From Intuition to Analytics

Picture it: a large competitor launches a product aimed squarely at your best seller, at an aggressive price. You don’t have the market insight to respond — or the analytic infrastructure to get it.

A world-class analytics capability doesn’t require millions of dollars in technology, software and people. Small firms can gain the same marketplace insight as larger rivals — and analytics can be even more transformative for smaller, more agile companies. The key is to be focused, efficient and make smart choices.

1. Be focused

Be clear about what drives your analytic priorities. Most fall into one of three areas:

2. Be efficient

Create a gating mechanism to evaluate analytic priorities — it shapes the eventual infrastructure and its cost. Focus on the highest-leverage initiatives, judged on:

• Customer impact
• Speed to implementation
• Short- and long-term business impact
• Level of investment required
• Access to analytic capabilities

3. Make smart choices

Start with customer- or company-driven projects that have short-term impact. Demonstrating ROI early builds momentum and support for continued investment. Longer-term capability building comes second because of its time and cost — not because it matters less. And senior management should set the priorities: it signals that an analytics-driven culture is taking hold.

Effective execution of the analytic plan is as, if not more, important as developing the right plan.

Execution: analytics that never stop

“Everyone has a plan until you get punched in the face,” as Mike Tyson put it. Analytics must be ongoing and regularly updated, not episodic — showing the pulse of the market and how the business will be affected when customers and competitors act.

The pandemic showed that smaller organizations must adapt quickly to changes in customers and competitors. A sound analytics infrastructure is what makes that possible.