Companies often view data analytics as a business challenge, not a technology issue. Yet they can't reap the benefits of analytics efforts unless their IT is up to the task of managing the sheer volume of data. Rasmus Wegener, a partner in Bain's Advanced Analytics practice, discusses how leaders can turn their data into a platform for growth.
Read the transcript below.
RASMUS WEGENER: A company that makes good use of its data more than doubles its likelihood of outperforming the competition. Why, then, is it that two-thirds of senior executives we spoke to would say that their companies fall short of creating sufficient business value out of their data? From our experience, there are three areas where the translation of data as an asset into business value typically falls short.
First, the data management and the data integration of the explosive data growth that we have been seeing is putting unprecedented strain on the budgets and capabilities of IT departments.
Second, data experimentation and pragmatic business-use case innovation are new skills that many companies that didn't grow up in the digital economy don't have.
Lastly, the operationalization—meaning the translation of the proof of concept into everyday processes in decision making—requires new levels of cooperation between IT and business.
So, that said, what are the tactics? What are those executive teams doing that successfully create differentiated value out of their data that turn data into a platform for growth and success? Those three tactics are, first, their CEOs successfully create Agile platforms for data innovation and experimentation.
Secondly, their business leaders truly own the task of creating business value out of data. They do not over-delegate to a database manager, or to technology, more broadly speaking, but they own the challenge of applying data to their business, to improve processes, to improve existing products and services and to innovate.
Thirdly, these executive teams jump-start their analytical capabilities by creating a few select business-use case, lighthouse success stories. And more often than not, the IT departments rely on trusted data-solutions partners to create the necessary analytical platforms and architecture.
Read the related Bain Brief: Building IT Capabilities to Deliver Better Insights