion that helped reduce fund attrition from
bathroom cleanliness, and other factors.
the towering left field wall). 22 to 7 percent a year. These companies,
External vendors of services are monitored
and a variety of others, are clearly com-
for contract renewal and have incentives
peting on analytics.
to improve their performance.
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 2
3. CO M P ET I N G O N A N A LY T I C S
Attributes of Analytically cal competition. For example, Fairbank most likely to stop being customers. They
commented: are combining and pooling both internal
Oriented Companies
and external data in such a way as to gain
Virtually every major company uses some It’s all about collecting information a more comprehensive picture and under-
form of statistical or mathematical analy- on 200 million people you’d never standing of their customers than was ever
sis, but some take analytics much further meet, and on the basis of that infor- thought possible. They are optimizing
than others. In our research on the topic, mation, making a series of very their supply chains, so they can determine
we have identified several key attributes critical long-term decisions about the impact of an unexpected constraint,
of firms that compete on analytics: lending them money and hoping simulate alternative supply chains, and
they would pay you back. route shipments around problems. They
• One or more senior executives who
are establishing prices in real time so as
are strongly advocating analytics and Fairbank summarizes this approach as
to provide the highest yield possible from
fact-based decision making; “Information-Based Strategy.” Beracha,
a customer transaction. In financial per-
before he retired as CEO of Sara Lee
• Widespread use of not just descriptive formance analysis, they create complex
Bakery, simply kept a sign on his desk
statistics, but predictive modeling and models of how their operational and cost
saying, “In God we trust; all others
complex optimization techniques; measures relate to their financial perform-
bring data.”
ance. No matter what the business func-
• Substantial use of analytics approaches Without the push from the top, it’s rare tion, it’s possible to improve performance
across multiple business functions or to find a firm making the cultural changes through the use of sophisticated analytical
processes; necessary to become an analytical com- techniques.
petitor. We found some firms, for example,
• Movement toward an enterprise-level Companies that are recognized leaders in
in which single functional or business unit
approach to managing analytical tools, using analytical techniques for perform-
leaders were trying to engineer an analyt-
data, and organizational skills and ance improvements also are using sophis-
ically oriented shift in their firms, but
capabilities. ticated experimental designs to measure
weren’t able to sufficiently change the
the overall impact or “lift” of intervention
Each of these attributes is described culture by themselves. This doesn’t mean,
strategies and using these results to con-
briefly below: of course, that such an executive couldn’t
tinuously improve subsequent analyses.
lead such a change under other circum-
One or More Senior Executives Capital One, for example, conducts more
stances, and we did find organizations in
as Advocates than 30,000 experiments a year with
which lower-level advocates were making
The adoption of a broad analytical different credit card interest rates, incen-
progress on changing the culture. Any
approach to business requires changes in tives, direct mail packaging, and other
cross-functional or cross-departmental
culture, process, behavior, and skills for parameters to maximize both the likeli-
change, and certainly any enterprise-wide
multiple employees. Such changes don’t hood that a potential customer will sign
effort, clearly requires the support and
happen by accident; they must be led by up for a credit card, and that they will pay
attention of executives senior enough to
senior executives with a passion for ana- Capital One back. Progressive Insurance
direct and coordinate efforts in those
lytics and fact-based decision making. employs similar experiments. The company
separate units.
Ideally, the primary advocate should be defines narrow groups of customers
the CEO, and indeed we found several Widespread Use of Predictive Modeling (or “cells”)—for example, motorcycle
chief executives who were driving the and Optimization Techniques riders older than 30 with no previous
shift to analytics at their firms. These Every firm can calculate simple descriptive accidents, a college education, and a
included Gary Loveman, CEO of Harrah’s; statistics about aspects of its business credit score higher than a certain level.
Jeff Bezos, the founder and CEO of (the average revenue per employee, or For each cell, the company performs
Amazon; Rich Fairbank, the founder and average order size), but the most aggres- regression analysis to identify the factors
CEO of Capital One; and Barry Beracha, sive analytical competitors go well beyond that most closely correlate with its loss
formerly CEO of Sara Lee Bakery Group. basic statistics. They are using predictive experience. They set prices for each cell
Each of these executives has stated both modeling, for example, to identify not only they believe will enable them to earn
internally and publicly that their compa- the most profitable customers, but those a profit across a portfolio of customer
nies are engaged in some form of analyti- with the most profit potential, or those groups. They use simulation software to
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 3
4. CO M P ET I N G O N A N A LY T I C S
test the financial implications of these if they are to be broadly adopted across IT organizations must develop new and
hypotheses. Through this analytical the firm, it makes more sense to manage broader capabilities for extracting and
approach, Progressive can profitably them at an enterprise level. This ensures cleaning data, loading and maintaining
insure customers in traditionally high-risk that there is a critical mass of skills, that data warehouses, data mining, and query
categories, such as motorcyclists. critical data and other resources are and reporting. These tools historically
protected, and that data from multiple have come from separate vendors and
Use of Analytics across Multiple
business functions can be correlated. have been difficult to integrate. However,
Functions and Business Units
The enterprise approach may include both the leading vendors of business intelli-
One of the hallmarks of an analytically
organizational and technical capabilities gence tools and applications are beginning
oriented firm is the use of sophisticated
for business intelligence. At the organiza- to broaden and integrate their offerings
analytics not just in one business function
tional level, for example, Procter & themselves, and to market and sell them
or process, but across multiple aspects
Gamble recently consolidated its analytical at the enterprise level.
