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Monday, February 06, 2006

Competing On Analytics

A new breed of organization has upped the stakes by using all their firepower on the one area that promises to create the greatest competitive advantage: Amazon, Harrah's, Capital One, and the Boston Red Sox have all dominated their fields by deploying industrial-strength analytics across a wide variety of activities.

Companies must undergo very substantial changes to compete on quantitative turf. As one would expect, the transformation requires a significant investment in technology, the accumulation of massive stores of data, and the formulation of companywide strategies for managing the data.

But, at least as important, it also requires executives' vocal, unswerving commitment and willingness to change the way employees think, work, and are treated.

Tom Davenport, over at, offers "You Know You Compete on Analytics When...."

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