The document summarizes a research project on developing a methodology for using applied statistics to gain competitive advantage. It includes the following key points:
1. The research aims to create a quantitative scale to rank Catalonian companies on their use of data exploitation, competitive advantage, management support, and systematic thinking.
2. It will apply the scale to sample companies to understand their capacity for applying statistics to decision making and find associations between variables.
3. The methodology includes developing a draft 5-level scale, distributing a questionnaire, and conducting in-depth interviews and case studies to validate the scale.
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1. Research Project
Methodology for scaling Applied
Statistics as Competitive Advantage
Igor BARAHONA TORRES.
And
Alex RIBA CIVIL
06 /09/2011
1
4. INTRODUCTION
At first, some basic information about Catalonia is provided
Catalonia is located in the
north East of Spain
It is composed for 4 regions
Population
47,150,819
Catalonia represents around
16% of the total population
of Spain
441,858 756,293 810,564
5,526,536
7,535,251
Around 73% of Catalonia's
population live in Barcelona
Lleida Girona Tarragona Barcelona Catalu単a Espa単a
IDESCAT & lNE (2011)
4
5. INTRODUCTION
BETTER INFORMATION SYSTEMS.
(MRP, CRM, ERP, etc)
WHAT IS THE MORE COMPLEXITY AND
UNCERTAINTY
BUSINESS
MANAGEMENT
ENVIRONMENT INTERNET IS AVAILABLE FOR MOST
LIKE TODAY? OF THE COMPANIES
MORE POWERFUL COMPUTERS
BIGGER AMOUNT OF DATA
AVAILABLE FOR ANALYSIS
Burby & Atchison (2007), Petroni & Braglia. (2000) & Roberts (1990)
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7. STATE OF THE ART
INTRODUCTION
STATE OF THE ART
RESEARCH OBJECTIVES
THE DRAFT OF A SCALE
THE METHODOLOGY
CONCLUSIONS
7
8. WHAT IS APPLIED STATISTICS IN BUSINESS MANAGEMENT?
APPLIED STATISTICS IN BUSINESS. WHAT IT IS?
One approach is to understand it as a process with INPUTS and OUTPUTS.
Extensive use of data and
INPUTS statistical methods
To understand the past
performance
OUTPUTS To reduce uncertainty
To forecast the future and to
predict behaviors.
Better decision making
ADDED
VALUE
Evidence-based decision
making
8
9. .
THERE ARE 4 KEY ELEMENTS TO SUCCESS
Emergence
Hierarchy
1 Systematic
Thinking
Communication
Jackson (1992) & Yeo
(1993)
Control.
To remove obstacles
To provide the
2 Management technical human and
support financial resources
McDonough (2000),
Banks (1993) & To encourage the staff
Deming (2000) to be involved in the
project
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10. THERE ARE 4 KEY ELEMENTS TO SUCCESS
Cost Leadership.
3 Niche strategies
Competitive
advantage
Differentiation
Porter (1998)
Privileged location
Integration from multiple sources
Efficiency in Data structure
4 Data exploitation
Accessibility to data
Davenport. &
Harris (2007).
Evantage Consulting & Security and privacy
Janis, A. (2008)
10
11. HOW DO THESE KEY FACTORS INTERACT?
DATA COMPETITIVE
EXPLOITATION ADVANTAGE
ASBM
MANAGEMENT SYSTEMATIC
SUPPORT THINKING
11
12. WHICH AREAS USE MORE APPLIED STATISTICS?
INSIDE THE COMPANY
12
14. RESEARCH OBJECTIVES
1. To create a quantitative scale for ranking a sample of Catalonian
Companies according to their 1) Data exploitation with statistical
tools, 2) Competitive advantage, 3) Management support and 4)
Systematic thinking
2. To apply the created scale on a previously defined sample of
Catalonian Companies, in order to know their capacity for applying
statistics to decision making
3. To find out associations between each analysed variable. The
impact of data exploitation, Competitive advantage, Management
support and Systematic thinking on decision making
4. To validate the methodology to upgrade companies on the
proposed scale and to make applied statistics a competitive
advantage
14
15. THE DRAFT OF ONE SCALE
INTRODUCTION
STATE OF THE ART
RESEARCH OBJECTIVES
THE DRAFT OF ONE SCALE
THE METHODOLOGY
CONCLUSIONS
15
16. SOME BASIC IDEAS OF ONE POSSIBLE SCALE
HIGHLIGHTS
1. The proposed scale has 5 possible levels
2. At level 1 we find companies that do not use any
statistical methods
3. At level 5 we find companies that use applied statistics
as a strategic support for their competitive advantage.
