Developing Enterprise-Wide Analytical Capability

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

“The most successful companies are those whose CEOs make reasonably accurate forecasts more of the time than do their competitors” - Robert Crandall

Analytical Capability drives business activities to uncommon performance and distinctiveness thereby increasing its competitiveness.

The Rise of Analytics

Current realities have induced organizations to take hold of mathematical analysis and advanced quantitative models for ascertaining beeps and acts in business environments.

Competing on Analytics Stages Model

Stage 1 (Analytically Impaired): Negligible capability.Stage 2 (Localized Analytics) : Local and opportunistic capability.Stage 3 (Analytical Aspirations): Begin efforts for more integrated data and analytics.Stage 4 (Analytical Companies): Enterprise-wide perspective, able to use analytics for point advantage, but not yet at the optimal level.Stage 5 (Analytical Competitors): Enterprise-wide, big results and sustainable advantage.

Source: Thomas Davenport and Jeanne Harris, Competing on Analytics

Requirements for Developing Enterprise-Wide Analytical Capability

Every member of the organisation must be analytics literate and compliant. The firm must have a practicable enterprise-wide analytics policy.Establishment of cross-functional Project Team for management of analytical capability.Establishment of stretched objectives.Top management buy-in.Training of staff for appropriate skill acquisition.The use of analytical software.Proper orientation of staff.Every component of the value chain must be involved.Implementation and Promotion of Analytics Culture.

Cross-Functional Project Team for Advancing Analytical Capability

This project team should consist of managers/professionals selected from every department, and must be led by the Head of Competitive Intelligence in that organisation.

The Key Elements in an Analytical Capability

Organisation

• Insight into performance drivers

• Choosing a distinctive capability

•Performance management and strategy execution

•Process redesign and integration

Human

•Leadership and senior executive commitment

• Establishing a fact-based culture

• Securing and building skills

• Managing analytical people

Technology

• Quality Data

•Analytical technologies

Source: Thomas Davenport and Jeanne Harris, Competing on Analytics

Strategic Focus

The strategic focus of a firm in analytical competition is usually aligned to its competitive strategy, and determines key areas to explore for building unique and outstanding capabilities.

Which Strategic Focus?

• Cost Reduction• Profitability Analysis• Product Configuration• Product Portfolio• Supply Chain• Customer Analysis• Value Proposition• Operations• Price Analysis• Service Analysis

CI Audit

Source: Elijah Ezendu, Competitive Intelligence

Analytical Technologies

Softwares for analytics apply complex predictive and descriptive analytics for mapping business drivers such as product profitability, supply chain effectiveness and customer churn thereby converting data into actionable information. They provide room for comparing projects and resources to structures and timeframes effectively.

Data-mining for Analytics

Data mining entails the application of computer technology for surveying and utilizing data.

The applicable techniques in data-mining include the following:

• Neural Networks• Clustering• Data Visualization• Statistical Analysis• Genetic Algorithm• Rule Indication

Criteria for Evaluation of CI Software Applications

i. Information Needs Identificationii. Information Acquisitioniii. Competitive Information Organisation and

Storageiv. Information Analysisv. Presentation of Intelligencevi. Distribution of Intelligencevii. Ease of Using Interfaceviii.Capability for Changing Displayix. Navigation Featuresx. Software Compatibilityxi. Requirements of Technical Expertisexii. Usefulness of Help Facilityxiii.Total Cost Source: France Bouthillier & Kathleen Shearer, Comparative Analysis of Competitive Intelligence Software Applications

Analytical People

Quantitative focused people drive analytics within an organisation. Some quantitative disciplines are as follows:

Business Field Physical Sciences Economics Psychology Engineering

Nonetheless, some people have developed analytic mind without studying quantitative focused courses.

Analytical People

Amateurs ProfessionalsSemi-Skilled Practitioners

The major task confronting organizations in the course of building enterprise-wide analytical capability is conversion of non-analytics inclined people to the level of ‘analytics advocates’, especially those functioning as heads of departments, sections and units. This is necessary to ensure silos decision makers don’t ruin the project.

Factors in Managing Analytical Professionals

1. Recognize relative scarcity.2. Use a mix of career incentives and

reward for reducing staff turnover.3. Provide appropriate technology

support.4. Provide adequate training and

development opportunities.5. Ensure effective governance.6. Entrench ethical principles.7. Overcome role-paralysis

Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.

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