of the business. Successful analytical
organizations for operations and supply
competitors have realized the power of
chain, marketing, and other functions. This Stages of Analytical
these tools and approaches, and are
adopting them across their businesses.
will allow a critical mass of analytical Competition
expertise to be deployed to address P&G’s
UPS, for example, has traditionally Analytical competition is not a binary
most critical business issues.
focused on analytics for operations and attribute, which an organization either has
logistics. More recently, it has developed or lacks. There are several stages of ana-
From a technology standpoint, many
a strong analytical focus on customers, lytical orientation that we observed in the
firms have had highly dispersed analytical
assessing the likelihood of customer attri- companies we interviewed (Figure 2).
technology in the form of many spread-
tion, or identifying sources of problems The percentages of organizations at these
sheets. However, one researcher suggests
for customers. Several firms, described stages are by no means representative
that between 20 and 40 percent of
below, are even extending their analytical of any larger population; we intentionally
spreadsheets contain errors. Furthermore,
orientations to direct use by customers. sought out companies at the higher end of
the proliferation of user-developed
the analytical spectrum. A random sample
spreadsheets and databases inevitably
As we will argue later, however, there of organizations would probably look like
leads to multiple versions of key indica-
is a balance to be maintained in terms of an inverted version of Figure 2, with the
tors within an organization.
broadening the focus on analytics, and highest frequencies at the lower stages.
employing them to address a specific busi- Because of these problems, many firms
ness domain. Executives at several analytical Stage 1 (“Major Barriers”) organizations
are attempting to consolidate and inte-
competitors warned against losing a clear have some desire to become more analyt-
grate their technologies for business ana-
business purpose for analytics. Harrah’s, for ical, but thus far they lack the will and
lytics. Adopting such an approach means
example, has targeted much of its analysis
on increasing customer loyalty, although it Figure 2:
has extended it into such related areas as
pricing and promotions as well. Analytical
Stages of Analytical Competition among Study Organizations
competitors can broaden their focus beyond
a narrow function, but they are careful not
to become too diffuse in their analytical Stage 1 2/32 Major Barriers
FIRMS
targeting so that they continue to support
their primary strategies. Stage 2 6/32 Local Activity
FIRMS
An Enterprise-Level 7/32
Management Approach Stage 3 FIRMS
Vision Not Yet Realized
Business intelligence applications often have
Stage 4 6/32 Almost There
been managed at the departmental level, FIRMS
with analytically oriented business functions
11/32 Analytical
selecting their own tools, managing their Stage 5 FIRMS
Competitors
own data warehouses, and training their
own people. However, if analytics are to be 0 2 4 6 8 10 12
a company’s basis for competition, and
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 4
5. CO M P ET I N G O N A N A LY T I C S
skill to do so. They face some substantial fashion of Progressive, an auto insurance What’s the Business Value
barriers—both organizational and techni- company with a history of technological
of Analytics?
cal—to analytical competition, and are still and analytical innovation. But the company
focused on putting basic, integrated trans- only recently had begun to expand its Analytics can be used to pull almost every
action functionality in place. As a result analytical orientation beyond the tradition- lever of organizational performance.
they are not yet on the path to becoming ally quantitative actuarial function, and However, we found several business
analytical competitors. Because we attempted there was little cooperation across the life objectives and issues that were driving
to interview only organizations that compete and property and casualty business units. most of the analytical activity in the firms
on analytics, we encountered only two we studied. They include the following:
Stage 1 organizations—a state government Stage 4 (“Almost There”) organizations
have the vision, and are close to achieving • Customers or consumer—Several organi-
agency and an engineering firm (and even
it. Six organizations fell into this category. zations were focused on customer or consumer
that firm is becoming more analytical
Some only recently had adopted an enterprise- analytics, which encompass a variety of
about its human resources). However,
wide approach to analytical competition, specific objectives. They might include,
Stage 1 organizations probably constitute
and had yet to fully realize it in terms of for example, identifying the most prof-
the majority of all large organizations.
