Traditionally, successful companies are the ones that know how to tell a story. But it’s no longer enough for those stories to be backed by emotional conviction. Now, you’ll need to collect, analyze, and utilize hard data in order to find a real competitive advantage.
Breaking Down the Five Levels of Data Analytics Competency
As I see it, manufacturing and distribution companies can be sorted into five levels of data analytics competency:
Level 1: Dead in the Water.
If you’re not already at least at level 2, I’m sorry, but it’s already over for you.
Level 2: Data Siloed.
You’re conducting pattern analysis and tracking changes, continuing to invest in data scrubbing, and creating public dashboards and scorecards on multiple KPIs. You may even be experimenting with low-level AI tools. But you’re still relying on internal data sets for everything.
Level 3: External Data Integration.
You’ve added external non-ERP data to the mix to create a data integrity improvement feedback loop. This can help you identify wallet share values, underserved market, and potential opportunities to better align your resources to fit market size and structure. It also takes the friction out of business processes with customers and suppliers.
Level 4: Interdependent Data Applications.
Big data management has become a competitive advantage, and you’re able to leverage your insights beyond the core enterprise. In other words, you can offer value to customers and suppliers beyond the things you make and/or distribute.
Level 5: Best in Class.
Marketing owns the front end of the sales funnel and is fully integrated with the field, while inside sales does most of the market serving. The field sales team doesn’t waste time with anything other than qualified sales calls.
Less than 3% of firms have reached the apex of Level 5, by my estimation. How can your company get there?
I share more thoughts on the subject over at Overhead Crane & Hoist.
