Business Intelligence and Analytics: Improving Your Competency
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title=Data Mining and Statistical Analysis}
Level No. 3: Data mining and statistical analysis
This level
goes beyond simple queries and top-ten lists to explore relationships, trends
and patterns within data. Typically a manual exercise, this generally requires
a specialized resource that is both technical and business-focused, with
mastery of corporate data elements. Similar to a goldminer following a vein to
uncover additional ore, this hypothesis-based analysis improves insight and
answers questions such as, "Why are things happening?" Answers to questions
such as, "What if?" typically generate additional questions for deeper analysis
and insight.
Level No. 4: Analytical insight and
predictive modeling
In this
evolutionary stage, companies leverage advanced modeling software and
analytical tools to understand pertinent relationships among numerous data
sources and multiple variables across the business. Through the power of
complex computing and automation, companies are able to identify patterns,
trends, segments and clusters within the data to improve insight. Whereas the
human brain can process and visualize a two-axis XY chart or a three-axis,
multidimensional data view (imagine the three-dimensional chessboard on Star
Trek,
today's computers and advanced software can process data relationships across
hundreds of variables simultaneously.
This
process can also leverage modeling to predict future outcomes to enable you to
focus your resources more effectively. Some questions that are answered at this
stage include, "What customers are most likely to defect?" and "Which prospects
are most likely to respond to a certain offer?"
Level No. 5: Resource optimization
In this
phase, companies optimize resources based on their unique constraints and
parameters. This level answers questions such as, "What should we do now?" and "What
is the best outcome that can occur given our current available resources?" and
"How can we optimize staffing levels, inventories and service levels?" Nirvana!
Where is
your company with regard to the five levels of BI? Where is your competency in
this area? Is it tactical or strategic? Where are your resources located? Are
they centralized or decentralized? Is the capability shared across business
functions? Is there an established process to investigate new opportunities
with significant returns?
