Leadership in Data Analytics: the key to zero gravity

Big data, data warehouse, BI and analytics are increasingly fundamental concepts and technologies in the business world. But make no mistake, it is engaged leadership that really makes the difference between data-driven and analytically lagging companies.

In this post, we will talk about how data leadership helps organizations evolve towards zero gravity, the third stage of the data driven journey . Additionally, we will explore how companies in this stage manage data, people, technologies and processes. Check out!

Why invest in data leadership?

Many people think about data, analytics and then imagine an environment something like this:

And to some extent this is true.

But we cannot forget: behind all this there are people and they are the ones who have the power to direct a business's strategies towards a data-driven future.

And research proves this.

According to a recent Mckinsey study , senior management sponsorship is one of the aspects that most determines the success, or failure, of data analytics initiatives in companies.

In fact, leadership was listed by interviewees as a key piece for analytical advantage, even before software, technologies or technical data skills.

This is reflected in the graph below, which indicates that the majority of successful analytics initiatives receive sponsorship from CEOs.

What can we extract from this?

No company reaches analytical maturity without the involvement of senior management.

On the other hand, when executives do not commit to this fight, organizations can take months , or even years , to evolve from one stage to the next in the data driven journey.

Therefore, it is impossible to talk about the third stage of the data driven journey - zero gravity - without mentioning the power of data leaders, who make a difference and help companies progress along this path in a lighter and more fluid way.

In the words of the book Analytical Competition (Davenport; Harris, 2018):

“Simply having the right sponsor is enough to take an organization to stage 3 without any improvement in its analytical skills.”

Now, with this in mind, we can take the next step and explain the characteristics and challenges of the third stage of the data driven journey.

Zero gravity, the third stage of analytical maturity

At this stage, the laws of gravity no longer apply.

Stage 3 companies have managed to overcome the barriers of the pre-launch and launch phase , and now orbit in zero gravity, without being impacted by terrestrial forces that restrict analytical thinking.

Like this?

Companies that browse here already understand the importance of data in business.

They are focused on developing an integrated data structure to improve their performance and increase market value. Therefore, unlike previous phases, there is more commitment from leaders, local efforts and investment in resources for the development of analytical intelligence.

However, despite great advances, these organizations still need to evolve in terms of data, people, technologies and processes, as we will show below.

Data

At this stage, data silos have already been identified and efforts are underway to create unified data repositories in on-premises systems or, in more advanced cases, in data lakes or data warehouses in the cloud.

However, the integration process is just beginning and is not complete.

Why?

Centralizing all of a company's data in a single repository is not a simple task.

We explain

Imagine an accounting company with more than 50 years in the market that was born analog. Long before current technologies, it already had methods of archiving and systematizing its information.

Currently, however, this company has some localized systems and analytical tools within its departments. Despite this, piles of important information are scattered in different places , such as spreadsheets, notebooks, files and different bins.

Have you ever imagined stopping to organize all of this? This is the challenge for companies in zero gravity.

Therefore, it is absolutely normal that, at this stage, some silos remain inaccessible or that non-transactional data continues without integration or standardization.

That said, the big difference between zero gravity, compared to the stage that precedes it, is the existence of a real project to centralize data in practice.

In other words: the idea is already on paper, but it is still moving at the pace set by companies.

Technologies

At this stage, companies begin to develop a technical and integrated environment with the help of modern technologies to promote the use of analytics. To this end, planning for a robust data architecture and infrastructure begins.

In technological terms, basic statistics, segmentation models, localized research in databases and some specific BI tools are used , such as Looker and Tableau .

And, on the technical side, IT teams begin configuring ELT or ETL processes to transform and connect large volumes of data in a single location - DL and DW.

As a result, it is possible for certain companies to be able to access real-time data visualization, thanks to the process of centralizing information in unified databases (DW), for example.

However, it is worth remembering that step 3 is still a transitional step in the data journey.

What does that mean?

Despite advances, there is still no complete and integrated data structure that allows full visualization of the company.

Spoiler alert : this is only possible from the propulsion phase, the fourth stage of the data driven journey.

People

At this stage, C-levels and business leaders begin to recognize analytical skills as a competitive advantage . As a result, the analytical mindset spreads throughout the organization, even if gradually.

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At the departmental level, IT teams are committed to change and are making efforts to integrate and standardize data. Furthermore, it is possible that new business departments will be created focused on data science and analytics.

Here, analysts stop being supporting players and become key people in the business . To top it off, managers already receive training on the use of data and have more tools to make analytical decisions. As a result, they are more likely to disseminate analytical thinking to their teams.

Law Suit

It is in zero gravity that companies begin analytical projects, the main one being: using data strategically as a source of competitive advantage.

To do this, they need to invest in resources and technologies to deal with so many new developments. And, with the support of senior management, they begin to develop skills and structure analytical processes that they did not have before.

A notable process at this stage is planning for a data infrastructure organized with ELT or ETL . Furthermore, data-driven decision-making is also being encouraged, albeit timidly.

However, analytical efforts still move at a slow, sometimes unsatisfactory, pace and do not cover the company as a whole.

A look at the analytics competition

Elpida Ormanidou, former vice president of Walmart and current VP of Data Science at Starbucks, says:

“Analytics is like a muscle we develop. You can’t buy your way into analytical capabilities.” (our translation)

The phrase above applies perfectly to the case of companies in stage 3.

We often say that the zero gravity phase is a transitional stage. This is because companies navigating this stage have already gone through two turbulent phases, but still do not have the resources, capacity and other characteristics necessary to evolve into the next phase.

In other words, they are in the development phase and need to mature and eliminate major challenges before continuing on the journey . Among them:

1. data silos
2. cultural resistance
3. data integration difficulties
4. ancient practices and customs

Despite significant progress, the analytical future of companies in zero gravity depends on continued efforts. If you are having difficulties or want help from experts to improve in this regard, count on us.

Our specialized team will help speed up this process! Click here to get in touch.