In this blog, we will address how to maximize the value of analytics and big data. A lot of attention is being given in the media to both of these topics. What is not being discussed much is the basic question:
Is your organization ready to actually embrace making decisions and setting strategies based on new operational insights and facts versus on traditional information, experience, tribal knowledge and/or opinions?
Let’s assume that your organization has invested in the ability to gain meaningful insights about your internal operation, your customers and the marketplace from analytics and big data. You are now at the Intersection of Change to integrate this information into your business decision making processes. How will your organization act? Will those insights be fully embraced, cautiously considered or mostly ignored?
Naturally we are not discounting the value of using experience and knowledge of the business in making smart decisions and setting future business strategies. However, companies now have the opportunity to embrace the insights gained from analytics and big data and use that experience to create cross-functionally developed strategies that break functionally siloed decisions! Decisions that will benefit the financial performance of the enterprise and not just specific functional operating metrics.
Let’s think objectively about your organization’s ability to facilitate change. Which of the colors below would you assign them?
My guess is that most companies, if being honest, would assign their organization a red or yellow rating. Therein lies the problem.
In order to get the most value out of your investments in analytics and big data, you must provide the leadership and commitment to address change management issues. Often, it takes the leadership and courage of one person to say, “Just because we have always done it this way, doesn’t make it the best way, or the only way…we can do better!” We call this person, the “Agent of Change.”
During the transition, the organization will push back. There are always reasons to return to the older, more comfortable way of doing business. The organizations that recognize that the wisdom of senior management will be improved and more highly prized when using analytics and big data will be the ones that gain significant competitive advantage. Those who do not have “Agents of Change” will see very little in the way of ROI from the analytics and big data investments.
Here is a great source for Change Management best practices: Harvard Business Review
Are you ready to be the “Agent of Change”?
All the best, Richard
Richard Sharpe is CEO of Competitive Insights, LLC (CI), a founding officer of the American Logistics Aid Network(ALAN) and designated by DC Velocityas a Rainmaker in the industry. For the last 25 years, Richard has been passionate about driving business value through the adoption of process and technology innovations. His current focus is to support CI’s mission to enable companies to gain maximum value through specific, precise and actionable insights across the organization for smarter growth. CI delivers Enterprise Profit Insights (EPI) solutions that enable cross-functional users to increase and protect profitability. Prior to his current role, Richard was President of CAPS Logistics, the forerunner of supply chain optimization. Richard is a frequent speaker at national conferences and leading academic institutions. His current focus is to challenge executives to improve their company’s competitive position by turning enterprise wide data from a liability to an asset through the use of applied business analytics.