“Big Data”: Competing through data [McKinsey Quarterly]
Wednesday, 12 October, 2011 Leave a comment
The data advantage
Most great revolutions in science are preceded by revolutions in measurement. We have had a revolution in measurement, over the past few years, that has allowed businesses to understand in much more detail what their customers are doing, what their processes are doing, what their employees are doing. That tremendous improvement in measurement is creating new opportunities to manage things differently.
Our research has found a shift from using intuition toward using data and analytics in making decisions. This change has been accompanied by measurable improvement in productivity and other performance measures. Specifically, a one-standard-deviation increase toward data and analytics was correlated with about a 5 to 6 percent improvement in productivity and a slightly larger increase in profitability in those same firms. The implication for companies is that by changing the way they make decisions, they’re likely to be able to outperform competitors…
Great, that all seems to make sense…BUT, what you do next is even more important. Check this out: