Paper Example on Anatomy of Analytics Competitor

Introduction

Over the past decades, business intelligence was widely applicable in many organizations. It created a revolution in the business world building a stable competitive business environment for large companies. However, in recent years, companies have realized that it takes more than just business intelligence due to the ever-changing competitive environment. Business analytics now caters for the gap created by the disruptive business environment. In the article by Thomas Davenport on competing on Analytics, the author looks at large organizations that have utilized competing for analytics to understand the value that the customer needs.

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In the present time, companies around the world have focused on the use of analytics to understand the competitive power in the market and the areas which the market needs more focus. In business analytics, it is necessary to build a winning team by hiring the best people (Davenport). Although business analytics works well in most organizations, some of them will find it hard to succeed due to their nature of business or characteristics. One of the characteristics seen in analytics in the present-day companies is the use of modeling and optimization.

Advantages That Can Be Attained Through Modeling and Optimization

In analytics, companies go beyond the use of normal statistical information to a focus on data insights that can help in optimizing supply chain, real-time pricing, predictive modeling that helps identify the most profitable customer among others (Chiang, Goes, and Stohr 12). Competition in the market presents companies with a problem of determining the best ways in which they can be the best. However, in this case, businesses can stay ahead of the competition by identifying their strengths and weaknesses. Modeling and optimization help in providing detailed analytics on areas of strength and weakness within a business. Other advantages that can be attained through modeling and optimization include:

Improved Efficiency

Modeling and optimization help in improving efficiency in many ways. First, understanding the areas of strength and weakness can help in optimizing output and reducing wastages (Chiang, Goes, and Stohr 60). Most importantly, systems can be improved to be very efficient and thus meet increased productivity in the long run. In analytics, optimization and modeling therefore push or improved business performance and further improved output in the long run.

Gaining Sales and Market Intelligence

Modeling and optimization in another instance help in increasing sales and market intelligence. A company that utilizes analytics can gain sales since they will be able to understand what the market needs. Understanding the do's and the don'ts in the market is one of the most important aspects when it comes to sales optimization.

Competitive Intelligence Gain

Understanding the competitive environment can be made possible through analytics. One can gain insight into the activities of the competitors. Such information can be used as a resource to the company and help in decision making. For example, understanding the competitors' strength and weaknesses will help an organization build their company better by utilizing such information (Chiang, Goes, and Stohr 55).

Conclusion

In conclusion, competitive analytics is an essential factor that every company is looking to gain a larger market share should consider. Companies within the market that make use of analytics end up being successful. Some of them are Amazon and CapitalOne (Davenport). It is thus critical for every organization to look at their employees to understand if they have a team that can help in building a competitive advantage through the use of analytics within the market.

Work Cited

Chiang, Roger HL, Paulo Goes, and Edward A. Stohr. "Business Intelligence and Analytics Education, and Program Development: A Unique Opportunity for the Information Systems Discipline." ACM Transactions on Management Information Systems (TMIS) 3.3 (2012): 12.

Davenport, Thomas. "Competing On Analytics". Harvard Business Review, 2006, https://hbr.org/2006/01/competing-on-analytics. Accessed 8 Nov 2018.