Contents
Enterprise Analytics: Optimize Performance, Process, and Decisions Through Big Data
Introduction: The New World of Enterprise Analytics
Part I Overview of Analytics and Their Value
Chapter 1 What Do We Talk About When We Talk About Analytics?
Why We Needed a New Term: Issues with Traditional Business Intelligence
Where Does Data Mining Fit In?
Business Analytics Versus Other Types
Chapter 2 The Return on Investments in Analytics
The Teradata Method for Evaluating Analytics Investments
An Example of Calculating the Value
Analytics ROI at Freescale Semiconductor
Part II Application of Analytics
Chapter 3 Leveraging Proprietary Data for Analytical Advantage
Issues with Managing Proprietary Data and Analytics
Lessons Learned from Payments Data
Chapter 4 Analytics on Web Data: The Original Big Data
Chapter 5 The Analytics of Online Engagement
A Model to Measure Online Engagement
The Value of Engagement Scores
Engagement Analytics at Philly.com
Chapter 6 The Path to “Next Best Offers” for Retail Customers
Analytics and the Path to Effective Next Best Offers
Analytics and Execution: Deciding on and Making the Offer
Learning from and Adapting NBOs
Part III Technologies for Analytics
Chapter 7 Applying Analytics at Production Scale
Business Decisions in Operation
Example of Analytics at Production Scale: YouSee
Lessons Learned from Other Successful Companies
Chapter 8 Predictive Analytics in the Cloud
Adopting Cloud-Based Predictive Analytics
Chapter 9 Analytical Technology and the Business User
Problems with the Current Model
Changes Emerging in Analytical Technology
Creating the Analytical Apps of the Future
Chapter 10 Linking Decisions and Analytics for Organizational Performance
A Study of Decisions and Analytics
Linking Decisions and Analytics
A Process for Connecting Decisions and Information
Looking Ahead in Decision Management
Part IV The Human Side of Analytics
Chapter 11 Organizing Analysts
General Goals of Organizational Structure
Goals of a Particular Analytics Organization
Basic Models for Organizing Analysts
What Model Fits Your Business?
Triangulating on Your Model and Coordination Mechanisms
Analytical Leadership and the Chief Analytics Officer
To Where Should Analytical Functions Report?
Building an Analytical Ecosystem
Developing the Analytical Organization Over Time
Chapter 12 Engaging Analytical Talent
Four Breeds of Analytical Talent
Arm Analysts with Critical Information About the Business
Feed Analysts’ Love of New Techniques, Tools, and Technologies
Employ More Centralized Analytical Organization Structures
Chapter 13 Governance for Analytics
You Know You’re Succeeding When...
Chapter 14 Building a Global Analytical Capability
Widespread Geographic Variation
Central Coordination, Centralized Organization
A Coordinated “Division of Labor” Approach
Part V Case Studies in the Use of Analytics
Chapter 15 Partners HealthCare System
Centralized Data and Systems at Partners
Managing Clinical Informatics and Knowledge at Partners
High-Performance Medicine at Partners
New Analytical Challenges for Partners
Centralized Business Analytics at Partners
Hospital-Specific Analytical Activities: Massachusetts General Hospital
Hospital-Specific Analytical Activities: Brigham & Women’s Hospital
Chapter 16 Analytics in the HR Function at Sears Holdings Corporation
Chapter 17 Commercial Analytics Culture and Relationships at Merck
Reasons for the Group’s Success
Future Directions for Commercial Analytics and Decision Sciences
Chapter 18 Descriptive Analytics for the Supply Chain at Bernard Chaus, Inc.
