MANAGING BUSINESS ANALYTICS PROFESSIONAL

Business Analytics Professional

Business analytics focuses on data, statistical analysis and reporting to help investigate and
analyze business performance, provide insights, and drive recommendations to improve
performance.

They may also work with internal or external clients, but their focus is to improve the
product, marketing or customer experience by using insights from data, rather than analyzing
processes and functions.

Core Business Analytics Skills

The big data landscape has changed drastically, making it tough for professionals to know
where to focus their growth. However, despite this changing field, there are a number of core
business analytics skills that form the foundation of any solid business analytics career.

A great business analytics professional could be described as:

A good communicator

Being able to present findings in a clear and concise manner is fundamental to making sure
that all players understand insights and can put recommendations into practice. People
working in analysis must be able to tell a story with data through strong writing and
presentation skills.

Inquisitive

People in this field should have natural curiosity and drive to continue learning and figuring
out how things fit together. Even as analysts become managers, it’s important to stay in touch
with the industry and its changes.

A problem solver

Professionals in analytics use a combination of logical thinking, predictive analytics and

statistics to make recommendations that will solve problems and propel a business forward.
In a profession that seeks to turn data into solutions, being a natural problem solver helps
connect the dots.

A critical thinker

Business analytics professionals need to think critically about not only the implications of the
data they collect, but about what data they should be collecting in the first place. They are
expected to analyze and highlight only the data that can be helpful in making decisions.

A visualizer

Disorganized data doesn’t help anyone. To create worth from data, analytics professionals
need to be able to translate and visualize data in a concise and accurate way that’s easy to
digest.

Both detail-oriented and a big picture thinker

While business analytics professionals have to be able to handle complex data, they also need
to understand how their recommendations will affect the bottom line of a business. There’s
no point in having access to large quantities of information without knowing how it can be
harnessed to analyze and improve tactics, processes and strategies.

Technical Skills for Business Analytics

In a business landscape quickly becoming governed by big data, great analytics professionals
are fulfilling the demand for technical expertise by wearing the hats of both developer and
analyst.
Having both a conceptual and working understanding of tools and programming languages is
important to translate data sources into tangible solutions.

Below are some of the top tools for business analytics professionals:

SQL

SQL is the coding language of databases and one of the most important tools in an analytics
professional’s toolkit. Professionals write SQL queries to extract and analyze data from the
transactions database and develop visualizations to present to stakeholders.

Statistical languages

The two most common programming languages in analytics are R, for statistical analysis, and
Python, for general programming. Knowledge in either of these languages can be beneficial
when analyzing big data sets, but is not vital.

Statistical software

While the ability to program is helpful for a career in analytics, being able to write code isn’t
necessarily required to work as an analytics professional. Apart from the above languages,
statistical software such as SPSS, SAS, Sage, Mathematica, and even Excel can be used when
managing and analyzing data.

Big Data Technologies

What is Big Data Technology?

Big data technology is defined as software-utility. This technology is primarily

designed to analyze, process and extract information from a large data set and a
huge set of extremely complex structures. This is very difficult for traditional data
processing software to deal with.

Among the larger concepts of rage in technology, big data technologies are widely
associated with many other technologies such as deep learning, machine
learning, artificial intelligence (AI), and Internet of Things (IoT) that are massively
augmented. In combination with these technologies, big data technologies are
focused on analyzing and handling large amounts of real-time data and batch-related
data.

Types of Big Data Technology

Before we start with the list of big data technologies, let us first discuss this
technology's board classification. Big Data technology is primarily classified into the
following two types:

Operational Big Data Technologies

This type of big data technology mainly includes the basic day-to-day data that
people used to process. Typically, the operational-big data includes daily basis data
such as online transactions, social media platforms, and the data from any particular
organization or a firm, which is usually needed for analysis using the software based
on big data technologies. The data can also be referred to as raw data used as the
input for several Analytical Big Data Technologies.

Some specific examples that include the Operational Big Data Technologies can be
listed as below:

o Online ticket booking system, e.g., buses, trains, flights, and movies, etc.
 o Online trading or shopping from e-commerce websites like Amazon, Flipkart,
Walmart, etc.
o Online data on social media sites, such as Facebook, Instagram, Whatsapp,
etc.
o The employees' data or executives' particulars in multinational companies.

Analytical Big Data Technologies

Analytical Big Data is commonly referred to as an improved version of Big Data

Technologies. This type of big data technology is a bit complicated when compared
with operational-big data. Analytical big data is mainly used when performance
criteria are in use, and important real-time business decisions are made based on
reports created by analyzing operational-real data. This means that the actual
investigation of big data that is important for business decisions falls under this type
of big data technology.

Some common examples that involve the Analytical Big Data Technologies can be
listed as below:

o Stock marketing data

o Weather forecasting data and the time series analysis
o Medical health records where doctors can personally monitor the health status
of an individual
o Carrying out the space mission databases where every information of a
mission is very important

Top Big Data Technologies

We can categorize the leading big data technologies into the following four sections:

o Data Storage
o Data Mining
o Data Analytics
o Data Visualization
Components of Big Data Technology

Big Data technology has four main components: data capture, data storage, data
processing, and data visualization.

1. Data capture refers to the process of collecting data from a variety of sources.
This can include everything from social media posts to sensor readings.
2. Data storage is the process of storing this data in a way that makes it
accessible for further analysis.
3. Data processing is where the real magic happens. This is where algorithms
are used to analyze the data and extract insights.
4. And finally, data visualization is the process of representing this data in a way
that is easy for humans to understand.
Together, these four components form the backbone of Big Data technology.

4 Fields of Top Big Data Technologies

There are four main fields of big data technology: predictive analytics, machine
learning, natural language processing, and computer vision.

1. Predictive analytics is used to identify patterns and trends in data in order to

make predictions about future events.
2. Machine learning is a type of artificial intelligence that relies on pattern
recognition to learn from data and make predictions.
3. Natural language processing is used to analyze textual data in order to extract
meaning and generate insights.
4. Computer vision is a field of artificial intelligence that deals with the
interpretation of digital images.
These four fields are at the forefront of big data technology and are essential for
understanding and managing large datasets.

Top Big Data Technologies in 2023

As data becomes increasingly central to our lives, the need to effectively collect,
store, and analyze it has never been greater. Big data technology is constantly
evolving to meet these challenges, and the landscape will only become more
complex in the years to come.
What Is the Future of Big Data?
Big data is one of the most talked-about topics in the business world today. But what
is big data, exactly? And what does it mean for the future of business? Big data
generally refers to datasets that are too large and complex for traditional data
processing techniques. As businesses increasingly generate and collect large
amounts of data, they are turning to big data solutions to help them make sense of it.
This data can come from a variety of sources, such as social media, customer
interactions, sensors, and transactional systems.

While the volume and variety of big data can be daunting, it also provides a wealth of
opportunity for businesses that know how to harness it. By understanding customer
behavior, identifying trends, and improving operational efficiency, businesses can
use big data to gain a competitive advantage. In the future, we can expect to see
more businesses using big data to drive decision-making and create value for their
customers. Top 5 Modern Technology Trends in Data Analytics

By now, big data is no longer emerging technology — it is officially mainstream.

Don’t take our word for it! The Dresner Advisory Services’ 2018 Big Data Analytics
Market Study finds that big data adoption grew to 59% and continues to grow
constantly. Less than 10% of enterprises have ‘no plans’ to adopt big data, meaning
almost everyone is on their big data journey. As big data adoption grows, analytics
becomes the natural next thing, to make sense of the data efficiently and ethically.
Modern technology trends in data analytics, as they mature, will shape careers and
markets in the sector. Here are some ways in which this will happen.

Modern Technology Trends in Data Analytics

1. Predictive Analytics will Become the Norm.

As the data analytics market matures, enterprises will stop using data analytics as a
way to review the past. They will leverage their big data to predict the future. And it
might not be as far off as you think!

Across industries, predictive analytics is already in action. Banks and financial

institutions are developing analytics solutions to predict and manage risks across
loans, credit cards, insurance premiums, etc. Marketers are performing data analysis
to show the right advertisement to the right audience at the right place and time. Law
enforcement agencies are using it in crime detection and prevention. And healthcare
is using it for early disease detection — for instance, Kaiser Permanente, an
insurance provider in the US, uses predictive analytics models to calculate neonatal
sepsis risk in newborns, which reduces the use of antibiotics by nearly 50%.

Even today, most organizations use data analytics to analyze the past, and human
intelligence to forecast the future. In 2020, data analytics will also do the latter.

2. Modern Technology Trends: Bots will Drive Augmented Data Analytics.

One of the biggest problems with big data today is the unshakeable need for a data
scientist to cleanse and prepare the data before making sense of it by building
analytics and dashboards. Even with a highly-skilled data scientist, there is only so
much that can be manually done, significantly restricting the capabilities of data
analytics. It is here that augmented data analytics is steadily gaining ground.

