Here’s a quick quiz for your organization (yes or no):
- Believes data is a “core asset” that can be leveraged to improve performance at all levels of the organization.
- Seeks to use more data with increasing effectiveness to drive faster goal attainment.
- Top management champions the use of analytics by allocating greater resources to areas making data-based decisions.
If you answered “Yes” to all the above, your organization is an “Analytical Innovator”.
This classification is defined in the 2013 MIT Sloan Management Review study, From Value to Vision: Reimagining the Possible with Data Analytics.
The results of this global survey of over 2,500 respondents from business and academia defined three categories of analytics users:
Analytical Innovators (11%)
Analytical Practitioners (60%)
Use data to support tactical and operational decision making but have not yet taken analytics to the next level.
Analytically Challenged (29%)
At best use data to maintain rudimentary reporting.
These categories represent refinements from categories defined in a 2011 MIT Sloan survey (“The Gap is Widening”). Two trends are suggested by the changes over the past year:
- Analytical Innovators continue to surge ahead. Their forward momentum is propelling them deliver even more creative and competitive data-driven innovations. Some key study observations are:
- Data-oriented cultures continue to deepen.
- Previous success with analytics makes them more open to new ideas
- Use of real-time data applications is increasing
- Pace of new product development has increased
- Use more of their own data
2. The ranks of Analytical Practitioners have swelled significantly. More organizations have come to believe in the power of analytics and are investing in data as never before. Yet, they have not moved to the next level. The study describes three characteristics for this group:
- “Just-Good-Enough data” - these organizations have started to master the basics of data integration and quality. Nevertheless, they still have a long way to go to match the Innovators’ data-centric processes.
- Current operations orientation –Success in reducing cost and improving resource allocation has made Analytical Practitioners confident they are on right path. However, they are not yet using data to make significant advancements in their markets.
- Immature “Analytics Ecosystem” - most of these organizations have yet to make analytics a key component of their business strategy. They have managed to implement beneficial point solutions but have not yet integrated analytics at each link in the value chain.