ibm analytics - the widening divide

The widening divideEmbedding analytics for competitive advantage

Graham KittlePartner & Practice LeaderBusiness Analytics & Optimisation A/NZ

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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© 2009 IBM Corporation

Building a smarter planet

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MIT Sloan Management Review and IBM IBV partnered again to explore how organisations are operationalising analytics

• Second year of knowledge partnership

• Surveyed 4,500 executives, managers and analysts plus extensive interviews

• Respondents represent more than 30 industries in more than 120 countries

• Interviews with executives from leading analytic organisations

• Interviews with IBM and MIT thought leaders

• Analysis by IBM and MIT SMR team

IBM Institute for Business Value+

© 2009 IBM Corporation

Building a smarter planet

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Our key findings underscore the urgency to act on analytics and chart the paths organisations are taking to transformation

© 2009 IBM Corporation

Building a smarter planet

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By segmenting the data, we examined how organisations use analytics to create a performance and competitive advantage

© 2009 IBM Corporation

Building a smarter planet

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Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

© 2009 IBM Corporation

Building a smarter planet

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The ability to create competitive advantage using analytics surged dramatically in 12 months, impacting the bottom-line

© 2009 IBM Corporation

Building a smarter planet

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Early adopters have outpaced others in gaining competitive advantage by expanding the use of analytics

© 2009 IBM Corporation

Building a smarter planet

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Transformed organisations are creating advantage by intensely focusing on applying analytics in three areas

© 2009 IBM Corporation

Building a smarter planetOverall, the majority of organisations now rely on analytics and data to manage key financial and operational tasks

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

© 2009 IBM Corporation

Building a smarter planet

Yet, most – including Transformed – have ample opportunity to do more to realise the full advantages from analytics

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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© 2009 IBM Corporation

Building a smarter planetTransformed organisations master three competencies to drive sustainable competitive advantage

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

© 2009 IBM Corporation

Building a smarter planetOf all the capabilities required to master the three competencies, these six characteristics distinguish Transformed organisations most

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

15

© 2009 IBM Corporation

Building a smarter planet

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We also examined what happens between Aspirational and Transformed – the space between the two end-point benchmarks

Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Information management

proficiency

Analytic skills and tools proficiency

Data-oriented culture

Aspirational

High

Low

Enterprise driven

Line-of-businessdriven

HighLow

Experienced

Paths to Transformation

Transformed

© 2009 IBM Corporation

Building a smarter planet

Experienced organisations one of two paths, each focusing on different competencies, to move towards Transformed

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Information management

proficiency

Analytic skills and tools proficiency

Data-oriented culture

Aspirational

High

Low

Enterprise driven

Line-of-businessdriven

HighLow

Experienced

Paths to Transformation

TransformedCollaborative

path

Specialized path

© 2009 IBM Corporation

Building a smarter planet

Table of Contents

• Introduction

• The analytics advantage in today’s marketplace

• How analytics creates competitive advantage

• Two paths to transformation

• Roadmap for creating competitive advantage

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© 2009 IBM Corporation

Building a smarter planet

We recommend three steps to transformation

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Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.

Focus on improving your analytic competencies Focus on improving your analytic competencies

Develop a robust set of analysis skills and tools

Develop a robust set of analysis skills and tools

Create a culture that takes action

on analytics

Create a culture that takes action

on analytics

Establish a strong information foundation

Establish a strong information foundation

Assess your analytic sophisticationAssess your analytic sophistication

Tie approach together with an information agendaTie approach together with an information agenda

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© 2009 IBM Corporation

Building a smarter planet

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