The New Analytics Lifecycle Accelerating Insight to Drive Innovation

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The New Analytics Lifecycle Accelerating Insight to Drive Innovation The New Analytics Lifecycle Accelerating Insight to Drive Innovation Dave Wells November 2017 The New Analytics Lifecycle About the Author Dave Wells is an advisory consultant, educator, and research analyst dedicated to building meaningful connections along the path from data to business impact. He works at the intersection of information and business, driving value through analytics, business intelligence, and innovation. With nearly five decades of combined experience in information management and business management, Dave has a unique perspective about the connections of business, information, data, and technology. Knowledge sharing and skills building are Dave’s passions, carried out through consulting, speaking, teaching, research, and writing. He is a continuous learner—fascinated with understanding how we think—and a student and practitioner of systems thinking, critical thinking, design thinking, divergent thinking, and innovation. About Eckerson Group Eckerson Group is a research and consulting firm that helps business and analytics leaders use data and technology to drive better insights and actions. Through its reports and advisory services, the firm helps companies maximize their investments in data and analytics. Its researchers and consultants each have more than 20 years of experience in the field and are uniquely qualified to help business and technical leaders succeed with business intelligence, analytics, data management, data governance, performance management, and data science. About This Report This report is sponsored by Alteryx, Amazon Web Services and Tableau. © Eckerson Group 2017 www.eckerson.com 2 The New Analytics Lifecycle Executive Summary Analytics is at the forefront of modern business management. The role of analytics for informed decision making is well known, and much attention is given to the value of insight. The power of analytics, however, stretches far beyond insight. The next generation of analytics sees insight as only the first step—the spark that ignites imagination, ideation, and inspiration—on a path to innovation. Analytics-driven innovation is a game changer, but getting there demands change. We must rethink analytics processes, compress the analytics lifecycle, and apply the right technologies in the right ways to achieve fast, scalable, accessible, and collaborative analytics. When frequency of insights matches or exceeds frequency of questions and uncertainties, we’ve achieved fast analytics. When analytics capacity dynamically adapts to expanding data volumes and growing workloads, we have scalable analytics. When data analysts from non-technical line-of-business people to highly skilled data scientists can meet their own needs, we have accessible self-service analytics. When analytics drives communication, conversation, common understanding, and shared insights, we have collaborative analytics. Fast, scalable, accessible, and collaborative—these are the keys to analytics-driven innovation. The Age of Innovation The Demand for Innovation Innovation is an essential business capability. The leading companies of today continuously innovate and adapt their business models, not simply responding to change but in many instances driving change. Looking to the future, the surviving companies of the next generation must embrace innovation as a core competency. Amazon and Google are well known examples of serial innovators repeatedly reshaping markets, products, and consumer expectations. Considering the fate of companies who failed to innovate—Blockbuster, Xerox, Blackberry, and others—it is clear that innovation is a critical part of survival in today’s business environment. Successful companies understand the importance of innovation. Successful innovators understand the very strong connection between analytics and innovation. © Eckerson Group 2017 www.eckerson.com 3 The New Analytics Lifecycle Insight Drives Innovation Analytics and insight form the bridge from data to innovation. Innovation isn’t something magical that only occurs through miraculous bursts of exceptional creativity or the amazing capabilities of a lone genius. Innovation is a process that begins with insight—the ability to see deep inside markets, problems, and opportunities. Insight fuels ideas, imagination, and inspiration that are key ingredients of innovation. (See figure 1.) Figure 1. Moving from Insight to Innovation Analytics is an essential component. Don’t underestimate the important role of analytics for becoming an innovative organization. Analytics and insight form the bridge from data to innovation. The Modern Analytics Organization Embracing and Enabling Self-Service The world of analytics changed radically with the introduction of self-service data technologies—BI and visualization, followed quickly by data preparation, and then today’s self-service analytics tools. Code-free analysis tools became line-of-business tools of choice for data analysis and data visualization. © Eckerson Group 2017 www.eckerson.com 4 The New Analytics Lifecycle Self-service analytics grew from demand. Business people want and need faster analytics than is practical with an IT-centric approach. The demand for data, reporting, and analytics has grown and typical IT departments simply can’t keep up with growing needs. But the drivers of self-service technology go well beyond speed of delivery, including the following: Adaptability. Analytics needs to be fast but also adaptable. Every answer brings new questions that frequently demand new data. Adapting to rapidly evolving needs throughout the processes of discovery and analysis is an important aspect of self-service. Adapting to data infrastructure is also an important feature in today’s complex data management world where data may be accessed from on-premises, cloud, and web sources. Affordability. Analytics needs to be ROI-friendly. Many analytics projects are one-off efforts that don’t justify the cost of a typical IT project. The investment needs to yield results quickly, and in a way that effectively empowers all users. For a typical line-of-business analyst the user experience needs to be similar to that of working in Excel, but with advanced analysis, spatial, and visualization capabilities. Autonomy. Business analysts, data scientists, and functional data analysts want their analytics processes to be local and “in my control” with freedom to explore, discover, and change direction, as needed. Self-service data and analysis are mainstream practices. You can’t put the genie back in the bottle. Self-service BI and visualization tools were quickly followed by self-service data preparation tools and data catalogs, further advancing the capabilities of line-of-business analysts. Self-service brings challenges, scalability, governance, IT support, and more—but you can’t put the genie back in the bottle. Self-service data and analysis are mainstream practices that every analytics organization must embrace. Modernizing Data Infrastructure As the demand for fast and abundant data continues to grow, enterprise data infrastructure is evolving. The data warehouse of the past struggles to keep pace with today’s needs. The data warehouse needs to be modernized. Cloud data warehousing has many advantages but value is only realized when the data is readily accessible to all who need it. © Eckerson Group 2017 www.eckerson.com 5 The New Analytics Lifecycle Cloud data warehousing is becoming increasingly popular with IT and data management organizations. Migrating to the cloud offers many advantages including scalability, elasticity, managed infrastructure, rapid deployment, and fast processing. However, cloud data warehousing investments will only return value when the data is readily accessible to all who need it. Ideally, self-service tools make it easy to access data from any location and to blend data from multiple locations. Self-service technologies must adapt as data infrastructure evolves. Relieving the Burden on IT IT organizations can’t (and probably shouldn’t) provide all of the data, reporting, and analysis that is needed by the ever-increasing numbers of people who use data. Embracing self-service unburdens IT organizations by shifting part of the onslaught of analysis and reporting requests from IT work queues to line-of-business projects. The obvious benefit is shrinking the backlog of unfilled requests by moving the workload. But technical organizations also gain advantage directly from the self-service tools. IT analysts and developers using modern data preparation tools can prepare data for business use faster, more efficiently, and with fewer errors and oversights than doing it the old way. Analysts, developers, and report writers who use the most current reporting and analysis tools do their work faster with less coding, greater agility, and enhanced collaboration capabilities. Today’s most advanced analytics technologies also help IT operations personnel to deploy, monitor, and manage analytic models and applications. Building an Analytics Community Data analysis is pervasive in business today. It happens at all levels from non-technical line-of-business analysts to highly specialized statisticians and data scientists. The reach of analytics is even broader and deeper, touching everyone from C-level to front-line operations staff. Analytics technology helps to build the analytics community with features for collaborative data exploration, repeatable and shared workflows, and managed deployment and operations. Fostering analytics culture and becoming an analytics-driven
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