Competing on Analytics: The New Science of Winning

Competing on Analytics The New Science of Winning by Thomas H. Davenport (based on 60 customer reviews)

(Hardcover)
Edition: 1
Author: Thomas H. Davenport
Publisher: Harvard Business School Press

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Most useful review as voted by customers:
91 out of 113 people found the following review helpful.
Review Date: 2/17/07

Becoming an analytic competitor

Tom and Jeanne have written an excellent new book (building on a paper they wrote some time ago) about what they call "analytic competitors", that is to say companies that use their analytic prowess not just to enhance their operations but as their lead competitive differentiator. The book discusses a number of these analytic competitors and gives an overview of how analytics can be used in different areas of the business and how you can move up the analytic sophistication scale.

The book has two parts - one on the nature of analytical competition and one on building an analytic competency. The first describes an analytical competitor and how this approach can be used in both internal and external processes. The second lays out a roadmap for becoming an analytical competitor, how to manage analytical people, a quick overview of a business intelligence architecture and some predictions for the future.

They define an analytical competitor as an organization that uses analytics extensively and systematically to outthink and outexecute the competition. The analytics are in support of a strategic distinctive competency and they argue, persuasively, that without a distinctive capability you cannot be an analytic competitor.

The book outlines what they call four pillars of analytical competition- a distinctiive capability, enterprise-wide analytics, senior management commitment and large scale ambition. They lay out 5 stages of analytic competition from "analytically impaired" to "analytic competitor". The importance of experimentation is made clear and the book repeatedly emphasizes the need for companies and executives to be willing to run the business "by the numbers".

The book is full of stories about how companies compete analytically and this is one of the book's strengths. It also has a great list of questions to ask about a new initiative and outlines a number of ways to get a competitive advantage from your data. Regardless of the competitive approach, the need for analytical executives to be willing to act on the results of analyses is made clear. The book ends with a great list of changes coming.

This is a very interesting book both for those interested in competing on analytics and those interested simply in making more use of their data.

85 out of 102 people found the following review helpful.
Review Date: 2/26/07

The way every company will compete over the next 5 years

Davenport and Harris have followed up their influential HBR article with a well thought out, clearly communicated and detailed analysis of how companies will really compete in the future -- by using what they know to take the right actions throughout their companies. Davenport and Harris call these types of companies analytical competitors and they look at the world differently and produce significantly different results.

Analytics is becoming a requirement in every industry as customers have choice and companies face increased competition. They define analytics as "the extensive use of data, statistical and quantitative analysis, explanatory and predictive models and fact based management to drive decision and actions" This may sound like an academic book. But Davenport and Harris go well beyond hyping a new idea to provide dozens of practical examples from companies we all know. This blend of explaining a new way of competition using practical examples from proven companies makes this book a must read for business people.

The book breaks down into chapters that discuss each aspect of becoming an analytical competitor.

Chpt 1: The Nature of Analytical Competition describes how companies can consistently beat the market by knowing more and doing more with what they know. This chapter ties analytics with competitive strategy in a way that goes well beyond traditional market-ese.

Chpt 2: What makes an Analytic Competitor provides a detailed description and checklist of attributes that these leading companies share. The interesting point is that the examples range across industries demonstrating that

Chpt 3: Analytics and Business Performance looks at how this technique drives top and bottom line growth. This chapter demonstrates that analytics is more than just a good idea it's a good idea that business professionals should get their heads around.

Chpt 4: Competing on Analytics with Internal Processes connects information with the capabilities that form the basis for competitive advantage. This chapter dispels the myth that analytics is purely a marketing tool for customer segmentation and messaging.

Chpt 5: Competing on Analytics with External Processes focused on how companies use information for partnering and collaboration with suppliers. This is particularly critical to companies as many outsource and create relatively `uninformed' partners.

Chpt 6: A Road Map to Enhanced Analytic Capabilities connects these benefits with specific stages and actions required to become an analytic competitor

Chpt 7: Managing Analytical People proves that Davenport and Harris have investigated, thought through and are providing practical advice as they address key leadership and management issues that arise when information becomes an integral part of operations.

Chpt 8: The Architecture of Business Intelligence clarifies a stumbling block for many who think of analytics as just something they can buy as part of their BI solution. Its not and understanding the architecture and difference is something that separates those who buy tools and those who compete with their capabilities.

Chpt 9: The future of Analytical Competition highlights future issues and how analytics will shape markets as people, devices and activities become smarter.

There are few books that you want to read from start to finish and fewer that you recommend to peers. This book is both. So read this to get ahead of the competition and stay there.

4 out of 5 people found the following review helpful.
Review Date: 4/20/07

A refreshing change

I enjoyed this book because it's about the upside of IT, rather than the boring, risk-reduction topics we've had since the end of the dot com days. The authors focus on the use of analytics for growth, competitive advantage, and better performance. That's a much more positive and interesting set of issues than Sarbanes-Oxley compliance, preventing security problems, Y2K, etc. Nick Carr, eat your heart out!

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