COMPETING ON ANALYTICS

COMPETING ON ANALYTICS

1. INTRODUCTION

   • Companies are transforming their organization into armies of killer apps
   • Companies know information about what clients wants like the competition
   • Althought many organizations are embracing analitycs, only a few have achieved profiency
   • Transformation requires a significant investment in tech

2. ANATOMY OF AN ANALYTIC COMPETITOR

   • One exmaple is Marriot from 83% to 91% as revenue -management analytics has been used
   • 3 Key Attributes among analytics competitors
     • Widespread use of modeling and optimization
       • Predictive modeling
       • Data in and out in order to understand customers
       • Establish prices in real time to get highest yield
     • An enterprise approach
       • Most business functions can be improved with sophisticated quantities techniques
       • Centraliza groups to ensure critical data and other resources are well managed and that different parts of the organization can share data easily
       • Example of procter an gamble create a group of analyst from supplu chaing, sales, etc
     • SENIOR EXECUTIVES ADVOCATE
       • Requieres leadership from executives at the very top who have passion for the quantitive approarch
       • CEO need appreciation and familiriaty
       • Challenge boils to knowing when to run with the number and when with the guts
   • THEIR SOURCE OF STRENGHT
     • Build culture, hire the right people
     • THE RIGHT FOCUS
       • One strategy, or They will diffused in the initiatives
       • Help customers and vendors measure navels
     • THE RIGHT CULTURE
       • Analitic and hard discipline
     • THE RIGHT PEOPLE
       • Analytical firms hire analytical people
       • Squadron of analyst to conduct quentituve experimets
     • THE RIGHT TECHNOLOGY

3. DATA ESTRATEGY

   • information must be present it in standard format, integrated and store in the datawarehouse

4. BUSINESS INTELLIGENCE SOFTWARE

   • Collect, analyze and diseminate date

5. COMPUTING HARDWARE

   • 64 Bit processors