The Value of Business Analytics: Identifying the Path to Profitability

SUMMARY

Defining the value being created by a business analytics initiative is a critical task of a successful team. Without this level of clarity, teams often find it difficult to:

• Build political support
• Establish objective comparisons between projects
• Overcome personal and organizational biases
• Prioritize activities
• Justify organizational investment in business analytics

By understanding the tangible and intangible benefits a business analytics initiative will create, the business analytics team can overcome these common pitfalls. By understanding where the value will accrue, the business analytics team can increase the relevancy of its communication strategy. And, by using a common measurement framework, the team can make it easier to compare and contrast various projects.

Defining the value forms one part of a comprehensive strategy to achieve success through business analytics. Equally important, however, are:

• Communicating the value
• Committing to it
• Measuring the benefits

In the next chapter, we will investigate how to create an effective communication strategy, review the importance of tailoring your message based on stakeholder-specific considerations, and look into how organizational culture can have a significant impact on a communication strategy.

THE CHECKLIST: DEFINING THE VALUE OF BUSINESS ANALYTICS

Key Considerations

Creating Value

What nonfinancial measurable outcomes will the initiative deliver?

What immeasurable outcomes will the initiative deliver?

For each of these ...