Everyone a Data Analyst

I've got an article in DM Review which hits on one of the things about analytics that's often overlooked--the state of mind and organizational culture that their use and popularization encourages:

The guiding principle of businesses with analytic cultures is that they see things as they are. When something sounds too good to be true, they investigate further. They insist on looking closely at available data and challenging assumptions and commonly held biases before leaping to conclusions. This culture of fact-based decision-making is a key to these businesses’ success – and not just success in the cases where they have applied analytics to their business processes, but throughout their organizations.

One of the things that adoption of analytics across the enterprise does is encourage everyone in an organization to think like an analyst.  This can have effects a bit like those of the Kaizen process improvement practices that have helped to revolutionize manufacturing organizations, but extended to areas of the organization where the rigor of statistically controlled processes hasn't been found (or possible).  Recently CIO magazine focused on how the Oil & Gas industry uses BI, but which featured a quote that I thought captures the idea of an anaytic culture perfectly:  The idea that "It's powerful notion to run a company with the mind-set that virtually every employee is a data analyst." 

Oil companies have always lived and died on BI, says Gary Lensing, VP and CIO for global exploration and production at the $32 billion Hess. "Data drives what we do, always quantifying where that value is." 

"The ability for people on a platform to communicate with people in the home office and work on the same set of data means we can get more production done faster and more accurately," he says. "How you choose to analyze the data and the decisions you make-there's your competitive advantage."

"Engineers and geoscientists and everyone have been taught BI from the start," says Lensing... Give people in any industry access to information along with tools to interpret the past, model the future and imagine different paths between the two, he says, and they can change the trajectory of companies.

There can be powerful systemic from this sort of approach to analytics.  When everyone in an organization is expected to approach problems in an analytical, and fact-driven way, it makes coordination, communication and decision easier, and results in better decisions.  

 

Comments

 

Bill Carney said:

While I may agree that having "every employee as an analyst" generally helps, only certain folks within each organization can even access the data and let alone can look at it properly.  People removed from the process need guidance and help along the path – The same way you build a storyline in slides.  From a presentation POV using the data as facts and how they are interpreted shortens the discussions considerably.  An old boss of mine used to say "facts are friendly"  I've modified my thinking less on the friendly part and more on the facts are facts, data is data, and numbers are numbers. Enterprise adoption and a top down commitment would be great BUT it may be difficult to start that way.  Departmental presentations using data coming from accepted data sources (CRM, Data Warehouses, and Accounting Platforms) to propose plans of action seems to me a good way to start selling the process internally to the senior staff.

July 17, 2008 2:54 PM

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About Tim Wormus

In his role as an Analytics Evangelist for Spotfire, a division of TIBCO Software Inc., Tim Wormus is responsible for tracking and analyzing Analytics and Business Intelligence trends, as well as advocating their use and acceptance at Global 200 companies. Tim has published and lectured on analytics, including presenting an analytics tutorial at the Gartner Business Intelligence Summit and appearing on a panel with analytics guru Tom Davenport. His experience has led him to consult on data analysis projects for Global 1000 companies and instruct analysts in the life sciences, manufacturing and energy fields. He maintains a blog that discusses best analytics practices for organizations striving to be best-in-class. Before joining Spotfire, Tim managed the implementation and integration of bioinformatics software in the life sciences industry for Swiss software provider Genedata AG. Prior to that he developed informatics tools to address challenges in the drug discovery process. He earned degrees in Mathematics and Economics from Kalamazoo College, in Kalamazoo Michigan.
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