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By Lisa Yoon
A new book from Harvard Business Press, called “Analytics at Work: Smarter Decisions, Better Results,” is all about putting analytics to work.
Many people think business books are largely fluff, old ideas repackaged in increasingly silly, gimmicky ways. In my job, I see a lot of business books where this is true. I once received a book that was a fictional tale of a guy trying to sell ice cream -- I think the topic of the book was quality, but I’m not sure how. The audience for business books is busy executives who don’t much time to read. So when they do read, it shouldn’t be a waste of time.
That’s one thing managers throughout organizations will appreciate about “Analytics at Work,” written by Thomas H. Davenport, Jeanne G. Harris and Robert Morison. CIOs should add it to their libraries if they care about demonstrating their value. It’s not just that they can act as ambassador to others in their organizations about using analytics as a tool -- sure, that’s what a dutiful CIO does. But even better, says co-author Morison, “is if CIOs could be ambassadors to the rest of the company for the smart use of information.” After all, he notes, “analytics is for every manager. It’s not just the province of IT.”
That’s especially true today, when so much of success rests on information. Managers with any vision know there could be all kinds of hidden potential and opportunities that, buried in data that people don’t how to use intelligently, are just sitting around doing nothing. In their perfect world, the authors envision all organizations adopted a mentality with analytics as the basis of strategy and competition.
What managers must understand is that analytics is not about technology. It’s using data and systematic reasoning to make decisions. That’s why, says Morison, the authors don’t recommend any specific technology for managing data. The point is the quality and adequacy of the data. First of all, is it accurate? Is it unique? Having information no one else has often results in the edge that puts a competitor ahead.
If analytics isn’t about the technology, it’s also not about information. There’s a difference between information and insight, as the book illustrates early on. Information tells you what happened; insight examines how and why it happened. Information is the skinny on what ‘s going on now; insight proposes what actions to take next based on the current situation.
Spelling out this distinction between information and insight gained from analysis of the information makes the case for all managers to understand and use analytics. Interestingly, it also shows CIOs what they should impress upon the IT department: that information (and the technology systems that deliver it) are of little use on their own. Information is a tool -- one of many -- that contributes to the organization’s ultimate goals. If IT staff found ways to incorporate analytical capabilities in their work in addition to building and maintaining systems, wouldn’t the IT function be perceived as more valuable?
The importance of analytics presents CIOs with a distinct opportunity to be leaders on a few levels, says Morison. There are at least four ways to exercise great leadership in this area:
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