The other day, I came across a post titled, “The most important thing I know about Analytics is that no-one agrees what it means.” Interestingly enough, my colleagues and I have been working to define the same, and my working definition after a few iterations was:
Analytics is the intelligent use of data and models to discover relationships and causations that companies can use to obtain a competitive advantage by predicting outcomes associated with their processes, customers, and products.
Admittedly, this definition is still fairly broad and doesn’t fully answer my clients’ questions about what it is – or how it is different from all of the Business Intelligence (BI) work they have been doing. In the book, “Competing on Analytics,” the authors describe analytics as a subset of BI, and include a chart that illustrates how analytics can leverage data in the existing BI store to achieve competitive advantage:

One of the best ways I have found to explain analytics is to describe the types of insights it can offer across the enterprise. Below is a sample of some of the applications I’ve seen of analytics across the value chain.

