Insights

Exploring the value of Big Data Analytics in modern enterprises – what can be achieved?

In the current technology-driven business environment, leaders are almost forced to implement some form of data analytics in their organisation. Consequently, leaders must decide on what scale, and to what extent, these data-driven technologies can be used to generate value within their organisation. Does your organisation focus on remodelling the entire operating model around data-based technologies or focus on using data analytics to enhance specific functions in your organisations current processes? Leaders assessing both options may identify innovative ways to apply data analytics technologies while also ensuring clarity of purpose for their data analysis strategy.

Certain organisations are aligning their core structure around data analysis to secure a dominant position in their market. These companies capture long-term competitive advantage and enhance customer centricity by incorporating data analytics into their products or services, and then coordinating their operating model around information returned from this analysis. Which type of organisation is this scale of transformation suited for? What return would your organisation expect from reengineering your business model? Does it outweigh the risks associated with it?

Alternatively, leaders are performing data analytics on existing business models with a view to reducing costs and boosting current revenue streams, as well as discovering new ones. Data analytics is an excellent tool to iron out inefficiencies in business processes as it is capable of working with the micro components of each process. How do you identify business functions within your organisation which lend themselves to optimisation? Can you combine data analysis across functions to gain useful insights? Which of these opportunities would result in the greatest return?

Leaders also face the challenge of ensuring that results from data analytics are translated into meaningful business actions. What steps can leaders take to ensure data analysis is being used to drive decision making throughout your organisation? How can leaders define metrics to measure the performance and value gained from data analytics?

Across the board, the effectiveness of data analytics relies on how well the results are communicated throughout an organisation. A key factor underpinning the effectiveness of this communication is setting out a clear leadership framework. Who in your organisation decides what scale and functions on which to apply data analysis? From this, who then takes charge of carrying out the data analysis and who is responsible for ensuring the results are translated into actions?

Establishing clear roles for leaders in your organisations data analysis efforts can allow companies to capitalise from data-driven technologies.