According to research, companies that effectively use big data and analytics show 5-6% higher productivity and profitability than their peers. To do this requires three capabilities: identifying and managing multiple data sources, building advanced analytics models, and transforming the organization so data and models improve decisions. The document provides recommendations for choosing usable data sources, establishing supportive IT infrastructure, building models to optimize business outcomes, and transforming company capabilities to develop and utilize analytics. Overall, developing capabilities around big data may become a key competitive advantage.

1. Making
analytics
work

2. •According to research by Andrew McAfee
and Erik Brynjolfsson, of MIT, companies
that inject big data and analytics into their
operations show productivity rates and
profitability that are 5% to 6% higher than
those of their peers.

3. Exploiting data and analytics requires three
mutually supportive capabilities -
• First, companies must be able to identify, combine, and
manage multiple sources of data.
• Second, they need the capability to build advanced
analytics models for predicting and optimizing
outcomes.
• Third, and most critical, management must possess the
muscle to transform the organization so that the data
and models actually yield better decisions.

4. What is to be done?

5. Choosing the right data
Upping your game
by finding
deliberate and
creative ways to
identify usable data
that you already
have, and exploring
surprising sources
of information.

6. Get the necessary IT support
Establish an IT
infrastructure that
propels innovation
by facilitating
collaboration, rapid
analysis and
experimentation.

7. Build Models That Predict and
Optimize Business Outcomes
The most effective
approach to building a
model rarely starts with
the data; instead it
originates with
identifying the business
opportunity and
determining how the
model can improve
performance.

8. Transform Your Company’s Capabilities
•Develop business-
relevant analytics that
can be put to use.
•Develop capabilities
to exploit big data.

9. As more companies learn the core skills
of using big data, building superior
capabilities may soon become a decisive
competitive asset.