As I pointed out in my article last month, we're now entering the "decade of smart", marked by efficient use of technology, the trend toward globalisation and the explosion of data.
We must all accept that information is becoming more complex. In addition to its sheer volume, its velocity is accelerating and the variety of its forms is burgeoning. A substantial proportion of enterprises around the world understand the challenge posed by this extreme information environment.
More importantly, some organisations are seizing the opportunity to use advanced information analytics to give them a business advantage. They are no longer relying on intuition, and are adding new analytics techniques to make decisions in an entirely different way.
Based on recent IBM global research, intelligent enterprises are 15 times more likely to apply analytics to strategic decisions than their peers, and they excel in the following areas:
Awareness, which enables them to gather and use information from both inside and outside of the organisation. While this may sound simple, such an approach enables systems to gain insights about data that was previously not quantifiable or usable, such as using historic traffic patterns when installing sensors along a highway to predict and prevent traffic jams.
Precision in sorting through and using the most relevant aspects of information to support timely decisions. A fleet owner who knows the history of each vehicle and its exact maintenance requirements can keep automobiles on the road longer without risking passengers' safety.
Linkages, which connect information from disparate groups within an organisation in ways that allow them to "speak" to each other seamlessly. For example, retailers can use loyalty-card information - while shoppers are visiting the store - to inform them about products that fit their personal preferences.
Challenging the status quo while creating new opportunities. Instead of taking assignments at face value, the best-run organisations pose questions, such as "how can this project be completed faster, at a lower cost and with higher quality?"
Anticipation, which enables an "intelligent" enterprise to predict and prepare for the future by evaluating business outcomes and trade-offs as it pursues its business objectives. By simulating events of the past, an organisation can anticipate the best course of action when new business situations present themselves.
Empowerment, which gives employees the authority to use information, make decisions and act upon their insights to drive change, shifting from a culture of constant oversight to an atmosphere of trust.
Business leaders are poised for change. Nearly three in every four say more predictive information will drive better decision-making. Given the nature of today's business environment, no enterprise can choose to leave benefits like these on the table. Only those enterprises that can skillfully adopt, integrate and deploy the benefits of enterprise-wide analytics and optimisation will be prepared to shape their own future.
Thanwa Laohasiriwong is country general manager at IBM Thailand. Follow his articles in Hi! Managers on the third Friday of each month.