Simply put, augmented data analytics is the process of using artificial intelligence
(AI), machine learning (ML) and natural language processing (NLP) to augment
analytics and business intelligence. And there is a lot of traction for letting bots do
the grunt work, like data discovery, data management, data cleansing,
categorization, managing metadata, etc. In fact, Gartner predicts that there will also
be preemptive automated reports — where platforms will understand what insight
might be relevant to the user and present it proactively. Who says bots can’t read
your mind!

3. Voice/Speech Analytics will Gain Momentum.

Communication has already moved beyond text — memes are becoming legit forms
of interaction and emojis are everywhere. The next step in the evolution of online
communication is bound to be in sound and video. As voice-enabled personal
assistants grow in popularity, speech analytics will play a huge role in how systems
respond to voice searches; and by extension, this will have a great impact on how
content is made accessible as a whole.

“By 2021, natural language processing and conversational analytics will boost
analytics and business intelligence adoption,” wrote Gartner. But this corresponding
prediction is a lot more relevant to data science professionals and aspirants:

By 2020, the number of data and analytics experts in business units will grow at
three times the rate of experts in IT departments, which will force companies to
rethink their organizational models and skillsets.

— Gartner, Magic Quadrant for Analytics and Business Intelligence Platforms,

Published 11 February 2019

4. IoT will Overcome its Analytics Challenge.

The internet of things (IoT) was a big trend a couple of years ago, but it didn’t
actually live up to the hype — turns out speaking refrigerators and connected
washing machines don’t yet have the market they were predicted to have. But in the
industrial markets, IoT has been a big hit. Across the manufacturing and supply
chain, IoT is making a real impact.

As manufacturers iron out their sensors and devices, they will take the next step: Of
making IoT data-driven. In the immediate future, analytics will power the increasing
adoption and leveraging of IoT with ‘digital twins’. A digital twin is the virtual replica of
physical devices. Data scientists and data analysts then use this replica for
simulations — based on which they not only innovate and improve IoT devices but
also predict future performance and make them more secure.

5. Blockchain will Clean-up Before Data Analysis.

If there is one thing that bugs data scientists the most, it’s dirty data — data that is
unclear, duplicated, erroneous, etc. Professionals are bringing blockchain to address
precisely this problem. Blockchain’s decentralized consensus algorithms will be used
in data validation, making it cleaner, more usable, and therefore insights more
reliable. Moreover, the decentralized system, coupled with cryptography, will also
make data secure and protect data privacy.

These trends make it clear that data analytics as a field is maturing rapidly. From
being an experimental technology just a few years ago, today, even the smallest of
organizations are leveraging data analytics in one way or another. Modern
technology trends in data analytics will combine with other future technologies like
AI, IoT, Blockchain, Edge Computing, etc.

What is data analytics and technology?

Data analytics converts raw data into actionable insights. It includes a range of tools,
technologies, and processes used to find trends and solve problems by using data. Data
analytics can shape business processes, improve decision-making, and foster business
growth.
The big data analytics technology is a combination of several techniques and processing
methods. What makes them effective is their collective use by enterprises to obtain relevant
results for strategic management and implementation.
1) Predictive Analytics

One of the prime tools for businesses to avoid risks in decision making, predictive analytics
can help businesses. Predictive analytics hardware and software solutions can be utilised for
discovery, evaluation and deployment of predictive scenarios by processing big data. Such
data can help companies to be prepared for what is to come and help solve problems by
analyzing and understanding them.
2) NoSQL Databases

These databases are utilised for reliable and efficient data management across a scalable
number of storage nodes. NoSQL databases store data as relational database tables, JSON
docs or key-value pairings.
3) Knowledge Discovery Tools

These are tools that allow businesses to mine big data (structured and unstructured) which is
stored on multiple sources. These sources can be different file systems, APIs, DBMS or
similar platforms. With search and knowledge discovery tools, businesses can isolate and
utilise the information to their benefit.
4) Stream Analytics

Sometimes the data an organisation needs to process can be stored on multiple platforms and
in multiple formats. Stream analytics software is highly useful for filtering, aggregation, and
analysis of such big data. Stream analytics also allows connection to external data sources
and their integration into the application flow.
5) In-memory Data Fabric

This technology helps in distribution of large quantities of data across system resources such
as Dynamic RAM, Flash Storage or Solid State Storage Drives. Which in turn enables low
latency access and processing of big data on the connected nodes.
6) Distributed Storage

A way to counter independent node failures and loss or corruption of big data sources,
distributed file stores contain replicated data. Sometimes the data is also replicated for low
latency quick access on large computer networks. These are generally non-relational
databases.

7) Data Virtualization

It enables applications to retrieve data without implementing technical restrictions such as

data formats, the physical location of data, etc. Used by Apache Hadoop and other distributed
data stores for real-time or near real-time access to data stored on various platforms, data
virtualization is one of the most used big data technologies.
8) Data Integration

A key operational challenge for most organizations handling big data is to process terabytes
(or petabytes) of data in a way that can be useful for customer deliverables. Data integration
tools allow businesses to streamline data across a number of big data solutions such as
Amazon EMR, Apache Hive, Apache Pig, Apache Spark, Hadoop, MapReduce, MongoDB
and Couchbase.
9) Data Preprocessing
These software solutions are used for manipulation of data into a format that is consistent and
can be used for further analysis. The data preparation tools accelerate the data sharing process
by formatting and cleansing unstructured data sets. A limitation of data preprocessing is that
all its tasks cannot be automated and require human oversight, which can be tedious and
time-consuming.
10) Data Quality

An important parameter for big data processing is the data quality. The data quality software
can conduct cleansing and enrichment of large data sets by utilising parallel processing.
These softwares are widely used for getting consistent and reliable outputs from big data
processing.

Organizational structure

7 types of organizational structures (+ org charts for implementation)

Types of organizational structures

1. Hierarchical org structure

2. Functional org structure
3. Horizontal or flat org structure
4. Divisional org structures (market-based, product-based, geographic)
5. Matrix org structure
6. Team-based org structure
7. Network org structure

The typical org chart looks like a pyramid, your C-level executives at the top with lines
stretching down to middle management and finally staff-level employees.

But not every company functions best with a hierarchical organizational structure. Many
types of organizational charts exist because many types of organizational structures exist.

Let’s go through the seven common types of org structures and reasons why you might
consider each of them.

1. Hierarchical org structure

The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org

chart. It’s the most common type of organizational structure—the chain of command goes
from the top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees),
and each employee has a supervisor.

Pros

● Better defines levels of authority and responsibility

● Shows who each person reports to or who to talk to about specific projects
● Motivates employees with clear career paths and chances for promotion
● Gives each employee a specialty
● Creates camaraderie between employees within the same department

Cons

● Can slow down innovation or important changes due to increased bureaucracy

● Can cause employees to act in interest of the department instead of the company as a whole
● Can make lower-level employees feel like they have less ownership and can’t express their
ideas for the company

2. Functional org structure

Similar to a hierarchical organizational structure, a functional org structure starts with

positions with the highest levels of responsibility at the top and goes down from there.
Primarily, though, employees are organized according to their specific skills and their
corresponding function in the company. Each separate department is managed independently.

Pros

● Allows employees to focus on their role

● Encourages specialization
● Help teams and departments feel self-determined
● Is easily scalable in any sized company

Cons

● Can create silos within an organization

● Hampers interdepartmental communication
● Obscures processes and strategies for different markets or products in a company

3. Horizontal or flat org structure

A horizontal or flat organizational structure fits companies with few levels between upper
management and staff-level employees. Many start-up businesses use a horizontal org
structure before they grow large enough to build out different departments, but some
organizations maintain this structure since it encourages less supervision and more
involvement from all employees.

Pros

● Gives employees more responsibility

● Fosters more open communication
● Improves coordination and speed of implementing new ideas

Cons
● Can create confusion since employees do not have a clear supervisor to report to
● Can produce employees with more generalized skills and knowledge
● Can be difficult to maintain once the company grows beyond start-up status

Market-based divisional org chart example (click on image to modify online)

4. Divisional org structure

In divisional organizational structures, a company’s divisions have control over their own
resources, essentially operating like their own company within the larger organization. Each
division can have its own marketing team, sales team, IT team, etc. This structure works well
for large companies as it empowers the various divisions to make decisions without everyone
having to report to just a few executives.

Depending on your organization’s focus, there are a few variations to consider.

Market-based divisional org structure

Divisions are separated by market, industry, or customer type. A large consumer goods
company, like Target or Walmart, might separate its durable goods (clothing, electronics,
furniture, etc.) from its food or logistics divisions.

Product-based divisional org structure

Divisions are separated by product line. For example, a tech company might have a division
dedicated to its cloud offerings, while the rest of the divisions focus on the different software
offerings—e.g., Adobe and its creative suite of Illustrator, Photoshop, InDesign, etc.

Geographic divisional org structure

Divisions are separated by region, territories, or districts, offering more effective localization
and logistics. Companies might establish satellite offices across the country or the globe in
order to stay close to their customers.

