BUSINESS ANALYTICS AND THE TRADITIONAL VIEW
The classic view of strategic planning involves a fairly standard process that:
The first step of this process typically involves identifying high-level organizational target outcomes. The planning process then focuses understanding where the organization sits relative to its environment. This situational analysis then drives the creation and execution of a strategy to achieve the identified targets, creating organizational change as an implicit requirement.
This situational planning involves considering a variety of internal and external factors in turn, each of which has the potential to either create or destroy value within the organization. Often called a SWOT analysis, this process focuses on identifying organizational:
The organization’s strengths are competencies and assets that can be leveraged to create competitive advantage. Common examples include brand, production efficiencies, research and development capabilities, and access to unique resources. If effectively leveraged, these are often the driving force behind effective product differentiation.
The organization’s weaknesses are often either the counterbalancing force against a strength or a gap in competency. Common examples include a large organization’s lack of agility, an inability to effectively capitalize on the information ...