How Analytically Mature Is Your Company?
Nearly all businesses today are aware of the importance of analytics and understand that in order to stay competitive, they need to be data-driven. However, few companies have reached a high level of maturity when it comes to their analytics capabilities. In fact, benchmark data from the International Institute for Analytics (IIA) states that out of a five-point scale, the average company score is a 2.2. A 2.2? There’s certainly an opportunity for improvement.
To improve your company’s analytics maturity, you need to first understand the different stages of maturity, the components that impact maturity, and how you compare using the analytics maturity model. Developed in conjunction with IIA, the vendor-agnostic analytics maturity assessment tool measures maturity across 4 primary dimensions: data maturity, organizational dynamics, analytic team dynamics, as well as usage and technology. The five stages of analytics maturity are:
Analytical Beginner
Localized Analytics
Analytical Aspirations
Analytical Companies
Analytical Competitors
1. Analytical Beginner
At this stage, analytics is usually siloed within one department or business unit. Companies are just starting to use analytics and are mostly relying on gut instinct and static reporting.
When comparing companies that inject artificial intelligence (AI) and analytics into their operations 44% of leaders highlight increased productivity vs. just 20% for others.
2. Localized Analytics
At this stage, a company has started to invest in analytics and has begun using it to inform decision-making in specific areas of the business.
55% of organizations have reported increasing their investment in AI.
3. Analytical Aspirations
This stage is characterized by a company that is starting to use analytics more broadly and is beginning to see the benefits of becoming data-driven.
Only 91.9% of organizations cite culture, not technology as the single barrier to becoming data driven.
4. Analytical Companies
These are businesses that have fully embraced analytics and use it extensively throughout the organization to drive all decision-making.
Gartner estimates that poor data quality costs organizations an average of $12.9 M and negatively impacts decision making.
5. Analytical Competitors
These are the companies that are using analytics not only to gain a competitive advantage but also to disrupt their industry.
Companies that are able to personalize offers “generate 40% more revenue than average players.”
Conclusion
So, where does your company stand in terms of analytics maturity? Understanding which stage you're at is the first step to becoming a more data-driven organization. Take the FREE online test below to find out where you are on the scale.
*words written by Alteryx