Pros

● Helps large companies stay flexible

● Allows for a quicker response to industry changes or customer needs
● Promotes independence, autonomy, and a customized approach

Cons

● Can easily lead to duplicate resources

● Can mean muddled or insufficient communication between the headquarters and its
divisions
● Can result in a company competing with itself

5. Matrix org structure

A matrix organizational chart looks like a grid, and it shows cross-functional teams that form
for special projects. For example, an engineer may regularly belong to the engineering
department (led by an engineering director) but work on a temporary project (led by a project
manager). The matrix org chart accounts for both of these roles and reporting relationships.

Pros

● Allows supervisors to easily choose individuals by the needs of a project

● Gives a more dynamic view of the organization
● Encourages employees to use their skills in various capacities aside from their original
roles

Cons

● Presents a conflict between department managers and project managers

● Can change more frequently than other organizational chart types

6. Team-based org structure

It’ll come as no surprise that a team-based organizational structure groups employees

according to (what else?) teams—think Scrum teams or tiger teams. A team organizational
structure is meant to disrupt the traditional hierarchy, focusing more on problem-solving,
cooperation, and giving employees more control.

Pros

● Increases productivity, performance, and transparency by breaking down silo mentality

● Promotes a growth mindset

● Changes the traditional career models by getting people to move laterally

● Values experience rather than seniority

● Requires minimal management

● Fits well with agile companies with Scrum or tiger teams

Cons

● Goes against many companies’ natural inclination of a purely hierarchical structure

● Might make promotional paths less clear for employees

See why forming tiger teams is a smart move for your organization.

7. Network org structure

These days, few businesses have all their services under one roof, and juggling the multitudes
of vendors, subcontractors, freelancers, offsite locations, and satellite offices can get
confusing. A network organizational structure makes sense of the spread of resources. It can
also describe an internal structure that focuses more on open communication and
relationships rather than hierarchy.

Pros
● Visualizes the complex web of onsite and offsite relationships in companies

● Allows companies to be more flexible and agile

● Give more power to all employees to collaborate, take initiative, and make decisions

● Helps employees and stakeholders understand workflows and processes

Cons

● Can quickly become overly complex when dealing with lots of offsite processes

● Can make it more difficult for employees to know who has final say

Centralized vs. Decentralized Organizational Structures

An organizational structure is either centralized or decentralized. Traditionally, organizations

have been structured with centralized leadership and a defined chain of command. The
military is an organization famous for its highly centralized structure, with a long and specific
hierarchy of superiors and subordinates. In a centralized organizational system, there are very
clear responsibilities for each role, with subordinate roles defaulting to the guidance of their
superiors.

There has been a rise in decentralized organizations, as is the case with many
technology startups. This allows companies to remain fast, agile, and adaptable, with almost
every employee receiving a high level of personal agency. For example, Johnson & Johnson
is a company that's known for its decentralized structure.2

As a large company with over 200 business units and brands that function in sometimes very
different industries, each operates autonomously. Even in decentralized companies, there are
still usually built-in hierarchies (such as the chief operating officer operating at a higher level
than an entry-level associate). However, teams are empowered to make their own decisions
and come to the best conclusion without necessarily getting "approval" from up top.

Benefits of Organizational Structures

Putting an organizational structure in place can be very beneficial to a company. The

structure not only defines a company's hierarchy but also allows the firm to lay out the pay
structure for its employees. By putting the organizational structure in place, the firm can
decide salary grades and ranges for each position.

The structure also makes operations more efficient and much more effective. By separating
employees and functions into different departments, the company can perform different
operations at once seamlessly.

In addition, a very clear organizational structure informs employees on how best to get their
jobs done. For example, in a hierarchical organization, employees will have to work harder at
buying favor or courting those with decision-making power. In a decentralized organization,
employees must take on more initiative and bring creative problem solving to the table. This
can also help set expectations for how employees can track their own growth within a
company and emphasize a certain set of skills—as well as for potential employees to gauge if
such a company would be a good fit with their own interests and work styles.

1)What Are Some Types of Organizational Structures?

The four types of organizational structures are functional, multi-divisional, flat, and matrix
structures. Others include circular, team-based, and network structures.
2)What Are the Key Elements of an Organizational Structure?

Key elements of an organizational structure include how certain activities are directed in
order to achieve the goals of an organization, such as rules, roles, responsibilities, and how
information flows between levels within the company.

3)What Is an Organizational Structure Example?

An example of an organizational structure is a decentralized structure, which gives

individuals and teams high degrees of autonomy without needing a core team to regularly
approve business decisions. A good example of this decentralized structure is Johnson &
Johnson. With thousands of products and lines of business, the company structures itself so
each business unit operates as its own company with its own president.

4)What Is an Organizational Structure Chart?

Organizational structures are normally illustrated in some sort of chart or diagram like a
pyramid, where the most powerful members of the organization sit at the top, while those
with the least amount of power are at the bottom.

5)What Is the Best Organizational Structure?

There is no one best organizational structure, as it depends on the nature of the company and
the industry it operates in.

Organizational Structure: Things to Know

What is an organizational structure chart?

An organizational structure chart is a diagram that shows your departments, starting from C-
Suite leaders to individual contributors, as well as your company’s order of command and
decision-making flow.

Why is having an organizational structure important?

Imagine a business that has no organizational structure. Instantly, questions arise about the
systems and processes. Who makes the decisions? How are employees held accountable?
What are the company’s goals? These questions are practically impossible to answer without
a functional organizational structure.

Organizational structure is necessary for running a successful business because it improves

workflow and efficiency, promotes communication, identifies company needs, and aligns
employees with company goals. It directly affects how a business operates daily. When a
company establishes a structure that works, the combined efforts of its employees, in
conjunction with its systems and processes, allow the company to make better decisions for
its future.

What is the best organizational structure?

The best organizational structure varies from business to business and largely depends on
your team size, company type, and product offerings. That said, a functional organizational
structure (also named “traditional line organizational structure” or “hierarchical structure”) is
an excellent place to start if you’re not sure which org structure is right for you.

What are the four basic forms of organizational structure?

The four basic forms of organizational structure are functional, divisional, matrix, and flat
structures.

1)Functional organizational structures divide your company teams based on job functions and
responsibilities.
 2)Divisional organizational structures groups your teams based on products, markets, or
regions, with smaller organizational structures for each division of your business.

3)Matrix organizational structures divide your company teams in a grid-based fashion, where
every team has dual reporting relationships with the C-Suite and another team.

4)A flat organizational structure keeps hierarchy to a minimum by eliminating middle

management and keeping individual contributors as close as possible to leadership.

How do businesses determine organizational structure?

Businesses determine organizational structure by taking stock of their current workforce and
teams, then carefully aligning their company strategy, employee feedback, and leadership
goals with a specific structure.

Some companies may have naturally fallen into a functional org structure, in which case it’s
only a matter of creating an org diagram. Others may be in the process of creating one. Here
are the steps to determine an org structure from scratch:

● Audit your organization’s teams and roles. First, it’s essential to understand which teams
and roles already exist within your business. If your business is new, create a list of planned
teams and hires.
● Draft a company strategy. Your org structure should support your strategy, not detract from
it. If your strategy is to launch X new products in the market, then a product-based divisional
structure might work well for you.
● Gather feedback from existing employees. Your existing employees are a gold mine of
information when creating an organizational structure. Some employees might want to be
closer to leadership; others might want advancement opportunities. For the first, a flat
structure would fit, and for the second, a functional structure would be best.
● Gather feedback from other leaders. Just as employees’ voices matter, so, too, do leaders’
voices matter. Understand their key goals and the support they need to do their best work at
your firm.
● Align your company strategy, employee feedback, and leadership feedback with an org
structure. Take a look at organizational structure types and try to align them with the data
and observations you’ve collected. Sometimes, the decision will be clear; other times, you’ll
need to continue interviewing and gathering data to find the best structure for you.
● Create an org chart. Now that you’ve chosen the right org structure, it’s time to create a
visual chart that shows your company’s chain of command, departmentation, span of control,
and centralization at a minimum. Share this chart over email and be sure to keep it in an easy
place for all employees to access.
Navigating Organizational Structures

Organizational structures are central to a successful team. Employees can move comfortably,
confidently, and efficiently when given a clear definition of their role within an organization.

Structure types will vary from business to business, so it’s important to remember that these
structures are not one size fits all. Every type may not suit your organization, but chances are,
one of them will. Use this post to determine which organizational structure works for
you, and then it’s time for the real work to begin.

7.3 Organizational Structure

Learning Objectives

1.Explain the roles of formalization, centralization, levels in the hierarchy, and departmentalization in
employee attitudes and behaviors.
2.Describe how the elements of organizational structure can be combined to create mechanistic and
organic structures.
3.Understand the advantages and disadvantages of mechanistic and organic structures for organizations.

