This article highlights the communication challenge for accredited A1 professionals.
We all recognise Analytics is about using information better than competitors, so we are: 1. doing things better, and 2. doing better things than competitors/relevant comparators. But like so much of the coverage of our sector, the article focusses solely on Operational Analytics, not the latter area of Strategic Analytics.
Secondly, the article fails to recognise speed is only one part of the equation.
Taking the author’s example of the retail sector, sure real time analytics can detect an early decline in sales for a particular product, controlling for some extraneous factors. But a retailer’s promotional response (who they target and how) doesn’t necessarily require real time analytics (they can apply in real time outputs from models created last week, with little risk of degradation).
The most important questions for shareholders of the retailer require Strategic Analytic capability: how should pricing across the entire product portfolio be optimised?, what products should we be ordering now for next season (or the season after)?, how to optimise the physical network and supply chain? These strategic questions demand the right answer, not necessarily the fastest answer.
Any experienced industry professional gets that making sense of data is our primary role. But clearly interpreting data to the best of our ability flies in the face of throwing away information (e.g. because inconsistencies in the available data makes the task more cognitively complex). No one would advocate storing and processing data which possesses no incremental information value, but information value can be measured, so that shouldn’t be an issue.
Critically this article fails to recognise many of the barriers for Australian companies in effectively using their data relate to data quality, not their data storage and processing capacity.
Finally, there is no explicit recognition of the talent required to use data more effectively than your competitors.
From an A1 perspective we should welcome the growing focus on our sector, but we need to better articulate the more nuanced (and interesting) story of Analytics in an A1 Practice. It would be easy to criticise the journalist for being naive in swallowing the line of vendors and other vested interests, but the responsibility is ours to better explain the reality.
Eugene is totally right that we need to stand with a united voice. From today, NTF with publicly back A1 in all our proposals and marketing collateral. I regret not taking this action sooner.
About usAnalyst First is a new approach to analytics, where tools take a far less important place than the people who perform, manage, request and envision analytics, while analytics is seen as a non-repetitive, exploratory and creative process where the outcome is not known at the start, and only a fraction of efforts are expected to result in success. This is in contrast with a common perception of analytics as IT and process.
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