Analytics Based Strategy
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Challenges for Internal Enhancers

The example covered in the Analytics Valuation presentation is typical for Internal Enhancers. A data analytic project has to bring financial benefits substantially above costs at least because risks are higher than corporate average. What differentiates analytic projects is the depth of the analysis and the time extension.

Challenges of Internal Enhancers

Increase Revenue: The operational analysis is better left for the sales to avoid getting dragged into the damaging discounts / promotions war. There is little value in a sale offer after the customer left the store or the web site.

Cost Reduction: Even if modern analytics allows a strategic analysis every month the cost of making changes to accomodate even a minor change in strategy is usually prohibitive. Annual strategic evaluation might be needed to insure the company remains fit.

Increase Market Share: The challenge here is how to avoid negative medium term effects like premature product obsolescence and long term effects like destroying the brand image.

Blue Ocean Strategy: Faint signals can be deceiving; throwing a too wide net might lead to indecisiveness; something is impossible until it isn't.

“ there is a world market for maybe five computers ”   (Thomas Watson, IBM, 1943)

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