Four best practices to kickstart advanced analytics: Gartner
- 16 September, 2015 10:34
Failure to make these changes can be fatal to success, writes Kart in the Gartner report How to Take a First Step to Advanced Analytics.
In fact, Gartner predicts in the next two years, 60 per cent of big data projects will fail to go beyond piloting and experimentation, and will be abandoned.
"Many business intelligence (BI) and analytics leaders are unsure how to get started with advanced analytics, and many organisations feel they must make a significant investment in new tools and skills," says Kart.
"But a successful advanced analytics strategy is about more than simply acquiring the right tools. It's also important to change mindsets and culture, and to be creative in search of success."
It's essential to identify the internal stakeholders who need to be convinced...Not having them on board can derail any project.
Kart lists the four best practices that BI and analytics leaders can use to get advanced analytics initiatives off the ground:
Choose a Business Problem That Offers an Initial Win
BI and analytics leaders need to work with business leaders to identify problems to tackle. Review with them the outcomes that drive the business and identify the decisions that could provide the biggest impact or, in many cases, the quickest payback. These may include day-to-day operational decisions, tactical decisions (such as planning), or infrequent strategic decisions (such as whether and when to enter new geographies). Wherever there is a lot of data, uncertainty and complexity, there is opportunity.
Use Outsourcing and Buy Packaged Apps When You Lack Advanced Analytics Expertise
Many organisations assume they must continue on their current path with a centralised BI team and tools, and therefore build advanced analytics capabilities themselves. However, there are other options that are better suited to quick wins. Organisations that don't themselves have the skills to build advanced analytics can use external service providers who do, or buy advanced analytics applications to show the value of advanced analytics expertise for a particular problem.
Identify the Stakeholders in Your Organisation That Need to Be Convinced of the Value of Advanced Analytics
It's essential to identify the internal stakeholders who need to be convinced. These are the naysayers, the sceptics, and perhaps the decision makers or those who carry out the actions. Not having them on board can derail any project. Having a business case that demonstrates the value is, of course, necessary, but it may not be enough on its own. The hardest task is to change people's beliefs and how they see the world — to get them to understand why they need to think or act differently. "Frequently, the success of advanced analytics initiatives comes down to the ability not only to deliver the analytics or communicate their value, but also to create a data-driven culture," says Kart.
Decide If You Want to Build the Skills and Tools Internally
Businesses that achieve best-in-class advanced analytics solutions typically do so through a build strategy. However, building the skills and tools internally isn't for everyone, and it's often not the best way to start.
Kart says it makes sense for an organisation to build advanced analytics internally if: analytics is a critical differentiator in its industry or if the area is of strategic importance; a high level of agility and granularity of control is required; and there are many opportunities across the organisation to apply analytics in multiple use cases or lines of business.
The core skills
BI and analytics leaders that do decide to build must have the three core skills needed for advanced analytics:
- Business skills: Apply analytics to the right problems and ask the right questions.
- IT skills: Access the data, identify the required infrastructure and execute the insights.
- Data science and quantitative skills: Take the right analytic approach to the data.
Unfortunately, this skill set is rarely found in one person, but it is essential to have all three skills within a team, says Kart.
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