Advanced analytics has come of age, as one company after another realizes the competitive necessity of the technology. General Electric, for example, has recognized that advanced analytics will be the foundation for converting a giant of the Industrial Age into a formidable competitor in the Information Age. Indeed, the company’s development of its Predix platform, with a mission of imbuing analytics in the offerings and operation of every GE business unit, is a significant bet and should cause all other businesses to take note.

In this chapter, we outlined many of the common analytical approaches and tools used by data scientists. To be sure, these technologies require specialist skills to master, but the approaches and techniques described are nothing but modern tools to achieve improved business performance.

Just as previous companies hired machinists and skilled trades people, you will hire data scientists, analysts, and very clever employees who will...