Although the movie Field of Dreams makes for a great way to spend an evening, the lesson “if you build it, they will come” is about as far from “good advice” as you can get in the world of corporate decision-making. More and more, business leaders are realizing that simply building or purchasing a “big data” system does not automatically result in valuable, data-driven-business outcomes.
For both businesses and government/non-profit organizations, shareholders and tax-payers expect managers to make the most out of the money allocated to the organization, as well as any other resources invested.
Why Embrace Optimization and Prescriptive Analytics?
If you have not heard about or read articles or blogs about Big Data and business analytics until now, then welcome back from the coma you were apparently in the last couple of years. For the rest of you, who of course are the vast majority, do you have the same nagging question that I have? “Is Big Data and business analytics such a big deal that if our organization is late to the party deploying them, then we will never catch up to our competitors that have deployed them?”
Even in companies using highly automated systems, subject matter experts (SMEs) are still needed for making many tactical and strategic business decisions. Optimizing these same decisions requires prescriptive modeling techniques. But a company investing in prescriptive analytics must be willing to do more than just throw money at technology and labor.
Prescriptive analytics like those provided by Enterprise Optimizer (EO) are the holy grail of business analytics. The ability to develop, deploy, and embed prescriptive analytics in the business has huge long-term cost saving or net income maximization potential for the business. Much like saving a small amount of time or cost in a manufacturing process can provide sustained long-term gains, making economic decisions optimally, repeatedly, and removing a sub-optimal manual decision process can provide huge, repeated long-term gains. Build up enough of these throughout the business and those gains become compounded.