Difference between Analytics and Experiments

Source: HBR blog, May 2014

In their 2012 feature on big data, Andrew McAfee and Erik Brynjolfsson describe the opportunity and report that “companies in the top third of their industry in the use of data-driven decision making were, on average, 5% more productive and 6% more profitable than their competitors” even after accounting for several confounding factors.

One of the most important distinctions to make is between analytics and experiments.

The former provides data on what is happening in a business, the latter actively tests out different approaches with different consumer or employee segments and measures the difference in response.

 

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