Many articles and papers have been written about the benefits and value of analytics. Over the last several years, leaders have realized the impact effective analytics can have on their organizations. As these leaders attest, the benefits are indeed real. However, the process to achieve effective and comprehensive predictive analytics capabilities is a journey. And, as with any journey, the best way to understand where you would like to go is by first knowing where you are.
The process for developing the leading-edge analytics capability typically involves four key stages of maturity, described in detail in the ScottMadden Analytics Maturity Model shown on subsequent pages. Each stage has defined characteristics and organizational behaviors that highlight where an organization is in its journey. Each stage provides a foundation for the next (i.e., it is hard to skip a stage in the evolution of analytics capabilities in your organization.) This model can provide your organization a roadmap to enhance your current analytics capabilities.
APQC’s 2019 survey on data and analytics trends indicated that, for nearly two-thirds of organizations, analytics is an intrinsic component of decision making, while more than half say that analytics is integral to a range of business-critical tasks. According to Gartner, by 2023, 90% of corporate strategies will explicitly mention information as a critical enterprise asset and analytics as an essential competency. 30% of Chief Data Officers will partner with their CFO to formally value the organization’s information assets for improved information management and benefits. For six consecutive years NewVantage Partners has conducted an annual survey on how executives in large corporations view data. It has always involved a high proportion of C-level executives responsible for data, but this year chief data officers are 56% of the respondents, up from 32% last year. Only 12% of firms in the 2012 survey had even appointed a chief data officer.
While companies consistently report that data analytics is a high priority, adoption remains elusive to many. In fact, TDWI research indicates that if users stuck to their plans for advanced analytics adoption, adoption would be at 75-80% even though adoption is only 35%-40% currently. ScottMadden’s Analytics Maturity Model can help organizations assess where they are and provide a roadmap for further development.
Upon reading this roadmap and the example, are you able to gauge where your company is in analytics maturity? Can you determine where you want to be and by what timeline? If you are in the early stages, you are not alone. According to a 2018 survey by Gartner, more than 87 percent of organizations have low business intelligence and analytics maturity. APQC says the vast majority of organizations rely predominantly on descriptive analytics for their business needs. They tend to use predictive analytics for customer focused functions like marketing, product development, and sales. Only a quarter of organizations have extended the scope of their data and analytics efforts to include prescriptive analytics. It is clear that the majority of companies are still in the early stages of developing and incorporating robust analytics into their strategic and operational decision making processes. However, many organizations are accelerating their investments in this area. These organizations can use the Maturity Model to develop a roadmap for growth, further accelerating their journeys.
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