Executives are not only responsible for their own performances, but also for the performances of dozens if not hundreds or thousands of other employees, according to a recent Aberdeen Group report on executive analytics.
1. The Multi-Dimensional Decision Maker. Executives who use data analysis and data discovery tools and techniques are able to act faster on market and customer insights for the betterment of the enterprise.
They also become more perceptive and productive decision makers by acting on a broader set of intelligence. Plus, senior executives who actively communicate how they use self-service BI (business intelligence) tools set a strong example for others within the organization to do so, thereby cultivating an analytics-driven culture.
2. Agility as a competitive advantage. Among their other duties, senior executives are responsible for creating shareholder value. This includes helping their companies to be more competitive. Executives who purposefully use BI, position themselves to identify and act on opportunities for creating and maintaining a competitive edge.
Plus, the less time that’s spent looking for information, the faster organizations can respond to events that occur in their industries, supply chains, manufacturing operations, and other aspects of their businesses, David Stodder points out in a recent article for TDWI.
This not only helps organizations maintain a competitive edge, it also diminishes the risks that established rivals as well as new competitors will beat them to market.
3. Spot and react to risk faster. Data discovery tools can help senior managers make use of the streams of structured and unstructured data that flow into companies through a variety of channels and sources so they can identify emerging product issues, triggers of customer dissatisfaction, and other rising market challenges that can be acted on quickly.
4. Identify potential areas for new revenue streams. Another major responsibility that senior executives have is to grow the business. When organic growth begins to slow down – and even when the business is firing on all cylinders – data analysis and data discovery can help business leaders identify new potential sources of revenue based on customer sentiment and emerging market shifts.
5. Outperform the market by revenue and profit growth. Senior management is ultimately responsible for the performance of an organization. However, a leader’s effectiveness can also be measured by how well she fosters business achievement by providing subordinates with the right tools and training so they can execute successfully.
This includes enabling managers and employees to use real-time information to support their own decision making on the front lines. According to the Aberdeen survey, best-in-class organizations, or the top 20% of the responding organizations, have increased their revenue by 27% over the past 12 months compared to average performers (9%) and laggard companies (-2%).