Analytics: The New Path to Value, Smarter Industries Symposium

8/8/2019 Analytics: The New Path to Value, Smarter Industries Symposium

http://slidepdf.com/reader/full/analytics-the-new-path-to-value-smarter-industries-symposium 1/12



Analytics: The New Path to ValueHow the smartest organizations are embedding analytics to transform insights into actio

Fred BalboniBusiness Analytics and Optimization Global Services Line Leader

Findings from the 2010 New Intelligent Enterprise Global StudyA collaboration between IBM Institute of Business Value and MIT Sloan Management Re



Institute for Busin

+



Organizations that lead in

analytics outperform thosewho are just beginning to

adopt analytics

4

Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology

*within business processes

Key finding 1Analytics correlates to performance

Top Performers arelikely to use an anapproach over intu

3x 5.4x



Ability to get the data

Management bandwidth due to competing priorities

Lack of skills internally

Knowing how to use analytics to improve the business

Existing culture discourages info sharing

Data Ownership is unclear or governance is ineffective

Lack of executive sponsorshipConcerns with the data

Perceived costs outweigh the projected benefits

No case for change

34%

28%

24%23%

23%

22%21%

21%

15%

Primary obstacles to widespread analytics adoption


Key finding 2Organizational, not data or financial concerns, are

holding back adoption

3



Historic trend analysis

and forecasting

Standardized reporting

Data visualization

6

In 24 monthsAnalytic techniques providing the most value


Key finding 3Organizations want to “see” insights more clearly

and act on them

Today

Historic trend analysis

and forecasting

Standardized reporting

Data visualization

In 24 months

Data visualization

Simulations and scenariodevelopment

Analytics applied withinbusiness processes

Incsus

Dec



Financial management and budgeting

AspirationalOperations and production

Sales and marketing

Strategy and business development

Product research and development

Risk management

General management

Brand and market management

Customer experience

Key finding 4Analytic use propagates across functions

in a predictable pattern


Workforce planning and allocation Transformed

Customer service Experienced


http://slidepdf.com/reader/full/analytics-the-new-path-to-value-smarter-industries-symposium 8/12Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology

Key finding 5As adoption spreads, there is a growing demand

for a greater variety of skills and deeper expertise.

TransformedExperiencedAspirational

87%

71%

47%

IT department

At point-of-need

LOB analytic un

Centralized anal



Analytic programs create value for organizations in threeways:

Areas of Benefit Analytic Solutions

Infrastructure

ProductivityTake-out cost andimprove efficiency

Analytics Simplification / BAO Foundation

BusinessProductivityImprove control, bottom

line and stop losses

Finance / Risk / FraudAnalytics

Supply Chain /

Operational Analytics

Return toGrowth

Intelligent profitablegrowth

Human CapitalAnalytics

Marketing andCustomer Analytics



10

1Focus on thebiggest and

value opport

4Keep existing

capabilities whileadding new ones

5Use an informationagenda to plan for

the future

2Within eacopportunitquestionsnot data

3

Embed insights to driveactions and deliver valueSource: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology

“New path to value” is a five-point approach tooperationalizing analytics



11Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology

Pick your spot1. Biggest and highest value opportunity

Prove the value2. Start with questions

Continuous Value Delivery

4. Add capabilities 5. I

How to get started

Analytics: The New Path to Value, Smarter Industries Symposium

Documents

Transcript of Analytics: The New Path to Value, Smarter Industries Symposium