As you may be aware, putting analytics to work effectively in an organization can be an overwhelming challenge. According to research by the analyst firm Gartner, 70% to 80% of corporate business analytics projects fail. 1
Some of you may have witnessed potentially great analytics initiatives and projects not move to complete fruition or full business impact for various reasons. During research for our book, Win With Advanced Business Analytics, companies shared with us the main reasons analytics initiatives failed to make forward progress. The most common reasons were lack of:
- Executive sponsorship. The failure of senior executives to 1) recognize that analytics is important and 2) resource and empower the analytics function appropriately will result in the eventual failure of your analytics implementation.
- Analytics leadership. Team leaders who have neither effectively communicated nor driven strategic analytics projects based on the value of analytics will see their analytics implementation wither and slowly lose momentum.
- A clear implementation strategy. Despite great analytics ideas and solutions, if there is no strategy to put analytics into action across the organization, they will eventually fail.
- Support. If end users, internal customers, and other stakeholders don’t understand the value of analytics and don’t support the project, your analytics implementation will suffer.
- Customer experience excellence. An analytics solution cannot be developed without thinking deeply about the customer experience. Unless customers have been involved throughout the process, it will be hard to get them committed to using the analytics solutions or insights you develop.
- Collaboration across organizational groups. Analytics initiatives are everyone’s business. Therefore, if your analytics solutions do not involve multiple functional groups, they are less likely to succeed.
- Integrated processes. If information and knowledge are scattered in silos across the organization, your analytics implementation will be much more challenging.
- Skilled and focused human capital. If your teams don’t have the skills and the bandwidth to execute and cannot prioritize effectively, your analytics implementation will fail.
- Measurement or metrics to track outcomes. The outcome key performance indicators (KPIs) should drive the analytics plan and implementation. If outcome KPIs are not clear, the implementation might lead to missed opportunities.