marshaling the necessary resources. itable or desirable customers, or those
Stage 2 (“Local Activity”) organizations Others were competing on the basis of with the lowest risk of nonpayment.
have made substantial progress in becom- analytics, but also were competing on the Customer analytics also include identifying
ing more analytical, but it is primarily basis of other factors, such as maintaining the current customers who are most like-
local, within particular functions or units. strong personal relationships with cus- ly to stop being customers. They also
Marketing, for example, may be identifying tomers. Only a small degree of added might include customer-specific pricing
optimal customers or modeling demand, emphasis on analytical capability would or product/ service offerings based on
but the example has not spread to other place these companies in the top rank. the customer’s past or predicted future
parts of the company. Their business buying frequency and habits. Companies
intelligence activities produced economic The top rank is Stage 5 (“Analytical that pursued this set of analytics among
benefits, but not enough to affect the Competitors”), which describes organiza- our study respondents included Harrah’s,
company’s competitive strategy. We found tions that have embarked upon analytical Procter & Gamble, Progressive Insurance,
six of these firms. What they primarily competition as a primary dimension of Barclays, and Capital One.
lacked was a vision of analytical competi- strategy. These are the organizations we
primarily sought to uncover in our • Supply chain—Analytics for logistics and
tion that came from senior executives.
research, and therefore we identified 11 of the supply chain are well-established
Several of the firms had some of the
them. They include such large and small in many large firms, with the primary
same technology as firms at higher stages
organizations as Apex Management Group orientation usually being reduction of
of analytical activity, but they had not put
(a health care actuarial firm), Barclays in-process inventory. Supply chain analysis
it to strategic use.
Consumer Finance, Capital One, Harrah’s, also might encompass matching demand
The organizations in Stage 3 (“Vision Not Marriott, Owens & Minor, Progressive, Wal- and supply, routing shipments around
Yet Realized”) do grasp the value and the Mart, a consumer products firm, and the logistical problems, reducing stockouts
promise of analytical competition, but sports teams, the New England Patriots and overstocks, alternative supply simu-
they are a long way from actually suc- and the Boston Red Sox. These firms lations, plant and distribution center
ceeding with it. We found seven organiza- exhibited each of the attributes described siting decisions, and price optimization.
tions in this position. Some only recently above as the components of analytical Among the companies in our study,
have articulated the vision, and have not competition. They are also all highly suc- Wal-Mart is the leading exponent of
begun implementing it. Others have very cessful within their industries, and attrib- supply chain analytics.
high levels of functional or business unit ute their success at least in part to their
• Financial performance and cost
autonomy, and are having difficulty analytical strategies. Barclays, for example,
management—One domain of business
mounting a cohesive approach to analytics increased its revenue per active account
value for analytics can revolve around
across the enterprise. One multiline insur- by 25 percent, while reducing delinquent
performance management. Monitoring
ance company, for example, had a CEO accounts by 23 percent, by following its
and decision making on financial infor-
with the vision of using data, analytics, analytically oriented “Information Based
mation is not often thought of as a
and a strong customer orientation in the Customer Management” strategy.
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 5
6. CO M P ET I N G O N A N A LY T I C S
competitive strategy, but it can be. At and analysis is a focus for anyone who • Human resources—Several firms men-
MCI, (the company once known as hopes to compete in the industry. We tioned they were beginning to do human
WorldCom which recently emerged also found evidence of analytics in new resource planning with analytics, but the
from bankruptcy and was acquired by product development in the financial most aggressive users today seem to be
Verizon), managing the business with services industry. Brown Brothers professional sports teams. Both the
accurate information on costs and their Harriman, for example, is employing Boston Red Sox and the New England
allocations is crucial to the company’s analytical models for its insurance Patriots, for example, use statistical
strategy. CEO Michael Capellas and the industry clients to model risk-adjusted analysis to identify the most promising
The most important factor in being prepared for sophisticated
analytics is the availability of sufficient volumes of high-quality data.
management team reasoned that the options for asset allocation. This service players to draft. The Patriots have been
company couldn’t restore investor confi- had not previously been available in particularly successful in this regard,
dence or make good decisions on prod- the industry, and it has brought BBH a using analytics to stay below the strin-
ucts and services without a better notion considerable amount of new business gent salary cap in the National Football
of the company’s costs. Most of MCI’s among insurance firms. Similarly, The League. In fact, the Patriots have won
services run over the same network, so Hartford was the first to market an three of the last four Super Bowls with a
allocating costs to service offerings is options-based annuity product that relatively low-cost payroll, the 19th high-
difficult. MCI embarked on a major activity- accounted for a significant increase est in the league in the 2004-5 season.
