As part of the journey to being data-driven, RUBIX. believes it’s important to establish the right foundations. Leveraging those foundations through business intelligence and insight improves the quality and speed of operational and strategic decision making leading to better business performance.
It takes more than a launch pad to send a Tesla into space.
Leading organisations go further, investing in advanced analytics capabilities and turning data into insight into wisdom into impact. These organisations have been shown to be up to 60% more profitable than analytics laggards.
How do they do this? Your data foundation is like a launchpad: you can’t launch a Tesla into space with a launchpad alone — you need a rocket; and you can’t realise the true business value with data and insight alone — you need to leverage this asset as a launchpad to accelerate your growth and performance. You need advanced analytics.
“Leaders integrate analytics into all decisions to generate foresight about relevant trends and fuel successful business outcomes. Real-time analytics help drive innovation and create a competitive advantage.” — ‘analytics Impact Index’, Melbourne Business School & AT Kearney
Show me the money
Organisations that feel they have the organisational self-knowledge and management insight under control are typically looking to optimise business performance through improved revenue and marketing resource efficiencies. Advanced analytics, such as customer targeting using predictive analytics, is improving revenue outcomes.
An example; Professor Anindya Ghose of NYU Stern School of Business has shown that predictive analytics, combined with new technologies such as AI, are helping to meaningfully influence consumer behaviour…to optimise offers in real-time e.g. offer more to someone that is further from a store as they need more of an incentive to divert from their journey / change their behaviour.
Beyond realising revenue opportunities, businesses are also in search of guidance on strategic growth and direction.
Advanced analytics in the board room.
Many companies’ leadership teams are not using data analytics to improve their internal board information and decision-making processes. For organisations that empower their boards with the right, and timely, advanced analytics, they can improve information symmetry between management teams and boards leading to more trusted strategic and organisational decisions.
“Don’t fear data being available to boards in real time. Embrace transparency. A disaster for the Board is a disaster for the organisation.”- John Wylie, Principal, Tanarra Group
Businesses investing in leading analytics capabilities are more profitable
But there is a case for optimism. The “Analytics Impact Index” based on research conducted jointly by AT Kearney and the Melbourne Business School gives organisations an understanding of the potential of analytics as well as the capabilities required to capture the most value.
The research looked at an organisation’s maturity in using analytics and the impact of analytics as a proportion of total profits. While there are a number of dimensions to analytics maturity, the report found that ”analytics leaders — only 8 percent of companies — see 60 percent more profits than laggards do”.
It follows that innovating through investment in technologies like interactive real-time analytics tooling, experimental analytics, AI, and Blockchain allows businesses to stay ahead of the market, competitors and even customers, thus creating the future — and their future profitability.
“analytics leaders see 60 percent more profits than the laggards”- ‘analytics Impact Index’, Melbourne Business School & AT Kearney
What is clear is that, leveraging the right partners, it is an organisation’s ability to turn data into insight into wisdom into impact — via advanced analytics — that allows businesses and governments to take full advantage of new technologies to drive positive outcomes for themselves, their technology ecosystem, and society.