Analytics Magazine Analytics Magazine, March/April 2014 | Page 22

EXE CU TIVE E D G E How savvy execs make the most of data analytics BY PATRICK TAYLOR W hen it comes to analytics, organizations can use data insights on a strategic as well as an operational level. The 2011 film “Moneyball,” based on the bestselling book by Michael Lewis, tells the story of how Major League Baseball’s Oakland Athletics, on a limited budget, compiled an outstanding team of players using deep data analysis to drive their team-building strategy. The team then furthered their use of data to make day-to-day playing decisions based on analytic insights. This combination of strategic and operational analysis led the A’s to an outstanding performance 22 | A N A LY T I C S - M A G A Z I N E . O R G – making the MLB playoffs and nearly beating the Yankees – with one of the lowest payrolls in baseball. Many businesses face the daunting challenge of building analytics programs within their organizations, yet become so wrapped up with the system and technology that they fail to realize the full value of the insights. Some kick-start the process focused entirely on the strategic value of the data. Others implement analytics on the operational side, using it to flag exceptions or identify anomalies in the way processes are followed, but never use the data to reveal massive, game-changing findings. The W W W. I N F O R M S . O R G