Companies collect data and love to talk about data, but as it turns out, not that many large enterprises actually use it effectively: it’s a headline we’ve seen over and over again for the past few years now. So far, most businesses across most industries have yet to achieve widespread, innovative, novel analytics capabilities.
Yes. But Why?
There are countless case studies in the wild about companies that have fundamentally changed their business for the better by adopting advanced analytics techniques, specifically leveraging data science, machine learning (ML), and even artificial intelligence (AI). And of course, we all know that the tech giants (Google, Facebook, Apple, Amazon, etc.) excel in these areas.
Perhaps it is precisely because things like ML and AI are seen as the domain of only the most technologically advanced companies out there that they haven’t become more ubiquitous.
There seems to be a widely accepted view that these companies are already doing well and therefore have the resources to do data science at scale. So you may be surprised to learn that in fact, it’s quite the opposite: analytics capability actually dictates company performance, not the other way around.
The International Institute for Analytics (IIA) conducted an in-depth study on this very question: does the development of enterprise analytics capabilities really drive superior company performance?
And no matter which way you slice it, the answer they uncovered through their research is overwhelmingly yes. For an in-depth look at the study, get a copy of the IIA report Analytics Maturity Powers Company Performance. IIA Vice President David Alles authored the 19-page, in-depth report exploring this link and offering next steps for companies in the lower stages of analytics maturity.