the analytics edge

I came across the first of a two-part article by Ned Madden today that does a great job of exposing the range of opinions about analytics and what it means to different organizations.

I particularly liked the IDC quote defining business analytics software as “solutions used to access, transform, store, analyze, model, deliver and track information to enable fact-based decision-making.” That sums up the general feelings people would associate with the words ‘business analytics’ when not encumbered by dictionary definitions. And it is that emotional attachment to the words that will elicit investments by senior managers. I have to note that the definition could have been written in 1985 and is the fundamental reason behind virtually all business investments in computer technology.

Managers want more information to better run their business, and the role of computers in maintaining and understanding daily operations continues to grow. The speeds and feeds have been producing lots of reports with even more numbers, yet managers are increasingly challenged to find the time to look at them. BI and application vendors know that most of the reports in their systems are never looked at. IT organizations know that a change in management or disappointing quarterly results means a spike in new report requests.

You can see the dynamics in the market — there is a pent-up demand for something new that will make people’s lives better. Mr. Madden has captured some of the excitement building in the industry –terms like custom fit and competitive edge are headlines, and there are lots of niches for vendors developing. I look forward to seeing part II of the Breakthrough in Analytics.