Many companies are finding a huge upside potential in data analytics to grow revenues and profits, and cut costs. Sharper analysis of rich data from an expanding range of sources is enabling more cost-effective marketing and improved customer engagement. As a result. companies are investing in information management infrastructure to extract the gains. Yet, data analytics cannot be effective beyond a point, and companies need to keep their approaches grounded in reality, say Peter Fader, Wharton marketing professor, and K. R. Sanjiv, global head of analytics and information management at Wipro Technologies.

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