What does analytics maturity mean for a business? Is it simply the ability to buy the latest technology stack for data? Is it having a dozen data scientists on staff?
Even so-called mature organizations may be in a place where their analytics adoption seems like “we dont know where we are going, but we are on our way”! Executives may have made some investment in analytics, but companies find themselves struggling to keep up with rapid technology changes and skill shortage. Instead of worrying about keeping pace with this, businesses should always start with the question “how can analytics help with setting the business strategy and provide tactical clarity in the marketplace?” When the answer(s) become(s) available, businesses will see that rather than fight or fret of technology changes or lack of employee skills, they will automatically adopt the most relevant analytics tool/service of value. This is really what is meant by analytics maturity.
Analytics maturity is simply that ability to harness any available tools (or services) that can deliver a significantly improved way of doing business. After implementing your analytics, you should be able to see a measurable difference in your costs or revenues or both. Companies who have done this are the most analytically mature.
But not every business starts that way. That is ok. What is important is to start at the right place. The “right” place is an honest assessment of current state of affairs when it comes to making business decisions using data. Are you able to quantify the top 20% of your customers (from a profits analysis)? Do you know which of your products are the most profitable? least profitable? Is your competitor’s marketshare increasing or decreasing? How quickly can you get to your own historical data?
Assessing the maturity must be quick and shorn of all abstractions. At the same time it must be broad and relatable to executives. After all, they are the ones responsible for strategy. Data and analytics are simply the fuel to drive a clear and winning business strategy.
Originally posted on Wed, Feb 24, 2016 @ 08:00 AM