Relative value of analytics

In my view, the majority of functional executives and managers are not aware of, or conversant in, the salient factors relating to the tradeoffs or relative value to be delivered between the possible or potential analytical projects that are being considered. This is an education issue and an issue related to the current time we live in.

Also, it is related to the level of knowledge and interest management and managers have in analytics in general. Most executives and many managers look at analytics projects as technology projects and, for all the reasons we have previously discussed in this book, they do not delve into the details of making an informed decision of which projects deliver the most immediate, and greater overall, value to the company.

Managers consider and evaluate options, such as hiring a third shift at a factory, and compare it to upgrading the SAP ERP system, or they compare the use of funds with the possibility of building an...