Post by Admin on Jan 18, 2021 17:56:51 GMT
Module 6: Metrics That Matter
While there is a plethora of data—is there any real evidence of a “data payoff”? It has taken a while, but new research led by Erik Brynjolfsson, an economist at the Sloan School of Management at the Massachusetts Institute of Technology, suggests that the beginnings are now visible.
A study of 179 large companies suggests that those adopting “data-driven decision making” achieved productivity that was 5 to 6 percent higher than could be explained by other factors, including how much the companies invested in technology, the researchers said. A 5% increase in output and productivity, he says, is significant enough to separate winners from losers in most industries.
Most analytics is “rear view mirror” analysis, by the time you get the data, even in real time, it is already old. For leaders to get ahead they cannot wait until someone stops by asking for a report. Know what you need to know. Be curious. Be aware of upcoming changes in your industry and build data processes to gauge their impact.
Effective data driven activities:
• Reward analysis and not number of emailed reports
• Measure success against benchmarks –internal and external
• Use a well-defined process to capture the data
Learning Objectives: At the end of Metrics that Matter, you will be able to:
• Understand the right data on which to focus
• Use data to manage program decisions
• Use data to identify risks
• Leverage technology to obtain critical data
While there is a plethora of data—is there any real evidence of a “data payoff”? It has taken a while, but new research led by Erik Brynjolfsson, an economist at the Sloan School of Management at the Massachusetts Institute of Technology, suggests that the beginnings are now visible.
A study of 179 large companies suggests that those adopting “data-driven decision making” achieved productivity that was 5 to 6 percent higher than could be explained by other factors, including how much the companies invested in technology, the researchers said. A 5% increase in output and productivity, he says, is significant enough to separate winners from losers in most industries.
Most analytics is “rear view mirror” analysis, by the time you get the data, even in real time, it is already old. For leaders to get ahead they cannot wait until someone stops by asking for a report. Know what you need to know. Be curious. Be aware of upcoming changes in your industry and build data processes to gauge their impact.
Effective data driven activities:
• Reward analysis and not number of emailed reports
• Measure success against benchmarks –internal and external
• Use a well-defined process to capture the data
Learning Objectives: At the end of Metrics that Matter, you will be able to:
• Understand the right data on which to focus
• Use data to manage program decisions
• Use data to identify risks
• Leverage technology to obtain critical data