Organizational structure refers to how individual and team work within an organization are
coordinated. To achieve organizational goals and objectives, individual work needs to be
coordinated and managed. Structure is a valuable tool in achieving coordination, as it
specifies reporting relationships (who reports to whom), delineates formal communication
channels, and describes how separate actions of individuals are linked together.
Organizations can function within a number of different structures, each possessing distinct
advantages and disadvantages. Although any structure that is not properly managed will be
plagued with issues, some organizational models are better equipped for particular
environments and tasks.

Building Blocks of Structure

What exactly do we mean by organizational structure? Which elements of a company’s

structure make a difference in how we behave and how work is coordinated? We will review
four aspects of structure that have been frequently studied in the literature: centralization,
formalization, hierarchical levels, and departmentalization. We view these four elements as
the building blocks, or elements, making up a company’s structure. Then we will examine
how these building blocks come together to form two different configurations of structures.

Centralization

Centralization is the degree to which decision-making authority is concentrated at higher

levels in an organization. In centralized companies, many important decisions are made at
higher levels of the hierarchy, whereas in decentralized companies, decisions are made and
problems are solved at lower levels by employees who are closer to the problem in question.

As an employee, where would you feel more comfortable and productive? If your answer is
“decentralized,” you are not alone. Decentralized companies give more authority to lower-
level employees, resulting in a sense of empowerment. Decisions can be made more quickly,
and employees often believe that decentralized companies provide greater levels of
procedural fairness to employees. Job candidates are more likely to be attracted to
decentralized organizations. Because centralized organizations assign decision-making
responsibility to higher-level managers, they place greater demands on the judgment
capabilities of CEOs and other high-level managers.

Many companies find that the centralization of operations leads to inefficiencies in decision
making. For example, in the 1980s, the industrial equipment manufacturer Caterpillar
suffered the consequences of centralized decision making. At the time, all pricing decisions
were made in the corporate headquarters in Peoria, Illinois. This meant that when a sales
representative working in Africa wanted to give a discount on a product, they needed to
check with headquarters. Headquarters did not always have accurate or timely information
about the subsidiary markets to make an effective decision. As a result, Caterpillar was at a
disadvantage against competitors such as the Japanese firm Komatsu. Seeking to overcome
this centralization paralysis, Caterpillar underwent several dramatic rounds of reorganization
in the 1990s and 2000s (Nelson & Pasternack, 2005).

However, centralization also has its advantages. Some employees are more comfortable in an
organization where their manager confidently gives instructions and makes decisions.
Centralization may also lead to more efficient operations, particularly if the company is
operating in a stable environment (Ambrose & Cropanzano, 2000; Miller, et. al., 1988;
Oldham & Hackman, 1981; Pierce & Delbecq, 1977; Schminke, et. al., 2000; Turban &
Keon, 1993; Wally & Baum, 1994).

In fact, organizations can suffer from extreme decentralization. For example, some analysts
believe that the Federal Bureau of Investigation (FBI) experiences some problems because all
its structure and systems are based on the assumption that crime needs to be
investigated after it happens. Over time, this assumption led to a situation where, instead of
following an overarching strategy, each FBI unit is completely decentralized and field agents
determine how investigations should be pursued. It has been argued that due to the change in
the nature of crimes, the FBI needs to gather accurate intelligence before a crime is
committed; this requires more centralized decision making and strategy development (Brazil,
2007).

Hitting the right balance between decentralization and centralization is a challenge for many
organizations. At the Home Depot, the retail giant with over 2,000 stores across the United
States, Canada, Mexico, and China, one of the major changes instituted by former CEO Bob
Nardelli was to centralize most of its operations. Before Nardelli’s arrival in 2000, Home
Depot store managers made a number of decisions autonomously and each store had an
entrepreneurial culture. Nardelli’s changes initially saved the company a lot of money. For
example, for a company of that size, centralizing purchasing operations led to big cost
savings because the company could negotiate important discounts from suppliers. At the
same time, many analysts think that the centralization went too far, leading to the loss of the
service-oriented culture at the stores. Nardelli was ousted after seven years (Charan, 2006;
Marquez, 2007).

Formalization

Formalization is the extent to which an organization’s policies, procedures, job descriptions,

and rules are written and explicitly articulated. Formalized structures are those in which there
are many written rules and regulations. These structures control employee behavior using
written rules, so that employees have little autonomy to decide on a case-by-case basis. An
advantage of formalization is that it makes employee behavior more predictable. Whenever a
problem at work arises, employees know to turn to a handbook or a procedure guideline.
Therefore, employees respond to problems in a similar way across the organization; this leads
to consistency of behavior.

While formalization reduces ambiguity and provides direction to employees, it is not without
disadvantages. A high degree of formalization may actually lead to reduced innovativeness
because employees are used to behaving in a certain manner. In fact, strategic decision
making in such organizations often occurs only when there is a crisis. A formalized structure
is associated with reduced motivation and job satisfaction as well as a slower pace of decision
making (Frederickson, 1986; Oldham & Hackman, 1981; Pierce & Delbecq, 1977; Wally &
Baum, 1994). The service industry is particularly susceptible to problems associated with
high levels of formalization. Sometimes employees who are listening to a customer’s
problems may need to take action, but the answer may not be specified in any procedural
guidelines or rulebook. For example, while a handful of airlines such as Southwest do a good
job of empowering their employees to handle complaints, in many airlines, lower-level
employees have limited power to resolve a customer problem and are constrained by
stringent rules that outline a limited number of acceptable responses.

Hierarchical Levels

Another important element of a company’s structure is the number of levels it has in its
hierarchy. Keeping the size of the organization constant, tall structures have several layers of
management between frontline employees and the top level, while flat structures consist of
only a few layers. In tall structures, the number of employees reporting to each manager tends
to be smaller, resulting in greater opportunities for managers to supervise and monitor
employee activities. In contrast, flat structures involve a larger number of employees
reporting to each manager. In such a structure, managers will be relatively unable to provide
close supervision, leading to greater levels of freedom of action for each employee.

Research indicates that flat organizations provide greater need satisfaction for employees and
greater levels of self-actualization (Ghiselli & Johnson, 1970; Porter & Siegel, 2006). At the
same time, there may be some challenges associated with flat structures. Research shows that
when managers supervise a large number of employees, which is more likely to happen in flat
structures, employees experience greater levels of role ambiguity—the confusion that results
from being unsure of what is expected of a worker on the job (Chonko, 1982). This is
especially a disadvantage for employees who need closer guidance from their managers.
Moreover, in a flat structure, advancement opportunities will be more limited because there
are fewer management layers. Finally, while employees report that flat structures are better at
satisfying their higher-order needs such as self-actualization, they also report that tall
structures are better at satisfying security needs of employees (Porter & Lawler, 1964).
Because tall structures are typical of large and well-established companies, it is possible that
when working in such organizations employees feel a greater sense of job security.

Departmentalization

Organizational structures differ in terms of departmentalization, which is broadly categorized

as either functional or divisional.

Organizations using functional structures group jobs based on similarity in functions. Such
structures may have departments such as marketing, manufacturing, finance, accounting,
human resources, and information technology. In these structures, each person serves a
specialized role and handles large volumes of transactions. For example, in a functional
structure, an employee in the marketing department may serve as an event planner, planning
promotional events for all the products of the company.

In organizations using divisional structures, departments represent the unique products,

services, customers, or geographic locations the company is serving. Thus each unique
product or service the company is producing will have its own department. Within each
department, functions such as marketing, manufacturing, and other roles are replicated. In
these structures, employees act like generalists as opposed to specialists. Instead of
performing specialized tasks, employees will be in charge of performing many different tasks
in the service of the product. For example, a marketing employee in a company with a
divisional structure may be in charge of planning promotions, coordinating relations with
advertising agencies, and planning and conducting marketing research, all for the particular
product line handled by his or her division.

In reality, many organizations are structured according to a mixture of functional and

divisional forms. For example, if the company has multiple product lines, departmentalizing
by product may increase innovativeness and reduce response times. Each of these
departments may have dedicated marketing, manufacturing, and customer service employees
serving the specific product; yet, the company may also find that centralizing some
operations and retaining the functional structure makes sense and is more cost effective for
roles such as human resources management and information technology. The same
organization may also create geographic departments if it is serving different countries.

Each type of departmentalization has its advantages. Functional structures tend to be effective
when an organization does not have a large number of products and services requiring special
attention. When a company has a diverse product line, each product will have unique
demands, deeming divisional (or product-specific) structures more useful for promptly
addressing customer demands and anticipating market changes. Functional structures are
more effective in stable environments that are slower to change. In contrast, organizations
using product divisions are more agile and can perform better in turbulent environments. The
type of employee who will succeed under each structure is also different. Research shows
that when employees work in product divisions in turbulent environments, because activities
are diverse and complex, their performance depends on their general mental abilities
(Hollenbeck, et. al., 2002).

