I recently attended the International Institute of Analytics (IIA) conference where Tom Davenport introduced Analytics 3.0. He felt we were transitioning from Analytics 2.0 to Analytics 3.0. Let me explain. We have been in Analytics 2.0 for approximately five years, where the term big data originated. As new technologies developed and there was an exponential growth in computing power, we entered the era of Analytics 2.0 and the era of big data. But big data didn’t yield big insights. In Tom’s words, “Big data equaled small math.” Dashboards became the norm and really didn’t advance significant understanding into our business operations, particularly in the human resources arena.
So he presented Analytics 3.0, where big data equals big math, resulting in big insights. Applying predictive analytics to big data brings significant insights, so analysts can now deliver fast business impacts. One of the speakers at the conference was a senior executive from LinkedIn, and discussed how the company uses advanced analytics and big data to create new products. Another executive talked about how Procter & Gamble has embedded advanced analytics into the DNA of its decision-making. Intermountain Healthcare uses predictive analytics to advance its patient care, delivering the best possible medical care at the least reasonable cost. Many other examples were shared.
For those organizations moving into this era, it has become a significant competitive advantage. Where are you in leveraging your big data and moving into Analytics 3.0?