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Wednesday, June 06, 2018

Examples of Successful Scaling of Analytics

Ultimately we did this in another era, now the tools and computing are different.   Scaling is the most important thing.  Scaling means both size and connecting to new contexts.  And now scaling also means embedding in systems, human and otherwise.  From after-the-fact and augmented experimentation, to real time. Analytics also now includes much more than just statistical analysis, consider the integration of real-time assistance.    Real time sensory analysis in an internet of things.

Breaking away: The secrets to scaling analytics
By Peter Bisson, Bryce Hall, Brian McCarthy, and Khaled Rifai  by Mckinsey

A handful of the world’s companies have cracked the code on embedding analytics into every layer of their organizations.

The time for simple experimentation with analytics is over—and most companies know it. Across industries, we see organizations investing heavily to integrate analytics throughout their entire business in an effort to capture a portion of the $9.5 trillion to $15.4 trillion of value that the McKinsey Global Institute estimates advanced analytics can enable across industries globally.

Despite this investment, senior executives tell us that their companies are struggling to capture real value. The reason: while they’re eking out small gains from a few use cases, they’re failing to embed analytics into all areas of the organization.

However, in a recent McKinsey Analytics survey of 1,000 companies with more than $1 billion in revenue and spanning 13 sectors and 12 geographies, we identified an elite group of companies that is achieving the elusive goal of analytics at scale.

What does analytics at scale look like? One major US retailer responded to fast-changing consumer behaviors and fierce online competition by reshaping its entire business around analytics. A state-of-the-art analytics capability would span all eight of its business units, all six of its major operational functions, and all 60 million of its customers.

The results have been impressive. The new capability aggregates all customer interactions and extensive customer information across brands and channels, enabling the company’s analytics teams to target offers to customers at a microsegment level. And the impact truly spans the organization. In marketing, for example, the company can deliver personalized content through its website, emails, and digital ads. In strategic planning, the capability pinpoints neighborhoods where people make the most online and catalog purchases in order to identify the most promising future store locations. ... " 

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