Figure 7.6 An Example of a Pharmaceutical Company with a Functional Departmentalization

Structure

Figure 7.7 An Example of a Pharmaceutical Company with a Divisional Departmentalization

Structure

Two Configurations: Mechanistic and Organic Structures

The different elements making up organizational structures in the form of formalization,

centralization, number of levels in the hierarchy, and departmentalization often coexist. As a
result, we can talk about two configurations of organizational structures, depending on how
these elements are arranged.

Mechanistic structures are those that resemble a bureaucracy. These structures are highly
formalized and centralized. Communication tends to follow formal channels and employees
are given specific job descriptions delineating their roles and responsibilities. Mechanistic
organizations are often rigid and resist change, making them unsuitable for innovativeness
and taking quick action. These forms have the downside of inhibiting entrepreneurial action
and discouraging the use of individual initiative on the part of employees. Not only do
mechanistic structures have disadvantages for innovativeness, but they also limit individual
autonomy and self-determination, which will likely lead to lower levels of intrinsic
motivation on the job (Burns & Stalker, 1961; Covin & Slevin, 1988; Schollhammer, 1982;
Sherman & Smith, 1984; Slevin & Covin, 1990).

Despite these downsides, however, mechanistic structures have advantages when the
environment is more stable. The main advantage of a mechanistic structure is its efficiency.
Therefore, in organizations that are trying to maximize efficiency and minimize costs,
mechanistic structures provide advantages. For example, McDonald’s has a famously
bureaucratic structure where employee jobs are highly formalized, with clear lines of
communication and specific job descriptions. This structure is an advantage for them because
it allows McDonald’s to produce a uniform product around the world at minimum cost.
 Mechanistic structures can also be advantageous when a company is new. New businesses
often suffer from a lack of structure, role ambiguity, and uncertainty. The presence of a
mechanistic structure has been shown to be related to firm performance in new ventures (Sine
& Kirsch, 2006).

In contrast to mechanistic structures, organic structures are flexible and decentralized, with
low levels of formalization. In Organizations with an organic structure, communication lines
are more fluid and flexible. Employee job descriptions are broader and employees are asked
to perform duties based on the specific needs of the organization at the time as well as their
own expertise levels. Organic structures tend to be related to higher levels of job satisfaction
on the part of employees. These structures are conducive to entrepreneurial behavior and
innovativeness (Burns & Stalker, 1961; Covin & Slevin, 1988). An example of a company
that has an organic structure is the diversified technology company 3M. The company is
strongly committed to decentralization. At 3M, there are close to 100 profit centers, with each
division feeling like a small company. Each division manager acts autonomously and is
accountable for his or her actions. As operations within each division get too big and a
product created by a division becomes profitable, the operation is spun off to create a separate
business unit. This is done to protect the agility of the company and the small-company
atmosphere.
Key Takeaway

The degree to which a company is centralized and formalized, the number of levels in the
company hierarchy, and the type of departmentalization the company uses are key elements
of a company’s structure. These elements of structure affect the degree to which the company
is effective and innovative as well as employee attitudes and behaviors at work. These
elements come together to create mechanistic and organic structures. Mechanistic structures
are rigid and bureaucratic and help companies achieve efficiency, while organic structures are
decentralized, flexible, and aid companies in achieving innovativeness.
Exercises

1. What are the advantages and disadvantages of decentralization?

2. All else being equal, would you prefer to work in a tall or flat organization? Why?
3. What are the advantages and disadvantages of departmentalization by product?

INFORMATION MANAGEMENT POLICY

What is Information Security Management?

Information security management is the process of protecting an organization’s data and

assets against potential threats. One of the primary goals of these processes is to protect data
confidentiality, integrity, and availability. Information security management may be driven
both internally by corporate security policies and externally by regulations such as the
General Data Protection Regulation (GDPR), Health Insurance Portability and Accessibility
Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS).

The Importance of Information Security Management

The average organization collects a great deal of data. This includes sensitive customer data,
intellectual property, and other data that is vital to an organization’s competitive advantage
and ability to operate.

The value of this data means that it is under constant threat of being stolen by cybercriminals
or encrypted by ransomware. An effective security management architecture is vital because
organizations need to take steps to secure this data to protect themselves and their customers.
 Objectives of Information Security Management

The objective of information security management is to protect data:

● Confidentiality: Protecting data confidentiality requires restricting access to data to only

authorized users. Data breaches are a breach of confidentiality.

● Integrity: Ensuring data integrity requires the ability to ensure that data is accurate and
complete. A cyber threat actor that corrupts data in an organization’s databases is a breach of data
integrity.

● Availability: Data and the services that rely upon it must be available to authorized users,
whether inside or outside of the company. A Distributed Denial of Service (DDoS) attack is an
example of a threat against the availability of an organization’s data and services.
The confidentiality, integrity, and availability of an organization’s data can be threatened in
various ways. Information security management involves identifying the potential risks to an
organization, assessing their likelihood and potential impact, and developing and
implementing remediation strategies designed to decrease risk as much as possible with
available resources.

Information Security Management Standards and Compliance

An organization’s information security management strategy may be driven by multiple

different factors. The program may be inspired by internal policies or required by external
forces. Both of these potential drivers have associated standards and compliance.

In some cases, an organization’s internal security policies and business goals may require
implementation of info security management systems. For example, ISO 27001, an
international standard describing security best practices, mandates the implementation of an
information security management system. Companies that want to certify against ISO 27001
will need to implement it.

An organization’s security management program may also be driven by external factors. For
example, many organizations operate under one or more data protection regulations.

Some common examples include:

● General Data Protection Regulation (GDPR): Protects the personally identifiable information
(PII) of EU citizens with strong personal privacy and data security requirements.

● Health Insurance Portability and Accessibility Act (HIPAA): A US regulation for the
healthcare industry that mandates security controls for protected health information (PHI).

● Payment Card Industry Data Security Standard (PCI DSS): A regulation developed by the
financial sector to prevent fraud by protecting the personal data of payment card holders.
These and other data privacy laws may explicitly or implicitly require the implementation of
an info security management program. Even if such a program is not explicitly required,
complying with regulatory data security requirements scalably and sustainably makes
implementing strong security management processes and procedures necessary.

Benefits of Information Security Management

In addition to improving an organization’s data security, an infosec management program can

provide the following benefits:

● Streamlined Data Security: An information security management program creates a framework

and process for assessing data security risks and remediating them. Adopting such a program can
 make data security more efficient and effective by enabling an organization to optimize its
security architecture and eliminate unnecessary and overlapping solutions.

● Improved Security Culture: Often, infosec is owned by the IT or security department, and it is
difficult to spread and enforce across the organization. Educating employees about the
company’s information security management program can improve security and create a more
positive security culture.

● Brand Image: Data breaches and other security incidents can harm an organization’s brand
image. Demonstrated compliance with security best practices can help an organization’s
reputation and improve relationships with customers and partners.
Information Security Management with Check Point

One of the core tenets of security information management is the development of an

integrated, holistic security strategy that effectively addresses an organization’s data security
risks. This is best accomplished with a consolidated security architecture that enables
efficient security monitoring and management.

Check Point’s unified cybersecurity platform was designed with comprehensive, consolidated
security management in mind based on four pillars:

● Automated: Automating security processes and integrating them into CI/CD pipelines helps to
eliminate configuration errors and speed deployments while prioritizing security.

● Consolidated: A consolidated security architecture enhances visibility and simplifies

management while increasing efficiency and decreasing OPEX and CAPEX.

● Dynamic: Agile and dynamic security management solutions enable an organization to keep up
with the rapidly evolving cyber threat landscape and reduce time to manage security.

● Efficient: High-performance, efficient security ensures that security management is not a

bottleneck and doesn’t impede digital transformation.
To learn more about how Check Point can enhance and enable your organization’s
information security management, we invite you to download our security management
whitepaper

Information Security Management System Diagnosis Service

We design feasible roadmap of security measurement by diagnosing process, system,

technical measures, and formulating the measurement from the result of the diagnosis.

Companies operate in an environment that is increasingly digitized. This poses information

security issues. Information leaks escalating into a major business-threatening crisis are no
longer a rare occurrence. Managing information assets properly to establish and maintain
information management systems is essential for business continuity.

Information security risks facing companies

The actions a company takes during an information security incident have the potential to
damage the company’s credibility significantly. The wrong moves could make recovery from
the crisis enormously costly. Such costs alone could lead to a business-threatening crisis. This
is why managers view information security measures as part of their key strategic efforts to
safeguard company assets.

The Value ABeam Consulting offers

In order to formulate appropriate risk-mitigation measures, it is important to assess possible
risks from three critical perspectives: process (operations), personnel/organization
(operational framework), and technology. ABeam Consulting's information security
management system diagnosis service provides appropriate diagnosis which suitable for
clients needs; we identify security risks, and diagnose the preparedness of company's
information security management system against risks.

Our approach

Information security measures are implemented in two phases: planning phase and
implementation phase. Our information security management system diagnosis service focus
on the planning phase. We visualize the company’s current status of information securities,
plan the measures against security issues, and draw up implementation plan.

