The widening divide

How companies are achieving
competitive advantage through analytics

In this second joint study from MIT Sloan Management Review and the IBM Institute for Business Value, we see a growing divide between those companies that, on one side, see the value of business analytics and are transforming themselves to take advantage of these newfound opportunities, and those, on the other, that have yet to embrace them.

Our initial joint study in 2010 identified three progressive levels of analytical sophistication: Aspirational, Experienced and Transformed. The 2011 New Intelligent Enterprise Global Executive Study and Research Project uses insights gathered from more than 4,500 managers and executives. Now we ask: how are Aspirational, Experienced and Transformed organizations using analytics, and what were they able to achieve competitively?

Year-to-year comparisons of these groups reveal that Experienced and Transformed organizations are expanding their capabilities and raising their expectations of what analytics can do, while the Aspirational organizations are falling behind. This growing gap has major implications for businesses seeking to make the best possible decisions based on a flood of potential insight arising from the interconnected world.

Based on our experience with a broad spectrum of organizations in multiple industries, we see that three key competencies enable organizations to build competitive advantage using analytics: (1) information management, (2) analytics skills and tools, and (3) data-oriented culture.

Taking advantage of new business models and new data, unexpected competitors are emerging and familiar customers are demanding unprecedented attention. Disruptions like these create a widening set of opportunities for players at every level. With a full range of analytics capabilities governed by an integrated analytics strategy, organizations can be better positioned to widen or narrow the distance between themselves and competitors to their own best advantage.

Download the complete IBM Institute for Business Value study

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