Business Analytics: Six Steps to Getting ResultsPosted 2012-09-06 Print
To apply analytics effectively, businesses should think beyond technology to consider how an analytical approach affects many aspects of their operations.
Step 3: Tie analytics into business processes and operations.
Once a technical analytic solution has been constructed, it should come alive inside the organization’s operational ecosystem. This step is where broad thinking should be applied, rather than shoehorning new methods into old.
Business is riddled with legacy thinking, operations, policies and procedures. Very often, it’s helpful to use this opportunity with analytics to take a step back and re-examine the way the business runs.
Many businesses have found analytics helpful as a catalyst for significant business process change. Such change may be far-reaching and cause significant disruption. It takes a major effort to assess and shepherd this change, but the result is often a great improvement in management criteria and performance metrics.
It is essential to think through how to integrate fact-based tools into business processes. Modernization of operational processes has been shown to be very valuable in the strategic analytics journey and deserves detailed treatment.
Step 4: Integrate the technology.
The required level of technology integration depends on the type of analytics being applied. Technology components can include scoring engines, signal processors, enterprise rules engines, supervised orunsupervised learning engines, and other foundational technology elements that make analytic outputs and tools available to operational processes.
In many instances, technology integration incorporates existing information management and business intelligence tools, systems and data, as well as standards-based messaging and platform-independent development methodologies. The holistic approach to analytics leverages these components and moves analytics from point applications to enterprise solutions.
Step 5: Embrace change management.
The application of any foundational change introduces a degree of turbulence into the business, and analytics is no exception. Many employees resist change and prefer traditional work routines to dealing with "yet another" change in the way work is done. This is why the execution of an analytics strategy should be planned, and change managed properly.
To be effective, businesses need training and communication, consistent executive sponsorship, nurturing of nontechnical influencers (line-of-business professionals) and a demonstrated link between the initiative and the business strategy.
Implementing a communications and training program can guide employees through the analytics transformation. Executive sponsorship is also important, since a strong, consistent message from leadership can build consensus and momentum.
As important as people are to the change management journey, implementing the right technology and processes is just as crucial. The goal is to align the systems, technology and data to the people and processes they are enabling. This approach embeds analytics into the frontlines of the business, where everyone views it, uses it and realizes its value as a strategic, competitive asset.
Step 6: Establish a performance management discipline.
To win in the open market requires businesses to understand their failures as well as they understand their successes. Performance management gives executives an actionable form of understanding what's working and what's not.
Analytics offers a visual, more efficient approach to scenario planning. Offers can be tested on specific segments, and then adjusted based on results and feedback. This performance management approach can result in more precision and less guesswork.
Benchmarking is an important step in establishing a performance management discipline. Just as the human body demonstrates subtle nuances across individual parameters, so, too, do businesses of similar shapes, sizes and functions. Applying analytics can normalize data to define baseline performance and then spotlight changes to key performance indicators by action.
Then, by repeating steps 1 to 5, the inflection points become increasingly tailored to the organization’s own environment and comparable to others with similar operating footprints. This iterative “tuning of the engine” allows for feedback and loopback mechanisms to create continuous improvement.
Effective analytics projects avoid hype. They resist becoming distracted by the amazing capabilities of today’s analytics tools and technologies. Instead, wise businesses home in on specific challenges—current and anticipated—and how analytics can be applied to solve them.
The six-step analytics strategy presented here gives companies the ingredients to generate results from a fruitful analytics journey.
John Lucker is a principal and the global advanced analytics and modeling market offering leader at Deloitte Consulting LLP. He is also a U.S. leader in Deloitte Touche Tohmatsu Ltd.’s Deloitte Analytics Institute.
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...