based costing initiative, and developed in year-to-year revenues. The team ranks potential recruits on the
algorithms for allocating all costs. The basis of intangible attributes that other
• Strategic planning—Several of the firms
company needed to report segment teams don’t assess, including intelli-
we interviewed are using statistical
profitability anyway, and with accurate gence, commitment, coachability, and a
analysis for the first time in strategic
cost allocations, managers can make willingness to subordinate individual ego
planning. Their objective is to determine
effective decisions about what services to the goals of the team. In Major
what markets and customer types to
to launch and what resources are needed League Baseball, the Red Sox and a few
address with what products and services.
to support them. other teams have adopted the analytical
In the insurance industry, for example,
approaches pioneered by Billy Beane,
• Research and new product/service while pricing decisions are made on
the general manager of the Oakland A’s
development—Perhaps the most active detailed analysis of actuarial risk and
(described by Michael Lewis in the book
use of analytics in research and product loss patterns, strategic planning often
Moneyball). These approaches involve
development is in the pharmaceutical has been purely intuitive. One insurance
selecting players on such factors as on-
industry. We interviewed three pharma- firm we interviewed (The Hartford),
base percentage (the percent of the
ceutical firms (Millennium, Novartis, and however, is using analytics to assess
time a batter reaches base) and slugging
Vertex), each of which was attempting to new business opportunities, considering
percentage (the number of bases
conquer the overwhelming complexity of market segmentation, economics, risk-
achieved per time at bat), rather than
relating chemical, clinical, and genomic adjusted returns, and the cost of capital
more traditional criteria such as batting
data. Many pharmaceutical firms have for the opportunity. Capital One is using
average and running speed.
embarked upon discovery techniques detailed analytics to assess what finan-
involving high-throughput screening, cial products to offer customers in addi- There are undoubtedly other business
which yields an enormous amount of tion to credit cards; auto loans are one areas in which analytics would prove to
data and a need to analyze and make example of a product that was tested be of value, but the ones above were the
sense of all of the experimental results. extensively before a broad rollout, and most common in our study. It is likely, how-
No firm has yet mastered all of these it has become a profitable business for ever, that many decisions previously made
complexities, but statistical modeling the company. on intuition and hope will soon be
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 6
7. CO M P ET I N G O N A N A LY T I C S
addressed with detailed analysis. Procter data issues. The leading firms, however, An analytics group at a consumer prod-
& Gamble, for example, pulls together have largely overcome them. ucts firm rented time on a supercomputer
an analytical team whenever it considers to do some of its more complex analyses.
Previous studies of firms’ analytical capa-
the supply chain opportunities an acquisi- From a software perspective, “business
bilities have found even leading-edge
tion might offer to drive synergy savings. intelligence” software offers a variety of
companies tend to be good at either
One might hope that more analytical capabilities, including data warehouse
qualitative knowledge management or
approaches will improve the dismal record of management, query and reporting, data
quantitative data management, but rarely
success many companies have experienced mining, and various forms of statistical
both. Companies still wrestle with this
in mergers and acquisitions. analysis. Ideally all these capabilities
combination, but we found a few more would be well-integrated and easy to use.
How Do Firms Become examples of firms that do both well— From the end user perspective, ease of
particularly in the realm of consumer
Analytical Competitors? analysis, reporting, and data visualization
information. Procter & Gamble historically were often mentioned as important in the
In order for a firm to become an analytical
has been an industry leader in customer firms we interviewed. For some firms
competitor, the supply of and demand for
analytics, but it also tries to develop focused on real-time analytics (such as
data and analysis must be in alignment.
a detailed understanding of consumer real-time pricing and yield management),
The supply issues are much easier to deal
behaviors through ethnographic (close the speed of data management and
with and are generally available in the
observation) and psychographic analysis. analysis is a critical factor for software
marketplace, although their absence in a
Wachovia Bank combines knowledge from and hardware.
