Analytics And Competitive Advantage

by Gordon MacMaster

“…A framework for analytics as an enabler of information superiority

For people that do not work in analytics, it is an exciting if somewhat mysterious and bewildering field. Anecdotal stories and buzz about the great breakthroughs analytics can bring has generated a tremendous amount of interest. I am often asked:

So what does analytics bring in business terms?

My answer is that it allows you to achieve Information Superiority over your competitors.

Information Superiority is a state that is achieved when a competitive advantage is derived from the ability to exploit a superior information position.*

Information Superiority provides:

• Increased tempo
• Increased responsiveness
• Lower risks
• Lower costs

* David S. Alberts

Sounds good doesn’t it? What organization wouldn’t want to enjoy a state of Information Superiority?

Advanced Analytics plays an essential role in achieving a state of Information Superiority.

The next question usually is:

So how do I achieve Information Superiority?

First, the following are the types of analytics based on their primary question:

• • Descriptive – What happened?
  • Diagnostic – Why did it happen?
  • Predictive – What will likely happen?
  • Prescriptive- What should be done?

There is a relationship between the types of analytics, time and the impact on innovation insight can bring as depicted in this diagram: View Here

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