Applying Kaizen thinking to customer analytics

12.10.08 05:01 PM By S.Swaminathan

Most often when I interact with clients, I am always amazed that they have data and information about customers, products,  promotions, distribution, sales etc. in islands. At the other end, I meet clients who say they have done all the mining on this data and haven't got the impact at the right time for them to pursue it with the same vigor.

They do all the analytics in the world with the data that they have but most of the real power of these insights is felt only when employees are empowered with this information to take decisions on a day-to-day basis. No amount of advanced data mining can help if this is not available across the company.

Here's my belief on making data-driven analytics & marketing count. Here is a 10 step plan:

  1. Start Small - Don't do a big bang approach
  2. Show quick wins - can you show impact in 4-6 weeks?
  3. Keep improving the analytical process continuously
  4. Involve business heads at every stage - Get them to buy-in
  5. Show proof-of-value with the right interventions & initiatives
  6. Don't control information flow of analytical projects - make it available to as many employees as possible
  7. Make it simple to understand and act - across the enterprise
  8. Grow the complexity of analysis over time but maintain the simplicity of output and action all the time
  9. Remember technology and statistics are just enablers
  10. Measure and refine continously


Here's an interesting article, Alberto Roldan of HP which provides a great analogy to making this happen:

Toyota has shown a different approach to innovation, kaizen or continuous improvement approach rather than a technology leap approach. Instead of great technological breakthroughs, this approach goes for involving the entire workforce in a continuous improvement process. Hence, most of the improvements are small and process oriented (like making shelves more easily to reach) but the involvement of the entire workforce rather than a selected few keeps a vibrant and innovative enterprise. The best measurement of how this work is that the Toyota workforce gives managements one hundred times more suggestions for improvement than other auto manufacturers.

Businesses that want to improve their analytics capabilities should follow the kaizen approach and make business analytics available throughout the entire organization. It seems that in some companies analytics is only within the purview of the few like statisticians, physicians, molecular engineers, and actuaries. The concept behind this thinking is that analytics technology is expensive and difficult to interpret. This premise is no longer applicable since in the last three years mathematical science and computer technology have advanced to such a degree that this technology is now inexpensive and available to interpretation to anyone within an organization.

This technology is the work of dedicated professionals and scientist that over many years have worked to make this possible. The issue now has become whether companies want to institute a continuous improvement process that includes enterprise analytics or whether they want to leave business analytics in the hands of the few.

S.Swaminathan

©All Rights Reserved 2024