What makes our service special

ABeam Consulting assists clients in realizing essential security measures, by industry-

based, flexible, and well-balanced methods. Our solution complies with ISO27001, the
standards of information security management system.

We conduct a survey of your current status with the results of security diagnosis
survey forms, and interview with your management. Then we quantify and visualize the
maturity of your security measures. Checking the result, we sort them out to extract the points
of issues, sort them out, and identify the real causes of risks and their degrees of importance.

We support considering security measures, taking account of combinations of security

risk s on which clients put importance and weaknesses based on the result of security
 diagnosis. Then we assist in making decision, which measures to implement, from the
dimension of importance, effectiveness and costs.

We support prioritize on security measures and formulate feasible plan, considering task
volume, schedule, and viability. We write up the result in security measurement plan.

The role of BAs in change management

We live in a global, interconnected economy. Shifting market conditions, customer

demands, and evolving technologies mean that businesses constantly have to change to keep
up. Now, thanks to the sea change forced upon businesses by the COVID-19 pandemic,
organizations are having to adapt quickly to survive.

However, change is scary, and if it’s managed with poor communication, it will inevitably
lead to chaos. Having a business analyst (BA) acting as a strategic component of your change
management process can be critical to successful change implementation.

As valuable as BAs are to change management, they’re often misunderstood. Learn the role
BAs play in change management and see how they can deliver data and insights during this
critical decision-making time.

What is a business analyst?

Business analysts provide business improvement recommendations based on data. They use
data analytics to examine processes, determine desired outcomes, and deliver data-driven
suggestions and reports to executives and stakeholders. Business analysts evaluate the current
model of a business and see how it can be optimized.

The real value of a business analyst is in mitigating risk and providing strategic direction.
That first part really can’t be overstated: risk mitigation is key to the process of change
management. Change introduces the unknown to an environment and that can either spell
success or disaster. A good business analyst will minimize uncertainty and guide the
organization toward a greater likelihood of success.

What is change management?

Change management is, put simply, the process of guiding the adaptation of a business. A
business that has grown stagnant and too comfortable with the way it operates will not
survive the years to come. The evidence of that is all around us, from department stores not
willing to reevaluate how modern customers shop to restaurants that don’t offer delivery.

Change management is the process of reevaluating your current business model and
implementing the pivots necessary to keep the business healthy and competitive in an
evolving market. Done well, change management minimizes the fear of change that
inevitably arises and gets everyone on board with successful implementation.

Change management consists of five components:

1. Vision–The desired future state of the business.

2. Skills–The skills currently available within the organization.
3. Incentives–The reasons for change.
4. Resources–People and processes available to help guide the change.
5. Plan–A comprehensive set of steps for implementing the change
Once these five components have been deployed, the business can measure the impact of the
change and conduct valuable post-mortems.

BA change management tasks

What exactly does a business analyst do? Provide the expertise needed to make smart,
impactful change. Here’s how:

Identifying and clarifying the current state of the business

Too often, organizations base their understanding of themselves on a myopic, inside-

out view. A business analyst provides an objective, data-backed look at the actual state of
your company: in other words, how healthy it is from a financial perspective. A BA can tell
you how much money your business has on hand, what its debts are, and what your cash flow
looks like. This is valuable for being able to make a rational decision based on facts and not
conjecture.

Providing current data on the state of the market

A BA will also provide an objective look at where your business stands in context.
It’s easy to feel, for instance, that your business is the top cheese maker in the country if you
never research other cheese makers. So, a business analyst may look at market movement and
use data to predict future trends.

For instance, a business analyst may tell you that your business should target enterprise
companies instead of SMBs because your software is more appropriate for large-scale
solutions and enterprise companies tend to have greater cashflow than SMBs. With that
information, it’s easier to not only decide which route is best for your company in the present
moment, but which changes will have favorable outcomes for years to come.

Researching how proposed changes might impact the business

Business analysts aren’t fans of conjecture. Instead, they’ll use data to simulate likely
outcomes based on various fact-based scenarios. For instance, a business analyst may
simulate what kind of impact raising your product pricing by 10% would have on everything
from your bottom line to your competitive place in the market. A BA will give you an
educated opinion based on all available data so that you can make informed decisions.

Collecting use cases

A BA can also help your business develop use cases. A use case is essentially how an
actor (normally a customer) interacts with a system to achieve a desired end. If your business
wants to understand, for instance, how customers are interacting with a purchasing process, a
business analyst can look at the use case as well as alternate flows and exception flows to
uncover gaps in the process or missed opportunities. This is useful for helping others think
from the user’s perspective and describe the end result after the use case has been completed.
In short, they give you a visual way to understand flows so your business can maximize them.

Defining and communicating the desired future state

Sometimes organizations don’t know what they want. They certainly want to make
more money, but that’s not the entire story. It’s up to a BA to help define what an
organization actually wants.

For instance, consider a company that currently makes dashboards for self-driving
cars. Sure, the company wants a healthier bottom line. But what they might really want is
partnerships with prominent car manufacturers, complete market domination, and to lead a
transportation revolution. A BA can help define and articulate the big, audacious desires of an
organization.

That vision of a desired future state will inform the best changes the business can
make to achieve that future state.

Creating a comprehensive plan

It’s not enough for a business to know what needs to change. They also need to know
how to change. A business analyst can look at all the moving parts in an organization and
define their role in the change, how they contribute to the implementation, and what the
expectations are around contributing to the change. They can create a clear, actionable plan
that makes sense to everyone involved.

Preparing reports and presentations to communicate motivations, changes, options, and

impact

An especially valuable role of BAs in change management is that of showing why a

business should change. They present their data and rationale in reports and presentations to
gain buy-in from stakeholders.

Seeing change options in a visual manner is vital when communicating both the
motivation for the change and its potential impact. It’s also a great idea to create a visual
flowchart of the comprehensive plan mentioned above so that there’s no doubt about how the
implementation will proceed. These presentations help eliminate confusion and uncertainty.

As you can see, a business analyst is truly vital to assisting your business in
navigating the world of change management. They can aid in everything from providing data-
driven suggestions for meaningful change to providing roadmaps for how best to implement
the change. They’re an invaluable investment in your business and can provide the right
strategy to keep the organization healthy throughout any crisis or time of change.

DATA QUALITY

What’s the Definition of Data Quality?

But What Is Data Quality, in Practical Terms?
Data Quality Dimensions
How Do You Improve Data Quality?
Data Quality Best Practices

Data saturates the modern world. Data is information, information is knowledge, and
knowledge is power, so data has become a form of contemporary currency, a valued
commodity exchanged between participating parties.

What is Data Quality?

Data quality is defined as:
the degree to which data meets a company’s expectations of accuracy, validity, completeness,
and consistency.
By tracking data quality, a business can pinpoint potential issues harming quality, and ensure
that shared data is fit to be used for a given purpose.
When collected data fails to meet the company expectations of accuracy, validity,
completeness, and consistency, it can have massive negative impacts on customer service,
employee productivity, and key strategies.
 Data helps people and organizations make more informed decisions,
significantly increasing the likelihood of success. By all accounts, that seems to
indicate that large amounts of data are a good thing. However, that’s not always the
case. Sometimes data is incomplete, incorrect, redundant, or not applicable to the
user’s needs.

But fortunately, we have the concept of data quality to help make the job easier. So
let’s explore what is data quality, including what are its characteristics and best
practices, and how we can use it to make data better.

What’s the Definition of Data Quality?

In simple terms, data quality tells us how reliable a particular set of data is and
whether or not it will be good enough for a user to employ in decision-making. This
quality is often measured by degrees.

But What Is Data Quality, in Practical Terms?

Data quality measures the condition of data, relying on factors such as how useful it
is to the specific purpose, completeness, accuracy, timeliness (e.g., is it up to date?),
consistency, validity, and uniqueness.

Data quality analysts are responsible for conducting data quality assessments, which
involve assessing and interpreting every quality data metric. Then, the analyst
creates an aggregate score reflecting the data’s overall quality and gives the
organization a percentage rating that shows how accurate the data is.

To put the definition in more direct terms, data quality indicates how good the data is
and how useful it is for the task at hand. But the term also refers to planning,
implementing, and controlling the activities that apply the needed quality
management practices and techniques required to ensure the data is actionable and
valuable to the data consumers.

Data Quality Dimensions/ The Data Quality Assessment Framework (DQAF)

There are six primary, or core, dimensions to data quality. These are the metrics
analysts use to determine the data’s viability and its usefulness to the people who
need it.

● Accuracy

The data must conform to actual, real-world scenarios and reflect real-world objects
and events. Analysts should use verifiable sources to confirm the measure of
accuracy, determined by how close the values jibe with the verified correct
information sources.

