While Transformed organizations serve as benchmarks for establishing analytics competencies, almost half of the organizations we surveyed are at the Experienced level, somewhere between the most basic and the most advanced segments.10 We took a closer look at this large transitional segment to better understand those organizations (see Figure 11).
We found that organizations, after starting, diverge in their approach to analytics. We characterize the alternative paths as Specialized or Collaborative, based on the way analytics is leveraged and deployed:
The Specialized path. Deep analytics expertise is developed within lines of business or specific functions using a wide array of analytical skills and techniques. Analytics is used to improve specific business metrics. Slightly more than half of the Experienced organizations took this route.
The Collaborative path. An enterprisewide information platform is created, enabling insights to be developed and shared across lines of business. Analytics is used to improve enterprise objectives. Slightly fewer than half of Experienced organizations took this route.
See Figure 12 for a comparison of the relative proficiency levels these paths exhibit for each of the three analytics competencies.
The Specialized Path Can Lead To Well-Defined Gains
With impetus coming from within lines of business, organizations on the Specialized path pragmatically focus on improving their operational metrics while growing revenue and increasing efficiency. They use their analytical prowess in advanced skills and techniques, such as predictive modeling, to focus on orchestrating marketing campaigns and finding the best match between individual customers and sales representatives.
FIGURE 11: Paths to Transformation
In addition to the revenue gains resulting from these programs, the Specialized path takes organizations through a wide range of efficiencies and cost savings. Predictive scenarios and simulations, for example, make it possible to understand how changes caused by internal strategies and external forces will impact individual units in terms of resource allocations, revenue growth and operating costs. We found that organizations on this path increased their use of analytics over the last 12 months, but rarely as a core part of the overall business strategy.
The Specialized Path and the Three Competencies
1. Information management is siloed.