Perspectives & Strategy

Whenever I see an article about statistics this old adage always comes to mind. When I see statistics on their own it is of-course even worse.

I was hunting the web recently and came across a few statistics. Apparently only 60% of business decisions are based on analytics. Of-course the more telling part of this is that for 40% of key business decisions no analysis was performed → That is a stunning admission in today’s business world. Obviously every decision requires some judgement, even those founded on some form of analysis.

Every corporation that I have worked with over the last fifteen years has faced similar issues. Having an analytics capability can make the difference between success and failure, this is of particular importance in the current economic era. Most corporations have a desire to be the leader in their marketplace yet if you are in the 40% who do not use analytics then this is simply a pipe-dream without hope of reality.

Another statistic that I was surprised by was that 63% of corporations need to increase their analytic capabilities. This is time for bold statements, but quite simply put I have NEVER met a company does not need to increase its analytic capabilities. Even if you have existing capabilities there is always the next measurement that you need to add. If you currently lack analytics then you need to be building this capability, and doing it fast.

Today, even small to medium sized corporations are adding Business Intelligence, so you do need to think analytics to stay ahead in this world. It is a dog-eat-dog world out there and without any analytics you lose that competitive edge.

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Closing the Analysis Gap, Increasing Competitive Advantage by Mark Lorion