Companies that successfully harness the power of advanced analytics spur innovation and disruption in their industries, which in turn boosts their value relative to competitors. Rasmus Wegener, a partner with Bain’s Advanced Analytics practice, shares three patterns that can signal when an industry is ripe for disruption driven by advanced analytics.
Read the Bain Brief: Disruption in the Era of Advanced Analytics
Read the transcript below.
RASMUS WEGENER: There's a set of companies that have seen much higher valuation increases than their competitors. It's companies that successfully harness the power of analytics and data to drive innovation and disruption within the ecosystems. What are the signs that an industry is ripe for disruption driven by advanced analytics and data? We're seeing three patterns emerge.
First, the opportunity to radically lower cost. Secondly, a chance to dramatically improve customer experiences. And thirdly, there's a chance to drive new business models, to innovate and shift profit pools and access to profit pools in sometimes surprising ways. We're seeing some or all of these patterns emerge in most every industry. The accessibility to data and analytics leaves very little room and time to adapt and cope with the changes that are happening. For executives, we suggest you ask yourself, what patterns do you see in your respective industry? And then secondly, how ready are you?
The signs that an industry is ripe for advanced analytics disruption are becoming clearer. So are the patterns that commonly follow.