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What It Means to Put Analytics to Work by Mind Map: What It Means to Put Analytics to
Work
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What It Means to Put Analytics to Work

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Main map

Amazon link

Gut Feel

40% of major decisions are based not on facts, but on the manager's gut.

Quotes

The unexamined life isn't worth living. - Socrates

The unexamined decision isn't work making. - authors

Statistics are often used as a drunken man uses a lamppost -- for support rather than illumination. - Andrew Lang

Benefits of Being Analytical (p. 3)

Help manage and steer the business in turbulent times.

Know what's really working.

Leverage previous investments in IT and information to get...

more insight

fast execution

more business value in business processes

Cut costs and improve efficiency

Manage risk

Anticipate changes in market conditions

Have a basis for improving decisions over time

Being Analytical

defined: the use of analysis, data, and systematic reasoning to make decisions

key is to be thinking how to become more analytical and fact based in decision making and to use the appropriate level of analysis for the decision at hand (p. 4)

Key Questions addressed by analytics

Great chart (p. 7)

dimensions

Time frame, past, present, future

Innovation, information, insight

questions addresses

information, past, What happened? (reporting), present, What is happening now? (alerts), future, What will happen? (extrapolation)

insight, past, How and why did it happen? (modeling, experimental design), present, What's the next best action? (recommendation), future, What's the best/worst that can happen? (prediction, optimization, simulation)

Where to Analytics Apply?

customer relationships

supply chain and operations

human resources

finance and accounting

When are Analytics Not Practical?

When there's no time

When there's no precedent

When history is misleading

When the decision maker has considerable experience

When the variables can't be measured

Typical Decision-Making Errors

Logic Errors

Not asking the right questions

Making incorrect assumptions and failing to test them

Using analytics to justify what you want to do instead of letting the facts guide you to the right answer

Failing to take the time to understand all the alternatives or interpret the data correctly

Process Errors

Making careless mistakes

Failing to consider analysis and insights in decisions

Failing to consider alternatives seriously

Using incorrect or insufficient decision-making criteria

Gathering data or completing analysis too late to be of any use

Postponing decisions because you're always dissatisfied with the data and analysis you already have