Disciplined analytical processes essential for high performing companies

By Kim Ke-hong

High-performing companies make analysis an integral part of their everyday business processes ― the methods by which work is done and value is created. In a recent Accenture survey, less than one in five respondents reported that their company uses a repeatable analytical approach. Developing a repeatable decision making process that leverages data and analytical methods thus should be a high priority for most companies.

It’s important to consider and include all the functions or stakeholders that need to be involved in order to mitigate risks and make the greatest positive impact. For instance, if a retailer sees an opportunity around an ad promotion for a “smart” kitchen appliance, the retailer will want to consider whether it has enough components in place on the shelf; enough sales people trained in this relatively complex product and staffed at the right stores at the right times; and enough service staff trained to handle customers’ follow-up questions. Without the active participation of people to run such functions, the retailer risks not just limiting sales but also damaging its brand.

Keep in mind that the power of analytics derives from making connections ― organizing patterns in customer demand or business activities, isolating the drivers of performance, and anticipating the effects of decisions. To make connections, you have to look beyond the immediate task and appreciate what happens upstream and downstream. Consider the challenge of improving returns on advertising expenditures. The solution will be most compelling when spending can be optimized across different channels, geographies and a full range of products.

Kim Ke-hong is a senior manager at Accenture Management Consulting.