How should projects be prioritized?
What is value driven analytics?
Val Driveno is at it again. Day in and day out, she fields data requests from a variety of stakeholders. “I need to see a demographic profile of our target customers for the upcoming campaign” says one marketing stakeholder. “I need historical sales for the last 4 years for my presentation this week” says another. Somehow she gets it all done, or at least the requests from the stakeholders that “scream the loudest”. Yet, when it comes time to write her annual self-evaluation, she sometimes struggles to articulate the value driven by all the hard work she’s done over the last year.
Val Driveno is not alone in this struggle. We estimate that 50% or more of analytics performed at organizations do not actually drive any value; that is, they don’t have any impact on helping a company make better business decisions. This is why successful companies must ensure that their analytics team prioritize value driven analytics.
Value driven analytics is analytics applied to an actionable use case in a robust manner that leads to a higher value decision being made. While it may seem obvious that value driven analytics are the only analytics worth investing in, we estimate that 50% or more of analytics performed do not actually result in any material value to the organization.
So why do organizations spend so much of their analysts’ time on non-value driven analytics? Clearly this is not intentional. In our experience, it ends up happening inadvertently for a few reasons:
- Use cases are prioritized that aren’t actionable (aka “nice-to-knows” not “need-to-knows”)
- Actionable use cases aren’t analyzed in a robust manner and, as a result, non-valuable (or even negative value) decisions are recommended
- Actionable use cases are pursued in a robust manner that leads to valuable recommendations, but the recommendations are never implemented
Value Driven Analytics is the analytics leader that can help your organization identify and prioritize analytics projects that truly drive value.
Learn more about how we can help your organization identify and prioritize projects that are truly value driven.
