Finding the data 'Holy Grail' isn't about doing cool analytics.
Rather, it's about plugging cool analytics into key decision-making processes that add value to the business, says Derek Schraader, director of risk advisory at Deloitte & Touche, speaking at the SAS Forum in Johannesburg yesterday.
There's a natural assumption that the link between data collection and decision-making exists, states Schraader, adding that this creates an imbalance between the growth of data collection and decision-making.
"Companies spend more time and money on collecting data through social media platforms, surveys, call centres, supply chains, customer interactions, sales and marketing, as well as data gleaned from mobile phones and the Internet."
Schraader notes, however, that this data is hardly ever used to influence decisions that will enable companies to measure their return on investment (ROI) on the effort spent collecting that data, which, ultimately, is what company CEOs want to know.
"A decision support centre, which is concerned with making sure that high-quality analytics result in high-quality decisions, is the solution," he adds.
The decision support centre supports the company by connecting different architectures. The decisions architecture determines the key decisions a company needs to make, as well as when these decisions need to be made. The presentation architecture defines what should be presented and how it should be presented. The analytics architecture covers what analysis should be run and how the results should be linked. Finally, the data architecture is about determining what information is needed, where this information resides, and how to get it.
Schraader explained that companies need to invest in analytics skills development, meaning professionals who are making decisions in the day-to-day workflow need to know how to use data.
There should also be investment in data infrastructure, he says.
"Building information architecture systems (big data or small) will help companies see gaps in their understanding of their business and highlight the kind of data they need."
Lastly, said Schraader, a transparent decision-making process, which everybody in the organisation understands, should be implemented.
"This platform should address what kinds of projects get funded. What are the criteria for choosing one project over another? Eventually, everybody in the organisation should have a clear understanding of why they are working on whatever they are working on, and this is done with the objective of making better decisions that will impact positively on company growth and profit," adds Schraader.
He believes the analytics community needs to take greater responsibility for understanding how decisions are made, then craft a framework for linking analytics with the decision-making process.
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