Competing On Analytics : The New Science Of Winning Essay

The four pillars of analytics competition are (1) Support of a strategic, distinctive capability, (2) an enterprise-level approach to and management of analytics, (3) Senior management commitment, and (4) Large-scale ambition (Davenport & Harris, 2007).

The ability to compete on analytics is made possible by certain qualities some companies possess which allows them to collect and use immense amounts of data in a way that differentiates the success and practices of those companies amongst any other businesses. Davenport and Harris (2007) define analytics as “extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions” (p. 7). Therefore, to be able to compete on analytics, a firm must not only use the data to extrapolate and execute strategies and models in order to drive business, but also to use that data better and smarter than their competitors. This requires forward thinking and continual developments of current analyses and practices. With regard to Davenport and Harris’s criteria and concepts on the ability to compete on analytics, Old Navy LLC’s practices will be analyzed to find whether the company is able to compete, is a competitor, and how it competes, if at all.

Forecasting analytics will enable SYSCO to make appropriate upfront decisions and monitor customers as well as the industry. Extraction and data mining are also useful tools that will positively affect SYSCO’s decision-making process. Lastly, consulting support and employees’ training will facilitate the implementation of the new software in the company. For all these reasons, the use of BI at SYSCO can create a competitive advantage of the company in the industry. However, this competitive advantage depends on the competition – do the competitors use a similar software or by chance the same and do they already have a strong position in the market? Outperforming for example “U.S Food Service”, SYSCO’s main competitor, might be arduous if that company relies on a similar software and already has an eminent role in the

2. Uniqueness - There is no single path to follow to become an analytic competitor, and the way every company uses analytics is unique to its strategy and market position. Accenture 's use of analytics has always been unique to acquire the market position. Accenture, in telecommunication industry uses bundle

Comparing internal metrics through the filter of competitive intelligence, helps businesses measure their growth against industry standards. Maintaining a competitive edge is essential to building a successful operation. To acquire that edge, businesses subscribe to a process referred to as “Competitive Intelligence Analytics” (Kaushik, 2007, p.298). The act of acquiring intelligence from your competitors is nothing new. History can trace these activities as far back as 1500 B.C. and a group of maritime traders (Gilad, 2016). However, the methods used to gather intelligence today have changed dramatically and follow a better suited set of recommendations and best practices. A primary component of competitive intelligence would be to identify who your competitors are. Kaushik recommends segmenting and analyzing upstream and downstream traffic coming to and from sites that share the same industry model (2006a). Benchmarking these metrics can help businesses measure and watch trends over time (Kaushik, 2006a). Kaushik also recommends measuring competitors through search engine results that should include key words and phrases, since current statistics show 80% of traffic is generated through search engines (2006b). It is important that top level managers not focus on conversion rate comparisons, as this type of competitive analysis can end up evaluating businesses that follow significantly different

My presentation is 90% analytical based. Without the analytical based facts, my recommendation would be deemed useless and irrelevant. As for the last pillar, large scale ambition, which states that the competitors base the success of their business on analytical based strategies. Yes, this is absolutely correct. Within the industry, the use of analytics is what helps drive forecasting and modeling to what the revenue will be in the next year.

Constantly having a comprehensive awareness of available competitors enables a company to continue to be highly competitive. A competitive analysis is a critical part of a company’s marketing plan. In this step competitors are placed in strategic groups according to how they directly compete for a share of the customer’s dollar.

We cannot all help but notice the steady decline in our market share for the past consecutive 11 quarters. Annual revenue has shrunk by 40% since we last saw a sales growth. Despite all the cost cutting measures that we have implemented we still continue to see a steep decline in sales. To make matters worse we do not know why, we do not know how and do not have any insight on what the competition is doing and how they are doing it. I’m proposing that we adopt a business intelligence system. This will allow us to see the state of our overall processes, and pinpoint areas of improvement or elimination. In short, business intelligence will allow us to better analyze the organization’s plans and results. I will provide us with insight into what is working correctly at the same time identifying potential problem areas

In the New Science of Winning book, (Davenport & Harris, 2007, p.7) analytics is defined as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.” [1]. To be successful in today’s competition, my current employer, DLL Financial Solutions Partner (DLL), is competing on analytics and fully aligned its core strategies to be supported by extensive statistical and computer based decisions. DLL is a global financial services company with operation in 36 countries, and its main focus is in the commercial equipment finance sector. In the following paragraph, I will explain DLL’s position in the industry and its ability to successfully compete on analytics with regards to its core business functions.

Given the priority of competitiveness in modern companies, practitioners of competitive intelligence need to come to terms with what business and competitive analysis is and also how it works. In order to survive in such a competitive environment, a company must deliver superior customer value over its competitors. Three competitors that CanGo analyzed are Amazon.com, Buy.com, and Overstock.com. We focused on areas like personnel, products, and facilities.

A critically important issue for all organizations, competitive analysis is more than a strategy and planning exercise. It should be imbued within an

“Business these days is all in the numbers, as franchises tap into the power of big data to customize marketing, select locations and manage staffing. These are the companies leading the charge” (Daley, 2016, p. 133). This is how today’s world works. However, just simply collecting data is not enough. What do you do with it, and how do you turn it into something meaningful? Competition is fierce, and being wrong is never a good option. Using terms like I think, hopefully, and that is the way we have always done it, is a good first step to going out of business and the unemployment line. Using proper business analysis techniques with reliable data will increase the likelihood that a prediction, or a

As a data consulting firm, it is tough not to consider my company as an analytical competitor. We regularly conduct webinars and trainings to stay ahead of this constantly evolving industry. We have teams creating algorithms that produce forecasting models within 99% confidence windows, while other teams are exploring different ways to enhance live data for every client. Data is “the primary driver of performance and value” (Davenport, Harris, p.36) for my company, but my client is not at the same level. They are deep within stage 3 and slightly moving towards stage 4. For the past two years, they have been using analytics as a guide for marketing

Part 2. How Business Analytics can be used to gain advantage in a competitive marketplace

“Competing on Analytics” defines an analytical competitor “as an organization that uses analytics extensively and systematically to outthink and out execute the competition.”(1) Business analytics is a new way for companies to separate themselves from their competitors. I recently completed an internship at the firm PricewaterhouseCoopers (PwC) and will work there full-time upon completion of this program. PwC uses analytics to help solve complex business issues and to identify opportunities across different industries. PwC is the largest professional service company in the world and is part of the Big Four accounting firms. PwC operates in over 157 countries with more than 750 offices throughout the world.(2) PwC is structured into three service lines, which are Assurance, Advisory and Tax. The assurance practice audits almost 30% of the global fortune 500 companies.(2) The advisory practice is mainly consulting activities that cover strategy, cyber security and privacy, human resources, deals and forensics. (2) These three practices generated $35.4 billion in revenue in 2015. (2)