Decisions are the real gold to be extracted from data

We hear a lot of metaphors for data these days. It’s either the new oil, gold or religion, depending on who you ask.

Yet we know data on its own is simply untapped potential. It’s like a lease on a plot of land that could contain some gold. Until you have the capability to dig in and process the data, you won’t know how valuable it can be.

The role of analytics isn’t just to sort and process data, however. It’s to drive decision making, and we know that data-driven decisions are becoming increasingly valuable.

A survey by Gartner has revealed that 65% of decisions are now more complex than they were just two years ago. With more stakeholders and choices involved in each decision, the same survey revealed that 53% of respondents feel there is a higher expectation for them to justify every decisions.??

As a result, many executives already feel that the state of decision making in their organizations is unsustainable. Analytics are part of the answer here, but we know there’s no shortage of investment in analytics and AI tools and technology.

Enabling people to use analytics to their advantage

According to a survey by NewVantage, 99% of firms have invested in data initiatives and 92% reported the pace of investment is accelerating. However, in the same survey only 8% of respondents identified the biggest impediment to becoming a more data-driven organisation as technology. Instead, 92% of respondents identified the people, business process and cultural aspects of data initiatives as the greatest challenge.

The impetus behind launching an analytics regime can vary from one organisation to another, but a common factor is the role of technology teams in the initial implementation of analytics tools. This is not to lay the blame on your technology team, however. The point is that analytics have a higher probability of success when they are driven by the need to solve business problems, instead of just the need to implement analytics.

As I pointed out in a previous article, CEOs are increasingly enthusiastic about the role of analytics, which is great news. C-suite sponsorship, beyond the CTO or CDO, is essential for:

• contextualising the vision for data-driven decision making within the organization
• highlighting the business problems that need to be solved
• supporting the technical rollout of analytics and AI tools
• spearheading data literacy training and investments
• championing the success of pilot analytics and AI projects

Yet CEOs can’t make every decision themselves. To achieve real and measurable success with AI and analytics projects, careful planning is required to determine precisely how these new tools and technology will be embedded across the business. Ultimately the question becomes: how quickly can people find the most relevant and contextual insights for making better decisions?

Because data cannot decide which products to launch, which customers to target, or the best way to cut costs. Despite our enthusiasm for AI at Qlik, we’re pleased to report that people will be making all of the important decisions for a few more decades at least.?

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About the author:

As the Executive Vice President of Strategic Clients at Qlik, I lead a multi-disciplinary team that blends sales, value engineering and consulting services. My teams advise strategic clients on their digital and data transformational strategies for large enterprise customers to maximize the value of their overall investments in data, and in Qlik’s data integration and analytics platforms. If you would like to discuss how your organization can start leveraging the full value of your data, please feel free to get in touch with me at [email protected].