Moving from ideation to value creation, the path to success for advanced analytics
In the world of advanced analytics, there are several stories of both success and failure. Analytics tools and techniques such as artificial intelligence, machine learning, predictive analytics, etc. promise to revolutionize most industries. These are bold claims, which lead to the question, why are some firms more successful in implementing advanced analytics than others. While there are a number of factors, the single most important differentiator is a properly identified and scoped use case. In order to get the most value from your investment in advanced analytics, the solution needs to be focused on solving a business problem such as reducing inefficiency, reducing cost, capturing additional revenue, etc. To ensure success, it is paramount that the use case be determined and defined properly because this becomes the basis from which the solution is developed. This requires a consultative approach which is outlined in the image below.
When working to define a use case, the work begins by taking a hard, objective look at the business and its existing processes. This is the first place one begins to look to identify areas that could benefit from improvement. Secondly, one needs explore the IoT enabled devices that are in place (or if there are no IoT devices, look for opportunities where sensors could be retrofitted to existing devices) and the data that is generated from these devices. Photizo Group has found the nearly all organizations have a tremendous amount of unused data available that could be better utilized to drive additional business value.
After exploring these three areas, it becomes easier to identify what the key business problems are what a possible future solution could be to drive improvements. Typically, multiple use cases are identified at this stage. From here, Photizo recommends building a financial model for each of the identified use cases. They key question you must answer is, how much value could this solution drive for your business. Based on the results of the financial modeling, the best course of action is to begin with the opportunity that drives the best or highest financial impact for the company. Once this is identified, you can begin gathering and sorting the data that you will be working with, scoping how the solution will work within the existing IT process and finally, how the solution will impact and integrate with the business model. We have found that these solutions often enable dynamic business model change which typically require change management within the organization.
This entire process requires a select variety of skillsets to complete. It is a combination of management consulting, business model change and change management skills on top of the technical skills required to develop the solution itself. However, without this process, we have seen examples of companies that dive head-first into advanced analytics not knowing what outcome to expect. Often, these companies do not see the return on investment that they were seeking. To avoid this, before you invest in advanced analytics, make sure you know what you are trying to achieve, and make sure you have alignment within your organization on the purpose and the scope of the development initiative. If you are looking to invest in advanced analytics and need help with this process, feel free to reach out to Photizo. Our consulting history in working with clients prior to our Advanced Analytics practice is what differentiates us and enables us to help clients be successful in realizing the benefits that these ground-breaking technologies can drive for your business.