Data Analytics - Beyond the Hype
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The document discusses the evolving perception and adoption of data analytics in organizations, transitioning from initial hype to a more pragmatic approach as management teams seek to drive measurable value. It emphasizes the importance of understanding the limitations of analytics tools, focusing on defined project scopes, and developing executable strategies for leveraging data analytics effectively. The document also highlights the need for organizations to introspectively assess their data analytics capabilities to fully utilize available resources.
Data Analytics - Beyond the Hype
- 1. 1 Abraxas Group LLC www.abraxasgp.com DATA ANALYTICS: BEYONDTHE HYPE March 31, 2016 David Johnson
- 2. “In five years, inside the enterprise, analytics is just going to be called ‘management’” ‒ DavidWagner, “Five Intuitive Predictions About Analytics” Abraxas Group LLC www.abraxasgp.com2
- 3. • Initially, the explosion of data analytics tools for storing, mining, and acting on massive data sets (big data) drove companies to invest heavily. • Enthusiasm was based on potential upside, with limited understanding among management teams on how best to translate potential into reality. New Tools, Focus on Potential Abraxas Group LLC www.abraxasgp.com3
- 4. According to Gartner, general market consensus on “Big Data” had transitioned from hype to disillusionment in 2014 Trough of Disillusionment Abraxas Group LLC www.abraxasgp.com4
- 5. Strategy • “Avoiding Analytical Myopia”, MIT Sloan Management Review Organization Management • “How Data Bonds Sales and Marketing”, DataFloq • “Why Airbnb Has a Data Scientist on Every Leadership Team”, Inc From Disillusionment to Pragmatism Abraxas Group LLC www.abraxasgp.com5 The stage is now set for real productivity gains, as management teams reorient themselves and begin to focus on driving measurable value with the new capabilities at their disposal.
- 6. • Thirty Years Ago, VisiCalc was the Original Analytics Dashboard • The future of data analytics will likely be similar: a profound increase in the analytic capabilities of organizations A RealisticView of the Future Abraxas Group LLC www.abraxasgp.com6
- 7. 1) The Stage is Set. A healthy appreciation for the limits of data analytics tools and techniques is a necessary condition to move toward broader adoption of these capabilities into organizations across industry lines. 2) Focus on Returns. Data Analytics tools and techniques are not magic, and well-managed companies should continue to look to invest in projects with a defined scope and attractive potential returns. 3) Know Thyself. Organizations will be challenged to look inward to determine how they should best make use of the data analytics capabilities now available. Goals that lack of a solid, executable strategy are worthless. Key Takeaways Abraxas Group LLC www.abraxasgp.com7
- 8. • David Johnson is a career change agent who has served as interim manager or financial advisor on over $5 Billion of distressed middle market transactions. • In his nearly 20 years as a change agent, David has served as an advisor, board member, interim manager, investor and operator at organizations ranging in size from pre-revenue startups to Fortune 500 organizations. David Johnson Abraxas Group LLC www.abraxasgp.com Email: david@abraxasgp.com Ph: 312-505-7238 Twitter: @TurnaroundDavid 8