4. At levels 2, 3 and 4 we find companies that are
improving their use of statistical methods
5. A survey, in depth interviews and on site study cases
will be used to validate the scale
16
17. SOME BASIC IDEAS OF ONE POSSIBLE SCALE
NAME DESCRIPTION TARGET
STATISTICAL Decision making process is based To pick up reliable and valid
IGNORANCE. mainly on past experience and data
1 subjective evidence
LOCAL AND Statistics support only specific To increase and improve
INDIVIDUAL activities in the company. Those interactions between local
EFFORTS efforts are usually isolated with applications
2 local impact.
STATISTICAL The first level of using statistics as To develop use of 4 key
ASPIRATIONS Competitive Advantage. drivers to improve business
3 Leadership, Systematic Thinking results
and Data Quality are introduced.
STATISTICAL All decisions in the company are To make sure that statistics is
4 ENGINEERING made through Statistical analysis used at Strategic, Tactical
and Operative levels.
STATISTICS AS Mastering the use of statistics,. It To obtain the leadership in
5 COMPETITIVE provides important support to the market.
ADVANTAGE develop a successful competitive
advantage
18. THE METHODOLOGY
INTRODUCTION
STATE OF THE ART
RESEARCH OBJECTIVES
THE DRAFT OF ONE SCALE
THE QUESTIONNAIRE
THE METHODOLOGY IN DEPTH INTERVIEWS
ON SITE CASE STUDIES
CONCLUSIONS
18
21. THE QUESTIONNAIRE
This is the questionnaire s structure
There are 7 sections and 48 ITEMS in the questionnaire,
as it is shown in the following table:
number of
section ITEMS
General information about the company 4
Competitive Advantage 3
Data exploitation and usage 5
Management support 5
Systemacic Thinking 5
Statistical Methods inventory 19
Company卒s departments 11
Total 48
https://www.surveymonkey.com/s/surveyEAGE_english
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22. WHO IS IT BEING SENT TO?
Number of Response
Target Group size
responses rate
1,264 6 0.05%
Investigar en Espa単a
425 6 1.4%
Estad鱈stica para todos
237 5 2.1%
Investigaci坦n y Estad鱈stica
250 27 11%
1,003 38 3.8%
1003 questionnaires were sent in the last 2 month
82 questionnaires were received by August 31
Questionnaires still need to be sent to 5208 companies
22
23. IS OUR QUESTIONNAIRE VALID AND RELIABLE?
CONBRACHS ALPHA
This is how Cronbachs Alpha is interpreted:
Cronbach (1951), Hern叩ndez (2006) Condesa, (2000) & Castro, P.L. (1989)
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24. IS OUR INSTRUMENT VALID AND RELIABLE?
Here we have Cronbach s values for each section
0.6062 COMPETITIVE ADVANTAGE
0.8857 DATA EXPLOITATION
0.8806 MANAGEMENT SUPPORT
0.7420 SYSTEMATIC THINKING
0.9544 TECHNICAL STATISTICS INVENTORY
The calculations of Cronbachs values allowed us to guarantee
that our questionnaire is reliable.
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26. IN-DEPTH INTERVIEWS
To validate or refute the findings of
the questionnaire
To include in the research, issues
that are neither evident in the
WHY DO WE literature nor the questionnaire.
