Win with Advanced Business Analytics: Creating Business Value from Your Data

ACTIONS SPEAK LOUDER THAN DATA

Data should not be a substitute for business decision making, but rather a torch to help illuminate which business actions are likely best. Unfortunately, all too often, nonanalytical business leaders and analysts think the analysis is the action, and analytical work can sometimes end with the presentation of the data. Strong companies know that the work is just beginning when the analysis is done.

As the fourth stage of the IMPACT cycle, we advocate putting forth “Actionable” recommended business initiatives stemming from the analytical work. In other words, your analysts should take a stab at answering the critical business questions based on their analysis of the data for the nonanalytical business partner. For example, they should give some clear and direct answers/options to questions such as

• What should we do to improve the e-mail conversion of small business prospects?
• Where should the new call center be located?
• How can the company increase average order size?
• How should we segment our customers?
• What is the sales model that maximizes profitability at the lowest cost-of-sale?

For many analysts, this is an uncomfortable exercise. Their critical thinking skills turn inward to doubt, and they wonder things such as

• How could they possibly know enough to make a solid recommendation for action?
• How could they know enough about the business function (such as marketing, product, sales) to give a recommendation that makes sense?
• They don’t know ...