ibm analytics - the widening divide

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The widening divide Embedding analytics for competitive advantage Graham Kittle Partner & Practice Leader Business Analytics & Optimisation A/NZ

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In this second joint study from MIT Sloan Management Review and IBM Institute for Business Value, we see a growing divide between those companies that, on one side, see the value of business analytics and are transforming themselves to take advantage of these newfound opportunities, and those, on the other, that have yet to embrace them. - This was presented by Graham Kittle at the Business Analytics Forum, Melbourne.

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Page 1: IBM Analytics -  The Widening Divide

The widening divideEmbedding analytics for competitive advantage

Graham KittlePartner & Practice LeaderBusiness Analytics & Optimisation A/NZ

Page 2: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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Page 3: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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MIT Sloan Management Review and IBM IBV partnered again to explore how organisations are operationalising analytics

• Second year of knowledge partnership

• Surveyed 4,500 executives, managers and analysts plus extensive interviews

• Respondents represent more than 30 industries in more than 120 countries

• Interviews with executives from leading analytic organisations

• Interviews with IBM and MIT thought leaders

• Analysis by IBM and MIT SMR team

IBM Institute for Business Value+

Page 4: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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Our key findings underscore the urgency to act on analytics and chart the paths organisations are taking to transformation

Page 5: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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By segmenting the data, we examined how organisations use analytics to create a performance and competitive advantage

Page 6: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

Page 7: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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The ability to create competitive advantage using analytics surged dramatically in 12 months, impacting the bottom-line

Page 8: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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Early adopters have outpaced others in gaining competitive advantage by expanding the use of analytics

Page 9: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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Transformed organisations are creating advantage by intensely focusing on applying analytics in three areas

Page 10: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planetOverall, the majority of organisations now rely on analytics and data to manage key financial and operational tasks

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Page 11: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

Yet, most – including Transformed – have ample opportunity to do more to realise the full advantages from analytics

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Page 12: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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Page 13: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planetTransformed organisations master three competencies to drive sustainable competitive advantage

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Page 14: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planetOf all the capabilities required to master the three competencies, these six characteristics distinguish Transformed organisations most

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Page 15: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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Page 16: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

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We also examined what happens between Aspirational and Transformed – the space between the two end-point benchmarks

Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Information management

proficiency

Analytic skills and tools proficiency

Data-oriented culture

Aspirational

High

Low

Enterprise driven

Line-of-businessdriven

HighLow

Experienced

Paths to Transformation

Transformed

Page 17: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

Experienced organisations one of two paths, each focusing on different competencies, to move towards Transformed

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Information management

proficiency

Analytic skills and tools proficiency

Data-oriented culture

Aspirational

High

Low

Enterprise driven

Line-of-businessdriven

HighLow

Experienced

Paths to Transformation

TransformedCollaborative

path

Specialized path

Page 18: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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Page 19: IBM Analytics -  The Widening Divide

© 2009 IBM Corporation

Building a smarter planet

We recommend three steps to transformation

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Focus on improving your analytic competencies Focus on improving your analytic competencies

Develop a robust set of analysis skills and tools

Develop a robust set of analysis skills and tools

Create a culture that takes action

on analytics

Create a culture that takes action

on analytics

Establish a strong information foundation

Establish a strong information foundation

Assess your analytic sophisticationAssess your analytic sophistication

Tie approach together with an information agendaTie approach together with an information agenda

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© 2009 IBM Corporation

Building a smarter planet

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