The value of business analytics : identifying the path to profitability

338 Pages·2011·3.62 MB·English

by  Stubbs

The Value
of Business
Analytics
Wiley & S AS Business Series
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The Value
of Business
Analytics
Identifying the Path
to Profi tability
Evan Stubbs
John Wiley & Sons, Inc.
Copyright © 2011 by SAS Institute Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Stubbs, Evan.
The value of business analytics: identifying the path to profi tability / Evan Stubbs.
p. cm.
ISBN 978-1-118-01239-0 (hardback); ISBN 978-1-118-09338-2 (ebk);
ISBN 978-1-118-09340-5 (ebk); ISBN 978-1-118-09341-2 (ebk)
1. Business planning. 2. Strategic planning. 3. Decision making. 4. Industrial
management–Statistical methods. I. Title.
HD30.28.S787 2011
658.4’01–dc22
2011012037
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
Contents
Preface ix
Acknowledgments xiii
Chapter 1 Introduction and Background ........................................ 1
The Power of Information 1
Modern-Day Magicians 3
The Secret of Success 5
Notes 7
Chapter 2 The Importance of Business Analytics .......................... 9
Introduction 9
Business Analytics: A Defi nition 10
Role of the Organization 13
Reasons behind Strategic Planning 17
Business Analytics and the Traditional View 25
Business Analytics and the External View 28
Business Analytics and the Internal View 35
Business Analytics and the Customer View 39
Fostering Innovation and Invention 44
Delivering Value through Renewable Return 46
Summary 51
Note 51
Chapter 3 The Challenges of Tactical Delivery ............................. 53
Introduction 53
Core Vocabulary 54
Common Team Structures 66
Roles and Responsibilities 68
v
vi ▸ CONTENTS
Challenges of Applying Business Analytics 83
Finding the Path to Profi tability 85
Selling the Value of Analytics 86
Meeting and Overcoming These Challenges 90
The Four-Step Framework 97
Note 97
Chapter 4 Defi ning the Value of Business Analytics .................... 99
Introduction 99
Why You Need to Defi ne the Value 100
Different Types of Value 103
Role of the Business Case 108
Identifying Tangible Value 115
Identifying Intangible Value 131
Simulating Business Cases 134
Practical Example: Reducing Churn in Telecommunications 140
Summary 143
Chapter 5 Communicating the Value Proposition ..................... 147
Introduction 147
Why You Need to Plan Your Communication Strategy 148
Need for a Communication Strategy 154
Awareness and Information Relevancy 158
Organizational and Societal Cultural Considerations 163
Conceptual Relevancy 172
The Path to Persuasion 178
Practical Example: A Forecasting Model for Planning 182
Summary 185
Note 187
Chapter 6 Creating the Execution Plan and Delivering Value ... 189
Introduction 189
Why You Need an Execution Plan 190
Role of the Execution Plan 194
Establishing Direction 195
Delivering to the Plan 215
Dealing with Resource Constraints 216
Planning for Success 220
Practical Example: Social Network Analysis 229
Summary 231
CONTENTS ◂ vii
Chapter 7 Delivering the Measurement Framework ................. 235
Introduction 235
Why a Measurement Framework Is Essential 236
Role of the Measurement Framework 241
Measuring What Is Important 247
Establishing a Measurement Framework 260
Delivering the Measurement Framework 263
Advanced Measurement Concepts 268
Practical Example: The Ongoing Growth of an Analytics
Team 278
Summary 281
Chapter 8 Bringing It All Together .............................................. 285
Introduction 285
Sarah’s Challenges 286
The Light-Bulb Moment 288
Transforming the Organization 292
Summary 296
Glossary 299
About the Author 317
Index 319