The Analytics Journey Towards Value Creation
In 2022, analytics maturity improved compared to previous years.
In 2022, analytics maturity of participants improved compared to previous years. A longitudinal analysis from four years’ worth of data reveals that executive sponsorship and skilled talent are the key ingredients in your long-term pursuit for analytics leadership.
As organisations emerged from the pandemic and refocused attention on advancing their analytics capabilities, sustaining analytics leadership has become key to creating a competitive advantage.
What is the secret sauce to maintaining and advancing analytics leadership? How do we stay on top in a world where advanced technologies such as ChatGPT become mainstream? And how do we capitalise on our progress to date without resting on our laurels?
To answer these questions, this year we conducted a longitudinal analysis, by using data from the past four years, to identify the key success factors that can play a role in driving analytics leadership. The study highlights two factors that are essential in maximising profit from analytics investments and advancing analytics leadership — senior executive champions and analytics talent. Most analytics Leaders have a C-suite champion advancing analytics across the organisation. Having analytics talent within the organisation was another important factor that impacted maturity. In addition, AI tools and technology might appear to be ubiquitous now but only 20 percent of the organisations have well-defined AI projects with use cases in pipeline, indicating an opportunity for early adopters to create a long-term competitive advantage.
The Analytics Impact Index (Aii) provides an objective annual benchmark of return on analytics as a proportion of total profit. The Index compares organisations on two factors: the maturity of the analytics operating model (in other words, how advanced the analytics function is), and the impact of analytics on the organisation’s profitability.
Launched in 2018, the Aii is a collaboration between Melbourne Business School, one of the world’s top business schools, and Kearney, a leading global management consulting firm. This marks the fifth consecutive year of the Index, for which we surveyed more than 240 companies from more than 40 countries and 35 industries, with a median revenue of $280 million.