Davenport - Enterprise analytics optimize performance, process, and decisions through big data

Optimize Performance, Process, and Decisions Through Big Data

Thomas H. Davenport

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jeanne Glasser Levine
Editorial Assistant: Pamela Boland
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Indexer: Cheryl Lenser
Compositor: Nonie Ratcliff
Manufacturing Buyer: Dan Uhrig

2013 by International Institute for Analytics
Pearson Education, Inc.
Upper Saddle River, New Jersey 07458

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Printed in the United States of America

Fourth Printing: February 2014

ISBN-10: 0-13-303943-9
ISBN-13: 978-0-13-303943-6

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Library of Congress Cataloging-in-Publication Data

Enterprise analytics : optimize performance, process, and decisions through big data / [edited
by] Thomas H. Davenport.
p. cm.
ISBN 978-0-13-303943-6 (hardcover : alk. paper)
1. Business intelligence. 2. Decision making. 3. Management. I. Davenport, Thomas H.,
1954
HD38.7.E557 2013
658.4038--dc23
2012024235

The collection of research in this book personifies the contributions of a group of people who have made the International Institute for Analytics the success it is today. This book is the result of three cups of hard work, two cups of perseverance, and a pinch of serendipity that got our fledgling company started.

First, the hard work. Obvious thanks go to Tom Davenport for editing and compiling this initial collection of IIA research into book form. For the raw material Tom had to work with, thanks to all IIA faculty members who have contributed insightful research during IIAs first two years, particularly Bill Franks, Jeanne Harris, Bob Morison, James Taylor, Eric Peterson, and Keri Pearlson. Marcia Testa (Harvard School of Public Health) and Dwight McNeil played key roles as we grew our coverage of health care analytics. Ananth Raman (Harvard Business School) and Marshall Fisher (Wharton) were instrumental in forming our initial retail analytics research agenda. We look forward to additional books in these two areas. And, of course, thanks to all the practitioner organizations who volunteered their time to be the subjects of much of our research.

For their continued belief in IIA, thanks to the entire team at SAS, who validated our mission and direction early on and have shown their trust in us ever since. In particular, thanks to Scott Van Valkenburgh (for all the whiteboard sessions), Deb Orton, Mike Bright, Anne Milley, and Adele Sweetwood. Were also grateful for the support of other IIA underwriters, including Accenture, Dell, Intel, SAP, and Teradata.

This book is also a credit to the perseverance of two great talents within IIA. Katherine Busey was IIAs first employee in Boston and was the person who helped convince Jeanne Glasser at Pearson that IIAs research deserved to be read by more than just our research clients. Thanks as well to Callie Youssi, who coordinates all of IIAs faculty research activities, which is no simple task.

Its hard to imagine Tom without his wife and agent, Jodi, to add vector to the thrust. Thanks to you both for betting on me as an entrepreneur, particularly during a challenging first year.

And for the pinch of serendipity, Tom and I are indebted to Eric McNulty for having the foresight to bring us together, be the first voice of IIA, and help set our early publishing and research standards.

Jack Phillips

Chief Executive Officer, International Institute for Analytics

Thomas H. Davenport is co-founder and research director of IIA, a Visiting Professor at Harvard Business School, Distinguished Professor at Babson College, and a Senior Advisor to Deloitte Analytics. Voted the third leading business-strategy analyst (just behind Peter Drucker and Tom Friedman) in Optimize magazine, Daven-port is a world-renowned thought leader who has helped hundreds of companies revitalize their management practices. His Competing on Analytics idea recently was named by Harvard Business Review one of the 12 most important management ideas of the past decade. The related article was named one of the ten must-read articles in HBRs 75-year history. Published in February 2010, Davenports related book, Analytics at Work: Smarter Decisions, Better Results, was named one of the top 15 must-reads for 2010 by CIO Insight.

Elizabeth Craig is a research fellow with the Accenture Institute for High Performance in Boston. She is the coauthor, with Peter Cheese and Robert J. Thomas, of The Talent-Powered Organization (Kogan Page, 2007).

Jeanne G. Harris is a senior executive research fellow with the Accenture Institute for High Performance in Chicago. She is coauthor, with Thomas H. Davenport and Robert Morison, of Analytics at Work: Smarter Decisions, Better Results (Harvard Business Press, 2010). She also cowrote the 2007 book Competing on Analytics: The New Science of Winning (also from Harvard Business Press).

Robert Morison serves as lead faculty for the Enterprise Research Subscription of IIA. He is an accomplished business researcher, writer, discussion leader, and management consultant. He is coauthor of Analytics at Work: Smarter Decisions, Better Results (Harvard Business Press, 2010), Workforce Crisis: How to Beat the Coming Shortage of Skills and Talent (Harvard Business Press, 2006), and three Harvard Business Review articles, one of which received a McKinsey Award as best article of 2004. He has spoken before scores of corporate, industry, and government groups and has been a commentator on workforce issues on Nightly Business Report on PBS. Most recently executive vice president and director of research with nGenera Corporation, he earlier held management positions with the Concours Group, CSC Index, and General Electric Information Services Company.