Recently we have posted on the Decision Management Solutions blog about a couple of interesting pieces of McKinsey research that discuss the unfortunate truth – most companies are NOT succeeding with advanced analytics.
First, there’s this general research How More Companies Can Maximize the Potential of Analytics:
“Senior executives tell [McKinsey] that their companies are struggling to capture real value. The reason: while they’re eking out small gains from a few use cases, they’re failing to embed analytics into all areas of the organization.”
McKinsey identifies three key challenges:
- Aligning on strategy
- Building the right foundations of data, technologies, and people
- Conquering the last mile by embedding analytics into decision making
Second is a piece specific to insurance, but likely typical of companies in other industries, that identifies that 80% of insurance carriers aren’t delivering high impact analytics (and I suspect most the others are only doing so very narrowly).
Why aren’t they succeeding? 38% of those surveyed cited a failure to integrate analytics into the frontline – more than cited poor data quality or a lack of strategic support.
What these research reports have in common is the identification of the importance of not just developing analytic insight, but actually embedding it in front-line workflows and systems – by using it to drive better operational day-to-day decision-making.
We have found that a straightforward, three step approach addresses this:
- Begin with decisions, not with data
- Begin with operational decisions, not strategic ones
- Begin with an agile analytic deployment platform, not with visualization
Check out the blog posts and the underlying research. And when you’re ready to succeed with advanced analytics, contact us.
