Tuesday, January 10, 2006

Best Analytics Practices

Just read an interesting article by Babson-Professor Thomas H. Davenport in the Harvard BR of January 06 about how companies compete on analytics.
What I liked most was a handy top-10 of Best Analytics Practices, thought I'd quickly share it with you guys:
  1. Apply sophisticated information systems and rigorous analysis to both your core capability and other functions.
  2. Executive team recognizes and focuses on the importance of analytics capabilities.
  3. Treat fact-based decision-making as a part of the company culture.
  4. Hire the very best analytical people.
  5. Manage analytics at the enterprise level.
  6. Apply proprietary metrics for key business processes.
  7. Share data and analysis with customers and suppliers.
  8. Generate information whenever possible and create a "test and learn" culture.
  9. Has been building analytics capabilities for several years now.
  10. Make your quantitative capabilities part of your corporate reputation.