The Need for Supply Chain Visibility
Analytics Strengthened Alignment Between Chaus’s IT and Business Units
Analysis Without Paralysis: 12 Tools to Make Better Strategic Decisions
Chapter 1 The Role of Analysis in Business Management
The Increasing Need for Effective Analysis
Chapter 2 The Analysis Process
Chapter 3 BCG Growth/Share Portfolio Matrix
Link to the Product Life Cycle
Combining the Experience Curve and Product Life Cycle
Case Study: Google as Viewed in a BCG Portfolio Planning Matrix
Case Study: Chinese Mobile Phone Market
Chapter 5 Driving Forces Analysis
Case Study: Driving Forces in the Digital Music Market
Chapter 6 Financial Ratios and Statement Analysis
Basic Concepts Underlying Financial Ratio and Statement Analysis (FRSA)
Components of Financial Statements
Assessing the Appropriateness of Ratios
Leverage or Solvency Analysis Ratios
Other Analysis Ratios: Capital Market or Shareholder Returns
Methods of Ratio or Measure Comparison
Consolidation and Segmented Analysis
Case Study: FRSA of the Three Large North American Warehouse Clubs
Chapter 7 Five Forces Industry Analysis
Threat of Substitute Products or Services
Degree of Rivalry Among Existing Players
Case Study: Applying the Five Forces Model to the U.S. Passenger Airline Industry
Case Study: Applying the Five Forces Model to the Global Pharmaceutical Industry
Examples of Issue Analysis in Practice
Chapter 9 Product Life Cycle Analysis
Case Study: Apple’s Product Life Cycles and Growth Potential from the iPod to the iPad
Methods for Generating Scenarios
Case Study: Scenarios for Traditional and Emerging Forest Products Enterprises
Chapter 11 Macroenvironmental (STEEP/PEST) Analysis
Case Study: STEEP Analysis of the Life and Death of Brands
Case Study: Lockheed Martin Corporation
Chapter 13 Value Chain Analysis
Case Study: Value Chain Analysis of Walmart Stores
Win/Loss Case Study: Email Marketing Solutions
Business and Competitive Analysis: Effective Application of New and Classic Methods
1 Business and Competitive Analysis: Definition, Context, and Benefits
Analysis as a Component in the Intelligence Cycle
Competitive Analysis and Decision Making
The Competitive Context Facing Contemporary Enterprises
Contemporary Context Facing the Analyst
Shifting Organizational Priorities for Analysts and Analysis
2 Performing the Analysis Process
Understanding the Customers of Analysis
Identifying the Scope of the Analysis
Intelligence Analysis at Differing Organizational Levels
Strategic Intelligence Analysis (SIA)
Tactical Intelligence Analysis (TIA)
Operational Intelligence Analysis (OIA)
Evaluating the Inputs to Analysis
Infrastructure to Support the Analysis Process
Limitations of Intelligence Solutions
Proactivity, Efficiency, and Perpetual Learning
Fleisher and Bensoussan's 10 Commandments for Business and Competitive Analysis
Four-Level Hierarchical Model of Analysis Failures
Individual Analyst-Level Failures
Internal Organizational-Level Failures
External Environment-Level Failures
Overcoming the Barriers and Improving Analysis Performance
Value the Link Between Analysis and Success
Develop Recognized Analysis Training
Measure Performance Appropriately
Position the Analyst Correctly
4 Communicating Analysis Results
The Art of Effective Communication
Packaging the Results of Your Analysis
Presentations in Meetings, Seminars, and Workshops
Exercises and Planning Sessions
Common Products and Reports Used by Analysts
News Bulletins and Newsletters
Special Intelligence Summaries
Communication Difficulties Faced by Analysts
Effective Listening and Answering the Questions of Decision Makers
Conduct Communication Follow-Up and Gather Feedback
An Evaluation Scheme for Assessing the Adequacy of Tools and Techniques: FAROUT
Using the FAROUT Rating System
6 Industry Analysis (The Nine Forces)
Operating Environment/Industry Analysis
Strategic Rationale and Implications
Process for Applying the Technique
Case Study: Rating the Nine Forces Model in the Australian Airline Industry
Bargaining Power of Buyers-Weighting 6
Bargaining Power of Suppliers-Weighting 6
7 Competitive Positioning Analysis
Strategic Rationale and Implications
Develop and Build on the Firm's Position
Maintain and Hold the Firm's Strong Market Position
Process for Applying the Technique
Identify Current Strategy and Market/Product/Project Parameters
Review Results and Formulate Positioning Strategy
Case Study: Financial Services
Strategic Rationale and Implications
Classification of Business Models
Integration of Value Delivery Mechanism
Disruption from Outside the Industry
Process for Applying the Technique
Step 1: Articulate the Value Proposition
Step 2: Specify the Target Segment
Step 4: Evaluate the Value Chain and the Cost Model
Step 5: Evaluate the Value Network
Step 6: Determine the Revenue Model for the Firm
Step 7: Determine the Critical Success Factors for the Industry
Step 8: Complete an Analysis Grid Detailing Each Element of the Business Model
Case Study: Dell Computer and the Printer Market
Process for Applying the Technique
Step 1: Evaluate the Current Performance of the Firm
