There has been enormous progress in embedding the use of analytics at lower levels of companies. But according to Thomas H. Davenport, professor at Babson College and one of the best-known thinkers about analytics and business intelligence, the upper levels of companies haven’t kept up.
Five years ago, analytics practitioners spent about 95% of their time reporting on the past and only about 5% on analysis. Most companies were not really focused on the issue of analytics.
While reporting is good, it’s not enough. Companies need to understand why those data turned out the way they did, what it might do in the future and how they might optimize a particular one of those variables.
Thomas H. Davenport, President’s Chair in Information Technology and Management at Babson College, says the potential for analytics to become a critical tie to decision making remains an untapped opportunity for most companies. In a new MIT SMR interview, Davenport explores why the proliferation of data has not led to better decision-making.
Davenport looks at the challenges that lie in the way of analytics being embraced by executives and how they can use analysis to understand and manage their business more effectively.