● Completeness

Completeness measures the data's ability to deliver all the mandatory values that are
available successfully.
● Consistency

Data consistency describes the data’s uniformity as it moves across applications and
networks and when it comes from multiple sources. Consistency also means that the
same datasets stored in different locations should be the same and not conflict. Note
that consistent data can still be wrong.

● Timeliness

Timely data is information that is readily available whenever it’s needed. This
dimension also covers keeping the data current; data should undergo real-time
updates to ensure that it is always available and accessible.

● Uniqueness

Uniqueness means that no duplications or redundant information are overlapping

across all the datasets. No record in the dataset exists multiple times. Analysts use
data cleansing and deduplication to help address a low uniqueness score.

● Validity

Data must be collected according to the organization’s defined business rules and
parameters. The information should also conform to the correct, accepted formats,
and all dataset values should fall within the proper range.

How Do You Improve Data Quality?

Data quality management aims to leverage a balanced set of solutions to prevent

future data quality issues and clean (and ideally eventually remove) data that fails to
meet data quality KPIs (Key Performance Indicators). These actions help businesses
meet their current and future objectives.

There is more to data quality than just data cleaning. With that in mind, here are the
eight mandatory disciplines used to prevent data quality problems and improve data
quality by cleansing the information of all bad data:

● Data Governance

Data governance spells out the data policies and standards that determine the
required data quality KPIs and which data elements should be focused on. These
standards also include what business rules must be followed to ensure data quality.

● Data Profiling

Data profiling is a methodology employed to understand all data assets that are part
of data quality management. Data profiling is crucial because many of the assets in
question have been populated by many different people over the years, adhering to
different standards.
● Data Matching

Data matching technology is based on match codes used to determine if two or more
bits of data describe the same real-world thing. For instance, say there’s a man
named Michael Jones. A customer dataset may have separate entries for Mike
Jones, Mickey Jones, Jonesy, Big Mike Jones, and Michael Jones, but they’re all
describing one individual.

● Data Quality Reporting

Information gathered from data profiling, and data matching can be used to measure
data quality KPIs. Reporting also involves operating a quality issue log, which
documents known data issues and any follow-up data cleansing and prevention
efforts.

● Master Data Management (MDM)

Master Data Management frameworks are great resources for preventing data
quality issues. MDM frameworks deal with product master data, location master
data, and party master data.

● Customer Data Integration (CDI)

CDI involves compiling customer master data gathered via CRM applications, self-
service registration sites. This information must be compiled into one source of truth.

● Product Information Management (PIM)

Manufacturers and sellers of goods need to align their data quality KPIs with each
other so that when customers order a product, it will be the same item at all stages of
the supply chain. Thus, much of PIM involves creating a standardized way to receive
and present product data.

● Digital Asset Management (DAM)

Digital assets cover items like videos, text documents, images, and similar files, used
alongside product data. This discipline involves ensuring that all tags are relevant
and the quality of the digital assets.

Why Is Data Quality Important?

Quality data is key to making accurate, informed decisions. And while all data has some level
of “quality,” a variety of characteristics and factors determines the degree of data quality
(high-quality versus low-quality). Furthermore, different data quality characteristics will
likely be more important to various stakeholders across the organization.
Because data accuracy is a key attribute of high-quality data, a single inaccurate data
point can wreak havoc across the entire system.
Without accuracy and reliability in data quality, executives cannot trust the data or make
informed decisions. This can, in turn, increase operational costs and wreak havoc for
downstream users. Analysts wind up relying on imperfect reports and making misguided
 conclusions based on those findings. And the productivity of end-users will diminish due to
flawed guidelines and practices being in place.
Poorly maintained data can lead to a variety of other problems, too. For example, out-
of-date customer information may result in missed opportunities for up- or cross-selling
products and services.
Low-quality data might also cause a company to ship their products to the wrong addresses,
resulting in lowered customer satisfaction ratings, decreases in repeat sales, and higher costs
due to reshipments.
And in more highly regulated industries, bad data can result in the company receiving fines
for improper financial or regulatory compliance reporting.
Top 3 Data Quality Challenges
Data volume presents quality challenges. Whenever large amounts of data are at play, the
sheer volume of new information often becomes an essential consideration in determining
whether the data is trustworthy. For this reason, forward-thinking companies have robust
processes in place for the collection, storage, and processing of data.
As the technological revolution advances at a rapid pace, the top three data quality
challenges include:
1. Privacy and protection laws
The General Data Protection Regulation (GDPR) and the California Consumer Privacy Act
(CCPA), which gives people the right to access their personal data, are substantially
increasing public demand for accurate customer records. Organizations must be able to locate
the totality of an individual’s information almost instantly and without missing even a
fraction of the collected data because of inaccurate or inconsistent data.
2. Artificial Intelligence (AI) and Machine Learning (ML)
As more companies implement Artificial Intelligence and Machine Learning applications to
their business intelligence strategies, data users may find it increasingly difficult to keep up
with new surges of Big Data. Because these real-time data streaming platforms channel vast
quantities of new information continuously, there are now even more opportunities for
mistakes and data quality inaccuracies.
Furthermore, larger corporations must work diligently to manage their systems, which reside
both on-premises and through cloud servers. The abundance of data systems has also made
the monitoring of complicated tasks even more challenging.
3. Data governance practices
Data governance is a data management system that adheres to an internal set of standards and
policies for the collection, storage, and sharing of information. By ensuring that all data is
consistent, trustworthy, and free from misuse within every company department, managers
can guarantee compliance with important regulations and reduce the risk of the business
being fined.
Without the right data governance approach, the company may never resolve inconsistencies
within different systems across the organization. For example, customer names can be listed
differently depending on the department. Sales might say “Sally.” Logistics uses “Sallie.”
And customer service lists the name as “Susan.” This poor-quality data governance can result
in confusion for customers that have multiple interactions with each department over time.
Data Quality Management Tools & Best Practices
Data is generated by people, who are inherently prone to human error. To avoid future
problems and maintain data quality continuity, your organization can adopt certain best
practices that will ensure the integrity of your data quality management system for years into
the future. Such measures include:
● Establish employee and interdepartmental buy-in across the enterprise.

● Set clearly defined metrics.

● Ensure data quality by establishing data governance guidelines.
● Create a process where employees can report any suspected failures regarding data entry or
access.
● Establish a step-by-step process for investigating negative reports.

● Launch a data auditing process.

● Establish and invest in a high-quality employee training program.
● Establish, maintain, and consistently update data security standards.
● Assign a data steward at each level throughout your company.
● Leverage potential cloud data automation opportunities.
● Integrate and automate data streams wherever possible.
Alation provides a variety of enterprise-level tools and solutions for the implementation of
cost-effective data quality management systems. We help organizations consolidate siloed
and distributed enterprise data, build consistency in data practices, and improve both the
speed and the quality of the decision-making process. For more information on our data
quality management solutions, contact Alation today.

● information assets
● advice on the disposal and destruction of information assets, including the provisions
of normal administrative practice (NAP)
● an outline of the roles, responsibilities and expectations of all staff in managing information
assets, in addition to detailed guidance for specific position holders as needed.

Interaction with other policies and procedures

Given the complexity of information management, it is likely that it will take more than one
policy document to provide guidance across all processes. Information management policy
statements should be embedded into a broad range of organisational policies and procedures,
to assist ease of access by stakeholders. Dividing policy statements across several documents
can also enhance readability by focusing on one area of information management.

For example:

● A Data Migration Policy could lay out considerations for information technology teams
migrating data from one business system to another. This may include guidance around
interoperability, quality assurance testing, metadata controls and accountable destruction of
data, if all data is not being migrated.
● A Normal Administrative Practice Policy would provide advice to staff on which information
assets they can routinely destroy. It would outline the types of low-value and short-term
information that can be destroyed in the normal course of business.
● An Information Technology Procurement Policy may include a policy statement that requires
newly procured business systems to be compliant with the Australian Government Minimum
Metadata Set.

Key aspects of an information management policy(additional information)

Title, date and version number

Follow your agency’s naming and versioning conventions and identify how frequently the
policy will be reviewed.

Purpose

Explain why an information management policy is needed and the benefits of good practice.

For example:

The purpose of this policy is to guide and direct the creation and management of information
assets (records, information and data) by staff, and to clarify staff responsibilities. [The
agency] is committed to establishing and maintaining information management practices that
meet its business needs, accountability requirements and stakeholder expectations.

The benefit of complying with this policy will be trusted information that is well-described,
stored in known endorsed locations and accessible to staff and clients when needed.

This policy is written within the context of [the agency's] information governance framework,
which is located at XXXX. Complementary policies and additional guidelines and procedures
support this policy and are located at XXXX.

Scope

The scope should identify both who and what is covered by the policy, to support the holistic
management of all an agency’s information assets.

For example:

This policy applies to all [agency] staff members and contractors and to all information assets
(records, information and data) in any format, created or received, to support [agency]
business activities.

It covers all business applications used to create, manage and store information assets,
including dedicated information management systems, business information systems,
databases, email, voice and instant messaging, websites, and social media

applications. This policy covers information created and managed in-house and off-site,
including in cloud based platforms.

