Avinash Kaushik in his blog proposed the 10/90 rule. [1] According to him, many large companies that have invested in web analytics tools still struggle to make any meaningful business decisions. Apparently, there is a no dearth of data that is collected via these web analytics tools for these companies. However, the caveat here is that there is no real useful information that is being analyzed from these data. In other words, there are not sufficient people with expertise in these areas working on these web analytics tools for these companies to make any meaningful suggestions from the data for the companies to implement and in return increase their profits or whatever they are trying to achieve/gain. The 10/90 rule suggests that for every $10 invested on web analytics tools, $90 should be invested on web analysts by the company to be able to expect positive results on their investment on web analytics tools. Primarily, the data collected from such web analytics tools is useless unless an expert is analyzing that data. It is the web analyst that is critical for the success from the ...
Well today many businesses are turning to "Enterprise-wide Analytic Technology" to help streamline the processes and steps that an organization goes through when conducting business. Enterprise analytics is quite simply put a way for enterprise sized companies to capture business-critical information and make it visible across the entire organization. Informatica (2001)
Kristy May, the company’s CEO and the individual who will be leading the project, estimates that the probability of implementation is 99% (K. May, personal communication, September 23, 2016). Google Analytics is a free and easily accessible tool (Warner, 2015). Therefore, the only costs associated with the project will be the time required to understand and implement a well designed Analytics Program (Warner, 2015). May believes the opportunity costs associated with her time is well worth the potential payoff for the company (K. May, personal communication, September 23, 2016).
10/90 rule states that for every 10$ of your expenditure on the web analytics tools you are spending for the analysis of data you need to spend 90$ on the highly competent business intelligent resources and analysts.
6. Kaushik, A. (2010). Web analytics 2.0: The art of online accountability & science of customer centricity. Indianapolis, IN: Wiley.
Sallam, Rita L; Tapadinhas, Joao; Parenteau, Josh; Yuen, Daniel;Hostman, Bill (2014, February 20). Magic quadrant for business intelligence and analytics platforms. Retrieved from http://www.gartner.com/technology/reprints.do?id=1-1QLGACN&ct=140210&st=sb
The 10/90 rule is about how a company should invest into the web analytics department in order to obtain the maximum output and costumer satisfaction. As the law states a company should invest 10% on the web analytical tools and the other 90% on the skilled persons and experts to do the analysis by using the analytical tools. Basically, it says that the budget should be divided as 10% for the analytics tool, and 90% for the actual, thinking analysts. People and brain power trumps data gathering, and immensely important in making sense of all the gibberish. The point is that data interpretation should be the focus, because it is important to read the numbers and a skilled analyst is the only source to extract out the desired information from
The statistical inferences I have observed are mostly in one dimension. The use of Dash Boards (unfulfilled orders, open tickets, etc.) the creation of Fusion Center used in many occasions as past performance but not to try to anticipate future behaviors or to capture changes in demand on the spot. The spreadsheets, and graphs that are displayed are at most per supply chain and not as a metric compared to the standard metrics decided by senior leadership. The intention of senior leadership is to go in the direction of enterprise analytics but I see it is relatively in its
If we are paying our web analytics vendor (Omniture, Web Trends, Click tracks, Core Metrics, HBX etc.) $25,000 for an annual contract we need to invest $225,000 in people to extract value from the data. The reason behind this rule is as follows:
Most of studies have proved that a lot of companies are doing great job in using web analytics in order to do investments , but they still have problems on how they can make the right business decisions and recommendations. Most of the employees are complaining about the tera bytes of data and giga bytes of data that comes from the reports for Excel and power points files that have no actionable insights . Avinash Kaushik had found the solution for this issue , he created the “10/90” rule. This rule suggests that for every $10 you spend on your analytics tool and implementation, you should spend $90 on intelligent digital analysts that can convert your data into actionable insights. Avinash Kaushik mention an example in order to clarify his
Companies have transformed technology from a supporting tool into a strategic weapon.”(Davenport, 2006) In business research, technology has become an essential means that many organizations use in their daily operations. According to the article, Analytics is a major technological tool used. It is described as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions."(Davenport, 2006) Data is compiled to enhance business practices. When samples are taken, they are used to examine research and understand how to solve problems or why situations are as they are. Furthermore, in this article, Thomas Davenport discusses analytics from a business standpoint. He refers to organizations that have been successful in their usage of data and statistical analysis. In addition, he also discusses how data and statistics can be vital in the efforts to improve the operations of businesses.
In today’s society, technology has become more advanced than the human’s mind. Companies want to make sure that their information systems stay up-to-date with the rapidly growing technology. It is very important to senior-level executives and board of directions of companies that their systems can produce the right and best information for their company to result in a greater outcome and new organizational capabilities. Big data and data analytics are one of those important factors that contribute to a successful company and their updated software and information systems.
Google Analytics offers various features and state of the art tools that can aid website owners to understand their users better. The data collected from Google Analytics will help to monitor the progress and the performance of your website. Google Analytics does not only understand the behavior of website users but it is also a powerful tool that business owners and e-commerce companies can use to uncover a tremendous amount of data that can be used to enhance marketing and business strategies. Since Google Analytics offers numerous data, one needs to determine which tools they are going to use based on the company’s goals and marketing strategies. This paper will discuss the tools to use for small business
First of all, business intelligence analysis requires the capturing of information and storing in a single location for effective data analysis. Currently, data analysis is supported by transactional systems, business specific data marts, and other ad-hoc processes. Information is distributed making it difficult and time-consuming to access. Business teams have adapted to this environment by creating user maintained databases and manual “work-arounds” to support new types of reporting and analysis. This has resulted in inconsistent data, redundant data storage, significant resource use for maintenance, and inefficient response to changing business needs.
Now days, companies are searching for new ways of gathering data so that they can get useful data in order to make well informed decisions regarding the market they are operating in. Google analytics is considered one of the best tools offers extensive amount of data to business owners for free. However, the success of business is highly depended on how well they can arrange data and customize their collected data corresponded to their business priorities. Google analytics provides beneficial information for companies regardless of their extent of operation.
...at to expect from our society and consumers is very key in the business world. With business intelligence and Data Mining strategies and skills, companies can have that extra competitive edge which will in turn increase profits and market share. The skills gained by those employees who specialize in the BI and DM fields will continue to be top-notch assets to companies and based on the salary trends, they will continue to have increasing compensation. Businesses that implement BI and DM effectively will dominate their markets and stay ahead of the curve.