More and more, executives are emphasizing the importance of analytics. However, they struggle with their ability to realize true competitive advantage….often focusing solely on technology as a driver of success. When assessing their capability to compete through analytics, companies need to equally assess their Strategy, Processes, Organizational Behaviors and Technologies (SPOT).
Strategy: Analytics needs to be a core part of a company’s strategy, with alignment around business drivers, measures of success and the overall value of analytics. There needs to be an understanding as to which capabilities you need analytics to support, such as enabling better execution at retail, more effectively collaborating with customers or driving consumer insights.
Process: According to a recently conducted industry research study by Catalina Marketing, over 50% of Consumer Products executives are dissatisfied with their current analytical processes. Having a standardized process in place will allow for a more holistic view of analytics across the entire organization and ensure that insights are being shared across functional silos and account teams.
Organizational Behaviors: In Competing on Analytics, Thomas Davenport discusses how “the human and organizational aspects of analytical competition are truly differentiating”. From the highest levels of the organization, it is critical for analytics to be embedded within the culture, the associated value to be demonstrated and a mindset in place that supports analytical thinking and decision making.
Technology: Leading companies are adapting a ‘test and learn’ approach to investments in technology, leveraging leading tools to meet a mix of analytical needs. However, it is critical that these investments are aligned throughout the organization and provide the tools and capabilities that support the overall analytical strategy and process.
Companies who consider this holistic approach to analytics will be in a better position to combat the challenges facing our industry and realize competitive advantage.