firm is certainly problematic. The supply
customer relationships and quantitative
factors for analytical competition include Quantitative Expertise
data analysis of customers (primarily cus-
the following: While analytical software becomes
tomer segmentation analysis and market-
ing campaign targeting) to determine what increasingly easy to use, firms that com-
High- Quality Data
services to offer a particular customer, pete on analytics still require substantial
The most important factor in being
what markets to target, and what new ini- quantitative skills—either in-house or con-
prepared for sophisticated analytics is
tiatives to undertake at particular financial tracted from outside. The statistical expert,
the availability of sufficient volumes of
centers. The importance of personal busi- in order to be useful, also will need to be
high-quality data. This is less of a prob-
ness relationships is deeply embedded familiar with the business problems in
lem today than it was previously for many
in the Wachovia culture, and CEO Ken the function and industry; the quantitative
organizations, which have made substan-
Thompson insists it remains there even skills of a good analyst are rarely equally
tial progress in accumulating transaction
as the culture also embraces analytics. applicable across diverse businesses. One
data the past several years. Whether the
Particularly where customers are con- pharmaceutical company, for example,
data come from ERP systems, point-of-sale
cerned, it’s important to remember that attempted to use several bioinformatics
systems, or Internet transactions, many
marketing and service processes involve experts to pursue analysis of commercial
organizations have a greater volume of
more than the application of statistics. problems in marketing and operations,
data than ever before. The difficulty is pri-
and found they were neither motivated
marily in ensuring data quality, integrating
A Capable Technology Environment nor expert at the applications. While sta-
and reconciling it across different systems,
In order to take advantage of good data, tistical analysts who also understand busi-
and deciding what subsets of data to
an organization also needs a capable ness issues always have been difficult
make easily available in data warehouses
hardware and software environment. to find, it is increasingly possible to hire
(i.e., having a clear strategy for data
Complex analytics chew up a good deal of analytical expertise outside of a company—
access). Many organizations remain highly
processing power, so the workstations and even from India or China in some cases.
fragmented, and have issues involving
servers used for this purpose need to be
integration across their diverse business
substantially more powerful than those However, some firms we interviewed
functions and units. Even such basic
used for conventional office tasks. Apex stressed the importance of a close and
points as agreeing on the definition of
Management Group, for example, a health trusting relationship between quantitative
who is a customer can be problematical
care actuarial firm, is transitioning to a analysts and decision makers. The need is
across lines of business. As we noted
64-bit computing environment to deal for statistical experts who also understand
above, the lowest-ranking firms in our
with the complex and data-intensive sta- the business in general, and the particular
scale of analytical competition still face
tistical analyses it performs for its clients. business need of a specific decision maker.
significant difficulties with these basic
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 7
8. CO M P ET I N G O N A N A LY T I C S
As one manager at Wachovia Bank put it that made some use of business intelli- in a family business. At the winemaker
with regard to the relationships his analyti- gence said the lack of demand from top- E&J Gallo, when Joe Gallo, the son of one
cal group tries to maintain: level senior executives was their single of the firm’s founding brothers, became
most significant barrier to engaging in CEO, he intensified the firm’s focus on
We are trying to build our people as analytical competition. These executives data and analysis—first in sales, and later
part of the business team; we want were more comfortable with intuitive deci- in other functions, including the assess-
them sitting at the business table, sions, or weren’t aware of the possibilities ment of consumer taste.
participating in a discussion of what for analytical competition within their
the key issues are, determining industry. Some were not averse to analyt- At the New England Patriots National
what information needs the business ics, but didn’t have enough personal ana- Football League team, the involvement in
people have, and recommending lytical experience to base their strategies the team by Jonathan Kraft, the son of the
actions to the business partners. on analytics and fact-based decisions. owner Bob Kraft and a former manage-
We want this [analytical group] Without executives who want to use data ment consultant, helped move the team
to be more than a general utility, and analysis to make decisions, even the in a more analytical direction both in
but rather an active and critical best business intelligence applications will terms of on-field issues such as play
part of the business unit’s success. not be used. We saw several patterns of selection and team composition, and off-
involvement by senior executives on the field issues affecting the fan experience.
A consumer products firm we interviewed
demand side, which we describe below.
hires what it calls “PhD’s with personality” The prime mover for analytical demand
for its analytical group—individuals with Some organizations’ leaders had the doesn’t always have to be the CEO. At
heavy quantitative skills, but also the ability desire to compete analytically from their Procter & Gamble, for example, the pri-
to speak the language of the business beginning. Capital One, for example, was mary impetus for more analysis is coming
and market their work to internal (and in created in a 1994 IPO in order to apply from a vice chairman. However, we did
some cases, external) customers. To find the founders’ information-based strategy observe two cases in which a single func-
these types of people and develop these to the credit card business. Amazon.com tional executive with a strong demand for
types of relationships would surely be was viewed by founder Jeff Bezos as an analytical orientation was unable to
much more difficult in an outsourcing sit- competing on analytics from its start. Its change the culture in that direction. At a
uation, and virtually impossible with the concept of personalization was based on consumer products firm, an analytically
analysts half a world away from the deci- statistical algorithms and Web transaction focused marketing executive made his
sion makers. data, and it quickly moved into analytics own function more analytical, but was
on supply chain and marketing issues as unsuccessful in moving the entire firm in
Demand—The Critical Factor well. Amazon recently used analytics to that direction. Another analytical market-
in Analytical Competition explore whether it should advertise on tel- ing and sales executive at an information
evision, and concluded it would not be a technology firm was similarly unable to
More difficult to create than supply is the
successful use of its resources. The vision change his firm’s entire culture, although
demand for analysis and fact-based deci-
of the founders of these startup businesses other executives were certainly aware of
sion making within a company. In the
led to analytical competition. his strongly data-based management style.
earliest stages of analytical competition
In both firms, business intelligence is alive
(Stage 1 and 2 organizations), demand is
In other cases, the demand for analytical and well, but it has not yet become a key
created by particular business problems.
competition came from a new senior exec- element of strategy.
