Analytics:the new path to value

In collaboration with IBM Institute for Business Value

ReseaRch RepoRt Fall 2010
Findings From the 2010 new intelligent enterprise global executive study and research project

Analytics: The New Path to Value
How the Smartest Organizations Are Embedding Analytics to Transform Insights Into Action

By MIT Sloan Management Review and the IBM Institute for Business Value

AuThors
sTEvELAvALLE MIChAEL s. hoPkIns ErIC LEssEr rEBECCA shoCkLEy nInA krusChwITz

is the global strategy leader for IBM’s Business Analytics and Optimization service line, where he leads a global team of consultants and practitioners focused on helping clients optimize their results through the application of insights, analytics and business process improvements. He can be contacted at steve.lavalle@us.ibm.com.

is editor-in-chief of MIT Sloan Management Review, which brings ideas from the world of thinkers to the executives and managers who use them to build businesses. He can be reached at mhopkins@ mit.edu.

is the research director and North American leader of the IBM Institute for Business Value, where he oversees the fact-based research IBM undertakes to develop its thought leadership.He can be contacted at elesser@us. ibm.com.

is the business analytics and optimization global lead for the IBM Institute for Business Value, where she conducts factbased research to develop thought leadership for senior executives. She can be reached at rshock@us. ibm.com.

is an editor and the special projects manager at MIT Sloan Management Review, where she coordinates the publication’seditorial and innovation hub activities. She can be reached at ninakru@mit.edu.

ConTrIBuTors

Fred Balboni, GBS Global Leader: Business Analytics and Optimization (BAO), IBM Dr. Michael Haydock, GBS Global Leader: Customer Analytics, IBM Deborah Kasdan, Writer: GBS Strategic Communications, IBM Christine Kinser, Global Leader: GBS Strategic Communications, IBM Katharyn White, Vice President ofMarketing, IBM

Copyright (©) Massachusetts Institute of Technology, 2010. All rights reserved.

sPonsors

The six IBM case studies and the chart titled “Introducing the PADIE technique” are © IBM 2010, used by permission. For more information or permission to reprint, please contact MIT SMR at: E-mail: mitsmr@pubservice.com Fax: +1 818-487-4550, attention MIT SMR/Permissions Phone:818-487-2064 Mail: MIT Sloan Management Review PO Box 15955 North Hollywood, CA 91615

CoNTeNTs
reseArCh rePorT FALL 2010 Chapter 1: Findings of The New Intelligent enterprise study
3 4 5 6 6 The competitive push for analytics-driven management Top performers say analytics is a differentiator Three levels of capabilities have emerged, each with distinct opportunities Data is not the biggest obstacleInformation must become easier to understand and act upon CAse: Analytics, not best guesses, drive ad decisions 7 What leaders can do to make analytics pay off — a new methodology

Chapter 2: The Five recommendations
7 recommendation 1: Focus on the biggest and highest value opportunities CAse: Tackling healthcare fraud leads to sweeping reforms FoCus: Introducing the PADIE technique foroperationalizing analytics 9 recommendation 2: within each opportunity, start with questions, not data CAse: Shifting gears from vehicle-centric to customer-centric marketing 10 recommendation 3: embed insights to drive actions and deliver value CAse: A beverage company makes the case 12 recommendation 4: keep existing capabilities while adding new ones CAse: Bridging business and analytics skillsacross the organization 13 recommendation 5: use an information agenda to plan for the future CAse: Insurer limits risk by establishing an agenda for today and tomorrow FoCus: How analytics propagates across functions

Chapter 3: how to set yourself up for success
15 Techniques to get started 16 Make analytics pay off

Chapter 4: The survey — Questions and responses
17 Questionnaire and...