![]() If you lack background in statistical methods, consult experts who understand your business and know how analytics can be applied to it. ![]() And prepare yourself to lead an analytics-focused organization: You will have to understand the theory behind various quantitative methods so you can recognize their limitations. ![]() To become an analytics competitor: Champion Analytics from the TopĪcknowledge and endorse the changes in culture, processes, and skills that analytics competition will mean for much of your workforce. You’ll arm your employees with the best evidence and quantitative tools for making the best decisions-big and small, every day. Make analytics part of your overarching competitive strategy, and push it down to decision makers at every level. Capital One’s analytics initiative, for example, has spurred at least 20% growth in earnings per share every year since the company went public. And you don’t just track existing inventories you also predict and prevent future inventory problems.Īnalytics competitors seize the lead in their fields. You look beyond compensation costs to calculate your workforce’s exact contribution to your bottom line. With analytics, you discern not only what your customers want but also how much they’re willing to pay and what keeps them loyal. #OVERARCHING NOTION DEFINITION HOW TO#How to pull ahead of the pack? Become an analytics competitor: Use sophisticated data-collection technology and analysis to wring every last drop of value from all your business processes. And thanks to cheap offshore labor, you’re hard-pressed to beat overseas competitors on product cost. ![]() Your rivals sell offerings similar to yours. It’s virtually impossible to differentiate yourself from competitors based on products alone. But, at least as important, it also requires executives’ vocal, unswerving commitment and willingness to change the way employees think, work, and are treated. As one would expect, the transformation requires a significant investment in technology, the accumulation of massive stores of data, and the formulation of companywide strategies for managing the data. Davenport lays out the characteristics and practices of these statistical masters and describes some of the very substantial changes other companies must undergo in order to compete on quantitative turf. Such organizations launch multiple initiatives involving complex data and statistical analysis, and quantitative activity is managed at the enterprise (not departmental) level. In companies that compete on analytics, senior executives make it clear-from the top down-that analytics is central to strategy. As a result, they make the best decisions. Employees hired for their expertise with numbers or trained to recognize their importance are armed with the best evidence and the best quantitative tools. ![]() But a new breed of organization has upped the stakes: Amazon, Harrah’s, Capital One, and the Boston Red Sox have all dominated their fields by deploying industrial-strength analytics across a wide variety of activities.Īt a time when firms in many industries offer similar products and use comparable technologies, business processes are among the few remaining points of differentiation-and analytics competitors wring every last drop of value from those processes. It’s not just a support tool it’s a strategic weapon.Ĭompanies questing for killer apps generally focus all their firepower on the one area that promises to create the greatest competitive advantage. ![]()
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