Analytics, Strategy, and Management Control Systems

Eduardo Rodriguez

This chapter is about the relationship between analytics, strategy, and management control systems. Analytics is an input for a strategic process, for creating and defining strategies. Once the strategy has been built, the next step is to find the way to achieve a good implementation. Many strategies may be good, but the implementation may not be. Bad strategy and bad implementation increase strategic risk. Management control systems are the set of systematic activities used to implement the strategy to provide value to all stakeholders.

Analytics is part of the management control system. This is through the way in which it provides the insights that support any steps for implementation and in how using strategic intelligence can provide the structure for maintaining the competitive advantages of organizations.

This chapter has three sections: First, to present different kinds of organizations and encourage an open-minded and different way of looking at organizations; second, to connect organizations and management control systems; and third, to indicate how the measurement systems that analytics helps to create are based on key performance indicators and key risk indicators.

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