As analytics becomes more central to the
utive arriving at an established company.
competitive strategy, demand becomes Stimulating Demand
At Harrah’s, for example, the recruitment
more generalized across an organization. Even with willing executives, there is often
of Gary Loveman as chief operating officer,
Yet, unlike the supply factors described a need to stimulate demand on an ongo-
and eventually CEO, greatly accelerated
above, demand—the desire to use analyt- ing basis. Several firms have created
the company’s analytical orientation and
ics as a primary competitive factor—cannot organizational units for this purpose. At
led to a new basis for competition—
be bought in the marketplace. The key Quaker Chemical, each business unit has
competing on customer loyalty and service,
demand factors we identified include: a “business adviser”—an analytical specialist—
rather than building the most expensive
reporting to the head of the business unit.
Willing Senior Executives casino properties. Sometimes the change
The role acts as an intermediary between
Several lower-stage firms we interviewed comes from a new generation of managers
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9. CO M P ET I N G O N A N A LY T I C S
the suppliers (normally the IT organiza- stimulate analysis per se, but rather to agement team. These IT managers refuse to
tion) and users (executives) of data and stimulate a different kind of analysis by wait until more analytically oriented senior
analyses. The advisers not only stimulate different groups of people. Verizon and executives happen to arrive at the company.
demand by showing the business unit other firms arising out of the “Bell
how analysis can be useful but, as inter- Several executives we interviewed com-
System” have long been analytically ori-
mediaries, explain business needs to the mented that analytics have to be continually
ented, but decisions were generally made
suppliers and ensure that business-relevant sold throughout an organization. Executives
slowly and were pushed up the organiza-
data and analysis will be provided. Wachovia change, new business issues emerge, and
tional hierarchy. Shaygan Kheradpir,
has a similar arrangement in its Customer those who need to use analytical approach-
Verizon’s chief information officer, is
Analytics group, in which analytical teams es in their jobs are not always compliant. At
attempting to change this culture through
are tied to particular business units and UPS, for example, the customer intelligence
continual exposure to information. He
act as partners in creating and fulfilling group determined customer defections
created a form of continuous scorecard in
analytical demand. Managers of these could be accurately predicted based on cus-
which hundreds of performance metrics of
groups commented frequently that a rela- tomer data patterns and complaints, but the
various types are broadcast to PCs around
tionship of trust between the analyst and sales force needed to be sold on the new
the company, each occupying the screen
the executive decision maker is critical to approach. When a potential defector is iden-
for 15 seconds. The idea is to get every-
the success of an analytical strategy. tified through the use of the data, the sales-
one—not just senior executives—focused
person should contact the customer to
on information and what it means, and
The enemies of an analytical orientation review and resolve the potential issue.
to encourage employees at all levels to
are decisions based solely on intuition Despite a high record of success, only about
address any issues that appear in the
and gut feel. Yet these have always been 75 percent of the salespeople were willing
data. Kheradpir feels he is beginning to
popular approaches to decision making to act on the predictions—though the per-
see signs of cultural change from the
because of their ease and speed, and a centage is increasing. Even without full com-
use of the scorecard.
belief that gut-feel decisions might be pliance, the analytical approach has reduced
better. For those organizations without At one pharmaceutical firm where we the frequency of customer defections.
sufficient demand for data and analysis in interviewed several IT executives, there was
executive decision making, the obvious Harrah’s has developed a centralized
generally little demand from senior execu-
question is whether such demand can be real-time yield management system for all
tives for analytical decision making, particu-
stimulated. If there is no senior executive of its hotels that needed to be sold to prop-
larly in marketing. IT managers didn’t have
with a strong analytical orientation, must erty managers. The system’s decisions are
access to the decisions marketers were try-
the organization wait for such a manager based not only upon the usual room avail-
ing to make, and the marketing executives
to be appointed? One answer, of course, ability patterns, but also on the customer’s
didn’t know what data or analysis might be
is for an analytical group to build a suc- loyalty level. When a customer calls for a
available to support their decisions.
cessful track record of analytical decisions reservation, the system’s algorithms weigh a
However, two external events offered
that have paid off—a set of success stories. number of variables and data (including the
opportunities to build analytical demand.
