Real-time analytics is the key to N=1, R=G. In the new age of innovation, "Foresight, not hindsight, is of value," point out authors Krishnan and Prahalad. Most managers are aware of the need to leverage the data their organizations generate or have access to. But real-time analytics is easier said than done.

Chapter three of their book, The New Age Of Innovation, is called "Analytics: Insights For Innovation." In it the authors discuss the centrality of exploiting data for competitive advantage in the customer-focused, global-oriented business environment.

"Competitiveness favors those who spot new trends and act on them expeditiously. Therefore, managers must develop insights about new opportunities by amplifying weak signals." (p. 81)

That sounds like Marketplace Economics 101. But add to that the imperative of co-creating business value with your customers on an individual basis and leveraging dynamic, extended supply chains, and it takes on a whole new meaning. "The new competitive landscape requires continuous analysis of data for insight." (p. 82)

In the past, business insight was a function of the "gut feel" of experienced managers, executives, and sales people. Today, business insight is gleaned from data, both structured transactional data and the unstructured data of documents, e-mails, images, videos, and the Internet. And the demand for data will only increase. "The capacity to serve individual customers—that is, personalization and cocreation of value—will demand capabilities to work with customers to anticipate and predict their preferences on a continuous basis." (p. 97)

Most organizations have access to plenty of structured transaction data about their customers -- too much, in all likelihood. The authors use the metaphor of trying to drink from a fire hose. And the "weak signals" of unstructured data may be just as important when it comes to anticipating customer demands. Many consumer trends first surface in social networks like Facebook or popular online sites like YouTube. That calls for a way to both sift through mounds of data and integrate disparate data sources.

The authors also make the very good point that analytics isn't just about trying to determine the latest cultural trends among consumers. It also has to do with making sure your supply chain is functioning well at all points. That's particularly true for a supply chain that may have to come together quickly to enable a fluid and rapidly emerging business model.

"In R=G, the capabilities of each vendor in the ecosystem in terms of costs, time, and quality levels must be understood and matched with the specific demands of a single consumer at a point in time. Furthermore, given the complexity of the entire ecosystem, the impact of change in any single variable, such as order entry, will have a ripple effect on the other related subsytems such as inventory, spare parts, and manufacturing lead times." (p. 84)

Most managers are aware that data is one of their organization's most valuable assets. In a survey of more than 700 corporate managers and CIOs for InformationWeek magazine, for a report called "Tomorrow's CIO," corporate execs put these action points on their list of opportunities for CIOs: "use customer/business data to drive sales growth," and "use customer/business data to influence new product development."

In the world of N=1, R=G, that data imperative is paramount. "It must be obvious that in order to perform analytics for insights, we need to focus on visibility, granularity, accuracy, and timeliness of data." (p. 94)

Unfortunately, many of the analytical tools available, such as business intelligence and enterprise search tools, are complicated, expensive, and temperamental. Add to that the fact that many organizations don't treat their data assets with the scrupulousness they should, and you see why real-time analytics is a challenge.

But real-time data analysis is a critical strategy for new age organizations, authors Prahalad and Krishnan make clear. "Analytic capability is the bridge between the competitive landscape and the clarity of business process to enable action." (p. 106)