DO DEPTH
INTERVIEWS? To find aspects of Applied Statistics
which are undetectable with the
questionnaire
To find perception from Business s
owners, Managers and Academics
The concepts developed by French , Maule y & Papamichail (2009) will be used
for designing and preparing the interview
The Multicriteria Decisions Analysis used by Nutt, King y Lawrence (2010) is also
taken as reference for carrying out the interviews
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27. IN-DEPTH INTERVIEWS
In the following table shows how interviews are classified
according to the type of stakeholder
The total number of interviews is not definitive and it will be altered
according the homogeneity of the responses obtained
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28. ON-SITE CASES STUDIES
THE METHODOLOGY
THE QUESTIONNAIRE
IN-DEPTH INTERVIEWS
ON-SITE CASES STUDIES
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29. ON-SITE CASES STUDIES
The survey and interviews will be the input for the methodology that
can be implemented in three study cases.
To validate or refute the findings
obtained with questionnaires and
interviews
To implement the key drivers for the
WHY DO WE increase in the use of applied statistics
DO ON-SITE
CASES To replicate and to reproduce the key
STUDIES? elements identified
To build a practical and helpful
methodology accessible to any
Consultant, Practitioner or Academic
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30. ON-SITE CASES STUDIES FLOW CHART
This is the flow chart that will be used for carrying out the on-site cases studies
To maintain
and to
improve
Level 5 To keep records
Actions to To replicate
upgrade To standardize
from L4 to Management
INITIAL Level 4 L5 support
ASSESSMENT Systematic
Actions to Thinking
upgrade YES
from L3 to
Data
One level at exploitation FINAL Is it
Level 3 L4 ASSESSMENT improved?
the scale and usage
Actions to Competitive
upgrade advantage NO
from L2 to
L3
Statistical
Level 2 Methods
Actions to inventory To review
upgrade To identify
from L1 to To point out
Level 1
L2
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32. FIRST ROUND CONCLUSIONS
THERE IS EVIDENCE TO DEMONSTRATE THE RISING OF
THE USE OF APPLIED STATISTICS IN BUSINESS IN THE
LAST 20 YEARS
THIS REPRESENTS A UNIQUE OPPORTUNITY FOR
COMPANIES
WE ARE WORKING WITH A QUESTIONNAIRE THAT IS
VALID AND RELIABLE
THIS METHODOLOGY WILL BE A UNIQUE TOOL FOR
THE INCREASE IN THE USE OF APPLIED STATISTICS IN
BUSINESS MANAGEMENT
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34. CHECKING AND TESTING
RADAR CHART
S. Thinking S. Thinking
C. Advantage M. Support C. Advantage M. Support
Use of Data Statistical Methods Use of data Statistical Methods
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37. INTRODUCTION
Total number of companies at Spain and Catalonia
SPAIN 3,291,263
Industries
230,301 Construction
510,243
Catalonia concentrates the
19% of total number of
companies in Spain
Services
2,550,719
Given this, the size of the
CATALONIA 619,678 population for this research
Industries is 619,780 companies
44776
Construction
97019
The percentage of
companies in services is
equal to 77% for both,
Spain and Catalonia
Services
477883
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38. IS OUR QUESTIONNAIRE VALID AND RELIABLE?
HIGHLIGHTS
Reliability is related to the precision and stability of the
questionnaire
Validity is related with the Questionnaires capacity to
measure all the variables and issues for which it was
created
The Conbrachs Alpha is calculated and interpreted to
measure reliability
In order to guarantee the validity, an operational
definition of variables is used
Cronbach (1951), Hern叩ndez (2006) Condesa, (2000) & Castro, P.L. (1989).
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39. HOW CRONBACHS ALPHA IS CALCULATED?
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......
......
......
......
......
......
......
40. HOW CRONBACHS ALPHA IS CALCULATED?
CONBRACHS ALPHA
Data Exploitation
1. Reliability for DATA
EXPLOITATION section is VERY
HIGH .
2. Additionally all the correlations
between ITEMS have positive
values
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41. IS OUR QUESTIONNAIRE VALID AND RELIABLE?
CONBRACHS ALPHA
1. The mathematic definition of Cronbach s alpha is:
2. This is how Cronbachs Alpha is interpreted:
3. Additionally one Cronbachs Alpha was calculated for each variable that is
intended to measure
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