5 Keys to Business Analytics Program Success

Description:

Business analytics is becoming increasingly strategic to all types of organizations. In the 2012 IBM Global CEO Study, 73% of CEOs indicated that they were making significant investments in their organizations’ ability to draw meaningful customer insights from available data1. CEOs now expect analytics to be readily and easily available to all of the teams that run the business, from executive level to line of business. An analytics-driven organizational culture creates a competitive advantage and leads to higher business performance. Analytics technologies help executives, managers and employees better monitor their business, plan collaboratively among various stakeholders and integrate diverse types of data that can be transformed into knowledge. According to the recent IBM Institute for Business Value study, organizations that used analytics for competitive advantage were 2.2 times more likely to substantially outperform their industry peers.2 Although analytics-driven business is a growing trend, most organizations are still in the early stages of using analytics technologies effectively. The Analytics Quotient Maturity Model measures how ready organizations are to reallocate resources and reorient their people to make better decisions; and how effectively they can act based on how well they know past performance, current results, and future possibilities. There are four stages categorizing organizations using this model (see Figure 1). Figure 1: The Analytics Quotient (AQ) Maturity Model A 2012 data analysis on the AQ maturity level of over 6000 organizations found that 91% have not reached their full level of analytics maturity. The majority of these respondents are in the Builder stage. Organizations in this stage are described to see current results, but do not see what’s driving these results. There are two critical factors in successfully implementing an analytics-driven business. First, a clear business strategy and vision must be set. The strategy should create a roadmap for how the organization will move forward in a series of measureable successes. Second, organizations must develop the capability to actually execute on a winning strategy. Although an organization may have a compelling strategy, it is often challenged by its inability to translate business strategy into actionable plans and achievement. The creation of a Business Analytics Program will allow organizations to achieve these two factors. It is important to note that there is no single ―silver bullet‖ when it comes to running a Business Analytics Program – no single program methodology – and the strategy, organization and technology an organization puts in place today will change as the organization matures in its ability to use analytics technologies. Organizations need to expect this, embrace it and change with it. This is why it is called a program – and not a project. **There are 5 key areas that businesses should focus on in order to increase the success of a Business Analytics Program: Strategy, Value, People, Process and Technology.** The creation of an analytics-driven culture – one in which analytics is accessible and used by all business groups – is a strategic priority for many organizations. Business analytics helps organizations create a competitive advantage and outperform their peers. However, purchasing Business Analytics technologies is not sufficient to ensure success. A Business Analytics Program must be implemented in order to turn strategy into actionable plans and achievement. The 5 keys organizations need, in order to implement a successful Business Analytics Program and ultimately achieve analytics success are: Strategy, Value, People, Process and Technology. Firstly, organizations need to create a well-defined, coordinated business and IT strategy that will change over time. Secondly, they need to learn how to quantify business value and return on investment, helping employees prove the importance of Business Analytics to their executives. Thirdly, organizations need to know how to build a center of excellence and organize its people for success. Fourthly, they need to create processes and guidelines to balance agility, empowerment and control. Finally, organizations need to implement a business analytics technology solution that will satisfy business needs with future innovations in mind.

subjects: Business planning,  Organizational effectiveness,  Business consultants,  KPIs,  Analytics,  software implementation,  Business Analytics,  Strategy,  Value,  People,  Technology,  Process.