In the fast-paced world of data analytics, businesses often grapple with how to put their data to work. As shocking as it may seem, nearly one-third of data analytics professionals report that their company only sporadically, if ever, puts their analyses into practice. Does this mean that we need to build an army of data scientists or rely on the most advanced analytical techniques? Not necessarily.
Rather than investing in advanced, expensive techniques, businesses can effectively leverage data analysis by focusing on specific commercial and operational problems. The tools and processing power required for this are often readily available and won’t break the bank. Interestingly, most companies are already storing a wealth of commercially-relevant data, but the challenge lies in effectively analyzing and utilizing this data.
So, how can your business overcome these hurdles and make data analysis work for you? Here’s a step-by-step guide:
Step 1: Integrate Data Analysis with Business Needs
Firstly, it’s crucial to align your data analysis efforts with your business’s unique requirements. To do this, you need three key elements:
- People: You need team members who can blend their business knowledge with advanced analytics methods effectively.
- Method: Implement an evidence-based approach that translates your team’s analytical knowledge and understanding of the business problem into actionable insights.
- Team: Cultivate a small group of analytics professionals. These individuals aren’t necessarily data scientists but are proficient in developing appropriate analytical tools and techniques, and can train others in the organization.
Step 2: Develop Your Internal Capabilities
It’s wise to begin with a single, significant business problem where predictive analytics can provide immediate value. Starting small allows you to test the waters, build momentum, and gain credibility within your organization. For example, beverage giant SABMiller initially made data analysis accessible to their business units. They kept their initial investments modest, enabling them to quickly pivot away from failures and expand successful tools and approaches.
Step 3: Connect Analytics to Your Business Heartbeat
The next step is to tie your analytical endeavors to the commercial and operational nucleus of your organization. If your analytics initiatives aren’t addressing a core business need, they may be more of a hindrance than a help. Aim to place your analytical capabilities as near as possible to the individuals who are driving your commercial strategy.
Step 4: Identify and Leverage Your Analytical Capabilities
Finally, take stock of your existing and potential analytical capabilities. Many businesses already have dedicated functions for strategy, financial planning, or business insights, and individuals using analysis to solve business problems. These assets are a treasure trove – empower them with new capabilities. Remember, you don’t need special qualifications, just the willingness to become data literate and proficient in your selected tools.
While the demand for data and analytics talent continues to rise, not every business needs a dedicated, in-house team of data specialists. Instead, focus on developing a clear strategy and operational model tailored to your business requirements. Your data is a gold mine waiting to be tapped, so don’t let it gather dust. Leverage it effectively, and watch your business soar to new heights.
