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In this second joint study from MIT Sloan Management Review and IBM Institute for Business Value, we see a growing divide between those companies that, on one side, see the value of business analytics and are transforming themselves to take advantage of these newfound opportunities, and those, on the other, that have yet to embrace them. - This was presented by Graham Kittle at the Business Analytics Forum, Melbourne.
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The widening divideEmbedding analytics for competitive advantage
Graham KittlePartner & Practice LeaderBusiness Analytics & Optimisation A/NZ
© 2009 IBM Corporation
Building a smarter planet
Table of Contents
• Introduction
• The analytics advantage in today’s marketplace
• How analytics creates competitive advantage
• Two paths to transformation
• Roadmap for creating competitive advantage
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© 2009 IBM Corporation
Building a smarter planet
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MIT Sloan Management Review and IBM IBV partnered again to explore how organisations are operationalising analytics
• Second year of knowledge partnership
• Surveyed 4,500 executives, managers and analysts plus extensive interviews
• Respondents represent more than 30 industries in more than 120 countries
• Interviews with executives from leading analytic organisations
• Interviews with IBM and MIT thought leaders
• Analysis by IBM and MIT SMR team
IBM Institute for Business Value+
© 2009 IBM Corporation
Building a smarter planet
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Our key findings underscore the urgency to act on analytics and chart the paths organisations are taking to transformation
© 2009 IBM Corporation
Building a smarter planet
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By segmenting the data, we examined how organisations use analytics to create a performance and competitive advantage
© 2009 IBM Corporation
Building a smarter planet
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Table of Contents
• Introduction
• The analytics advantage in today’s marketplace
• How analytics creates competitive advantage
• Two paths to transformation
• Roadmap for creating competitive advantage
© 2009 IBM Corporation
Building a smarter planet
7
The ability to create competitive advantage using analytics surged dramatically in 12 months, impacting the bottom-line
© 2009 IBM Corporation
Building a smarter planet
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Early adopters have outpaced others in gaining competitive advantage by expanding the use of analytics
© 2009 IBM Corporation
Building a smarter planet
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Transformed organisations are creating advantage by intensely focusing on applying analytics in three areas
© 2009 IBM Corporation
Building a smarter planetOverall, the majority of organisations now rely on analytics and data to manage key financial and operational tasks
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
© 2009 IBM Corporation
Building a smarter planet
Yet, most – including Transformed – have ample opportunity to do more to realise the full advantages from analytics
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
© 2009 IBM Corporation
Building a smarter planet
Table of Contents
• Introduction
• The analytics advantage in today’s marketplace
• How analytics creates competitive advantage
• Two paths to transformation
• Roadmap for creating competitive advantage
12
© 2009 IBM Corporation
Building a smarter planetTransformed organisations master three competencies to drive sustainable competitive advantage
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
© 2009 IBM Corporation
Building a smarter planetOf all the capabilities required to master the three competencies, these six characteristics distinguish Transformed organisations most
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
© 2009 IBM Corporation
Building a smarter planet
Table of Contents
• Introduction
• The analytics advantage in today’s marketplace
• How analytics creates competitive advantage
• Two paths to transformation
• Roadmap for creating competitive advantage
15
© 2009 IBM Corporation
Building a smarter planet
16
We also examined what happens between Aspirational and Transformed – the space between the two end-point benchmarks
Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
Information management
proficiency
Analytic skills and tools proficiency
Data-oriented culture
Aspirational
High
Low
Enterprise driven
Line-of-businessdriven
HighLow
Experienced
Paths to Transformation
Transformed
© 2009 IBM Corporation
Building a smarter planet
Experienced organisations one of two paths, each focusing on different competencies, to move towards Transformed
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
Information management
proficiency
Analytic skills and tools proficiency
Data-oriented culture
Aspirational
High
Low
Enterprise driven
Line-of-businessdriven
HighLow
Experienced
Paths to Transformation
TransformedCollaborative
path
Specialized path
© 2009 IBM Corporation
Building a smarter planet
Table of Contents
• Introduction
• The analytics advantage in today’s marketplace
• How analytics creates competitive advantage
• Two paths to transformation
• Roadmap for creating competitive advantage
18
© 2009 IBM Corporation
Building a smarter planet
We recommend three steps to transformation
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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
Focus on improving your analytic competencies Focus on improving your analytic competencies
Develop a robust set of analysis skills and tools
Develop a robust set of analysis skills and tools
Create a culture that takes action
on analytics
Create a culture that takes action
on analytics
Establish a strong information foundation
Establish a strong information foundation
Assess your analytic sophisticationAssess your analytic sophistication
Tie approach together with an information agendaTie approach together with an information agenda
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© 2009 IBM Corporation
Building a smarter planet
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