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Data Analytics Maturity Model

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Data Analytics Maturity Model

Uploaded by

priyeshkumarcheralath
Copyright
© © All Rights Reserved
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Data Analytics Maturity Model

“War is 90% Information” - Napoleon Bonaparte

Some studies show that about half of all humans make decisions based on their “gut feeling”. Moreover,
a lot of famous people are believed to heavily rely on their intuition. Some well-known and widely
quoted examples are Albert Einstein saying, “The intuitive mind is a sacred gift," and Steve Jobs with his
“Have the courage to follow your heart and intuition.”

In the era of global digital transformation, the role of data analysis in decision-making increases greatly.
Still, today, according to Deloitte research, insight-driven companies are fewer in number than those not
using an analytical approach to decision-making, even though the majority agrees on its importance.
What's more, the MicroStrategy Global Analytics Study reports that access to data is extremely limited,
taking 60 percent of employees hours or even days to get the information they need.

What is Analytics Maturity Model?


An analytics maturity model is a sequence of steps or stages that represent the evolution of the
company in its ability to manage its internal and external data and use this data to inform business
decisions. These models assess and describe how effectively companies use their resources to get value
out of data. They also serve as a guide in the analytics transformation process.

Over the past decades, multiple analytics maturity models have been suggested. Some famous ones
are:

 Gartner’s Maturity Model for Data and Analytics,


 DELTA Plus by Tom Davenport,
 DAMM - Data Analytics Maturity Model for Associations,
 SAS Analytic Maturity Scorecard, and many more.

Stages of Analytics Maturity?

 No analytics refers to companies with no analytical processes whatsoever.


 Descriptive analytics lets us know what happened, gathering and visualizing historical data.
 Diagnostic analytics identifies patterns and dependencies in available data, explaining why
something happened.
 Predictive analytics creates probable forecasts of what will happen in the future, using machine
learning techniques to operate big data volumes.
 Prescriptive analytics provides optimization options, decision support, and insights on how to
get the desired result.
Steps to consider for improving Analytics Maturity

It is obvious that analytics plays a key role in decision-making and a company’s overall development.
Here are some actionable steps to improve your company’s analytics maturity and use data more
efficiently.

Assess your current analytics maturity level. Find out what data is used, what are its sources, what
technical tools are utilized, and who has access to it.

Research what other sources of data are available, both internally and externally. Create and track
KPIs to monitor performance, encourage and collect customer feedback, use website analytics tools, etc.
Measuring the outcomes of any decisions and changes that were made is also important.

Consider the metrics that you monitor and what questions they answer. Instead of focusing on metrics
that only give information about “how many”, prioritize the ones that give you actionable insights about
“why” and “how”. That can help you understand the reasons for business processes and customer
behavior, make predictions, and act accordingly.

Ensure that all stakeholders have access to relevant data. You might want to implement some agility
practices to break down the silos and simplify data sharing across departments. Consider giving
employees access to data. Teach them how to use it and encourage generations of new ideas.

Invest in technology that can help you interpret available data and get value out of it, considering the
end-users of such analytics. For example, if it is the non-technical staff, it’s worth going for data
visualization tools with a user-friendly interface to make reports easy to understand.

Make sure that new technologies and capabilities are embedded in your existing processes and
combined with the existing institutional knowledge.

When properly analyzed and used, data can provide an unbeatable competitive advantage, allowing for
better understanding of your clients, faster and more accurate reactions to market changes, and the
uncovering of new development opportunities.

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