The document summarizes a report from Deloitte on the state of analytics in businesses. It finds that while many businesses recognize the importance of analytics, they face barriers like poor data management and a lack of analytics expertise. To overcome these barriers, the report recommends that companies start with small, impactful analytics projects to gain executive support. It also suggests that companies acquire needed expertise now, tie analytics to decision making, apply analytics to marketing and customers, create an analytics structure, and develop a long-term analytics strategy to fully realize the benefits of predictive analytics. With proper planning, organizations that evolve their use of analytics will have a competitive advantage in the future.

1. Harnessing the power of predictive analytics
Briefing note
Introduction
A recent report sponsored by Deloitte Touche Tohmatsu Ltd has found that
although many businesses recognise the importance of analytics in their
decision-making process, in many cases, organisations are facing several key
barriers, which are preventing them from fully capitalising on their investment in
analytics.
The report was based on responses from over 100 online surveys and in-depth
interviews with senior executives at 35 companies in North America, the UK
and Asia, and was designed to determine the state of analytics readiness at
leading corporations and what the future holds.
Key findings
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Nearly half of all respondents stated that analytics was a key factor in
decision-making. Nearly two thirds said that analytics plays an important
role in driving business strategy.
96 per cent of respondents said that analytics will become more
important to their organisations in the next three years.
More structure is needed to coordinate the quality and analysis of the
data and then to implement decisions that stem from that analysis.
Companies will not realise the potential of analytics unless they
overcome several key barriers which include data quality and
management, and inadequate numbers of or expertise of analytics staff.
An incremental approach
Although analytics is gaining traction and becoming recognised as a contributor
to improved competitiveness, many organisations lack support for these
initiatives at the executive level. To overcome this particular barrier, the survey
found that some analytics leaders are tackling small projects that yield
impressive, tangible results that demonstrate how analytics improves
competitive positioning.

2. The next steps
Although 96 per cent of the respondents in the report felt that analytics will become more
important over the next three years, they also felt that a great deal of data is still not being
used strategically, and that many businesses have only a rudimentary analytics solution and
infrastructure.
The report suggests that companies can gain competitive advantage now, if they take the
following steps:
Acquire the expertise you need now. Analytics specialists and data scientists are in high
demand and the survey found that a shortage of talent was one of the biggest barriers to
building analytical capability. The report suggests partnerships with local post-secondary
institutions to develop curriculum and candidates or developing in-house training programs.
Tie analytics to decision-making. With nearly half of the respondents citing the value of
analytics to the decision-making process, the report stresses that better data and analysis
alone will not result in better decisions. Better decisions require a culture of decision-making
which is the result of specific action to change the processes and the understanding and
behaviours of frontline workers.
Apply analytics to marketing and customers. Finance operations are the most frequent
areas of analytics investment (79 per cent). The report states that the best financial returns
often come from marketing and customer-oriented applications. Marketing and sales groups,
at 55 per cent, are the second most frequent analytics users.
Create an analytics structure. More structure around coordination and alignment is needed
to optimise the impact and benefit of data and analytics throughout the organisation. There is
currently very little consistency between companies as to who sponsors the analytics
function.
Create a multi-year analytics strategy. Although many companies are already engaged in
analytics projects, they should identify those that will follow in the coming years. This longerterm perspective, linked to strategy, is necessary for the planned growth of analytical
capabilities over time.
Conclusion
The survey established the growth and importance of analytics, and uncovered some
inconsistencies, such as the varied ways in which analytics is managed in different
companies. The overall conclusion is that analytics is still in the early stages of development
and that it will continue to evolve as long as it generates tangible financial benefits for the
business. Ultimately, the report concludes that organisations that plan for this evolution will
be the analytical competitors of the future.
TCM Infosys Ltd.
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