Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
    data driven insights
    How Data-Driven Insights Are Addressing Gaps in Patient Communication and Equity
    8 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Are You Transformed? The MIT Report on Analytics
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Data Management > Best Practices > Are You Transformed? The MIT Report on Analytics
AnalyticsBest PracticesBook ReviewCulture/LeadershipPolicy and Governance

Are You Transformed? The MIT Report on Analytics

Erica Driver
Erica Driver
5 Min Read
SHARE

Are you building a business case for further investments in business analytics?

Are you building a business case for further investments in business analytics? If so, the quarterly journal MIT Sloan Management Review, in collaboration with the IBM Institute for Business Value, recently published a research report called, “Analytics: The Widening Divide.” In this study, the researchers identified a growing divide between companies that see the value of business analytics (and are transforming themselves to take advantage of newfound opportunities) and companies that do not. The findings in this report are based on a survey of more than 4,500 managers, executives, and analysts in more than 30 industries and 120 countries; interviews with academic experts and subject matter experts; and IBM case studies.

Cover image MIT Sloan Review research report.JPG

Readers should take some of the results with a grain of salt — particularly those that attribute business success and outperforming peers to the use of analytics — because the results are based on self-reported opinions rather than hard data (e.g., financial filings, quarterly reports, etc.). Still, the findings are interesting, such as:

  • Transformed organizations use analytics in non-traditional ways. The most common uses of analytics are to manage financial forecasting, annual budget allocations, and supply chain optimization, and to streamline operations. In general, companies less often rely on analytics for decisions involving customers, business strategy, and human resources — but half the Transformed organizations use analytics to make decisions in exactly these areas.
  • Transformed organizations are democratizing information. Transformational organizations have mastered three analytical competencies: information management, analytics skills and tools, and a data-oriented culture. As part of this, they make information and insights readily available. Sixty five percent of Transformed organizations make information readily accessible to employees, vs. 21% of Aspirational organizations, and almost as many Transformed organizations (63%) make information readily accessible to all employees, vs. 16% of Aspirational organizations.
  • Analytics adoption is on the rise and companies are seeing benefit. Fifty eight percent of organizations surveyed apply analytics to create a competitive advantage within their markets or industries, up from 37% one year ago. According to self-reported info from the survey respondents (which must be taken with a grain of salt), the same organizations that use analytics to create competitive advantage are more than twice as likely to substantially outperform their peers. All of the gains in competitive advantage have been made by companies in the Transformed or Experienced groups, according to the researchers’ classifications of analytical sophistication — and none of the gains by companies in the Aspirational group.*

This study offers a number of recommendations to help organizations move forward with analytics. At the highest level, the recommendations are to 1) assess your analytics sophistication against the maturity model laid out in the report, 2) improve your analytics competencies, and 3) use an information agenda to connect your path to your competencies. For more detail, you can download the full study here (no charge). 

———————————-

* In Aspirational organizations (32% of survey respondents), analytics usage is basic. People use analytics to guide decision making in financial management and supply chain management. The primary tool is spreadsheets. In Experienced organizations (45% of survey respondents), analytics usage is moderate. These organizations use analytics to guide future strategies and are increasingly relying on analytics to guide activities in marketing and operations. Enterprise data integration efforts are under way and the organization is expanding its portfolio of analytics tools. In Transformed organizations (24% of survey respondents), analytics users are sophisticated. They use analytics to guide decision making in day to day operations as well as future strategies. The organization deploys a comprehensive portfolio of tools to supported advanced analytic modeling.

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

AI supply chain
AI Tools Are Strengthening Global Supply Chains
Artificial Intelligence Exclusive
data analytics and truck accident claims
How Data Analytics Reduces Truck Accidents and Speeds Up Claims
Analytics Big Data Exclusive
predictive analytics for interior designers
Interior Designers Boost Profits with Predictive Analytics
Analytics Exclusive Predictive Analytics
big data and cybercrime
Stopping Lateral Movement in a Data-Heavy, Edge-First World
Big Data Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

data protection big data
Best PracticesData ManagementNewsPrivacyRisk Management

4 Data Security Best Practices to Protect Your Personal Data

5 Min Read
data processing
AnalyticsBig DataHadoopMapReduceSoftware

HStreaming for Hadoop and MapReduce

4 Min Read

It’s not AI but…

3 Min Read

Build your own slide rule with R

2 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots
AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?