Analytics Based Strategy
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Analytics for Internal Enhancers

There are three types of data analyses. The stategic analysis is done annualy, performed at the highest level and taking the broadest view with the main purpose of discovering trends and evaluate risks. The tactical analysis is done more frequently and has the main goal of discovering correlations among components (product lines, customer segments, asset types, and geographic distribution). The operational analysis is done in real time and has an accounting approach with the main goal of getting the most detailed view of the world from the corporate perspective. Well architected analytics use a pyramidal approach in which the operational analysis forms the basis with the most detailed data and on top sits the strategic analysis with the most refined view and least data.

Increase Revenue: Here the operational analysis is what brings the flexibility and power and needs to be done in real-time with automatic local data collection. In most cases the strategy is set almost at the beginning of time and defines the corporate culture. The tactical analysis may play in some cases a limited role.

Cost Reduction: This type of opportunity usually carries some minor strategic analysis followed by a more substantial tactical analysis and is heavy on operational analytics. To fulfill its most significant goal the analysis has to be real-time coupled with global automatic data collection.

Increase Market Share: It is heavy on tactical analysis and uses some operational components. Somehow similar to the Cost Reduction approach but dealing with the revenue side and taking a longer time view.

Blue Ocean Strategy: Requires the capability of analysing huge amounts of data to find the big trends before anyone else and asses the impact of low probability events. It is almost entirely a strategic analysis coupled with few tactical components to asses feasibility.