Competing on Analytics: The New Science of Winning 1st Edition

by Thomas H. Davenport (Author), Jeanne G. Harris (Author)

200 ratings

ISBN-13: 978-1422103326

ISBN-10: 9781422103326

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Competing on Analytics: The New Science of Winning; With a New Introduction (Updated, with a New Introduction: The New Science of Winning)
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You have more information at hand about your business environment than ever before. But are you using it to “out-think” your rivals? If not, you may be missing out on a potent competitive tool.

In Competing on Analytics: The New Science of Winning, Thomas H. Davenport and Jeanne G. Harris argue that the frontier for using data to make decisions has shifted dramatically. Certain high-performing enterprises are now building their competitive strategies around data-driven insights that in turn generate impressive business results. Their secret weapon? Analytics: sophisticated quantitative and statistical analysis and predictive modeling.

Exemplars of analytics are using new tools to identify their most profitable customers and offer them the right price, to accelerate product innovation, to optimize supply chains, and to identify the true drivers of financial performance. A wealth of examples—from organizations as diverse as Amazon, Barclay’s, Capital One, Harrah’s, Procter & Gamble, Wachovia, and the Boston Red Sox—illuminate how to leverage the power of analytics.

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Editorial Reviews

Review

“[the] seminal work, Competing on Analytics, helped shape the evolution of the discipline of business analytics.” — Health Data Management

“Harvard Business School Press, Davenport in particular, has produced some excellent books on competitive analytics and the like, with good case studies…” - ZD Net

From the Back Cover

In a world where traditional bases of competitive advantage have largely evaporated, how do you separate your company's performance from the pack? Use analytics to make better decisions and extract maximum value from your business process.

In Competing on Analytics: the New Science of Winning,Thomas H. Davenport and Jeanne G. Harris argue that the frontier of using data has shifted dramatically. Leading companies are doing more than just collecting and storing information in large quantities. They’re now building their competitive strategies around data-driven insights that are, in turn, generating impressive business results. Their secret weapon? Analytics: sophisticated quantitative and statistical analysis and predictive modeling supported by data-savvy senior leaders and powerful information technology.

Why compete on analytics? At a time when companies in many industries offer similar products and use similar technology, distinctive business processes count among the last remaining points of differentiation. Many previous bases for competition—such as geographical advantage or protective regulation—have been eroded by globalization. Proprietary technologies are rapidly copied, and breakthrough innovations in products or services are increasingly difficult to achieve.

That leaves three things as the basis for competition: efficient and effective execution, smart decision making, and the ability to wring every last drop of value from business processes—all of which can be gained through sophisticated use of analytics.

Davenport and Harris show how exemplars—organizations as diverse as the Boston Red Sox, Netflix, Amazon.com, CEMEX, Capital One, Harrah’s Entertainment, Procter & Gamble, and Best Buy—are using new tools to trump rivals. Through analytics, these companies identify their most profitable customers, accelerate product innovation, optimize supply chains and pricing, and leverage the true drivers of financial performance.

A timely, much needed resource, Competing on Analytics promises to rewrite the rules of competition.

ASIN ‏ : ‎ 1422103323
Publisher ‏ : ‎ Harvard Business Review Press; 1st edition (March 6, 2007)
Language ‏ : ‎ English
Hardcover ‏ : ‎ 240 pages
ISBN-10 ‏ : ‎ 9781422103326
ISBN-13 ‏ : ‎ 978-1422103326
Item Weight ‏ : ‎ 15.5 ounces
Dimensions ‏ : ‎ 6.5 x 1 x 9.5 inches

Best Sellers Rank: #109,092 in Books (See Top 100 in Books)
- #365 in Social Sciences Research
- #434 in Strategic Business Planning
- #492 in Systems & Planning

Customer Reviews:
200 ratings

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5 star		63%
4 star		17%
3 star		10%
2 star		8%
1 star		2%

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Top reviews from the United States

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Eric Kassan

"Going by the Gut" may be going by the wayside

Reviewed in the United States on October 22, 2008

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This book shows how several companies are effectively "competing on analytics" - defined as having the following four characteristics:

1. Analytics supports a strategic, distinctive capability
2. Approach to and management of analytics is enterprise-wide
3. Senior management is committed to the use of analytics
4. The company makes a significant, strategic bet on Analytics

In my opinion, the fourth item is really redundant, as the investment in obtaining and implementing the first criteria would satisfy the fourth. But the other three are critical. Included in both #2 and #3 is the requirement of an evidence-based decision making criteria. This is what I expect most companies will have an issue with. While the book mentions the difficulty in changing the culture and the potential for a virtual war between the "quants" and the "old guard", there are not really any good suggestions for overcoming it. The one suggestion given, proving it on a smaller scale won't work, because "proof" is not relevant for those who believe the gut is better than evidence.

That said, for those who can appreciate the value of evidence, this book provides much of it. Perhaps the best is the fact how the book describes Capital One carefully targeting sub-prime risks using analytics. Since the book was published, that market in general has collapsed, but Capital one is doing fairly well. The chapters on how to build the technical and people aspects raise good points, but are far from thorough.

