You need:

• A clear understanding of where you currently are
• A vision of where you want to be
• Proper planning to know what is needed to get you there

To determine your current position, you can reflect on your company’s journey to assess whether you are in the primitive, transitional, strategic or game-changing stage.

Primitive stage

Most companies begin their data analytics journey in the primitive stage, characterised by spreadsheet-based reporting and with manual analysis performed mainly by the finance function and other pseudo-analysts across the business. Many companies find comfort in the rows and columns they became accustomed to in the late 1990s, and they still see no need to change. But the world has moved on.

In the primitive stage:

• Rudimentary and outdated skills drive the narrative. As a result, developing analytics is time-consuming, with delays in obtaining valuable insights leading to decisions based on gut feel. Generating measurable value through data analytics-led initiatives is not even a fleeting thought
• These companies unknowingly lose ground to their competitors as they focus on maintaining operations. They have no capacity for optimisation or data analytics-driven growth. This restricts value

While starting from the primitive stage might feel daunting, remember that every data analytics-driven success story begins here. With the right approach, you can transform your company’s analytics capabilities and unlock tremendous value.

In this stage, you will likely face challenges when taking the first steps on a data analytics journey to the transitional stage. You might need help identifying opportunities to generate value through data analytics. You may already have tried pitching for investment in a data analytics journey or project and realised your plan had gaps or had this pointed out during your presentation.

Transitional stage

The transitional stage begins when a company establishes a formalised data analytics team of more than two professionals, which may include data scientists, analysts and engineers, and possibly project managers or data governance specialists.

In the transitional stage:

• Defined structures are lacking, and confidence in the team’s delivery is limited
• High maintenance effort limits capacity to innovate, and the team focuses mainly on building reports and dashboards
• Business impact is constrained, and the value of delivery is questioned
• Stakeholder discussions revolve around costs rather than value

If the focus remains on cost for long enough, any data analytics function will be lined up to walk the plank, regardless of how specialised it is. Leaders chalk up the loss of the data analytics function as a casualty of doing business. But the root cause is never addressed, destroying trust and widening the divide between data analytics teams and business leaders, placing value in question.

Being in the transitional stage means you can put in the effort now to position your company for sustainable success. Stay focused, and you will see the rewards of your dedication. Your objective is to create a plan to advance promptly to the strategic stage.

Strategic stage

Moving from the transitional stage to the strategic stage requires the establishment of foundations to enable consistency and predictable timelines for delivery. In this stage, robust planning and resource allocation allow the team to focus on building innovative solutions that align with the company’s strategy.

In the strategic stage:

• The value of the team’s delivery is measured and published, reassuring stakeholders that investments in data analytics yield valuable returns
• Delivery has moved beyond reports and dashboards, focusing on integrating insights into business processes. This enables more employees to take decisive action based on reliable data
• The leaders in driving value with data analytics come into their own. They place value at the forefront of everything they do with data analytics, and they confidently make substantial investments in the required capabilities
• The data analytics function becomes integral to value creation in the company, making it indispensable to driving value

Reaching the strategic stage is a significant achievement. Your company already benefits from a value-producing data analytics function. Celebrate this success, while continuing to refine and innovate. Remember, your hard work has brought you here, and the journey only gets more rewarding.

The game-changing stage

The game-changing stage is reached after moving through the strategic stage. Here companies use data creatively and innovatively, increasing their competitive advantage, becoming leaders in their industry, and sometimes creating new industries. Think of companies like Uber, Google, Amazon, X, and Airbnb, and others that leverage data as a strategic differentiator that enables their core business.

In the game-changing stage:

• Data analytics is part of the fabric of the company, driving significant revenue
• Integrated analytics solutions are woven into the company’s innovative products
• Innovation is a routine activity, with stakeholders being directly involved in actively planning future innovations for value generation
• Collaborative teams from business, IT and data analytics functions work together to produce valuable data analytics-led products
• There is a strong alignment with the business strategy, making data analytics a core value driver

Final thoughts on navigating your data analytics journey

Navigating the data analytics journey is like learning to play a complex musical instrument. At first you might be stuck in the primitive stage, where every note is a struggle and progress is slow. With the right investment and guidance, you can move into the transitional stage, where you start to understand the basics and begin to see the potential of what you can achieve. Remember, enduring this phase is necessary despite the challenges and costs because it is part of the journey to immense growth.

Think of moving from the transitional stage to the strategic stage as moving from playing simple tunes to performing symphonies. Here your data analytics function becomes an integral part of your company, consistently delivering value. With the right conditions and continuous improvement you can reach the game-changing stage, where your company not only leads the industry but sets new standards through innovative and creative use of data. You will be leading a world-class orchestra.

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