Advances in Business Analytics Helping Companies Make Better Strategic Decisions

NEW PROVIDENCE, N.J., June 24, 2003 -- Advances in sophisticated business analytics are breathing new life into companies' ability to make better strategic decisions, says the managing principal and founder of Inductis, the strategy consulting firm.

"For years we've been hearing about the information revolution," says Sandeep Tyagi of Inductis. "Now it's finally here. In fact, most companies are drowning in data."

The problem is knowing how to make the most of that information, he says. Writing in the May/June issue of the Journal of Business Strategy, Tyagi says that aggregating large of amounts of data from diverse sources and harnessing it has never been harder.

"Companies have more sources of data than ever, both internally and from external providers. They have many different kinds of relationships with customers that produce even more detailed data. They also have legacy databases and data warehouses bursting with information," says Tyagi. "The challenge is to make all that data 'talk' to support the kind of pinpoint decisions today's strategists must make," says Tyagi.

With today's leaner margins and faster business cycles, there is far less room for error, he says. "Whether the decision is about stocking a certain product, phasing out a service, pursuing a certain type of customer, or any one of a hundred other strategic choices, the wrong decision can be disastrous," he says.

But if harnessing information has never been harder, the potential rewards have never been greater. The article, "Using Data Analytics for Greater Profits," cites numerous examples. A hotel and casino company has used business analytics to increase its revenue by $100 million. Pharmaceutical researchers use analytics to determine whether a molecular structure from a database of as many as a million molecular structures acts against a specific disease. A global services company increased revenues in one of its business lines by 8%, reversing an annual decline of 4%.

"In helping companies across a broad spectrum of industries put business analytics to work, we have developed some guiding principles that help ensure success," says Tyagi.

Clarity of purpose must be maintained throughout an analytics project, he writes, or the amount of information can simply overwhelm it. Executives must also remain unbiased, leaving aside their individual priorities. A well-designed pilot project should be used to demonstrate that the proposed analytics will have a measurable business impact. Executing an analytics project requires a team that includes strategic, analytic, and technological capabilities. Finally, he says, executives must have a firm grasp of fiscal and personnel requirements for the project.

"Whatever the level of investment, the objective is to get the best return on project dollars," says Tyagi. "That means clear planning, objectivity, a focused pilot project, and a cross-functional team that understands how to turn data into knowledge."

About Inductis:

Inductis is a global management consulting firm that creates value for clients through the application of leading-edge strategy and technology. Areas of expertise include rigorous business planning for bottom-line impact, advanced data analytics, global resource optimization, and innovative technology services. Inductis helps global Fortune 500 clients rethink what businesses they want to be in, enhance customer relationships, and improve profitability. Inductis was founded three years ago and has offices in New Providence, New Jersey; New York City; and New Delhi, India. For more information please visit http://www.inductis.com

CONTACT: 
Douglas Lavin of Inductis, 
+1-212-284-3305, 
dlavin@inductis.com
		
SOURCE Inductis
Web Site: http://www.inductis.com