There are two topics this blog always comes back to — decision optimization and spend analysis, and there’s a reason for that. Not only do they both reduce costs more on average than any other technology this blog covers (an average of 12% in the first case and 11% in the second case), but they also improve the quality of decisions, often substantially.
A recent blog post over on the Harvard Business Review on how to chart a course in strategy and innovation conflicts did a great job of putting this in perspective. The article, which discussed “east coast” strategy vs. “west coast” design thinking and the “analysis vs. action” schism did a great job of not only pointing out how the best approaches not only come from the intersection, but from the insights that result when a quick and timely analysis can be performed. For example, sometimes you just need to run a quick test to find out if a new pricing strategy will work or if a proposed re-organization is likely to achieve the intended results.
If you have a real analysis solution that allows you to quickly import, cube, slice, and dice your data any way you need it, you can quickly calculate the effects of a new pricing strategy to make an informed decision. And you can quickly analyze how spending would break down across a new organizational structure. A real analysis can help you analyze strategy and spot innovation better, faster, and more cost effectively.