The Value of an Analytics Competency

Dateline: May 8, 2015

Welcome to our Friday WRAP – one thought-provoking idea to think about over the weekend.

Understanding the value your analytics investment bring to your organization is a complex matter.  Recently, I ran across a short summary at INFORMS of the different areas that might be included in the value calculation:

  • Big data Finding hidden clues to improve customer service and improve sales
  • Business insight Providing quantitative and business insight into complex problems
  • Business performance Improving business performance by embedding intelligence into an organization’s information   systems to improve decision making
  • Cost reduction Finding new opportunities to decrease cost or investment
  • Decision making Assessing the likely outcomes of decision alternatives and uncovering better alternatives
  • Forecasting Providing a better basis for more accurate forecasting and planning
  • Improved scheduling Efficiently scheduling staff, equipment, events, and more
  • Planning Applying quantitative techniques to support operations, tactical planning, and strategic planning
  • Pricing Dynamically pricing products and services
  • Productivity Helping organizations find ways to make processes and people more productive
  • Profits Increasing revenue or return on investment; increasing market share
  • Quality Improving quality as well as quantifying and balancing qualitative considerations
  • Resources Gaining greater utilization from limited equipment, facilities, money, and personnel
  • Risk Measuring risk quantitatively and uncovering factors critical to managing and reducing risk
  • Throughput Increasing speed or throughput and decreasing delay

What key areas do you include in the discussion of the value of analytics with your organization?

That’s a WRAP!  Have a great weekend!

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