IBM’s Big Push into Business Analytics Consulting and a Business Governance System Integration

In “IBM’s Big Push into Business Consulting” it was stated how the company is creating a new unit, IBM Business Analytics & Optimization Services which will advise corporations on how to better analyze data and make smarter decisions. IBM has developed a stream technology that they piloted at TD Securities to improve the performance of the bank’s options-trading system last year. This technology was to allow companies to analyze data as it is being received, rather than having to place it first in a database.

Analytics is very important; however, analytics is not a business system. For the most benefit, analytics needs to be used as a process within a business system so that resources are better utilized and there is movement towards achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.

The current common-place business management system has led to much detrimental behavior, as we recently have been experiencing. Typically in business there is not a true integration of scorecards, strategic planning, business improvement, and control towards achievement of the 3 Rs. Our business system is broken and needs re-invention now, where wisely applied analytics needs to be a key component of this system!

Six Sigma uses Define, Measure, Analyze, Improve, and Control (DMAIC) for problem solving project execution, which could be referenced as project DMAIC (P-DMAIC).

The Integrated Enterprise Excellence (IEE) 9-step business model uses a modified DMAIC business governance roadmap for execution. In IEE, there is an enterprise process DMAIC (E-DMAIC) business management system governance system, where “A” is business analytics. Organizations can benefit most from new analytics technology when they consider it as part of an overall business system.

What are your thoughts about how to best use analytics within business?