October 19, 2006
Webcast: Competing on Analytics
The AMA is hosting a complimentary webcast on Tuesday, October 31, 2006:
Like never before, marketers today are being held accountable for their impact on the corporate bottom line. Quantifiable results matter more than ever as marketing initiatives are conceived, executed, and eventually evaluated.
Professor Tom Davenport, Babson College (that would be me!)
Anna Carbonara, Moderator, American Marketing Association
Capital One, Procter & Gamble, Amazon and other leaders pioneered this data-driven approach to marketing. If your marketing organization is like most, you've already begun a similar move towards leveraging data and analytics. Like most, you're probably also facing the same challenges faced by the early adopters - finding and retaining qualified staff, aligning with shifting business priorities, and satisfying the (seemingly) endless demand for analysis, for example.
What you will learn:
- What data-driven marketing is (and isn't)
- How marketing visionaries are using analytics for competitive advantage
- What specific tactics these early adopters believe are essential to their success (and what they'd do differently next time)
- How you can personally succeed as a marketer during these tumultuous times
Who Should Attend:
- Business-to-business and business-to-consumer marketers at all levels, up to and including CMO's and Vice Presidents of Marketing
- Information technology professionals, particularly those in fields involving collaboration with marketing colleagues
As some of you may have noticed, I've been rather busy. This webcast is a good way to catch up.
I hope to see you there. Register >>Posted by Tom Davenport at 12:14 AM | Permalink | TrackBacks (0)
February 04, 2006
You Know You Compete on Analytics When...
1. You apply sophisticated information systems and rigorous analysis not only to your core capability but also to a range of functions as varied as marketing and human resources.
2. Your senior executive team not only recognizes the importance of analytics capabilities but also makes their development and maintenance a primary focus.
3. You treat fact-based decision making not only as a best practice but also as a part of the culture that’s constantly emphasized and communicated by senior executives.
4. You hire not only people with analytical skills but a lot of people with the very best analytical skills—and consider them a key to your success.
5. You not only employ analytics in almost every function and department but also consider it so strategically important that you manage it at the enterprise level.
6. You not only are expert at number crunching but also invent proprietary metrics for use in key business processes.
7. You not only use copious data and in-house analysis but also share them with customers and suppliers.
8. You not only avidly consume data but also seize every opportunity to generate information, creating a “test and learn” culture based on numerous small experiments.
9. You not only have committed to competing on analytics but also have been building your capabilities for several years.
10. You not only emphasize the importance of analytics internally but also make quantitative capabilities part of your company’s story, to be shared in the annual report and in discussions with financial analysts.
These points are from my January 2006 HBR article- "Competing on Analytics."Posted by Tom Davenport at 12:03 PM | Permalink | Comments (3) | TrackBacks (2)
January 23, 2006
Organizational Knowledge and “Higher Modesty”
I recently had a conversation with Bob Sutton of Stanford about Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management, the new book he and Jeffrey Pfeffer have written. Among the reasons Bob gave for why leaders and managers make decisions contrary to available evidence is what he calls “confirmation bias.” That’s the tendency to notice and believe information that supports your existing beliefs and ignore or discredit information that contradicts them. James March makes a similar point when he notes how frequently managers make decisions first and ask questions later, doing analysis to “prove” that the decision makes sense.
It’s a common, powerful human behavior: most of us pay more attention to news, events, and opinions that seem to confirm our ideas than to evidence that those ideas may be wrong; most of us look for reasons to justify what we’ve already decided we want to do. And we live in a culture that values certainty more than doubt, especially in our leaders.
But the dangers are obvious. We all knows stories of leaders who confidently drive their organizations over a cliff, ignoring warnings and evidence of the dangers ahead. “SSW”—Swift, Sure, and Wrong—is an acronym used in some medical schools to describe confident, disastrous decisions in medicine. Less dramatically, organizations miss opportunities and are surprised by challenges because confirmation bias keep them from seeing important information. In a knowledge economy, being blind to essential knowledge is clearly a problem.
It is difficult but possible to do something about it. Bob Sutton cites IDEO, an industrial design firm that, he says, acts with knowledge while doubting what they know. I’m aware of one CEO who asked a knowledgeable outsider to send him an email whenever he saw him doing something stupid. We can make conscious efforts to be skeptical about confirming evidence and open to evidence that tells us we may be wrong. We can listen to the people on the fringes of our groups and organizations, rather than dismiss them because they are “different.” We can try to have a bit of what the early 20th century writer Edmund Gosse calls “higher modesty”—the willingness to question one’s own deepest beliefs that Gosse considers an essential characteristic of great scientists.Posted by Don Cohen at 05:46 PM | Permalink | Comments (8) | TrackBacks (1)