In short, this book is a great overview, and provides many good ideas to consider, but it should not be confused as a how-to book.

3 people found this helpful

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JasonM

Analytics 101

Reviewed in the United States on November 16, 2009

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This book is great for those who wish to grasp a better understanding of why analytics are such an important tool in today's business world. Although this book is not very long, Davenport delivers some of the most dry information into a relevant, easy-to-read format for the average student, professional, or those just seeking analytical education. This book provides an in-depth look at how the growing amount of company information can be utilized as a competitive edge. Much of the content consists of analytical theory, however Davenport backs it with real-world brand examples such as Netflix, Amazon.com, Progressive, and Capital One. You will see that not all industries are equally susceptible to using these techniques to improve business processes. Davenport shows the reader that there are many companies on the verge of competing with their analytical process and some are already at that level. You will begin to understand why so many companies perform poorly even though they collect mountains of consumer data. Some of the information is a little repetitive, mainly previews of further chapters that go into to much detail. This would not be a book for those who are familiar with current business intelligence models and trends as the information is presented to a general audience. Overall if you are looking to expand you knowledge about business intelligence and don't want a "dry" book, I would recommend Competing on Analytics!

2 people found this helpful

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Marcel Chiranov

Five stars but... for the right audience!

Reviewed in the United States on August 10, 2008

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I was excited by the title, some of the reviews and rushed to buy this. Read it quite fast and got little disappointed. Probably the correct title could be ''Advocacy for Competing on Analytics''. To be clear, the book is very good if you are: a student, a junior project manager, a junior consultant, a manager looking for Business Intelligence ideas, an expert looking for tools to sell analytics, or Business Intelligence, to your top managers.
If you are experienced in using analytics, design and use data collection tools, or using Business Intelligence, the book might bring you little value. I was constantly reading it and looking forward for the real meat, but it didn't really appeared. I certainly will keep it to use as a reference in the future, but still looking for books to provide deeper insights on the subject.

7 people found this helpful

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Niklas Andersson

Your map and compass in the Analytical world

Reviewed in the United States on August 18, 2013

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Competing on Analytics will explain the different forces you have to overcome in every organization if you want to compete on analytics.

The book explains the key drivers behind a successful BI-endeavor and what paths you should avoid if possible.

I really liked the methodology where the author treats the subject as a stair in five steps you have to climb. From knowing nothing about analytics, to be an analytical competitor, and what actions you need to take to climb each step.

Competing on Analytics is full of hands-on actions you can take and gives you plenty of material to go further.

2 people found this helpful

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Katie T.

Good intro to analytics use in business

Reviewed in the United States on June 9, 2012

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This is a good book for people looking for a basic overview of how analytics can be used for competitive advantage. It's easy to read, without needing advanced statistical knowledge. I would likely recommend this as a starting point for someone without any familiarity with the field- it is probably less useful for people already serving in analyst roles.

I was a little disappointed that the coverage of HR/talent analytics was only covered in the realm of professional sports, but Davenport & Harris have published an article since this was written that focuses specifically on that.

2 people found this helpful

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Top reviews from other countries

Fonsi Zela

Good introduction to Analytics

Reviewed in the United Kingdom on June 4, 2021

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I loved this book. It was my first encounter to what it means to do analytics. It helped me a lot, profesionally and personally. Profesionally, I now work on analytics at my job, and personally, after I finished my BSc not a long time ago, I have enrolled in a MSc in Econometrics. I think this book led to me to a path of a very promising future.

RolyM

Pretty Good Introduction to Analytics in Competitive Domains

Reviewed in the United Kingdom on May 21, 2016

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Good introduction, free of technobabble, that describes the gist of analytics. It is also becoming a bit dated though and could probably do with an update (still refers to data warehouses and BICCs in a significant way - whereas Gartner now sees them as not so important or central to analytics success). There is also not much on analytics as applied to public sector organisations. Otherwise this is an intelligent, if dated, overview of the principles of analytics in competitive domains. I think the authors offer some good models to help thinking on analytics (The 4 Pillars of Analytical Competition, The 5 Stages of Analytical Competition, etc). Definitely worth reading!

Martin Squires

Frankly Not That Useful

Reviewed in the United Kingdom on July 6, 2012

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If you've already figured out that you should be interested in how to use data and analytics in your business then this book will help make you feel good about making the right decision. Unfortunately it stops short of doing a lot more.
The problem is the case study references are too high level to be of practical use and the models and stages of development stuff are great theory but again don't add much value in practice.
For people already using data, there simply isn't enough added value here, the book simply restates well trod paths e.g. we already know senior level sponsorship and backing is important.
For new starters on the journey, congratulations, you've already passed the stage where this book adds much value. There are better reads out there that will help more e.g. try Sean Kelly, Avinash Kaushik or Jim Sterne

One person found this helpful

Ace

Leadership classic on making business insight driven

Reviewed in the United Kingdom on December 17, 2016

Verified Purchase

Business Analytics classic - great for business leaders.

V. Pereira

Excelent

Reviewed in the United Kingdom on April 17, 2013

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Tank's
Ive received the book on time and on good conditions.
I recommend this book to evryone interested on Analytics and Bussiness Management.
BR.
Victor

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