In this day and age, many organisations from different industries are encouraging the use of analytics to make educated and strategic business decisions and to leave more room for innovation. Using analytics gives these companies an edge over their competitors. However, just having analytics capabilities is not enough. To use them effectively in order to get valuable results is important.
A research conducted by Harvard Business Review Analytic Services states that only 18% of business managers from different industries have agreed to getting satisfactory results in analytics. This report explores the reasons why their ROI in analytics is low as well as best practices that companies who are successful in this area use. Considering this low number of successful endeavours in analytics, it is imperative that companies become more educated in this area. It does not matter what size the company is, knowing how to use analytics effectively is crucial.
Here are some of the possible roadblocks to using analytics to generate valuable results:
Integration of results into decision making
One frequent problem to generate business value through analytics is lacking a standardised analytics process. If analytics are not integrated in decision-making processes, results will not reach the appropriate stakeholders and influencing strategy would be impossible. In addition, developing and implementing analysis and insight requires a strong communication between the team. A standardised analytics workflow will effectively communicate results to the leaders who will be building strategy and utilising the tools that produce profitable results.
Skills to interpret and implement analytics
In many organisations there may not be a lack of technical skills among employees with a technical background. However, sometimes business staff might fall short of these analytical skills. They might find it challenging to apply analytical insights to important business decisions. This might limit them to drive valuable results. One way an organisation can tackle this problem is by integration of business user-friendly analytical tools that are accessible to all and do not require any prior technical knowledge.
Structured analytics and competing results
When an organisation lacks standardised analytics process throughout, different teams can end up using different methodologies to answer their business questions. This approach can produce inconsistent results. The decision makers might find it difficult to find the right solution and restrict them for taking appropriate actions.
If analytical insights are not available on time when a decision is being made, they will be excluded from the process. To avoid this problem, teams should be given equal access to data. This will help teams conduct analysis and make informed business decisions in real time. Organisations need to strategically coordinate their analysis with key business questions. This will ensure that they are effectively applying their analytical knowledge where they can generate better results.
In order to use data-driven insights effectively it is necessary to use business-centred, easily interpreted analytical results to make informed business decisions. Having a team trained in using analytical tools, who also coordinate and share insights to drive impactful results are a great asset to the organisation. All these measures will help the organisation find the right answers and discover insights in time in order to communicate them with the appropriate stakeholders to get the desired results.
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