Business Analytics - Innovation Insights 

Business Analytics - Innovation Insights

Business analytics is used to help organizations make fact-based decisions. It involves analyzing data in ways that provide deep insights.

According to joint research conducted by MIT Sloan Management Review and IBM Institute for Business Value study, 55% of organizations now apply analytics to create a competitive advantage within their markets or industries. These same organizations, the research indicates, are more than twice as likely to outperform their peers in terms of bottom-line financial results – 2 times EBITDA growth, 1.6 times revenue growth, and 2.5 times higher stock prices appreciation.

This year, the joint MIT Sloan and IBM joint team surveyed over 4,500 people in 120+ countries. Their objective was to find how how analytics are being used are being used with the most mature “transformed” organizations.

Three Categories of Analytics Maturity

  • Aspirational: These are organizations that use data to help in financial or supply chain decision-making. They primarily use spreadsheets. Additionally the culture in these organizations is “here and now.”
  • Experienced: These organizations use analytics to helping them in strategy development, marketing and in operations.
  • Transformed: These are the organizations with expert analytic users. They use data to help their strategy development efforts, and to guide both their day-to-day activities. They conduct advanced analytic modeling. And, their cultures are innovation and data focused.  Business Analytics - Innovation Insights

Three Competencies 

  • Aspirational: These are organizations that use data to help in financial or supply chain decision-making. They primarily use spreadsheets. Additionally the culture in these organizations is “here and now.”
  • Experienced: These organizations use analytics to helping them in strategy development, marketing and in operations.
  • Transformed: These are the organizations with expert analytic users. They use data to help their strategy development efforts, and to guide both their day-to-day activities. They conduct advanced analytic modeling. And, their cultures are innovation and data focused.

IBM Article

IBM Business Analytics

Learn how Business Analytics software lets everyone in your organization make smarter decisions that optimize business performance..  As recent studies show, organizations that apply analytics outperform their peers. Just look at their financial results: up to 1.6X revenue growth, 2X EBITDA growth and 2.5X stock price appreciation.

Those with broad-based, analytics-driven cultures – what IBM calls a high “Analytics Quotient” – have several things in common. For one, whether in business, government or academia, they typically have an Analytics Center of Excellence (ACE). Such a center – physical, virtual or both -- provides a structured way for teams of people to work across functional lines to achieve analytic excellence. Learn more about building an ACE.

Business Analytics - Innovation Insights