We outlined in the previous sections that to innovate, companies need to understand what to subtract or what to add to the existing product, services, and customer channel strategies. We also recalled the promise of analytics and the fundamental business questions it seeks to address. In Exhibit 17.1, we illustrate factors that make up the intersection between analytics and innovation.
Analytics’ main objectives typically revolve around addressing the key questions of what happened, what is happening, and what will happen. Once you apply these questions to your product, service, or channel strategy and compare yourself to the competition, innovative ideas are likely to result, as you spot what to “add” or “subtract” in order to differentiate your company from the competition.
We believe the most important areas where analytics can intersect with innovation is in understanding
Getting a deep understanding of the aforementioned topics can be achieved only via the use of advanced analytics.
The execution of creative ideas can take place only if we understand what is happening in the market, what is missing, and what would appeal to customers. Analytics creates a blueprint to innovation by providing the ...