had been struggling with the inventory process wel comed the new system They

Had been struggling with the inventory process wel

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had been struggling with the inventory process wel- comed the new system. “They said, ‘Please help us do this,’” Moody recalls. Now, instead of spending their days trying to set the stock levels across the entire country, the team is occupied with more stra- tegic questions and happy to let the model do the grunt work. Similarly, at video game producer Electronic Arts Inc., based in Redwood City, California, the design- ers who dream up new games are embracing an analytics system that tells them what characteristics will make a game attractive to EA’s best customers. They don’t regard it as a loss of creativity, says the Wharton School’s Fader, but as a way to succeed. “The chief analytics guy told me it’s every bit as much a creative business as it was before, maybe more so, because instead of trying to come up with a game for everybody, they are designing for these really valu- able customers, and it may be even more of a creative challenge,” he says. Many functional areas within organizations in- creasingly look to data and analytics as a source of knowledge and influence. Nearly 37% of respon- dents in our 2016 survey say that analytics has shifted the power structures in their organizations, and two-thirds expect that analytics skills and con- trol of data will determine which departments and managers have influence in the future. Many func- tional areas report increases in influence within their respective organizations as a result of their use of analytics. (See Figure 10.) “IT will continue to play a critical role,” Moody observes, “but it may have less influence over how data is consumed across the company.” Conclusion FIGURE 10: CONTROLLING DATA IS A SOURCE OF ORGANIZATIONAL INFLUENCE Departments across organizations agree that knowledge and information affect influence. Percent of respondents who report some or significant increase in the following forms of influence 40 % 5 0% 60 % 9 0% 30 % 20 % 10 % 0% Formal authority Control of knowledge information Customer service Finance General management Human resources Information technology Marketing Operations Product development Research and development Sales Supply chain
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ANALYTICS AS A SOURCE OF BUSINESS INNOVATION MIT SLOAN MANAGEMENT REVIEW 15 As more companies draw on analytics for a com- petitive edge and more departments within a given organization explore the potential of analytics, several complementary trends are emerging around an orga- nization’s new emphasis on data (its own and others’): 1. Businesses that take data seriously organize themselves around data as if it were a valuable organizational asset. The sources of data-driven innovation draw from strong data governance practices and a propensity and ability to share data. The growing ranks of analytically mature organizations, the Analytical Innovators, sug- gest that more organizations are developing these practices and propensities. This doesn’t mean that an organization should rely exclu- sively on its own data; nor does it mean relying exclusively on others’ data. Data from other or-
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  • Spring '17
  • Hyejun lee
  • Data Management, MIT Sloan School of Management, mit sloan management

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