Business analytics surely brings value to an organization, however many are still hesitant to adopt analytics. I have read quite a few articles related to the hurdles that companies face in adopting analytics and reaping its benefits. Most of the articles on this topic, place too much importance on getting the right talent and technology.

My take on this is a little different. I think the problem is more intrinsic. More to do with the thinking, culture, strategy and vision of a company. To elaborate more read below:

  1. Tina is the Director for Operations of a manufacturing company and she wants to integrate analytics to her business operations. Hence, she plans to partner with an Analytics firm and get answers to some of the burning issues that they are facing. However, she could not get consensus from all other business functions involved, many of who are territorial when it comes to sharing company data. Hence she is facing a stalemate.
  2. In another place, Tom is struggling from multiple fronts because his organization doesn’t know what data they are collecting, why they are collecting it, and what to do with it.
  3. We have Sam, Director for Pharmacy of a hospital network who struggles in convincing the C-suite in investing on analytics capabilities over expensive MRIs and CT scans.
  4. Then there is Henry, whose management team is struggling to break free from the gut feeling decision making rather than data driven and fact driven decision making.
  5. On the other hand, Catherine is impatient and believes the benefit from analytics is all long term.

So, what is common in all the above situations is the underlying theme… it’s all very internal. Getting technology and hiring the right talent are all good but it should only follow once the organization comes out and says, “We are committed to data driven decision making”. I believe this is primarily a people problem, followed by the process or technology hurdles.

Please feel free to share your thoughts, experiences, any different opinions that you may have.

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