Professional Documents
Culture Documents
Analytics
The New Science of Winning
Tom Davenport
University of Houston ISRC
November 15, 2007
The Planets Are Aligned for Analytics
Powerful IT
Data critical mass
Skills sufficiency
Business need
Analytics
Decision Optimization What’s the best that can happen?
Competitive Advantage
PROGRESS
19%
12% 10%
8% 9%
0%
High Low
Performers Performers
65 % have significant decision-support/analytical capabilities 23%
Web
Metrics
External
Geo-Demo
External
Attitudinal
Analytical Professionals
5-10% — Can create algorithms
Analytical Semi-Professionals
15-20% — Can use visual tools, create
simple models
Analytical Amateurs
— Can use spreadsheets
70-80%
Business processes
Customer expectations
Stage 3 Stage 5
Stage 1 Stage 2 Analytical Stage 4 Analytical
Success Factor Analytically Impaired Localized Analytics Aspirations Analytical Companies Competitors
Leadership No awareness or
interest
Only at the function or
process level
Leaders beginning to
recognize importance
Leadership support for
analytical competence
Strong leadership
passion for analytical
of analytics competition