Trying To Think Analytically

Analysis. Most favorite of all business terms. Pick any management or business magazine/journal/book and chances are that will you come across this term. Many b-school professors and students too are obsessed with it… Analyze the data, financial analysis, analysis of the case, analytics etc. etc…

What do you mean by analysis? Is it the same as converting raw data into meaningful information or is it the process of interpreting information to generate knowledge. It perhaps can also mean ‘application’ of knowledge to achieve defined objectives. Some of this or all? I have no idea though!

Well, I know something very elementary and that is paralysis. Paralysis results due to excess accumulation of something. It is very difficult to cure. It affects certain portion of body but the whole person suffers. In short it makes that person less efficient and less agile.

Business needs data to arrive at decisions. Same applies to life in general. To lead a normal, happy and healthy life, we need proper information about world around us. But just enough of it. Too much of choice is bad. It complicates living. It rather suffocates us. Therefore they say ignorance is bliss! So too much of churning and crunching of data also is bad for the life of business. Some critical decisions must be made strait from the gut. Are there any examples. Actually plenty. Jobs never hired any analyst to predict next big wave in consumer electronics. He simply relied on his instinct. Page & Brin had no clue about market analysis before they created Google. Zukerberg, never analysed business models while opening up Facebook to this world. Dhribhai Ambani didn’t have time to ‘analyze’ what his mind kept talking to his heart every single minute. All these heroes trusted their vision because they had one.

Analytics is a wonderful way of looking at what businesses have done in the past and whether the same can be repeated/replicated in same or similar manner. It describes facts, summarizes them and standardizes their interpretations. It gives confidence. It makes managers feel safer while they are out on a business safari.

Only the paralysis of analysis needs to be avoided. And for that we need to take it with a pinch of salt!
   

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Author: anilkshatriyablog

I work as Assistant Professor in the area of Accounting at IMT Nagpur. I love teaching, writing and cycling. I follow a simple principle, 'Help ever, hurt never'.

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