Policy statement

Provide a brief statement of your agency's commitment to good information management

practices. If it applies, briefly mention factors that influence information management within
the agency.

For example:

[The agency] recognises its information assets as valuable corporate assets and is committed
to achieving appropriate and ongoing management of these assets to advance [the agency’s]
strategic priorities and meet client needs.

or

There is an expectation that [the agency] will [mention here any obligations that apply
specifically to your agency]. It is committed to creating and keeping accurate and reliable
information to meet this obligation.

Also, [the agency] is committed to the principles and practices set out in whole-of-
government policies and best-practice standards. Our agency will implement fit-for-purpose
information management practices and systems to ensure the creation, maintenance and
protection of reliable information. All information management practices in [this agency] are
to align this policy and its supporting procedures.

Legislation and other key mandates

Your information governance framework should cover your agency’s legal, regulatory and
business environment. Your information management policy should only cite directions and
requirements that directly affect staff or are necessary for them to understand the policy’s
operating environment. An example could be agency-specific legislative requirements for
creating or keeping particular information. In general, the policy should refer staff to the
relevant sections of the framework and strategy rather than repeating them.
 For example:

All staff must take steps to protect personal information according to the Privacy Act 1988
and the Australian Privacy Principles. This includes personal information stored in cloud-
hosted services.

Creation and management of information assets

Provide guidance on the type of information assets that need to be created, captured and
managed to support agency business and compliance with legal requirements. Operational
work groups may have specific requirements to create and capture information which are
documented in business procedures. These should be referenced, but not reproduced, in the
policy.

Other guidance that could be covered in the policy includes:

● Endorsed systems used to maintain information: establish clearly which locations are
endorsed for the capture and storage of information and which should not be used. For
example, corporate information assets must not be maintained in email folders, shared
folders, personal drives or external storage media.
● Requirements for storage and preservation: for information in digital and physical
formats, including security protocols and preservation requirements. This may include
referencing preferred file formats.
● Access to information: provide a statement supporting staff having ready access to corporate
information. Describe situations when it is appropriate to restrict this access. Document the
public’s right of access to information under legislation including the Freedom of
Information Act 1982 and the Archives Act 1983. Describe how your agency supports public
release of information assets, for example, under the Information Publication Scheme or to
meet Australian Government commitments to release publicly available datasets.
● Retention and destruction: describe the responsibilities staff have for retaining and
destroying the organisation's information assets. Provide staff with the information they need
to comply with accountable and authorised destruction of information assets. This includes
the correct use of normal administrative practice (NAP).
● Transfer: outline instances when information may be required to be transferred. Explain that
information assets of archival value are transferred to the care of the National Archives, but
access can be arranged for staff if they are needed. Note that information may be transferred
to other agencies as a result of a machinery of government change.

In all cases, any supporting guidelines, procedures or related documents should be linked to
the policy document.

Roles and responsibilities

Define the roles and responsibilities of all agency employees to ensure that reliable and
usable information is created and managed, and is kept for as long as it is needed for
business, accountability or historical purposes. This may include statements such as:

All staff: responsible for the creation and management of information as defined by this
policy.

Additional responsibilities for certain staff are listed below:

Agency head: responsible for information governance within the agency. The agency head
has authorised this policy. The agency head promotes compliance with this policy, delegates
responsibility for the operational planning and running of information management to a
senior executive officer in the organisation, and ensures the agency's information
management program of activities is adequately resourced.
 Chief Information Governance Officer (CIGO): responsible for the establishment and
maintenance of an enterprise-wide culture for an accountable and business-focused
information management environment

Senior management: responsible for visible support of, and adherence to, this policy by
promoting a culture of accountable information management within the organisation. This
includes senior executive officers and managers.

Information management unit: under the leadership of the delegated senior executive, the
information management unit is responsible for overseeing the management of information
assets (records, information and data) in this organisation consistent with the requirements
described in the policy. This includes:

● providing training, advice and general support to staff

● creating, developing or acquiring and implementing information management products and
tools, including systems to help create complete and accurate information
● developing and implementing strategies to enable sound information management practices

● monitoring compliance with information management policies and directives

● advising senior management of any risks associated with non-compliance.

ICT staff: responsible for maintaining the technology for [the agency's] business information
systems, including maintaining appropriate system accessibility, security and backup. ICT
staff should ensure that any actions, such as removing information assets from systems or
folders, are undertaken in accordance with this policy. ICT and information management staff
have an important joint role in ensuring that systems support accountable and effective
information management across the organisation.

Agency security advisor: provides advice on security policy and guidelines associated with
the management of information.

Managers and supervisors: responsible for ensuring staff, including contract staff, are
aware of, and are supported to follow, the information management practices defined in this
policy. They should advise the information management unit of any barriers to staff
complying with this policy. They should also advise the unit of any changes in the business
environment that would impact on information management requirements, such as new areas
of business that need to be covered by a records authority.

Contract staff: create and manage information assets in accordance with this policy to the
extent specified in their contract.

Communication and training

Include a statement affirming that the policy will be communicated to staff and that training
will be provided on aspects of the policy. When conducting training, keep it up-to-date,
schedule it regularly and consider how to tailor it so that it is meaningful to different work
groups in your agency.

Mention any separate information or training available on aspects of information

management, such as titling, capture, or how to incorporate the policy’s directions into
business procedures and workflows.

Monitoring and review

Make a commitment to review the policy and monitor compliance. When reviewing the
policy, consider its relevance, if it is still appropriate and staff awareness of its requirements.
Monitor staff adoption of the policy at regular intervals. If direct supervisors are responsible
 for monitoring staff compliance, ensure they are aware of their responsibility and the
standards expected of their staff.

For example:

This policy will be updated as needed if there are any changes in the business or regulatory
environment. It is scheduled for a comprehensive review by 20XX. The head of the
information management unit will initiate this review and the information governance
committee will conduct it.

The information management unit [with the support of workplace supervisors] will monitor
compliance with this policy. Levels of compliance will be reported at least annually to senior
management.

Resources

Provide a list of resources that give extra information. This may include contact details of
relevant staff within the agency, as well as useful reference material.

Senior management endorsement

Provide evidence that the head of your agency or a senior officer with responsibility for
information management has endorsed the policy. This may be done in a brief paragraph
signed by the head of agency or senior officer, recognising the important place of information
management in the agency and directing staff to comply with the requirements of the policy.

The Alignment of Organizational Structure and Information Infrastructure

Information infrastructure refers to technology and processes put in place to facilitate

communication and information sharing throughout an organization. Organizational structure
comprises the specific hierarchies, workflows, team structures, reporting relationships and
information flows within an organization. The structure of an organization directly influences
the design of information technology infrastructure, which itself exists to support the
organizational structure. Understanding how to align information infrastructure with
organizational structure can help you implement the ideal infrastructure for your company's
technology needs.

Information Flows

1. Organizational structure describes the ways in which information flows in a company. This
can include anything from safety inspection reports to inventory cost information to new
strategic ideas. In some companies, information flows in a top-down and bottom-up fashion
through a strict hierarchy, while some companies share information more freely in egalitarian
teams. Information infrastructure must align with the flow of information in such a way that
those who need information have ready access to it and those who do not need it are not
distracted by it. If a team is structured to share information about customer interactions, for
example, a department- or company-wide customer relationship management, or CRM,
database could facilitate such sharing.

Employee Collaboration

1. How people work together is an integral part of organizational structure. Some companies
create mostly individual-contributor roles, while others focus more on collaborative teams.
Some companies locate departments in a single physical location, while others put
geographically dispersed teams together. Companies can use web-based conferencing
 software, internal social networks, instant messaging, file-sharing platforms and phone
conferencing systems to facilitate collaboration among close and distant employees. When
paired with sensible usage policies and shared communication norms, this kind of technology
can greatly increase team efficiency and productivity. However, when an organizational
structure does not call for robust collaboration, this kind of technology may only get in the
way.

Rights and Permissions

1. Organizational structure can define who has access to sensitive information such as
accounting ledgers, contracts and product designs. Information infrastructure must be aligned
with data security policies to ensure that sensitive data can only be accessed by those with
permission and that access can be tracked to pinpoint the source of fraud, theft or intrusion.

Workplace Tools

1. Workplace communication relies on technological tools to a great extent. Interactions with

suppliers, customers, co-workers and even supervisors often take place via email or phone.
Information infrastructure includes the mix of hardware and software -- including personal
computers, smartphones and laptops -- that a company provides for employees' use.
According to the Bureau of Labor Statistics, 24 percent of employed people performed some
or all of their work at home in 2010. This complicates almost every element of organizational
structure and introduces new variables when making decisions about which technological
tools to provide for which workers. Some companies provide work-from-home employees
with company laptops and phones, for example, while others require them to use their own
equipment. However, even if remote employees use their own equipment, it will likely
require specific security and communications software paid for by the company.