Investing in Analytics Requires More Than Money

Steve BurgUncategorized0 Comments

 

While budget is necessary to build out your analytics infrastructure, there is a lot more to account for while building a successful organization.

 

Many large organizations have committed millions of dollars to data and analytics. It is no secret deeper knowledge lays the foundation for successful businesses. Data allows us to stay one step ahead of our competition, to lead our own industry. However, while making an investment in data is a very worthwhile endeavor, the investment alone is not enough.

 

According to a yearly study jointly undertaken by Forbes along with Ernst & Young, five areas are deeply impacted by analytics. In our brains, information passes seamlessly from cell to cell, but in the real world, the flow of information is not quite as seamless. We do have to contend with people who hold things close to the vest or are not good communicators. It is how we as leaders deal with this informational flow that ultimately determines how successful our business will be.

 

 

Let’s look at the above diagram, taken from the aforementioned study. In the agile analytics model, we would be able to start at any of the steps above and move forward from there. We have analytics at every step and are constantly adjusting to fit those analytics. However, when incorporating the human factor, lag sometimes occurs.

 

What is the impact of the human factor?

 

Since the above study is performed yearly, E&Y have been extremely helpful in providing us the exact answer. Two years ago, only 16% of companies had an enterprise wide analytics strategy. This past year, 23% of companies had made the transition into a model more similar to Agile Analytics. That’s a staggering 43% jump from 2015 to 2016.

 

So what is stopping 77% of companies from making the jump to agile analytics? Primarily, internal stakeholders: people who don’t believe that they need help from an external source to improve their portion of the business cycle.

 

What impact has agile analytics had on companies who do make the leap?

 

This has impacted the companies that have made the transition in numerous ways. In fact, 26% of the companies that took the E&Y survey commented that they had completely changed how they fulfill customer needs and their financing models. This is a staggering change to enterprise level companies. As you can see from the below chart, data is beginning to make every single piece of companies significantly more efficient.

 

 

Is the human factor always a barrier to change?

 

No, not at at. In fact, the human factor is also the leading driver of change within companies. Often times, we meet with the company “champion,” the one person who has taken on agile analytics as their cause and is pushing it to other stakeholders in the company. These are the people who often times become the company leaders due to their tenacity and drive to get more accomplished at a more efficient pace.

 

How do we overcome the human factor?

 

This generally comes from within the corporate leadership. When a champion knocks on a senior company members door, they must be taken seriously. Empower them. Have their back when other stakeholders stand in their way. If their tenacity holds, and they manage to get agile analytics through in your company, ultimately you will be seen as the backer of the champion, and not a barrier. You will benefit as much from their success as they do.

 

This sounds awesome. Let’s get started!

 

Yes it does! If you are a senior member of a company, no matter the size, get on board. Don’t just get out of the way but get behind your champions.

 

If you are a more junior employee, this is your shot. Become the champion of agile analytics. Become the champion of change because ultimately, you will be established as the expert in your company. You will gain increased visibility to senior leadership who will acknowledge that the coming success, no matter which department, will be attributed to you.

 

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