Analytics: The New Path to Value

Some executives remain overwhelmed by the well-documented “data deluge” – 60% still say they “have more information than we can effectively use.” But research now shows that leaders of the smartest organizations have moved past “overwhelmed” and are already capitalizing on increased information richness and analytics to gain measurable competitive advantage.

How are they doing it? In what ways are top-performing companies exploiting data that their competitors are not? What pivotal new management practices are emerging as organizations figure out not only how to know more about their businesses, but how to act on those insights from the highest levels of strategy-making to the day-to-day front lines?

To answer those questions and more, the MIT Sloan Management Review in collaboration with the IBM Institute for Business Value conducted a global survey of nearly 3,000 executives, as well as in-depth interviews with leading researchers. This MIT Sloan Management Review Special Report is the result.

HIGHLIGHTS

  • Top performers view analytics as a differentiator
  • The biggest obstacle is not the data
  • Where are the leaders headed? Toward making information “come alive”

Read the Report

  • Executive Summary
  • Findings of The New Intelligent Enterprise Study
    The competitive push for analytics-driven management; why top performers say analytics is a differentiator; the three levels of capabilities; why data is not the biggest obstacle; how information must become easier to understand and act upon; and what leaders can do to make analytics pay off – a new methodology
  • The Five Recommendations
  • Recommendation 1: Focus on the biggest and highest value opportunities
    • CASE: Tackling healthcare fraud leads to sweeping reforms
    • FOCUS: Introducing the PADIE technique for operationalizing analytics
  • Recommendation 2: Within each opportunity, start with questions, not data
    • CASE: Shifting gears from vehicle-centric to customer-centric marketing
  • Recommendation 3: Embed insights to drive actions and deliver value
    • CASE: A beverage company makes the case
  • Recommendation 4: Keep existing capabilities while adding new ones
    • CASE: Bridging business and analytics skills across the organization

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