Mit-Smr-Ibm-Analytics-The-New-Path-To-Value-Fall-2010

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
sTEvE
LAvALLE

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
processimprovements. 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 thefact-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 specialprojects manager
at MIT Sloan
Management
Review, where
she coordinates
the publication’s
editorial 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 Corporate Communications, IBMChristine Kinser, Global Leader: GBS Strategic Communications, IBM
Katharyn White, Vice President of Marketing, 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 SMRat:
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 adifferentiator
Three levels of capabilities have emerged, each with distinct opportunities
Data is not the biggest obstacle
Information 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 highestvalue opportunities
CAse: Tackling healthcare fraud leads to sweeping reforms
FoCus: Introducing the PADIE technique for operationalizing 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 makesthe case
12 recommendation 4: keep existing capabilities while adding new ones
CAse: Bridging business and analytics skills across 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...