Friday, May 9, 2014

Turning Data into a competitive advantage


Data reflects how everything is going in business. It captures all customer interactions, transactions and even behavior as well as the corporate internal activities. Also internal data combined with some external data captures the market dynamics and competition. Because of this, data is a precious asset and source of understanding, modeling, predicting and optimizing the way corporates are doing their business.

To exploit the potential strategic values of accessible data it has to be integrated, consistent and of high quality. Achieving data with these three characteristics is not only the first step but also the most effort and time consuming step.

Starting from the integrated, consistent and high quality data, thorough statistical analysis, data mining and mathematical modeling process yields the governing dynamics of the business. It reveals business patterns and constructs the mathematical models of it.

Business patterns and models are the main input for the planning and optimization process. This process is done in two phase:

  1. Many improvements initiatives could be identified by business stake holders as a direct result of the newly discovered analytical insight.
  2. Applying the mathematical optimization methods (a.k.a Operations Research) to the discovered models to solve the optimization problems.

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