Many organizations are initiating data and analytics programs with a hope to improve revenues, customer engagement, and profitability. In their pursuit to achieve these objectives, some of them usually focus more on tools and technology capabilities. These organizations assume that investing in tools and technology alone will deliver the outcomes.
However, a recent McKinsey study found that the following factors play more important role in the success of such programs:
- Senior leadership involvement, support and communication
- Right organization structure
- Right people for the job
The survey reports that most of the high performing organizations have CEO level sponsorship, while it is mostly at CXO-1 level in case of low performing organizations in data and analytics programs.
One other key differentiator between high performing and low performing organizations is the level of data and analytics capabilities. High performing organizations have:
- Data that are accessible across organization
- Tools and experience to work with unstructured, real-time data
- A self-serve analytics capability for business users (i.e., to run customizable analytics queries)