The annual value to be unlocked by the different analytical techniques is projected to be around $9.5 trillion to $15.4 trillion. Such figures show the tremendous impact that the advanced use of data can bring to businesses, from traditional business intelligence to the application of analytical methodologies to discover deeper insights, make predictions, or generate recommendations of the actions to take. All in all, analytical techniques enable faster, more frequent and, ultimately, better decisions.
To understand how close a company is to grasping such promised value, LTPlabs and NOVA SBE have created an analytical maturity assessment called BASE.
Analytical maturity is a measure of how well an organization uses its data. Organizations with high maturity have data and analytics deeply embedded across all departments and decision-making processes. This is not the most common situation, and the transition from being gut-centric, to being indicator-centric, to adopting advanced analytics capabilities is a step-by-step process. Skipping any step in this journey will likely lead to failure, and the first goal should be to know the current maturity.
Across the different processes of a company, within Strategy & Organization, Process & Operations, Customer & Sales, or People & Technology, we’ve identified five stages of maturity that define how companies operate and make decisions, which are (or should be) empowered by data. We name these stages (in increasing order of analytical maturity): Aware, Developing, Practicing, Optimizing, and Leading. Interestingly, companies usually have some processes that are already Optimizing or Leading in terms of analytical maturity, but others that are lagging.
To make it more concrete, take, for example, the definition of prices and promotions, which is related to Customer & Sales. A company with incipient analytical maturity (Aware) will revise prices periodically by sensitivity, aiming at profitability objectives. As it progresses to be Practicing, it will adjust prices sometimes, using analytical methods for the definition of promotions. Finally, a fully analytical mature company (Leading) will have prices continuously updated by analytical models capable of reacting automatically to new demand patterns.
BASE provides a comprehensive evaluation of your company’s analytical maturity. With it, you can challenge your practices and reflect on the current role that analytics play in your company.
The assessment is designed to give immediate feedback. Once you complete BASE, you will get a quick report with your maturity score so that you can start acting right away. Finally, it allows companies to gain actionable insights because, after BASE’s completion, you can receive tailor-made recommendations regarding the most significant improvement opportunities within your organization, complemented by a careful selection of success cases.
BASE will help you perceive whether your company is a mature organization, passionate about analytics and relentlessly pursuing new data-driven insights, or an organization heavily relying on intuition and gut, supported by siloed spreadsheet-based analysis.
Find out your analytical maturity level! Click here.
By: Pedro Amorim , Paulo Sousa