Analytics
UPG RADE T H E C O R PO RAT I O N
The Business Analytics Revolution
Four killer competencies of analytically mature corporations.
BY RANDY BARTLETT (LEFT) AND GIRISH MALIK
Welcome to the Business Analytics (BA) Revolution. We live in an age of fastpaced decision-making, assorted market disruptions and information and misinformation overload. CEOs used to make about six or eight critical decisions involving the organization and products per year. Now, they make that number of comparable decisions every month or so. Meanwhile, torrents of data relentlessly rush in, generated by a digital revolution, which is characterized
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by hyper-connectivity and real-time decision-making. It all begs the question: “Where can we make the time to absorb this much information?” or is it another case of “I appreciate that it’s there, but I am not sure what to make of it.” Despite all the value-add that business analytics brings to the table, companies have hardly been able to realize its true potential. Such an attainment implies incorporating more facts into decision-making, facing the information deluge from big data and more nimbly adapting to the
W W W. I N F O R M S . O R G
Figure 1: Report card. changing environment. By upgrading the corporation, we can better integrate business analytics into “how we do business” and thereby compete on BA. This article will clarify where we are in the BA revolution, how to measure our BA maturity and what killer competencies we can realize. We hope this information will enable corporations and leaders to upgrade. By upgrading the corporation, we mean more than just adding quants to a conventional infrastructure. We are past the point where the usual additive approach will keep up. We need a holistic upgrade. Upgrades are needed in five major areas: culture, organization, people, statistics and data. Let’s start by recognizing where we are in this technological revolution.
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The Business Analytics Revolution
Four killer competencies of analytically mature corporations.
BY RANDY BARTLETT (LEFT) AND GIRISH MALIK
Welcome to the Business Analytics (BA) Revolution. We live in an age of fastpaced decision-making, assorted market disruptions and information and misinformation overload. CEOs used to make about six or eight critical decisions involving the organization and products per year. Now, they make that number of comparable decisions every month or so. Meanwhile, torrents of data relentlessly rush in, generated by a digital revolution, which is characterized
24 | A N A LY T I C S - M A G A Z I N E . O R G
W
by hyper-connectivity and real-time decision-making. It all begs the question: “Where can we make the time to absorb this much information?” or is it another case of “I appreciate that it’s there, but I am not sure what to make of it.” Despite all the value-add that business analytics brings to the table, companies have hardly been able to realize its true potential. Such an attainment implies incorporating more facts into decision-making, facing the information deluge from big data and more nimbly adapting to the
W W W. I N F O R M S . O R G
Figure 1: Report card. changing environment. By upgrading the corporation, we can better integrate business analytics into “how we do business” and thereby compete on BA. This article will clarify where we are in the BA revolution, how to measure our BA maturity and what killer competencies we can realize. We hope this information will enable corporations and leaders to upgrade. By upgrading the corporation, we mean more than just adding quants to a conventional infrastructure. We are past the point where the usual additive approach will keep up. We need a holistic upgrade. Upgrades are needed in five major areas: culture, organization, people, statistics and data. Let’s start by recognizing where we are in this technological revolution.
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References: 1. Bartlett, Randy, 2013, “A Practitioner’s Guide to Business Analytics: Using Data Analysis Tools to Improve Your Organization’s Decision Making and Strategy,” McGraw-Hill (ISBN 9780071807593). 2. Bennis, Warren, 2009, “On Becoming A Leader,” 4th Edition, Basic Books. 3. Lewis, Michael, 2009, “The Man Who Crashed The World.” Vanity Fair, August. M A Y / J U N E 2 013 | 35