Chief Information Officers, Chief Data Officers, and other leaders recently met to discuss how a data analytics program can help organizations achieve transformational change and how to measure their contribution to value. We shared our insights at the CIO Online virtual roundtable event with leaders from organizations in healthcare, financial services, utilities, telecommunications, and more.
The discussion focused primarily on data management issues and opportunities related to ‘supply’: its quality, ownership, access, and other issues. Supply and consumption are symbiotic principles that together maximize the value of enterprise data assets. The issue of “consumption” is equally important, but providing the data properly is essential to ensure that the data and the insights it provides are available and trustworthy.
Our participants reported encountering feedback that, despite the amount of money companies spend on big data and analytics each year, data analytics programs do not justify the effort to implement and operate them. increase. These leaders also struggle to set metrics that show their programs have met their transformational goals.
These two challenges are closely related. A better indicator of the value of data analytics programs would go a long way in dispelling the perception that these programs are worthless. During our conversation, we acknowledged that doubts about its value were a sign that businesses were not ready to extract sufficient value from the program. It’s a situation where you need to empower your business to read, analyze, work on, and even discuss.
This post summarizes our conversation and describes some of the strategies we discussed to derive and demonstrate the value of data analytics programs.
Organizations should ensure that all affected stakeholders (business, IT, data management, security, risk, compliance, etc.) are appropriately engaged in the ongoing development and management of trusted data and insights. It can support the effectiveness of your data analysis program. In other words, treat data and the insights it provides like any other important corporate asset.
Mark Carson, managing director and data and analytics leader at Protiviti, described this sustained engagement model as “a holistic, cross-functional approach that begins and ends with business value.” . Views of the latest data and analytics that resonated with participants.
Consistent cross-functional engagement, along with senior leadership buy-in and support, is paramount to maintaining the symbiosis of an organization’s corporate strategy and data and analytics strategy in delivering business value. This alignment is essential for any data analytics program as it focuses the program’s efforts on mission-critical transformation.
Discussion with data
In a successful data analytics program, business users absorb, evaluate, and act on data by reading, working with, analyzing, and discussing it.
…debate with the data? Once data owners are able to make the most of their analytical tools and make the most of the data itself, they will be able to use the data to “support a larger narrative intended to convey some message to a particular audience.” “Do”. About data literacy. This is when your data analytics program shows its greatest value. Our ultimate goal is to empower companies to use their data to make decisions.
Measuring the value of data analytics
Participants shared questions about how to measure the value of data analytics programs. Metrics are within the Governance Domain, which is the joint scope of the Owner and Steward.
Senior Director Lucas Lau, machine learning and AI practice lead at Protiviti, outlined a list of categories to simplify metrics. By considering only these four dimensions, leaders can simplify the seemingly complex problem of demonstrating value.
- How can data analytics increase your revenue?
- How does a data analytics program reduce business losses?
- How is data analytics helping you reduce capital and operating costs?
- How are you using data analytics to manage enterprise risk?
Measuring along these dimensions removes any suspicion that your data analytics program doesn’t deliver value. The answers to these four questions can help get program leaders’ attention. Questions provide additional benefits as they generate new ideas about the additional benefits a data analysis program can provide.
Gain momentum with early wins
Early victories not only provide momentum, but also lay the groundwork for the team to build a sense of community and confidence. Organizations recognize that business transformation is an ongoing process, not a project, so the confidence-boosting and capability-building experience gained from early wins can be used to track outcomes on an ongoing basis. , as the basis for revising data-driven decisions as needed.
The power of the round table
Leaders can help data analytics programs deliver value by clarifying the role of data owners in the business community. You can then measure the value of your program along the lines of increasing revenue, reducing losses, reducing costs, and better managing risk. They can focus on early wins that build team confidence and capability as the foundation for ongoing program effectiveness.
The ideas we generated together highlight what happens when a community of leaders discuss barriers to success in a confidential environment. An opportunity to meet and advise the leaders who participated in this roundtable. Thanks to CIO Online for giving us
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Protiviti Managing Director – Data and Analytics Leader
Senior Director – Machine Learning and AI Practice Leader at Protiviti