In the age of rapid advances in data science and artificial intelligence, many organizations still struggle to incorporate advanced analytics capabilities into their business models. True incorporation requires bold decisions about reorganizing the business to make analytics a key component of strategy. Here we present the case of Grupo Financiero Banorte (GFNorte), a large Mexican financial group, where the analytics transformation has been a success story. This case came to light when one of us, Jose Murillo, GFNorte’s chief analytics officer, presented it to a graduating class of the Queen’s Master of Management Analytics program at the Stephen J.R. Smith School of Business, where the rest of us learned about it. (Disclosure: Jose is long GFNorte; the rest of us do not have GFNorte holdings.)
How One Company Made Its Analytics Investment Pay Off
It did six things right.
January 04, 2018, Updated January 22, 2018
Summary.
GFNorte recently established a Central Analytics Business Unit (ABU) with the mandate to convert information into profits at a rate of 10X cost and to lead the adoption of a customer-centric approach within the organization. The results significantly exceeded expectations. Why did GFNorte’s analytics investment pay off when so many others’ do not? We believe GFNorte did at least six things right to enable its transformation into an analytically enhanced organization: It set targets, had buy-in from the top, got incentives right, rigorously measured results, communicated effectively, and hired the right people.
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Excel in a world that's being continually transformed by technology.