Aligning Business Model & Culture to Maximize the Analytics Opportunity
by Ed Petrozelli, President & CEO, The Insight Group
In a recent blog post Analytics in Services: Actions versus Talk, we reviewed how companies are applying big data and analytics for both internal and external uses. That review led to a survey and executive panel discussion at the November 2015 Arizona State University Center for Services Leadership (CSL) Annual Compete Through Service Symposium where we further explored adoption rates, challenges, and lessons learned.
The survey of 42 CSL member-companies and Symposium attendees revealed that roughly 25% have actually deployed initiatives using this technology, 25% have not considered how they will utilize analytics, and approximately 50% are developing a plan or are in pilot. Interestingly, these percentages are consistent whether companies are trying to improve marketing effectiveness and operational efficiency, helping set service levels, or attempting to expand markets and build new sources of services and solutions revenue.
The survey also asked respondents to describe what they were doing in each of these areas, from which the panel discussed several case studies in some detail. What emerged was an interesting set of objectives that can be captured as:
As noted in our prior blog, the drive for efficiency has been well documented and the data reinforces that it is the most broadly adopted.
The second area, experience, generated a great deal of discussion and it became clear that this is where much of the energy in the market is focused. Experience encompasses all aspects of the customers’ journey: understanding each as an individual, marketing more effectively, setting and attaining appropriate service levels, providing support proactively, and anticipating future needs. It was evident that for a number of respondents this was the path to revenue growth both in terms of wallet share and market share.
Which leads to the third objective, expansion. A number of technology companies are aggressively pursuing the opportunity to be suppliers of technology, infrastructure, and consulting for analytics. However, a relative few organizations are also leveraging analytics to turn the data they own/access along with their expertise to generate new services revenue streams.
The executive panel was comprised of companies who fell into both of these categories: Siemens, IBM, DuPont Pioneer and Intel.
A broad set of inhibitors were cited by the survey respondents and we subsequently discussed during the panel. The challenges fell into three major categories, with some unexpected challenges emerging:
Summary - Ideas to Consider
The executive panel shared their insights and made some compelling suggestions for companies considering leveraging big data and analytics to drive top line growth. Ideas that were discussed in the interactive session with the symposium attendees included:
For more information on the Center for Services Leadership and CTS Symposium....
If you would like more information on this topic, contact Ed Petrozelli (firstname.lastname@example.org)
Ed Petrozelli is INSIGHT’s President & CEO, and is responsible for Business and Market Plan Development. Ed has led numerous consulting engagements with INSIGHT clients in the areas of strategy, go-to market plans, services initiatives, developing new business models, and global coverage structures. Prior to INSIGHT, Ed had a distinguished 30-year career with IBM where he served on the Senior Management Group and managed numerous Global business Units. Ed is a frequent speaker at industry events and he currently serves on the board of advisors of Arizona State University's Center for Services Leadership.More on Ed at INSIGHT
The INSIGHT Group is a management consulting firm dedicated to assisting product-based companies implement high growth services and solutions business plans and strategies. We help clients design and execute broad transformational initiatives including go to market strategies as they extend their product portfolio to include delivering capabilities as a service. Our partners are experienced line executives with a proven track record of helping our clients transform from a product-focused company to services and solutions led company.
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