Analytics simplify data to amplify its value
This was a phrase I remember from my friends in the Fair Isaac R&D team. I have no idea if this is original or a well-known analytic quote but I like it. Think about it, most business users would say they want usable, actionable information not just data so analytics “amplifies value” by replacing large amounts of data with a statement encapsulating what that data implies. After all, better data adds no value to a company only better decisions thanks to better data do.
{ 3 comments… read them below or add one }
I think the statement “better data adds no value to a company only better decisions thanks to better data” is contradicting.
Better data, which I am assuming is cleaner and more accurate data, adds value because decision are based upon it. You can only really make better decisions by having better data, in my opinion.
Maybe we are saying the same thing in a different way…
I couldn’t agree more. At my company we have completed our data warehouse (Phase I), implemented great analytics tools with good visualization (Phase II). Now comes Phase III, teaching the business to make better decisions that should come with the better data.
It was a hard lesson to learn, but better decisions *don’t* follow automatically with better data. Often, users just fold the better data into their existing world view and contine with their old decision making process (if any process exists).
cheers,
Chris Gordon
I like to make the distinction between data and information. The numbers in a set of financial statements are data. They don’t mean anything until you interpret them into information about the business, which then helps drive the decisions you need to make about the future of the business (noting that financial statements are always backwards facing).
It’s the same with analytics. There’s better and clearer data. The business question is how to you turn the data into information so that you can drive to better decisions? I thought Chris’ post above demonstrated the leadership challenges in making this happen in an organization.
David Greer