Competing on Analytics

1. Competing on Analytics
The new science of winning

2. Higher Performance
Frontier for using data
to make decisions had
shifted dramatically
Netflix
Progressive
Capital One

3. What are Analytics?
Optimization - What’s the best that can happen?
Predictive Modeling - What will happen next?
Forecasting - What if these trends continue?
Statistical Analysis - Why is this happening?

4. Why Compete on
Analytics?
High Performance business practices are
among the last remaining points of
differentiation.
Unique geo-location advantage doesn’t matter
in global competition
Utilizing Analytical data can increase revenue
and or improve business processes

5. 4 Characteristics to be
analytically sophisticated
Analytics must support a strategic, distinctive
capability
Approach and management of analytics must
be enterprise-wide
Senior management must be committed to the
use of analytics
The company must make a significant
strategic bet on analytics-based competition

6. “In God we trust; all
others bring data”
Analytics do not work by themselves
Require CEO-level sponsorship
Decisions should not be based on intuition

7. Five Stages of Analytical
Competition
Analytical
Competitors
Analytical Companies
Analytical Aspirations
Localized Analytics
Analytically Impaired

8. Questions?