However, it can take several years to build number of available rooms, the amount of
One marketing manager discovered a ven-
this type of reputation. time before the planned stay, and the
dor who showed how sales data could be
amount of business the customer gives
displayed graphically in terms of geography
We did find some more specific examples Harrah’s at this and other casinos) to calcu-
on an interactive map. The company’s IT
of attempts to stimulate demand. Whether late a price to offer to the customer. The
executives felt the display technique was
they will ultimately prove successful is as system almost always produces higher rev-
relatively simple, and they offered similar
yet unclear. One reasonable and logical enues for individual properties when it is
capabilities to the manager.
approach is simply to provide senior exec- employed. Yet property managers usually
utives with accurate and timely informa- A second opportunity was offered by an have to be convinced the system is more
tion and performance measures so the external study from a consulting firm. One effective than traditional approaches to yield
facts will be available if they choose to outcome of the study will be a new set of management and local decision making.
make fact-based decisions. performance indicators. The IT group plans
These examples are evidence that in order
to seize upon the indicators and will offer
At the telecommunications firm Verizon, to build demand for complex analytics, man-
more analysis and related data to the man-
for example, one executive’s goal is not to agers and affected users need to be educated.
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 9
10. CO M P ET I N G O N A N A LY T I C S
Bank of America is facing this issue head-on Virtually every firm we interviewed that Wal-Mart is not alone in sharing data.
by incorporating models into its executive had built up its analytical capabilities finds Progressive Insurance, for example, shares
development programs that encourage leaders demand for them exceeds the supply. pricing data—its own and that of competi-
to look at the “three I’s”—insight, intelligence, Therefore, the use of analytical resources tors—with customers. The company also
and ideas—when looking for opportunities to must be prioritized and allocated. Procter & offers customers the possibility of lower
rates if they accept a device in their cars
that gathers data about driving activity.
“We’ve been collecting data for six or seven years,
Some firms share both data and analyses
but it's only become usable in the last two or with their customers. Procter & Gamble
offers data and analytics as a service to its
three, with enough time and experience to validate retail customers as part of a program it
calls “Joint Value Creation,” and to its sup-
conclusions based on the data.”
pliers in order to help them improve their
responsiveness and costs. The hospital sup-
— Manager of Customer Data at UPS
plier Owens & Minor provides data and
analyses for its customers and suppliers,
enabling them to access and analyze their
grow their businesses. The program chal- Gamble, for example, ensures that the
buying and selling data, track ordering pat-
lenges leaders to look more broadly at the efforts of its Global Analytics group are
terns to look for ways to consolidate orders,
data available to them, both data available devoted to issues that are highly strategic
and move off-contract product purchases to
internally as well as external data related to and worthy of the scarce talent. Although
a group contract—for products distributed
customers, competitors, and the broader Wachovia has invested significantly in ana-
by Owens & Minor or its competitors. The
environment. This program builds on a solid lytical resources, it must still go through an
winemaker E&J Gallo provides its distribu-
cultural and strategic foundation of using annual planning process (with quarterly
tors with data and analytics that lets them
data to drive the business. adjustments) to ensure that its initiatives are
determine how best to convince retailers to
well-targeted.
Analytical Targets: The add shelf space for Gallo wines. Finally, the
Fine Line Between Spread Customer and Supplier Use Hong Kong-based Octopus Cards, a
provider of electronic stored value cards for
and Focus As we noted above, analytical tools and
public transport, provides retailers with data
techniques are often used to enhance rela-
One challenge in using analytical capabilities on the customers who pass nearby the
tions with customers. The most obvious
to advance strategy is maintaining a balance retailers’ facilities, and runs promotions
uses of customer analytics are internal, to
between depth and focus. Several execu- encouraging customers to use the Octopus
inform decisions about internal strategies
tives commented in our interviews that a Cards for retail purchases.
and operations. Quaker Chemical, for exam-
focus on particular business problems and
ple, uses detailed analysis of its product
outcomes is necessary if an analytical strategy How Long Does the
performance with current customers to win
is to be successful. There is only so much
new ones by offering both documentary Change Take?
analytical expertise to go around, and only
proof of product quality and evidence of its Firms desiring to compete on analytics will
so many business problems on which ana-
extensive, experience-based expertise. naturally wonder how long it takes
lytical supply and demand can be focused.
to implement such a strategy. The best
Harrah’s, as mentioned above, focuses its Yet we found several of the more advanced
advice is to begin working on it now,
efforts on the management of customer loy- analytical competitors offer some elements
because it typically requires several years
alty, and its management team is reluctant of their data and analytics directly to their
for analytical competitive strategies to come
to venture very far outside of that orienta- customers and suppliers. Perhaps the best-
to fruition. Barclays Consumer Finance, for
tion. Capital One briefly diversified its appli- known example is Wal-Mart, which uses its
example, embarked upon a five-year plan to
cation of analytics into such businesses as voluminous data and product demand
apply analytical approaches to marketing
cellular phones and flowers, but concluded analyses not only for internal purposes, but
credit cards and other financial products to
credit cards and other consumer financial also to share with its suppliers through its
its customers. It takes time to refine the
services should remain its focus. Retail Link private exchange. All suppliers
systems that produce transaction data, to
are required to use the system.
