In the previous section, we examined the flagship characteristics of the Analytical Innovators. In this section we examine the remaining companies — the Analytically Challenged and the Analytical Practitioners — and what these organizations can do to become more like Analytical Innovators.
The Analytically Challenged
The Analytically Challenged, 29% of our survey respondents, are less mature in their use of analytics and have not been able to derive as much value from them as the other groups.18 Few have achieved a competitive advantage with analytics, and even fewer have benefitted in the area of innovation. This is a stark difference compared to all other survey respondents, most of whom are deriving some competitive advantage and are using data to innovate. (See Figure 9: Analytically Challenged Report Fewer Benefits from Analytics.) Analytically Challenged organizations have four distinct characteristics that separate them from their more analytically advanced peers:
- Data deficiency
- Weak information value chain
- Lack of collaboration
- No burning platform
Figure 9: Analytically Challenged Report Fewer Benefits From Analytics
Analytically Challenged companies are distinguished by the state of their data and what they are (or aren’t) doing with it. Unlike other companies, this group has generally not capitalized on big data trends, and their data management abilities are lagging. One survey respondent in the Analytically Challenged category noted:
Analytics are only meaningful if the quality of the underlying data is unassailable. Until there is sufficient attention paid to data governance and quality assurance, analytics will remain little more than a lofty goal.
Data issues are a nonstarter for the effective use of analytics. If the data the organization is using isn’t at least reliable, accurate, timely and adequate, the results of analytics will be meaningless. And upstream, senior managers who prefer to drive decisions on their intuition will have cause to be skeptical.
Weak Information Value Chain
Another defining characteristic of the Analytically Challenged is their ineffectiveness at the analytics tasks that make up the information value chain, particularly compared to other organizations.