I was at Singapore Changi airport on the way to Vietnam in early June for a holiday with the family when I decided that I needed to get some reading material. One of the new books that just came out that caught my attention was "Competing on Analytics: The New Science of Winning". This was published by Harvard Business School Press. The writers are Thomas Davenport and Jeanne Harris; both write articles for Harvard Business Review while being professor or research fellow or director of some institute or other.
Anyhow, I bought it as I was getting more and more involved in the web analytics implementation for my new site using Omniture. It turned out to be a very, very interesting read and I have been recommending it. Here's why:
1) Analytics Defined: "the extensive use of data, statistical and quantitative analysis, explanatory and predictive models and fact based management to drive decision and actions".
This may seem straightforward (and "duh") to some of you as it was to me, but this clear and concise definition is what is need to make others understand what it is and how it should be used. Trust me, there are those out there with other "definitions".
2) "The five stages of analytical competition":
- Stage 1: analytically impaired ("flying blind")
- Stage 2: Localized analytics (isolated, fragmented, disconnected, inconsistent, etc.)
- Stage 3: Analytical aspirations (sees need, begins to explore options)
- Stage 4: Analytical companies (enterprise-wide perspective, eager to innovate and differentiate)
- Stage 5: Analytical competitors (analytics are the primary driver of performance and value)
"Flying blind" cracked me up in an ironic, cynical kind of way. Stage 2 just smacked me in the face as that is exactly where Millennium & Copthorne is (more on that later). I salivate by the time I get to reading about Stage 5 companies.
3) Emphasis on company-wide understanding and adoption of Analytics. (Another "Duh!!!") Great case studies/examples with NetFlix , Amazon Google as well as Capital One, Boston Red Sox, Walmart and P & G.
4) There are a lot of strategic advice but there many tactical ones too, like:
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Effective management of data requires correct answers to:
- Which data are needed to compete on analytics?
- Where can these data be obtained?
- How much are needed?
- How can the data be made more accurate and valuable for analysis?
- What rules and processes are needed to manage data from their creation through their retirement?
However, with all these management books, it does tend to get dry half-way through. To be quite honest, I have only gotten halfway through, and had not opened the book for a month (prior to writing this post that is.). I don't know if I will ever read the book in full, but more likely I will skim the balance. The first half of the book is well worth it in any case. I have half a dozen pages dog-eared for future reference - pages 8, 23, 40, 52, 62, 72. ;-)
Amazon's got a good deal on the hardcover. Probably since the paperback is gonna come out soon...
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