Competing on Analytics Essay
Competing on Analytics: The New Science of Winning
Prediction of the development, assessment of political, economic and technological perspectives is a complex and interesting at the same time interdepartmental scientific problem. Almost all spheres of activity require forecasts of future events and their effects that are updated under global transformations and unprecedented opportunities of progress. The book “Competing on Analytics: The New Science of Winning” has a significant influence on the formation of the modern vision of the role of analytics in the system development and implementation in the areas of economics. The authors of this book are Thomas H. Davenport, and Jeanne G.
Davenport is the Chief researcher, and Jeanne is the Director of Research Institute of Accenture Institute for High Performance Business. This book describes the principles of analysis and its use in the enterprise to achieve the desired results. According to Davenport and Harrison, traditional sources of competitive advantage have largely exhausted, so it is difficult to help the company stand out from the crowd of competitors. It is necessary to use analytics to make better decisions and to maximize development. The book contains many examples that show the effectiveness of analysts. An example is companies such as the Boston Red Sox, Amazon.com, CEMEX, Capital One, Procter & Gamble and Best Fight, Harrah’s Entertainment, Procter & Gamble and Best Buy. These companies attract the most profitable customers with the help of analysts, and they accelerate product innovation and optimize the supply chain and exploited the real driving factors profitability.
This book is a timely and appropriate that promises to change the rules of competition fundamentally.
Secret weapon of successful enterprises is the analyst. According to Davenport, analytics is a modern quantitative method and statistical analysis of predictive modeling. It is used because of strong support from the top leaders in information science and powerful information technology. The essence of analysis as a scientific discipline is methodological, intellectual and technological activity aimed at solving management problems or synthesis of new knowledge. In other words, it is the basis of intellectual, logical activities aimed at solving practical problems. It is based on the principle of a statement of facts and the principle of “prediction of events” that allows organizations or predicts the future state of the object of analysis.
In accordance to the opinion of the authors, in today’s world, there is a “sharp change of habitat” and conditions in the world economy. When companies offer similar products in many industries and use similar technologies, the last remaining difference can serve as a unique business processes. Many previous bases of competition are blurred by globalization such as the geographical advantage or benefit from the regulatory authorities. Competitors quickly copy copyrights technology and create a revolutionary innovation in goods and services is increasingly difficult. Therefore, as a basis for competition are three things: effective implementation and adoption of smart solutions and the ability to extract all the possible value of the business processes. All this can be achieved by using and applying professional analyst. All these aspects have influenced the development and application of analytics.
The book describes the technology to support and develop analytics. Modern information and analysis technology based on research in the field of information theory and artificial intelligence and belong to BI technologies and tools. The concept of BI-technology combines various tools and technology analysis and processing.
These technologies provide navigation in the growing information environment, accelerating the search for relevant information on the subject area. Computer technologies ensure timely submission to the analyst all the necessary information for decision making. They ensure timely provision of all necessary information to the analyst for decision making. Today the analytical basis to support activities in the CIS is a search engine. Software support of technologies acquiring of knowledge can create corporate portals, such as integrated information depository. Each project of the organization and technical support information and analytical work has an individual character and requires the development and implementation of special software. Development of such tools is difficult because it requires cooperation of specialists who can formulate analytical tasks.
According to Davenport and Harrison, companies are evolving, developing their technological capabilities in analytics. There are five stages. The company does not develop because of the lack of data, or they are of poor quality, it is explained by a variety of duplicate data and low integration systems. It is the first stage. According to the second step, the company efficiently collects transaction data, but it is often not enough to better decisions. In the third stage, the company has a large number of business intelligence tools and has built data marts. But most of the data is still not integrated, not standardized and unavailable for a wide range of users.
According to the next step, the company has high-quality data and analytical company-wide plan, IT-processes, and management principles, as well as a certain amount of automated analytics. In the fifth stage, the company owns a full analytical structure that has an organization-wide character. This analytical structure is fully automated, integrated processes and has a high level of complexity. Analytics is intended to support a competitive strategy; it should support specific and important activities in the company.
What is the Three Pillars Technology Solutions? Three Pillars Technology Solutions is a MSSP. Managed Security Service Provider is companies that sell security as a service. How does it work? Management Console of antivirus protection prescribed in the cloud. Companies can remotely monitor the security status, receipt of reports, etc. Thus, the administrator of the outsourcer can remotely manage the anti-virus protection of many customers. They will be connected to the console, and it will be managed remotely. The most familiar and popular component of the MSSP is outsourcing traffic filtering. If you redirect your traffic to the ISP server, you will get back “clean traffic.” Data protection technology is one of the principal components of each enterprise.
Analytics is directly related to business results. It is clearly described in the book. Companies can identify and serve new market segments earlier than their competitors due to the analytical approach to marketing. An example is the hotel “Marriott.” The hotel was developed due to revenue management. The hotel sets the optimal charge per room. If the hotel can foresee the highest price that is acceptable for visitors, budget of hotels will replenish considerably. According to this principle, the hotel surpassed its competitors. The secret of success is the analytical predictions.
In conclusion, each of us can gain a deeper understanding of the benefits of business intelligence tools for companies, after reading this book. The book describes many examples of analytical systems and their application in the industry, also describes recent trends embodiment of these trends in the economy. This book is very useful for every company and business projects. If the companies use the tools and techniques of business intelligence, they will change their business model in a positive way. It is a new way to change the tone of communication with colleagues, management, and partners. Davenport said that you would achieve the desired result if you apply data analysis techniques for your enterprise.