Davenport (2006) outlines that analytic competitors must have the right focus, right culture, and right people - however, unfortunately my teams MikesBikes results are not turning out numbers that reflect this analysis made by Davenport.
This has led me to question why, I feel like my team is made up of a perfect group, so is our fault in our focus or culture? I believe that we have lost sight of our focus to some extent. In the past we have been doing well, and we lost sight of our competencies as we tried to take the next step up, specifically, in the quality of our bikes. In an attempt to cut costs, we decreased the inspection times of the bikes and this had a hugely, and unexpected, negative impact on our SHV. Unfortunately, we now have to recover from this.
Davenport (2006) would describe this lost of competency as a fault in predictive modelling, which is a loss of the most profitable customer base. However the question now becomes how do we get back to where the team was.
Specifically, we as a team probably need to invest a bit more time in really ironing out what is working, and what is not. We need to cut out what isn't working, and focus on the core that got us to our original SHV of around $30. Applying the predictive modelling Davenport (2006) discussed more effectively, so that we can become more analytical competitors. I believe that we may not know enough about what exactly the figure we enter into MikesBikes mean, and in order to recover we need to (more than ever) come to a more broad and complete understanding of this. Until then, it is a largely guess work.
This has been a learning curve, and Ayrgis (1982), a reading I utilised last week continues in its relevance in outlining the difference between "learning" and "development". Development being a long term learning curve that my team is in the midst of. However as the term comes to a close, this is an increased pressure to right our wrongs and get back on track before the final rollover.
Davenport, T. H. (2006). Competing on analytics. Harvard Business Review, 84(1), 98--107.