Predictive analytics: how long before seeing the fruits?
In two previous posts (How predictive analytics can help you. Case 1: Retail and Case 2: Fundraising), I described some of the benefits of implementing predictive analytics solutions. If you read with interest those articles, you might be wondering: how long does it take to implement an analytics strategy and start seeing the benefits? The short answer is: “It depends”. Before embarking on an analytics adventure, you need to identify a part of your business that you want to improve. It is important that you can collect data on that area (do you have the hardware, software, and communications strategy for doing so?). You must also remember that collecting data takes time. For instance, one manager of customer analytics at UPS noted that they collected data for four years before it became usable. The next step is to make sure the leaders of your organizations are on the same page regarding making fact-based decisions. You must also secure and build analytics skills in your organization to ensure smooth “execution” and keep your competitive advantage. Once you have everything in place, you might be looking to several months for a pilot project on a very specific area or several years for an organization-wide analytics strategy.
To conclude, I will leave you an excellent advice offered by Thomas Davenport on his article: “Competing on Analytics”
“The best advice is to begin working on it [an analytics implementation] now, because it typically requires several years for analytical competitive strategies to come to fruition. […] However, despite the difficulty and expense of establishing these capabilities, many of the firms we have identified as early adopters of analytical strategies are clear leaders in their industries. This suggests the time and trouble necessary to become analytical competitors are definitely worthwhile.”
To learn more:
Competing on Analytics by Thomas Davenport, Don Cohen, and Al Jacobson
