Recent findings suggested that big data is a lot more valuable than people think. Companies with advanced analytic capabilities, the consultancy finds, are twice as likely to be in the top quartile of financial performance within their industries; five
times as likely to make decisions much faster than market peers; three times as likely to execute decisions as intended; and twice as likely to use data very frequently when making decisions.
This is all good stuff, and the survey, which covered the input of 400 executives, makes a direct correlation between big data analytics efforts and the business’s bottom line. However, it begs a question: How does an organisation become one of these analytic
leaders? And there’s a more brain-twisting question to this as well: would the type of organisation supporting an advanced analytics culture be more likely to be ahead of its competitors because its management tends to be more forward-thinking on a lot of
fronts, and not just big data?
You just can’t throw a big data or analytics program or solution set on top of the organisation (or drop in a data scientist) and expect to be dazzled with sudden clarity and insight. If an organisation is dysfunctional, with a lot of silos, fiefdoms, or
calcified and uninspired management, all the big data in the world isn’t going to lift its intelligence quota.
Succeeding with big data analytics requires a change in the organization’s culture, and the way it approaches problems and opportunities. The enterprise needs to be open to innovation and change. And, as Pearson and Wegener point out, “you need to embed
big data deeply into your organization. It’s the only way to ensure that information and insights are shared across business units and functions. This also guarantees the entire company recognizes the synergies and scale benefits that a well-conceived analytics
capability can provide.”
Pearson and Wegener, authors of ‘Brain and Company’ also point to the following common characteristics of big data leaders they have studied:
Pick the “right angle of entry”: There are many areas of the business that can benefit from big data analytics, but just a few key areas that will really impact the business. It’s important to focus big data efforts on the right things.
Communicate big data ambition: Make it clear that big data analytics is a strategy that has the full commitment of management, and it’s a key part of the organisation’s strategy. Messages that need to be communicated: “We will embrace big data as
a new way of doing business. We will incorporate advanced analytics and insights as key elements of all critical decisions.” And, the co-authors add, “the senior team must also answer the question: To what end? How is big data going to improve our performance
as a business? What will the company focus on?”
Sell and evangelize: Selling big data is a long-term process, not just one or two announcements at staff meetings. “Organizations don’t change easily and the value of analytics may not be apparent to everyone, so senior leaders may have to make the
case for big data in one venue after another,” the authors caution. Big data leaders, they observe, have learned to take advantage of the tools at their disposal: they “define clear owners and sponsors for analytics initiatives. They provide incentives for
analytics-driven behavior, thereby ensuring that data is incorporated into processes for making key decisions. They create targets for operational or financial improvements. They work hard to trace the causal impact of big data on the achievement of these
Find an organisational “home” for big data analysis: A common trend seen among big data leaders is that they have created an organizational home for their advanced analytics capability, “often a Center of Excellence overseen by a chief analytics officer,”
according to Pearson and Wegener. This is where matters such as strategy, collection and ownership of data across business functions come into play. Organizations also need to plan how to generate insights, and prioritize opportunities and allocation of data
analysts’ scientists’ time.
There is a hope and perception that adopting data analytics will open up new paths to innovation. But it often takes an innovative spirit to open up analytics.
Blog updated: 26 May 2015 17:25:27