Slideshow 6 Tips for Governing Analytics

Published
  • January 19 2012, 8:38am EST

1. Identify Key Targets and Metrics

The focus here is on identifying the strategic business issues that can benefit from predictive analytics. Ask questions such as: How should you be optimizing your supply chain? How should you be forecasting your financial numbers? How can you become more focused on customer acquisition and retention? And what are the metrics that say you're actually doing a good job in those areas?

2. Generate Insights

This is where the software automation used helps generate a forecasting capability, an optimization engine, a predictive model or pattern recognition. Often, with this automation in place, you start to recognize problems with customer service and turnover.

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3. Validate Insights

Just as important as generating insights, validation enables the creation of programs to better business outcomes. During this phase, you should be able to answer questions surrounding data quality, sources and selection.

4. Plan and Execute Decisions

Here is where market differentiation occurs. With proper planning, you can take active steps toward managing – and acting on – whatever insights come up.

5. Realize Value

If you've identified customers that are likely to purchase from you a second time, for example, you can now target these individuals and make sure you're actually achieving some lifts in your sales figures based on this targeted activity.

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6. Monitor Performance

You must be able to track over time how well you're doing as compared to your original baselines. So not only do you have to achieve value, but you have to ensure that it's occurring in an ongoing way. Being able to monitor information on a weekly, monthly and quarterly basis becomes a huge part of ensuring the value of the analytics and how it’s changing the organization's bottom line.

Six Tips for Governing Analytics

For a full article detailing these tips and methods from author Greg Todd, click here. All images were used with permission from ThinkStock.