Step 2: Assess the Current Strategy and Discern Whether Change Is Necessary
Step 3: Develop and Evaluate Strategic Options and Programs
10 Supply Chain Management (SCM) Analysis
Process for Applying the Technique
Case Study: ATale of Two Supply Chains: Best Buy vs. Sears/Kmart
Strategic Rationale and Implications
Powerful Competitive Analysis Tool
Objective Stretch Goal Setting and Performance Measurement
Improves Cost Efficiencies and Quality
Not Reinventing the Wheel but Redesigning It
Requirement for Other Certifications
Creates an Innovative Culture Open to New Ideas
What Works Well in One Organization Might Not Work in Another
Benchmarking Is Resource Intensive
No Firm Does Everything the Best
Low-Performing Firms Have a Disadvantage
Some High-Performing Companies May Not Be Willing to Share Information
Process for Applying the Technique
Step 1: Identify the Processes That Need to Be Benchmarked
Step 2: Identify Performance Measures
Step 3: Evaluate Your Own Firm's Capabilities
Step 4: Identify Firms to Be Benchmarked
Step 5: Conduct Research of Selected Firms
Step 6: Analyze the Collected Data and Develop an Action Plan
Case Study: Delivery of Packages by Federal Express
Step 1: Identify the Process That Needs to Be Benchmarked
Step 2: Identify Performance Measures
Step 3: Evaluate Own Firm's Capabilities
Step 4: Identify Firms to Be Benchmarked
Step 5: Conduct Research from Selected Firms
Step 6: Analyze the Collected Data and Develop an Action Plan
Process for Applying the Technique
Case Study: Privatization of Kenya Airways in the New Millennium
Strategic Rationale and Implications
Process for Applying the Technique
Developing a Shadow Market Plan
Case Study: Illuminating Strategy by Shadowing
Case 2-Packaged-Food Multinational
Process for Applying the Technique
Step 2: Assess the Product Relative to Its Position in the Product Life Cycle
Case Study: eBay, Inc. in 2004
Strategic Rationale and Implications
Process for Applying the Technique
Step 1: Determine the Target Segments and Identify Prospects
Step 2: Understand Internal Cultural Issues
Step 3: Develop the Questionnaire
Step 4: Preparation for the Interviews
Step 6: Analysis and Interpretation
Case Study: Microsoft Business Solutions
16 Strategic Relationship Analysis
Two Key Strategic Relationship Processes
Process for Applying the Technique
1. Studying Your Own Firm's Relationship Formation Readiness
2. Studying a Rival's Relationships
17 Corporate Reputation Analysis
Strategic Rationale and Implications
Process for Applying the Technique
18 Critical Success Factors Analysis
Strategic Rationale and Implications
Process for Applying the Technique
Leidecker and Bruno's Identification Techniques
Determining Critical Success Factor Importance
Process for Applying the Technique
Case Study: Zyboldt Metals (ZMC) Expansion into Eastern Europe
Process for Applying the Technique
Step 1: Identifying an Industry's DFs
Step 2: Assessing the Impact of the DFs
Case Study: The Digital Music Industry
21 Event and Timeline Analysis
Strategic Rationale and Implications
Process for Applying the Technique
Plot the Target Firm's History of Key Events on a Line
Develop a Chronological Table of Events
Event and Causal Factors Analysis
Timelines in Competitive Analysis
Strategic Rationale and Implications
Process for Applying the Technique
1. Delphi Technique-Expert Opinion
Case Study: Bell Canada and the Delphi Process
Strategic Rationale and Implications
Process for Applying the Technique
Step 1: Is a War Game the Way to Go?
Step 2: Getting a Business War Game Off the Ground
Step 4: Preparing for Your War Game
24 Indications and Warning Analysis
Strategic Rationale and Implications
Process for Applying the Technique
Step 1: Establish the Set of Indicators
Step 2: Establish Meaning Behind Indicators
Step 4: Determine and Recommend Appropriate Firm Responses to the Warning
Strategic Rationale and Implications
Process for Applying the Technique
Step 1-Develop a General Proposition
Step 2-Collect Primary Information
Step 3-Collect Secondary Information
Step 4-Select the Best Sources for the Third Draft
Case Study-Australian Menswear Retailer
26 Interpretation of Statistical Analysis
Strategic Rationale and Implications
Process for Applying the Technique
Normal Distribution and Bell Curve
Summarizing Data with One Value-Central Tendency
27 Competitor Cash Flow Analysis
Strategic Rationale and Implications
Processes for Applying This Technique
Tip Sheet on Cash Flow Analysis
Historic Cash Flow Analysis: Burns Philp
Future Cash Flow Analysis: Power Brewing
28 Analysis of Competing Hypotheses
Strategic Rationale and Implications
Process for Applying the Technique
Step 1: Identify the Possible Hypotheses to Be Considered
Step 2: List the Significant Evidence in Support of and Against Each Hypothesis
Step 3: Prepare a Matrix with Hypotheses Across the Top and Evidence Down the Side
Step 6: Analyze How Sensitive Your Conclusion Is to a Few Critical Pieces of Evidence
Strategic Rationale and Implications
Process for Applying the Technique
Linchpin Assumption Sensitivity Analysis