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Extra resources for BusinessWeek (August 6, 2007)
In this chapter, we propose and outline a conceptual framework for successfully implementing business analytics in any organization so that your analytics initiatives will ﬂourish and bring positive return on investment to your ﬁrm. Our emphasis in this book is on practical solutions that have shown themselves to work in successful analytically focused organizations. The framework we developed is based on research we conducted with analytics leaders, as well as on our own practical experience, with each of us having been in this ﬁeld for 20 years.
The acronym is IMPACT, and it’s a cycle that represents the stages to high-impact analytics: Identify, Master, Provide, Action, Communicate, and Track. The core premise is a simple one: When analytical output or tools are produced by the business analytics function, you can think of several discrete stages toward having an impact with that output. First, you must identify your key business questions that are important to your business partner. Then there is the mastery of the facts that have been uncovered or calculated, which may be presented in the form of a raw data table, a regression equation reﬂecting the relationship between a few variables, or a graph or some other data visualization technique.
In this case, championing the importance of business analytics to standardize the language around what is a “customer” across the organization goes a long way toward ensuring that everyone responsible for bringing your business analytics plan to life is looking at the same design and speaking the same analytics language. If this is not done, then your efforts may be undermined and much wasted effort will be spent on reconciling different data sources and dealing with the “dueling data” problem.