As the flood of information continues to grow, more companies are under increasing pressure to develop both create economic value and competitive advantages. According to a survey conducted by MIT Sloan Management Review, conducted in partnership with the IBM Institute for Business Value, where more than 58% of the more than 4,500 respondents gained their competitive business value of analytics-up of only 37% who thought last year. The authors found that instead of using the right tools … Read more »

As the flood of information continues to grow, more companies are under increasing pressure to develop both create economic value and competitive advantages. According to a survey conducted by MIT Sloan Management Review, conducted in partnership with the IBM Institute for Business Value, where more than 58% of the more than 4,500 respondents gained their competitive business value of analytics-up of only 37% who thought last year. The authors found that instead of the right tools, technology and people, organizational factors, one of the most important predictors of the ability to create competitive advantage. Managers who responded to the survey cite management support for analysis, including top-down mandates and analytics as key sponsors and champions, in addition to practices such as using analytics to identify and address strategic threats and opportunities. Data-oriented corporate cultures have three essential characteristics: (1) analysis is used as a strategic asset, (2) management support analysis in organizations, and (3) insights are widely used to help those who need it. In addition, organizations that are characterized with the use of analytics by their sophisticated information management and analytics have real expertise. The way to develop these skills takes time and has significant challenges. The authors summarize propose to evaluate current corporate culture and every way and choose the approach with the best prospects of success.
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David Kiron
Rebecca Shockley
Source: MIT Sloan Management Review
7 pages.
Release Date: 1 October 2011. Prod #: SMR403-PDF-ENG
Creating Business Value with Analytics HBR case solution