Despite continued investments, massive amounts of data and constantly evolving technologies, companies still find it difficult to derive value from the data.
A decade after Tom Davenport published his transitional article Harvard Business Review “Competing on Analytics,” which catapulted sophisticated data analysis to the limelight, the promise of analytics does not seem to have fully supported. The hit. While business spending on business analysis has more than doubled since 2006, the competitive advantage many companies claim to receive is declining. Is there any way to remedy this situation?
MIT Sloan Management Review and SAS conducted their sixth annual survey of more than 2,000 business executives, managers and analytical professionals from a wide range of industries and sizes around the world to understand how analytic organizations differ from others.
The 2016 Data and Analysis Research Report, “Beyond Exaggeration: The Hard Work Behind Analytical Success,” concluded that the success of analytics is tied to more than just culture, technology, and talent. Companies that convert their data into a competitive advantage approach the analysis in an unconventional way.
Here are five ways to rethink your approach to analysis.
# 1. Open Your Mind
The conventional wisdom is just that. Conventional. In today’s economy, the convention can no longer be a pillar of business decisions. Companies that demonstrate a competitive advantage in the use of analysis are open to ideas that challenge their current practices. Because of this openness, the results of their analytical efforts have led to changes in the way they do business. It is time to abandon the trade legacy that could crush the innovation needed to gain a competitive edge.
# 2. Stop the madness
Einstein defined madness as doing the same thing over and over again and expecting different results. Our research shows that many organizations have done little or nothing to improve their information management process, but expect significant benefits from their analytical efforts. The increase in the amount of data has led to a decrease in knowledge. Companies need to see what they do at the beginning of the analysis lifecycle, where real change is needed to see the desired results in the future. You must be willing to manage and use the data differently to break the identity cycle.
# 3. Use more right brain
These days, we are talking about data scientists and quants who live and breathe algorithms. And it’s true, they can be Big Data’s superheroes, extracting new and meaningful information on volumes of information. But an interesting finding in our research shows that analytically mature firms (those that derive significant benefit from analysis) approach data analysis with a strong sense of discovery. Openness and creativity play a key role in the effective use of analytics. Involve the right-minded people in the analytical process to ask questions outside the box.
# 4. Do not put all your eggs in it … you know (the same basket)
One misconception about the companies that focus on the analysis is that they are completely analytically focused. In other words, they make decisions based solely on numbers. Our survey dissipates that. It is true that analytically mature companies are much more likely to use analytics to guide the organization’s strategy. But these organizations depend on a mixture of intuition, experience, and analytical results. While it is important not to be guided by what has always been done, it is also important to let the experience inform decision making. Balance both wisely.
# 5. Stop Bubbling
While analyzes have become commonplace in the last decade and are often referred to as “table issues”, many organizations are still undertaking analytical initiatives on an ad hoc or decentralized basis. If analytics is the golden hen that helps you achieve and maintain a competitive advantage, it’s time to take it seriously. Our research shows that companies struggling with their analytical initiatives have one thing in common: they do not have a formal plan. If you do not get the value you expect from your analytics initiatives, take the time to develop a specific analysis plan, if only in the short term. Determine how you will evaluate success and begin to integrate analysis into your planning process.
A different approach to the spirit of discovery
The publicity surrounding the analysis in recent years has generated great expectations. As more and more companies get on the car, it is more difficult to obtain and maintain an advantage with the analysis. Companies must still focus on the basic principles of analytical maturity: culture, talent, and technology. But taking a different approach, focusing analysis with an open mind and a spirit of discovery, could help companies overcome the slowdowns many have faced. Read More..