Editor's Note: Take a look at our featured best practice, Pathways to Data Monetization (27-slide PowerPoint presentation). We are living in the Age of Data. Every company operating today is essentially a data company. However, only 1 inf 12 are monetizing data to its full extent.
For organizations to achieve Data Monetization, there are 2 pathways they can take--one with an internal focus and the other with an [read more]
Also, if you are interested in becoming an expert on Digital Transformation, take a look at Flevy's Digital Transformation Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
* * * *
In order to contest and survive in this competitive business environment, organizations need to work towards developing a Differential Advantage that others cannot imitate.
Organizations, generally, draw Differential Advantage from price reduction, proprietary intellectual property, key talent, or visionary leadership. However, in this age of disruption and knowledge economy, a shared capability to reach evidence-based, rational choices and decisions is required to create and maintain a sustainable Competitive Advantage.
Creating an Intelligent Enterprise, able to make smart decisions, depends on 2 key factors.
The increasing power of computers and Big Data, which enables operations research, forecasting models, and Artificial Intelligence (AI).
The growing comprehension of human judgment, reasoning, and decision making. Years of research has revealed a wealth of information about what humans do well and where they lack.
To be an Intelligent Enterprise, executives need to have a sound understanding of human decision making and evolving technological capabilities to produce superior judgments. Management needs to develop strong capabilities in combining the 2 key factors—human intelligence with data and technology—to make informed choices.
Incorporation of computing capability (hard side) with human judgment (soft side) isn’t simple—but once done properly this can be a game changer for an organization. A number of organizations are already developing smart Decision Making and superior judgmental capabilities by utilizing Big Data and Predictive Analytics. Intelligent Enterprises leverage 5 strategic opportunities to outsmart their competition:
Let’s now discuss the strategic opportunities in detail.
Be Strategic
The 1st opportunity entails doing a thorough analysis into previous organizational forecasting models and pinpoint areas where improving subjective predictions can make a positive impact and pay the highest dividends. This analysis into the forecasting models assists in prioritizing the problems to be tackled. Ideally, the top problems to solve should be where hard data and soft decision-making skills can be effectively integrated.
Management is often unaware of the faults of the guesses their analysts make. Leadership should be asked to provide a detailed defense of their opinions and review the results of their choices and fundamental assumptions. The key is to avoid psychological biases and unjustified assumptions.
Conduct Prediction Tournaments
The 2nd strategic opportunity demands identifying the ideal forecasting methods by encouraging competition, Experimentation, and Innovation among teams. To create superior forecasts, leadership may use Prediction Tournaments to discover the teams and methodologies that produce the soundest decisions. Prediction tournaments encourage teams to assess the probabilities likely to happen and evaluate the predictions that proved correct afterwards. The organizers of Prediction Tournaments come up with relevant questions and draw participants to provide answers. Teams are urged to ignore biases and conduct Experimentation to boost the accuracy of their forecasts.
Empirical research and years of trial and error in Data Mining and Analysis indicate 4 factors to be critical in developing and improving the forecasting skill in teams:
Ascertaining the characteristics of reliably superior forecasters.
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
Every passing day leads to creation of enormous amounts of data by organizations across the globe. These huge data lakes often go unused, as not many organization undertaken detailed analysis of this data to assist in informed decision making.
Multiple data types generated by discrete systems [read more]
Want to Achieve Excellence in Digital Transformation?
Gain the knowledge and develop the expertise to become an expert in Digital Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.
For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.).
Data Monetization is the effective use of data to achieve positive and measurable impact on business revenue. In McKinsey’s Global Survey on Data and Analytics, it was found that 70% of executives reported that Data and Analytics have made changes in our industries’ competitive [read more]
In the Digital Age, how customers interact with brands has become nonlinear due to the proliferation of touch points across channels, platforms, and content formats. Customers now curate most of their brand experiences.
Omnichannel Marketing allows brand manufacturers and retailers a holistic [read more]
Driven by the pervasive adoption of Big Data and Analytics, as well as the trending focus on fostering Learning Cultures, many organizations now are eager to determine how much their data assets are worth. Data Valuation, moreover, plays a key role in evaluating M&A deals, bankruptcy filings, and [read more]
The Data & Analytics Governance includes a set of best-practice templates, step-by-step workplans, and maturity diagnostics for for any Data & Analytics Governance related project. Please note the above partial preview is ONLY of the Self Assessment Excel Dashboard, referenced in steps 1 and 2 [read more]
