Competing On Analytics
Optimization is the linchpin of most viable competitive strategies. Rather than try to satisfy every consumer, companies adopting these strategies focus on optimal customers—those with the highest level of profitability and lifetime value. Instead of receiving goods and services whenever they happen to arrive, companies attempt to optimize supply chains to minimize disruptions and in-process inventory. Rather than make adjustments after the fact, they accurately predict which measures will yield optimal results. And they don't throw money at the problem, but seek to maximize their use of capital.
Thomas Davenport February 2006