Advanced Analytics Essay

705 Words3 Pages
The term “advanced analytics” is being over used by the business intelligence (BI) vendors. The marketing literature seems to read like, “Solve all your big hairy business problems; buy advanced analytics from us!” In an article by Colin White and Claudia Imhoff, they called this “term abuse” and set some parameters on its proper usage. An important insight was that it is “more important to focus on the business benefits offer by a technology” rather than focusing on the technology itself. That got me to think about how one would properly define this term without referencing the enabling technology. Here is a suggestion… Definition for Analytics An analytic is defined as data analysis that changes the behavior of the organization. Thus, the value of an analytic is the degree to which it improves the performance of the organization. An analytic is actionable, and its value is realization of the potential of those actions. There could be analytics that have no effect on performance or even have negative effect. For instance, an analytic could distract persons from focusing on more relevant factors. Using this definition, we can debate about analytics that have zero or negative impacts, regardless of the sophistication of the enabling technology. Further, a valuable analytic (upon which a company would appropriately spend funds and effort) is an analysis that does change business behavior and where this change increases performance, according to some relevant metric. We could then ask the following question: If the analytic was turned off, would this interruption make a difference in business processes? And, would this interruption affect business performance? The ultimate in a valuable analytic would be the case where a business would be forced to cease operations if the analytic was not available. Colin White commented privately that it is important to

More about Advanced Analytics Essay

Open Document