Right home for AI and analytics? – Part 2

As discussed in previous article we assume that there is a need for centralizing AI and analytics talent somewhere. If the IT organization does not fit for the purpose due to its’ history or relation to business, shared services could be another option due to its’ neutral nature in corporate power game. Another reason to speak for this location is the organizational culture to have cross functional capabilities available in location like.

Shared services

If analytics organization is simply absorbed by shared services, organization must consider the special nature of analytics & AI. Some of the activities need to be steered in harmony over demands arising from different parts of the organization to gain optimal benefits of it. Costly overlapping activities need to be avoided through tight budget control and prioritization of demand generated by business units. Focus of analytics is also easily moving towards one-off solutions serving individual demand rather than aiming for sustainable far-reaching solutions serving wider business audience.

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The analytics organization might also disappear or be forgotten to serve only a few demand creators. The corporate leadership must champion the analytics organization so that it will not disappear among other services. If its’ value is communicated regularly, business units will create and maintain their trust towards it and continue utilizing common capabilities instead of trying to create their own AI functions.

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Still the main motivation of having share services as base for analytics and AI is the easy reach of resource and an opportunity to cost optimization. From this location analysts can easily serve anyone within the company. ?One just must introduce appropriate budgeting and resource allocation mechanisms to avoid misuse of resources and maintain cost benefit balance.

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Depending on corporate culture and mutual respect between organizations, location within shared services could also have downside. AI and analytics might be seen as a low-value, non-strategic resource, like some other shared service functions. This purely depends on the perceived role of shared service function in general within the company in question.

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Next part 3: Corporate Strategy as location for AI and analytics.