There’s immense pressure in the marketplace for organizations to become data driven and utilize the flows of data in and out of the business. When an organization harnesses its data properly, many advantages can be gained. These benefits include an increase in competitive advantage, finding new revenue opportunities, increasing profitability, increasing customer service and satisfaction, as well as achieving operational efficiencies. Unfortunately for some, the promise of those benefits comes at a cost and real value is never realized.
There are many reasons data analytics projects don’t provide true ROI. Some of those reasons include:
- No executive buy-in
- Lack of tie-in to business objectives
- Failure to develop a timeline/success criteria
The lack of a proper business intelligence roadmap that’s tied to the overall objectives of the organization means data initiatives fail, and both time and money are wasted in the process.
The increase in pressure to apply insights gleaned from data has created general confusion as to what analytics are and how to efficiently implement data strategies. Executives have difficulty cutting through industry noise to buy in to use cases that can be repeated within their organizations. Leaders don’t have countless hours to spend sifting through the clutter and do research to determine which software or solution might benefit them. It’s seemingly simpler, cheaper and less risky to continue to rely on gut feelings to make decisions.
Often data strategies within an organization are conflicting and they tend to vary by department. Companies fail to communicate at an executive level between departments to map their data strategies to the overall strategy of the business. Investments in analytics solutions then tend to be departmental, which creates chaos in the data environment and overlaps in spending.
Beyond a lack of executive buy-in and communication between those same leaders, organizations fail to put timelines and success criteria in place to keep projects on track and focused on key objectives.
The culmination of these complex issues results in frustration and a multitude of conflicting projects giving the business leaders zero faith in the power that analytics might have on their organization. Fortunately, that frustration can be prevented through proper data discovery and development of a business intelligence roadmap.
If an organization is willing to bring together key stakeholders to do an assessment of their current processes and procedures, the best course of action can be determined to tie business objectives to the implementation of a data solution. A data discovery assessment will enable success for an organization by laying out a specific roadmap from the current state of the business to a future data-driven business. The roadmap aligns overall business objectives to IT and analytics initiatives along with specifics on timelines, software recommendations and data strategy.
With a proper roadmap in place, analytics projects will demonstrate their value quicker as executives realize small wins that benefit the overall business. Continued buy-in will elicit more funding, which in turn generates compounding ROI and overall customer satisfaction.
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