While it is a challenge to connect the outcomes of data analysis to concrete business benefits, it is crucial to get the CEO and management on the data analytics bandwagon
Till very recently, the IT team found it very tough to get buy-in from the management for their Data initiatives. The result was that data grew, and went largely unutilized. Experts believe that CDOs and data teams still find it a challenge to measure and demonstrate the business benefits resulting from their data pipeline. They deliver like improved customer satisfaction, reduced risk, increased revenue, and better service quality, but find it tough to articulate them.
Some organizations are averse to change, and secretive, especially about corporate data. Gartner also defines this as DBMS Stockholm Syndrome, where organizations refuse to admit that systems are not running in the best way, as they are not using the most advanced technology. Enterprises opt to continue with legacy systems to avoid unpredictable expenses and risk. In such cases, companies miss opportunities and critical insights, which can lead to businesses to suffer.
To succeed in getting buy-in, Data analytics experts and CDOs must take control by setting a roadmap of change and connecting it directly to business promotion. A clear cost-benefit analysis will help consider the proposed direction. What will certainly help is a strong risk projection to show the danger of missing out on analytics. The roadmap needs to be aligned to business vision and includes specific measurements on the delivery of expected results.
While creating the analytics roadmap, data teams must work closely with the business units and the finance teams to understand the decision-making process and business cases. This helps in connecting the proposed advancements in analytics to specific business benefits as also corporate KPIs. Gartner has predicted that by 2022, 30% of CDOs will formally collaborate with their CFO to value the organization’s information assets required for improved information management. In the next three years, 90% of corporate strategies will also explicitly mention data and information as a significant enterprise asset, and analytics as a critical competency.
However, CDOs still need to convince their management team that the advancements in analytics are crucial to their business. It is necessary to state the outcomes, even estimates or expected results while creating the analytics road map for obtaining budgets for the project. Business benefits must be enunciated in an optimistic and positive format.
The analytics team should also break down the business benefits in line by the units they expect to understand them. Whether the outcomes are related to new business potential, competitive differentiators, increased revenues or market share, or streamlining business practices (like improved risk management or better regulatory compliance), the analytics team should draw measurable threads from the improvements in the analytics pipeline to quantifiable business outcomes.
Experts believe that the relationship between the data experts and the line-of-business stakeholders is crucial for not just receiving budget approval, but also, creating and supporting the projected outcomes and getting the management and the CEO on the data analytics bandwagon.