Latest read: Competing on Analytics

How can you compete today in a globalized, highly competitive world? One very smart solution: Analytics. From Google and Amazon to the Boston Red Sox organizations (yes sports teams included) are succeeding by competing on analytics with proven results. Just ask the Yankees…
Competing on Analytics: The New Science of Winning from Harvard Business School Press is simply a must read for your organization. New data analysis tools and the internet have changed the rules for competition.

This book is not about Google Analytics. This book has a focus on business intelligence, analysis and data reporting that changed the competitive landscape. Consider this NY Times article about the use of analytics in the Boston Celtics organization.

It would be a mistake to think your organization is immune to the lessons shared in this book. I was even surprised how poorly my former employers rate in this book. Some feel colleges need not apply business intelligence to admissions, continuing education, communication and strategic planning. This book proves that notion dead on arrival.

The shift in data gathering tools and enhanced analysis proves this a key tool for any organization moving forward in a tough economy and market with a shrinking pool of customers. Your probably losing prospects to your competition as a result of analytics and business intelligence conveyed in smart communication.

Michael McIntyre taught me lessons regarding You Don’t Know What You Don’t Know (YDKWYDK) and how it deeply impacts organizations. The single key to winning with analytics is the total support by the CEO — from the top down — and this is where most organizations simply fail.

The difficulty to change broken models is only exaggerated when mid-level managers continue to approach new challenges, forecasting and budgets with the “business as usual” approach that has not worked for the past decade. The analytical-free guessing game (referred to as “flying blind” on page 36) predictably ends with horrible results. Business Intelligence models have rescued many organizations and the books provides strong examples from a number of market segments and highlights the analytical success of Google and Amazon.

Competing on Analytics outlines five stages organizations regarding analytical awareness. This section provided me the opportunity to reflect on my roles at previous organizations and where they land in the five stages. MIAD is flying blind as defined in Stage 1, with the often asked “What happened to our business?” conversations. With no CEO, support for analytics (3 Presidents over a 4.5 year period) data is being ignored. Coupled with a study from a third party that proved misleading due to flaws in survey language and the pool of respondents, its no surprise MIAD is in financial and leadership crisis. Competing on Analytics shows repeating an established process without adjusting the tool, yet expecting different results defines insanity. Actually it triggers another round of “What happened to our business?” around the water cooler as budget, program and benefit cutbacks continue.

There are many keys to success and Competing on Analytics points to support for analytical changes from the CEO are critical for an organization to change/evolve and compete successfully. Competing on Analytics also points out the key role of data cleansing (page 164) to establish a firm ground on which to reap analytical outcomes. The promise this there, it can be applied to many points of contact for you and the organizations you work with and those you support. Add this to your book list and get ready to see how your organization can move from “survive to thrive” in highly competitive global markets.

Author Tom Davenport’s Website
Harvard Business review