Bloomberg on Business Analytics | Business Analytics 3.0
Interested in slicing, dicing, measuring, and analyzing data for customer and business insights?
According to a recent survey by Bloomberg, 97% of companies with revenues of more than $100 million are using some form of business analytics, up from 90% just two years ago.
While businesses have embraced the idea of fact-based decision-making, a steep learning curve remains. Only one in four organizations believes its use of business analytics has been “very effective” in helping to make decisions. Data is not just ignored but often discarded in many organizations as the business users can’t figure out how to extract signal from data noise.
This is a far cry from the current hype around analytics and big data, raising the questions:
These are questions that managers must ponder as they rampup investments. Many companies start their analytics journey by executing one or two projects of small scope.
That may be fine at the outset, but in order to address the larger performance improvement issues, companies need to move up the maturity curve from repeatable to defined and then to managed and optimized.
What is the focus? BI vs. Business Analytics
Most firms are doing business intelligence but think they are doing analytics.
The following are research insights highlighted by the survey sample of 930 respondents:
Nothing earth shattering here….Like all innovation, adoption will take time and require significant organizational changes across toolsets, skillsets and mindsets. But make no mistake, companies that don’t embrace analytics in a fast paced competitive environment will be left behind. Take for instance Financial Services industry. The sector continues to undergo massive structural change due to de-risking, ongoing regulatory changes (e.g. Dodd-Frank act, Basel 3), curbs on leverage, competition to cash-cows like credit-cards and a massive shift to online banking. This is driving skyrocketing demand for predictive models and creating an unprecedented need for data agility.
What Is Your “Analytics Maturity ”?
In order to change, you have to baseline first – what is your analytics maturity. The business analytics maturity curve represents the arc of progression every company moves along. Maturity levels are measured by your level of experience, the implementation and support strategies you use, and your degree of sophistication around data.
Analytics maturity can be assigned to one of the following four groups:
Which type of organization do you belong to? Where do you want to be?
Notes and References
Source: Bloomberg Businessweek Research Services study, conducted among 930 businesses across the globe in various industries. Focus of the study is to provide insight into the current state of business analytics in today’s organizations. Also examine the challenges companies face when using analytics, and explore tactics favored by companies who have succeeded in using analytics more effectively than their peers.