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How to Compete Using Analytics - Tom Davenport's Take

I just returned from attending the Teradata Partners conference in Orlando. Besides being a lot of fun, it was also quite informative. I think my favorite session was Tom Davenport's in which he discussed competing on analytics (the title of his book as well). Here are a few brief points from his keynote.

According to Tom Davenport, it takes five things to be able to compete on analytics:

1. Knowledgeable and committed leadership -- that is, find the right CEO, one who is passionate and committed to analytics. Find one who is willing to make the investment it takes to create a proper analytic environment.

2. Use sophisticated analytics throughout the enterprise -- makes sense to "spread the wealth" of the analytic capabilities deeper into the organization. The use of the more sophisticated forms of BI -- predictive analytics and modeling -- must be widespread and available to all employees -- at all levels.

3. Determine your distinctive capability -- whether it is superior customer service or a speedy supply chain or customized products, or some other capability -- then use the analytics to support this capability.

4. Manage your analytics at the enterprise level -- especially if you want these to be the basis of your competitive advantage. This means managing not just the analytics but also the people, technology, skills, etc. No fiefdoms please!

5. Have large-scale ambitions and results for your BI environment. This means you have a grand vision long before you have the environment set up. Know what it takes to create a world-class analytic environment and go for it!

For more on his article in Harvard Business Review, click here. To read more about Tom Davenport, go to his website.

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