Content thumbnail Partnering for Performance Part 3

Creating an analytics-driven organization 3. Do not forget the human element of analytics “Organizations are starting to think about how they can embed analytics as Analytics involves much more than the right technology or insights from the a broader enterprise capability,” says Mazzei. “As the strategic partner for the smartest data scientists. Although these are important factors, analytics will CEO on business decisions being made, the CFO is a key stakeholder in that.” ultimately fail unless it impacts the decisions of end-users. Historically, governance of data was spread across a range of functions, from At heart, most analytics programs still involve human beings making HR to IT, each with its own policies and standards. Data fragmentation was decisions. For large organizations, this raises the need for sophisticated often the result. This is why some organizations are introducing chief data change management for its people, including training. At a broader officers or chief analytics officers, who are charged with driving a coherent organizational level, it is a question of how the company can embed analytics approach to enterprise-wide data governance and management. into its day-to-day business processes at scale. Incentives and metrics will Companies must balance the need for centralized governance with local need to be adjusted so that they encourage the right behaviors and mindset. requirements, ensuring that the insight generated centrally is made available When discussing how the human dimension played a key role in embedding and gets used by decision-makers across the business. SAP manages this analytics across its organization, Arnold said: “Technology played a major by using centers of excellence in its enterprise analytics organization. As role but the second element was gaining trust and confidence. When you are Arnold explains: an executive and you have your reporting team sitting right next to you, then “We use very business-driven people who work in partnership with the you tend to get whatever you need. So, we sat down with our executives to respective business units, and have a deep understanding of business understand what is essential in an analytics partnership. We now have a model processes, how the area functions, what KPIs are important, and what in place where we have an analytics business partner for board members and risks they face.” key executives. That business partner leverages the enterprise analytics team to meet those reporting requirements.” 29% of respondents from the 4. Build the right organizational structure and governance insurance industry say that framework analytics is a very high priority for them — the highest share for any sector in the survey. Building a coherent and integrated organizational structure and governance CFOs from this sector are also the most framework is essential to support value-driven decision-making. A fragmented likely to say that they make a very approach can cause a range of problems, from high costs to a lack of significant contribution to data analytics. standardization on KPIs. It is an ongoing issue across industries, and more and more are trying to address this problem. Partnering for performance Part 3: the CFO and the CIO 20

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