Progressing Through the Five Stagesof Development

BY THIS POINT, DEVELOPING an analytical capability may seem straightforward. Indeed, some organizations such as Marriott and Procter & Gamble have been using intensive data analysis for decades. Others, such as Google, Amazon.com, Netflix, and Capital One, were founded with the idea of using analytics as the basis of competition. These firms, with their history of close attention to data, sponsorship from senior management, and enterprise use of analytics, have attained the highest stage of analytical capability.

The overwhelming majority of organizations, however, have neither a finely honed analytical capability nor a detailed plan to develop ...

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