EXE CU TIVE E D G E
The paradigm shift
transitions from companycentric to customer-centric
and from “we always have
done ‘IT’ this way” to real
time. That shift must be the
focus of top management,
which needs to take the
offense and drive resource
allocation for innovation
and productivity to a
customer-focused, realtime strategy.
the layered sensing of the temporal and spatial context surrounding the customer.
Decisions that address emotional desires of customers resonate in the behavioral economics that underpin our financial world. The closer we can come to
a customer’s desires, the better – and better still to be
able to influence demand by making customers aware
of opportunities they did not know exist. That holds true
for business-to-business decisions as well.
The paradigm shift transitions from companycentric to customer-centric and from “we always
have done ‘IT’ this way” to real time. That shift must
be the focus of top management, which needs to
take the offense and drive resource allocation for
innovation and productivity to a customer-focused,
real-time strategy. Executives who embrace such
a process of optimization that both considers maximizing enterprise performance while minimizing
risks will effectively revitalize every decision opportunity in marketing, production, distribution, logistics, operations, servicing and sales. And they
will find there is no finish line when generating
more shareholder value – only a continual cycle
of improvement and a corporate culture of datadriven, sustainable excellence.
Marty Ellingsworth is president of Verisk Innovative Analytics, a
division of Verisk Analytics (www.verisk.com). Verisk Innovative
Analytics is a member of the INFORMS Roundtable, and the author
is a long-time member of INFORMS.
Join the Analytics Section of INFORMS
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