Business analytics helps drive the competitive advantage
Due to globalisation it has become nearly impossible for companies and organisations to differentiate themselves from their competitors based on products or services alone. Organisations find themselves competing on analytics as well because many industries offer similar products using similar technologies, leaving business processes as one of the last remaining differentiation points. The availability of new analytical tools brings about new opportunities for your business to differentiate your company from the competition and gain the competitive advantage.
A typical company has access to vast amounts of data. Managers can no longer rely on proven instincts or experience to make decisions, analytics enables decision-makers to use an extraordinary amount of data to make informed decisions faster than ever before.
According to the 2011 New Intelligence Enterprise Global Executive Study and Research Project by MIT Sloan Management Review and the IBM Institute for Business Value approximately 58% of organisations apply analytics to create a competitive advantage within their industries. This figure has increased significantly from 37% in 2010. The report also notes that these companies are more than twice as likely to significantly outperform their peers.
Companies who make extensive use of analytics do not only use these tools for better data access and reporting, but are making use of advanced analytics to make more effective decisions that provide better outcomes and drive high performance. Dave Rich, Managing Director of Accenture Analytics, states that companies are rated as high performers are five times more likely than their competitors to view analytical capabilities as core to their business.
In the fast paced global economy organisations have to tap into the field of analytics in order to strategically use analytics tools to make timely, relevant and accurate decisions. This will enable better decision making and the achievement of superior business outcomes.
Success with business analytics requires more than the data and algorithms. It requires a company culture committed to using information for breakthrough ideas and operations.