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 10
11. CO M P ET I N G O N A N A LY T I C S
make the data available in warehouses, to However, despite the difficulty and expense Figure 3:
select and implement analytical software, of establishing these capabilities, many
and to build a robust hardware and com- of the firms we have identified as early Action Steps for Analytical
munications environment. Firms planning to adopters of analytical strategies are clear Competition
embark upon analytical competition should leaders in their industries. This suggests the
have a hardware and software plan for how time and trouble necessary to become ana- 1. Begin to build analytical skills—It’s
they will achieve the needed capabilities. lytical competitors are definitely worthwhile. often difficult to find individuals with
It should address such issues as the amount of the requisite quantitative and business
data to be processed, the number of users Summary skills. Organizations should start looking
of the analytical systems, and the speed of This study has provided a glimpse into a new for them as soon as possible, and hire
response necessary to meet the business need. form of competition. Instead of competing on them in sufficient volume to create
traditional factors, companies are beginning to “critical mass.”
Even more time-consuming at most firms is
employ statistical and quantitative analysis and
coming up to speed in human capabilities, 2. Get your data in shape—Analytical
predictive modeling as primary elements of
to optimize business processes based on environments require large amounts of
competition. These firms have overcome the
the outputs of analysis, and, in some cases, high-quality data. Figure out what data you
historical barriers to gathering and managing
to build a sufficient body of data to support really need to advance your strategy, make
transaction data and some of the cultural
reliable predictive results. At UPS, one man- sure it’s being gathered, and clean it up.
resistance in organizations accustomed to
ager of customer data analytics noted that:
“gut-feel” decision making, and are using com- 3. Implement analytical technology—You’ll
“We’ve been collecting data for six plex analysis and data-intensive decisions to need heavy-duty hardware and software
or seven years, but it’s only become change the way they manage themselves and to do serious analytical work. Start putting
usable in the last two or three, with compete in the marketplace. They have mar- it in place today.
enough time and experience to vali- shaled both supply and demand factors for
analytical competition, and are employing their 4. Examine your business strategy—
date conclusions based on data.”
capabilities across multiple functions. Analytical competition requires a clear
Several executives at other firms noted that business strategy that is optimized with
it takes time for managers to understand Opportunities for analytical competition are data and analysis. Your executives should
data and be comfortable with the analytics possible in every industry. Therefore, virtually begin to consider what key processes and
based on it. An analytical executive at every firm should consider how it might adopt strategic initiatives would be advanced if
Procter & Gamble suggested firms might analytical methods and capabilities. Figure 3 the right analytics were available.
begin to keep managers in their jobs for summarizes key action steps that firms should
consider in moving toward analytical competi- 5. Find an executive partner—Since the
longer periods because of the time required
tion. While not all of the steps will be applica- most difficult factor to put in place in
to master analytical approaches to their
ble to all organizations, it’s likely everyone analytical competition is demand from
businesses.
would find some of them appropriate. senior executives, you should begin to
One manager of an analytical group in a cultivate that demand by finding an exec-
consumer products firm pointed out that There is every reason to believe this approach utive partner and embarking with him or
the longevity of analytical capabilities is crit- will grow in acceptance. The necessary data her on some analytical initiatives.
ical to their value; his firm has been pursuing will become increasingly available, and the
analytical capabilities for more than 50 years. analytical resources are increasingly accessible
This executive pointed out that not all proj- to all. Yet the move to analytical competitive-
This research report is part of an ongoing
ects will be successful, so analytical groups ness is typically a journey of several years.
research study at Babson on how compa-
need to build up a broad portfolio of exec- Companies that do not rapidly embrace these
nies compete with analytics. The research
utive relationships, projects, and analytical possibilities risk falling dramatically behind.
was carried out independently, but was
technologies. He also suggested that short- No business can afford to lose its best cus-
sponsored by SAS and Intel. To learn more
term, project-based funding of analytical tomers, to spend more on logistics and inven-
about or participate in the research, contact
resources is inconsistent with the long-term tory, to miss out on opportunities for new
Tom Davenport at tdavenport@babson.edu.
nature of analytical competition. products and services, and to hire less capa-
ble employees than its more analytically
astute competitors.
B A B S O N E X E C U T I V E E D U C AT I O N WORKING KNOWLEDGE RESEARCH CENTER 11
12. eg
Babson Park, MA 02457-0310 USA
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