In this second joint MIT Sloan Management Review and IBM Institute for Business Value study, the authors 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. Using insights gathered from more than 4,500 managers and executives, “Analytics: The Widening Divide” identifies three key competencies that enable organizations to build competitive advantage using analytics. Further, the study identifies two distinct paths that organizations travel while gaining analytic sophistication, and provides recommendations to accelerate organizations on their own paths to analytic transformation.
1. Organizational performance is a self-assessed measure that delves into the organization’s competitive position relative to its industry peers. Respondents are asked to select one option from five choices: substantially outperforming competitive peers, significantly outperforming competitive peers, on par with competitive peers, slightly underperforming competitive peers, or significantly underperforming competitive peers.
2. LaValle, Steve, et al. “Analytics: The New Path to Value.” MIT Sloan Management Review and IBM Institute for Business Value knowledge partnership. October 2010.
4. IBM Institute for Business Value. “Capitalizing on complexity: Insights from the 2010 IBM Global CEO Study.” May 2010.
5. Corporate Executive Board, “Internal Audit’s Role in ERM,” referenced 21 October 2011.
6. Torok, Robert. “Improving enterprise risk management outcomes.” APQC. 2011.
7. Clanton, Brett. “Chevron stayed busy while idling in deep water: Staying busy while idle – Confronting a deep-water slowdown in the Gulf, Chevron worked to get more from its data.” Houston Chronicle. July 11, 2011.
9. Teerlink, Dr. Marc and Dr. Michael Haydock. “Customer analytics pay off: Driving top-line growth by bringing science to the art of marketing.” IBM Institute for Business Value. September 2011.
10. Our findings on the two paths are based on response patterns from a representative sample of Experienced organizations using a subset of key questions from our survey.
i. “Looking at Robert Bruce’s Two Huge Healthcare Bets,” Guru.com. September 6, 2011. Accessed on October 17, 2011.