Organizations that thrive on change use data and analytics as a competitive asset. They adapt quickly and predict trends by continuously curating and analyzing data and developing insights that drive new value. These organizations have a high “analytics IQ,” and they will be the disruptors, not the disrupted, in the digital revolution.
Those that successfully harvest vast troves of data can improve productivity; make faster and more accurate decisions; reduce costs; increase competitive advantage; discover new business models and innovations; and better engage customers, employees, and partners.
IT has long played a critical role in helping organizations deliver better products and services, improve operations, better manage risks, and develop new business models to stay relevant. That’s still true. Core technologies such as cloud, mobility, modern applications, and networks continue to evolve. But IT’s impact on the enterprise is raised to a whole new level when an organization introduces advanced analytics and redoubles its focus on information. Advanced analytics embedded in each interaction, transaction, information flow, and process step are driving the next wave of productivity and growth.
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Advanced analytics complete the feedback loop between business strategy and IT resources, creating a capability that is so central to the operation of the enterprise, it actually becomes the business model. For example:
- As an early adopter of advanced analytics, the securities industry is now defined by automated, algorithm-centric trading and artificial intelligence-based advisors that outperform professional money managers.
- Insurance carriers, which famously clung to decades-old legacy hardware and software, are wholeheartedly embracing analytics-driven systems to target profitable market segments, speed claims payments, reduce fraud, and increase the number and degree of fully automated processes.
- Analytics derived from data generated by infrastructure sensors are helping optimize manufacturing processes throughout the value chain, enabling organizations to manufacture smarter, faster, and greener.
Advanced analytics are far more than just another name for business intelligence 3.0. The maturation of technologies such as machine learning, deep learning, artificial intelligence, and advanced neural networks, coupled with a boundless supply of data and new ways of interacting with systems, is creating entirely new capabilities and opportunities.
Just like the microscope, which reveals a world unseen, advanced analytics are fast becoming “digital microscopes” that enable organizations to reveal hidden insights and promptly act on them. The collection and analysis of huge amounts of diverse data generated by humans, machines, and enterprise applications are enabling a better understanding of continuously changing organization ecosystems that is not possible to achieve by human intelligence and perception alone.
Advanced analytics are emerging as a crucial competitive weapon, taking advantage of a wealth of unstructured and sensor data to provide predictive and prescriptive analytics and business models, as well as rules to drive optimal behaviors across complex enterprise ecosystems. Astute organizations are now harnessing advanced analytics to pinpoint individual consumer preferences, to profitably upsell and cross-sell, and to more efficiently develop popular new products and services.
Advanced analytics are also being used to reduce production and overhead costs, and to mitigate risk throughout the product and service consumption life cycles. Advanced analytics enable qualitative improvements with each iteration, leading to automated and prescriptive solutions. This allows organizations to establish continuous testing, learning, and deployment of analytic models as the new normal.
Armed with their digital microscopes powered by advanced analytics, organizations can accelerate discovery, testing, and implementation of analytic solutions and enable continuous productivity and operational improvements.
Considering the impact that using advanced analytics can have on an organization’s most critical goals, it doesn’t pay to take a wait-and-see approach to determine whether this is a capability worth having. The fact is, organizations that raise their analytics IQ are far more likely to successfully manage a chaotic, dynamic business environment.
Find out how to raise your organization’s “Analytics IQ” here.