Newsletter 06/2018 - Statistics in Decision Making, Article 6
2frame Analytics' newsletters are back!
This is the sixth in a series of several articles on Statistics in Decision Making: Who is already using Analytics?
Questions, questions. Closing this triad of posts, one of the questions we heard most when introducing 2frame Analytics to new companies.
For this Newsletter, we continue to draw inspiration from the book "Competing on Analytics, Updated with a New Introduction: The New Science of Winning," Thomas H. Davenport and Jeanne G. Harris. Why should I compete using Analytics? What does my company gain from this?
The text below is not extensive and represents a brief overview of what 2frame Analytics thinks about Analytics as an area.
Can any company in any industry successfully compete using Analytics?
Good question.
On one side, virtually every company seems to have the potential for competition using Analytics.
On the other side, some industries are clearly more receptive to Analytics than others.
If your company generates a lot of transactional data (like financial services, travel and transportation, games, etc.), competing using Analytics is a natural strategy.
If you can use data available on the Internet or social media to get a view of your clients and markets, competing using Analytics is a great way to differentiate your company.
If your company's business model is based on factors that are difficult to measure, such as style (fashion industry) or HR (executive search industry), much more innovative and specialized work is required to compete using Analytics - and that is already being done by some companies.
Almost every day we find examples of companies that were once intuitive but are now making decisions using Analytics.
Some examples of companies already competing using Analytics:
CapitaI One: names its competition approach using Analytics as "information-based strategy."
Caesars Hotels: optimized its strategy based on its distinctive capabilities (loyalty and customer service) using Analytics.
GE: uses sensor data in its industrial service processes to identify problems and maintenance needs before they cause unscheduled outages.
CEMEX: has successfully applied Analytics to its optimized supply chains and delivery deadlines.
Vinícola E. & J. Galllo: competes using Analytics in areas such as sales, agriculture, and understanding consumer preferences.
We ask again:
Do you already use Analytics for your decision making in your company?
Read more about the subject of this Newsletter:
1) "Competing on Analytics, Updated, with a New Introduction: The New Science of Winning", Thomas H. Davenport and Jeanne G. Harris, Harvard Business Review Press; Revised edition, 2017.
Originally posted on 09/01/2018