There are so many definitions for analytics out there that I thought I would start here with a simple one.  Analytics is the process of working towards an optimal decision by making the best usage of existing data.

With that in mind, I don’t view analytics as a specific technology (data mining or OLAP cubes) or a specific technique (regression analysis), but rather it’s getting to the best decision possible by leveraging the right data and applying good critical thinking skills.

With respect to Dynamics, analytics is both the computational processes and human skills it takes to turn raw web, customer, and order data into insight that help to -

·         Target the right prospects with the right offers

·         Invest time with the right leads

·         Accurately predict monthly and quarterly revenues

·         Understand how competitor behavior is affecting your business

·         Effectively launch new products at the right time in the right market

·         Test offers and campaigns to determine how to get the most out of limited budgets

That said, the question I always am asking myself is, “How do you know it leads to better decisions”? 

There’s quite a bit of anecdotal evidence, and a couple of interesting articles along those lines include  this Destination CRM article – “Analytics Drives the Success of CRM Projects” and an HBR series “To Make the Best Decisions, Demand the Best Data”, but I find that with most organizations if they take the approach of crafting a phased strategy for building out analytics and then execute systematically on that strategy, this question tends to go away as sales and marketing managers decide for themselves that the analytical tools drive improved decision making and increased profitability.