Harnessing the Hidden Power of Data with Strategic Analytics
Competing on Analytics provides a well documented and proven road map to assist businesses achieve profitable and sustainable market growth leveraging data-driven decisions. In a methodical style, it introduces a framework to guide the transition from Tactical Analytics (description) to Strategic Analytics (prediction) in harnessing the hidden power of enterprise data. The book through its numerous real world examples shows convincely that whereas Tactical Analytics yield good results, the adoption of Strategic Analytics yield even higher returns.
The major contribution of this book is its clarity in outlining a clear roadmap to manage process and organizational challenges to ensure the deployment of a successful Analytic Strategy:
* Guidance on how to harness data to improve business performance through the implementation of Information-Based strategies
* Identification and management of the key operational issues (Decision Making, Business Processes, Manager/Employee Behavior and Customer expectations) in introducing and incorporating Analytics as part of a company corporate strategy.
The book provides ample of examples on how different companies have leveraged Information-Based strategies to establish market leadership across several industries: Financial Services, Retail, Travel & Entertainment, Industrial Production and Sports.
Although highlighting Analytics on its title, this is not a book on "how to do analytics", analyze data, CRM analytics, build and validate statistical models or how to apply data mining algorithms; rather, it is comprehensive, well written and structured book written to assist Decision Makers, Managers, Influencers and company Leaders to understand and harness the power hidden in the data to compete and win in the marketplace.
If you are already in analytics, then you don't need this book.
I thought this book provided a very general overview of using analytics in organizations. There was way too much covering the obvious that you have to get management buy-in for it to be successful. Duh, that's what you have to do with any initiative, whether analytics or something else. Anyway, you don't need this book if your are already in analytics, only if you want a 'broad general overview' of analytics.
Numbers Made More Mind-Numbing
I confess that despite being a bit of a numbers freak I was disappointed in "Competing on Analytics." The authors provide a good overview of how statistical analysis can be designed to help businesses make good decisions and create a competitive advantage. They give many examples from companies involved in analytical competition.
"Competing on Analytics" would have been more enjoyable if time was spent concentrating on a single company or a single industry. As it is, the authors flit from one company to another and don't allow the reader to see how analytics started in a company, became part of the company culture, how it benefited the company, and how the company plans to use analytics in the future. Perhaps showing that progression would be giving away too much inside information from a single entity.
The beginning chapters were the most interesting. The authors related specific examples showing how analytics have been used at corporations such as Harrah's Entertainment, Capital One, and the Boston Red Sox. Portions of the final chapter that discussed the future of analytics were also of some interest.
Perhaps my expectations were just too high based on reading the cover blurbs, but I was just barely able to slog through "Competing on Analytics." If you have been exposed to this subject before, you probably won't find much new in this book.
I would love to read a book on this subject that did not feel like it was written for a stodgy academic journal.
Disappointing
Maybe, since I work in analytics, my review is different from the others. If you are a new incomer in the field or if you don't have any idea of the issue, this book is maybe a good beginning. But if you know something (even if this is very low) about analytics, CRM or Customer Strategy, this book is really worth nothing. It is written from a tom manager point of view, and it would not give you any new insight about how analytics is changing the way the corporations do business.
Only acceptable for those who know nothing about the stuff.
"Going by the Gut" may be going by the wayside
This book shows how several companies are effectively "competing on analytics" - defined as having the following four characteristics:
1. Analytics supports a strategic, distinctive capability
2. Approach to and management of analytics is enterprise-wide
3. Senior management is committed to the use of analytics
4. The company makes a significant, strategic bet on Analytics
In my opinion, the fourth item is really redundant, as the investment in obtaining and implementing the first criteria would satisfy the fourth. But the other three are critical. Included in both #2 and #3 is the requirement of an evidence-based decision making criteria. This is what I expect most companies will have an issue with. While the book mentions the difficulty in changing the culture and the potential for a virtual war between the "quants" and the "old guard", there are not really any good suggestions for overcoming it. The one suggestion given, proving it on a smaller scale won't work, because "proof" is not relevant for those who believe the gut is better than evidence.
That said, for those who can appreciate the value of evidence, this book provides much of it. Perhaps the best is the fact how the book describes Capital One carefully targeting sub-prime risks using analytics. Since the book was published, that market in general has collapsed, but Capital one is doing fairly well. The chapters on how to build the technical and people aspects raise good points, but are far from thorough.
In short, this book is a great overview, and provides many good ideas to consider, but it should not be confused as a how-to book.
