Competing on Analytics Book Review Part II

Summary of Part I: Then Nature of Analytical Competition

In Competing on Analytics, the authors define analytics as "the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions." Analytical competitors are those businesses that use analytics most extensively.

Part one of the book explores the link between analytical competition and business performance. The authors argue that analytical competitors have an advantage over their non-analytical rivals. They use case studies, existing research, and the results of their own surveys to support their position.

Their argument is persuasive, though they do not adequately discuss the conditions under which analytics leads to better performance. Are analytics equally valuable for businesses of all sizes? For all types of decisions? The book does not address these questions.

Summary of Part II: Building an Analytical Capability

Part two of the book is a primer for anyone that would like to build the analytical capability of their organization. It provides a roadmap to becoming an analytical competitor, describes how to manage analytical people, and outlines an architecture for business intelligence.

The book states that a business must have the right people to become an analytical competitor. People centered factors include: having employees with analytical skills; having high level sponsorship for adopting analytics; and having a culture that values analytical problem solving.

The authors also discuss how to create an architecture for business intelligence. They give an overview of the data processing and IT capabilities needed to support analytical decision making. Different factors impacting the quality of the data are reviewed. The book also examines how to present data in a useful way. Together this discussion provides a helpful overview of the elements needed to implement analytics.

Competing on Analytics Book Review Part I

Competeing on Analytics Book Review Part III Competing on Analytics Book Review Part IV