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Creating Advantage February, 2011
Over the years the number of detailed forecasts made by Alt3 that have "hit the mark" has been remarkably high. This is not luck. In this particular article we are returning to one of our original themes. This is because (a) what we predicted is starting to come true, and (b) this is an area we have a lot of experience in. We are classed as 'experts' by some people.
The theme is the management of information.
Approximately 2 years ago we predicted that within 3-5 years THE defining factor between organisations that were successful, and those that we noticeably less successful would be the management of information. Regardless of what a company produces, sells, trades, sources, etc, the lifeblood of that organisation is information. It is an expensive corporate asset. The information you have and how you use it defines the nature, the relevance and the ultimate success of your organisation.
Now, 2 years on from our original prediction, what we see is the slow dawning of realisation across a diverse range of sectors that, actually, what we've said all along is true. The management of information creates sustainable advantage. We could go into in-depth details of the mechanics of how and why this happens - but to be honest, we've said it all before ... and we'd hate to be boring.
The fact is, companies and other organisations are coming to terms with the importance of, for example, the full lifecycle of customer experience - and the importance to revenue of this experience, along with all the data this generates. To some business decision makers this may sound a world away from what you're used to. Never mind. We'll make another prediction. If you don't change, you'll soon be out of business. The data and from this the information at your disposal is likely to be immense. There has to be a strategy relevant to your unique circumstances and data. The data has to be standardised, structured, pooled through tried and tested technology to present a single view of the customer - for the company AND for the customer. It has to be analysed by means of Business Intelligence to produce relevant and timely Management Information. This gives insight into how the company is performing, but also and perhaps more importantly it gives insight into the strengths and weaknesses of each and every organisation. It gives insight into new areas of revenue generation. From a customer perspective it massively decreases their frustration. It doesn't take a genius to work out that a happy customer is more likely to continue business with you.
Why has all of this been so difficult to understand? Perhaps because it originally was outside of the comfort zones of too many senior managers. Or perhaps there was a business state of mind that, quite arrogantly, they thought their business would continue to do well - regardless of what else happened. Well, the world has changed and continues to change at a rapid pace. The giant beasts of the business world are no longer invincible. We all know that.
The key to all of the above is strategy.
The thing is ... it all has to be handled in a holistic sense. Parts can't be missed out because they may be inconvenient or someone somewhere doesn't want to know the answers (or be exposed for not knowing). If there are skills missing, then the skills have to be brought in. Failure to do this will result in a very wooden and unresponsive management of information, including ridiculous areas such as "measurement madness", that swallows up resources to feed the beast of bureaucracy.
We have to be better than this. Truly, we have to be better. If we, as business people, are to survive, adapt and develop, we have to be better than this. We have to be efficient. We have to be diligent. We have to explore. True, BAU is important, of course it is. But this should NEVER be allowed to be the whole of the business. Exploring through the management of information creates an organisation that is far more flexible and responsive - it creates leaders in their field, open to innovation and indeed creating innovation not only in terms of products and services, but importantly in terms of organisational dynamics. The type of dynamics that make people proud to work for you, that make customers proud to be a part of the success - and loyal.
This is sustainable advantage. For goodness sake just do it - but do it right. In a highly dynamic commercial landscape, intelligence is needed. This is why it's called Business Intelligence - making full use of existing resources and NOT being complacent.
Regards
JS
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