How do you win with data? SMR surveyed global executives about turning the data deluge and analytics into competitive advantage. Here’s an early snapshot of how managers are answering the most important question organizations face.
How are organizations attempting to compete on their ability to capture, analyze and act on information?
How do you win with data and analytics?
MIT Sloan Management Review conducted a global survey of nearly 3,000 executives to learn how
they’re turning the data deluge and analytics into competitive advantage–or trying to, anyway. The
major comprehensive analysis is still to come, but in these two companion articles (“10 Insights” and
“10 Data Points”), readers will find an early snapshot of how managers are answering the most important
question organizations face.
To answer that question, SMR has teamed with the IBM Institute for Business Value to build a new
innovation hub and research program called “The New Intelligent Enterprise.”
Through the SMR and IBM IBV collaboration, The New Intelligent Enterprise aims to help managers
understand how they can capitalize on the ways that information and analytics are changing the
competitive landscape. What threats and opportunities will companies face? What new business models,
organizational approaches, competitive strategies, work processes and leadership methods will emerge?
How will the best organizations reinvent themselves to use technology and analytics to achieve novel
competitive advantage? How will they learn not only to be smarter, but to act smarter?
This article reveals preliminary results from the first annual New Intelligent Enterprise Survey. The
responding executives told us about their top management goals, their uses (and misuses) of information
and analytics as they attacked those goals, and the management practices in play in their organizations.
Among the findings discussed:
- Innovation is identified by executives as their organizations’ primary business goal–significantly
ahead of “growing revenue,” “reducing costs” and “acquiring customers.”
- A strong correlation appeared linking an organization’s analytics sophistication and its likelihood of
outperforming its industry competitors.
- Analytics methods are evolving to include more advanced techniques, and especially more visual presentation and simulation “to bring information alive.”
- Far from being a mainly technological phenomenon, The New Intelligent Enterprise requires significant
changes to corporate culture and the nurturing of new kinds of talent, if it is to succeed.
5 Comments On: 10 Insights: A First Look at The New Intelligent Enterprise Survey
I concur that that outcomes are critical. I do, however, think that the emphasis on analytics will misleading to many who see it as the crunching of numbers about the past. The thrust seems to be aligned with what Karl Weick called “enacting”, acting to learn. I would also suggest that it requires learning to become an integral part of work, not learning it or this, but implicit learning – learning or assessing the implications or possibilities brought on by change or innovation.
John I. Todor, Ph.D.
I agree with John (above commenter). The terms ‘analytics’ more numbers and charts to people; if that is what it is meant into be, then I don’t see anything from the past; except a few new acronyms.
In my view, intelligence is more important. Unless people (workers, managers, executives) understand the intelligence behind the analytical numbers, nothing much will change. Boom and Bust cycles in the economy will come and go; new research will be performed and presented. But nothing will improve materially from the corporate best practices and work culture perspective. Technological innovations are not add-ons; these are part of maturing humanity and growing intellect.
The new intelligent entreprize, which will use the cloud computing in application with quantum computer networks for data management and analysis purposes will gain considerable competitive advantege over the competitors.
Viktor O. Ledenyov, Ukraine
Garbage in – Garbage out.
Knowing what data to collect, analyse and draw knowledge (or derive intelligence) from remains the challenge. So observation 4 is fundamental, the technology and peripheral processes are much less challenging.
Jeremy Wadlow, Tasmania, Australia
Despite overwhelming objective evidence, yet few of the Forutne 100 firms have made any progress by way of creating an opening of “Chief Analytics Officer”.
Unless this happens, analytics will be outside of the mainstream corporate psyche & its real power & impact rarely recognized & appreciated.
Ravi