Harvard Business Review – Competing on Analytics

It’s virtually impossible to differentiate yourself from the competitors based on products alone. Your rivals sell offerings similar to yours. And thanks to cheap offshore labor, you’re hard pressed to beat overseas competitors on product cost.

How to pull ahead of the pack? Become an analytics competitor. Use sophisticated data collection technology and analysis to wring every last drop of value from all your business processes. With analytics, you discern not only what your customers want, but also how much they’re willing to pay, and what keeps them loyal. You look beyond compensation costs to calculate your workforces’ exact contribution to your bottom line. And you don’t just track existing inventories; you also predict and prevent future inventory problems.