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IT Strategy and Emerging Technology

Blog with thoughts, links and articles on Emerging Web Technologies, and emerging uses for these technologies

Competing on Analytics: Stages Model

Fergal Coleman - Saturday, February 13, 2010
Thomas Davenport in his book "Competing on Analytics" (Harvard Business Press) provides insights into the companies that are leading their industries, through the systematic and strategic use of information and data for competitive advantage.

He recognises 5 distinct stages that companies go through to becoming analytical competitors and leaders in their field.

At what stage is your organisation?


Stage Distinctive Capability/Level of insights Questions Asked Objective Metrics/measure/value
1. Analytically Impaired
Negligible, "flying blind" What happened in our business?
Get accurate data to improve operations
None
2. Localised analytics Local and Opportunistic - may not be supporting  company's distinctive capabilities
What can we do to improve this activity? How can we understand our business better?
Use analytics to improve one or more functional activities ROI of individual applications
3. Analytical aspirations Begin efforts for more integrated data and analytics What's happening now? Can we extrapolate existing trends?
Use analytics to improve a distinctive capability Future performance and market
4. Analytical Companies Enterprise wide perspective able to use analytics for point advantage, know what to do to get to the next level, but not quite there
How can we use analytics to innovate and differentiate? Build broad analytic capability analytics for differentiation Analytics are an important driver of performance and value
5. Analytical competitors Enterprise wide, big results, sustainable advantage What's next? What's possible? How do we stay ahead? Analytical master - fully competing on analytics Analytics are the primary driver of performance and value

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