Analytics: The New Path to Value
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The document summarizes key findings from a survey of over 3,000 executives on how organizations are using analytics to gain competitive advantages. The survey found that top performers were 3 times more likely to use sophisticated analytics and recognized the need to capitalize on data to drive innovation. However, many organizations still face challenges in effectively using their data due to lack of skills, resources, and understanding of analytics. The document provides recommendations for organizations to focus on high-value opportunities, start with business questions, embed insights into operations, and build analytics capabilities incrementally as part of an information agenda.
Analytics: The New Path to Value
- 1. CAI COMPUTER AID, INC. IT Best Practices Analytics: The New Path to Value David Gritz
- 2. Analytics: The New Path to Value Leading Questions How are the smartest organizations using analytics to transform insights into action? What are the biggest challenges organizations face with their data? Key Concepts MIT in partnership with IBM completed a survey of more than 3,000 executives, managers, and analysts to determine how they are gaining value from data. The survey documented the shift from executives feeling overwhelmed by information to recognizing the need to capitalize on information and analytics to gain a competitive advantage. Top performers recognized this need more that lower performers and were three times more likely to use sophisticated analytics. However, lack of understanding and lack bandwidth are the primary barriers to broad use of analytics. In addition, five critical recommendations emerged: focus on the biggest opportunities first; start with questions, not data; embed insights to drive action; keep existing capabilities while adding new ones; build the analytics foundation according to an information agenda. Facts and Figures - 60% of respondents cited innovating as a top business challenge - Top performers are twice as likely to use insights to guide day-to-day operations - Three levels of capability: aspirational, experiences, and transformed - 63% percent more transformed organizations that aspirational organizations - 6/10 organizations have more data than they know how to use effectively Visual Concepts Primary Challenges Facing Organizations Managing risk Managing compliance Increasing speed Acquiring customers Reducing Costs Growing Revenue Innovating to differentiate 0% 15% 30% 45% 60% 75% Primary Obstacles to Analytics Where Analytics are Performed 19% Lack of sponsorship Central 36% analytics unit Data ownership Analytics within Existing culture business units Lack of skills internally IT Department Lack of management bandwidth At point of need Lack of understanding 35% 10% 0% 10% 20% 30% 40% 50%
- 3. Analytics: The New Path to Value About the Author David Gritz is a research specialist in the Allentown, PA office of Computer Aid. You may contact him at david_gritz@compaid. Resource Authors Steve LaValle is the global leader for IBM’s Business Analytics and Optimization service line. Michael Hopkins is editor-in-chief of MIT Sloan Management Review. Full Article Published by MIT Sloan Management Review (October 2010) Download at http://tinyurl.com/3thzf69 Join the conversation www.caibuzz.com Receive more summaries tinyurl.com/JoinCAI Contact us at itbuzz@compaid.com Copyright ©2011 Computer Aid, Inc. All rights reserved.