Competing on Analytics

The Harvard Business Review has recently published an article by Babson College's Tom H. Davenport on how analytics is becoming a key competitive factor for companies. Some key points made in the article:
  • Companies such as Amazon, Harrah's, Capital One, and the Boston Red Sox have all dominated their fields by deploying industrial-strength analytics across a wide variety of activities.
  • Business processes are among the few remaining points of differentiation for companies -- and analytics competitors extract every last drop of value from those processes.
  • In companies that compete on analytics, senior executives make it clear--from the top down--that analytics is central to strategy.
  • Statistical analysis, and quantitative activity, in these companies, is managed at the enterprise (not departmental) level.
To read the full text of the article online one needs a subscription to the Harvard Business Review. However, the article is based on a study by the author and two colleagues that is freely available. You can get a copy of the study from the author's website if you subscribe to receive their free newsletter.

Readings: Business intelligence
Posted on February 7, 2006 .