In his Point piece, author and fellow AllAnalytics.com blogger Tom Davenport lays out a thoughtful case for why the analytics function shouldn't reside solely in IT's purview. This argument signals a bit of a reversal on his part, and I do see the rationale behind his mind shift. However, I would argue for a different end result.
In a nutshell, Davenport doesn't object to basing the analytics workhorses -- the developers and maintainers of the analytics solutions -- in the IT department but posits that those folks who like to develop cutting-edge applications of analytics would find that environment too restrictive. Placing all of analytics under IT, which "by definition serves major, repeatable, standardized information needs for companies," would curtail the innovation necessary in the discipline today. He writes:
So go ahead and put standardized information solutions -- whether they involve reporting or predictive analytics -- in IT. But for the really creative uses of analytics, you need to find a new home. I am currently leaning toward the R&D organization.
Make no mistake, I like the idea of enabling the creative juices to flow around analytics. If it's not already, that'll likely prove an imperative over time as a company puts advanced analytics to use in establishing competitive advantage. In years to come, we'll no doubt even see new lines of business or standalone operations emerge out of a company's imaginative use of big-data analytics.
But the analytics function has lived quite well within many an IT department, and I see less of a reason than Davenport to change that now. Rather than divvying up the analytics ownership, I say to CIOs and other IT executives: "Start innovating." Truly, letting the analytics thought leadership slip out of IT and into an R&D group, as Davenport suggests, would be foolish for a CIO.
As Davenport himself points out, IT has been a particularly suitable home for the analytics function for a number of good reasons. I'd say the primary one is this: It's where the data lives.
The more seamless the relationship between analytics and IT, then the smoother the flow of data from the enterprise warehouse or other locale to the analytics engines.
Now's the time for IT to step up, not back. It's the time for IT leadership to establish the opportunity for those cutting-edge analytics thinkers to do their things within the department. That means giving these folks, many today labeled "data scientists," a long leash. Some ideas for how IT can hold on to all of analytics include:
Hold regular brainstorming meetings to assure architectural decisions jibe with analytics requirements.
Give advanced analysts ready access to the enterprise data warehouse and other internal datasets for their experimentation and exploration.
Likewise, open the doors to allow them to bring in and play with data from public databases.
Facilitate communication and collaboration with the business leaders and users.
In short, IT needs to be an enabler not an inhibitor. It must let analysts play, allowing them to be as innovative as they'd be able to be while operating under the auspices of the R&D unit, for example.
If IT is to remain relevant, it must adapt to the changing times. And analytics is what the times are about today. Yes, IT can remain the go-to developers and maintainers of the analytics. But IT should want to be more than that. IT should want all analytics capabilities -- not just the repeatable tasks that have long led to business intelligence reports -- to call the department home.
I'd say Davenport has thrown down the gauntlet to CIOs. I'd say they have good reason to pick it up and fight to the death. What's your opinion?
@A1MIT, thanks for jumping in and voicing your opinion for an independent analytics setup. Elsewhere on these message boards we've talked about the idea of establishing the role of chief analytics officer. Is this a title you'd feel is important for companies that do in fact maintain independent analytics setups?
I see no one disagrees with the fact that IT and Analytics are different. Also I see that there is an overlap ( DATA ) between the two as well as the IT infrastructure required , however this is where the similarities stop.
Analytics team should not be burdened with the maintenance of the infrastructure, so I believe IT will always have a finger in the Analytics pie by way of infrastructure management, and working for standardized report , IT guys do start understanding the business data, but Analytics is more about just understanding the data and codes. Its about a lot many other invisible variables, that an IT / Report developer may not be able to visualize or compete as efficiently as the anlaytics team who love to play around with the data.
Even within many IT firms, DWH and BI initiatives and Business Analytics are seperate, so I would argue for an independent Analytics Setup.
Great point Tricia, Analytics in the SMB environment is too much for most one person IT departments, the kind that are quite common in most small business environments, while it is not impossible - the subject of analytics surly will not receive the amount of attention it deserves.
Beth, I do agree with your position, with respect to Analytics - IT needs to rethink how they can best aid the process. IT will never be completely out of the picture because as you mention they are where the data is - However IT needs to get the data into the hands of people ( analyst ) who can best use it. It will take a change in mindset, a looser grip on data and a proactive stance toward analytical discovery.
I think most enterprise CIO's realize what they must do and will act accordingly.
But Tricia, one might argue that exact opposite (so I will!). Regardless of company size, isn't a disservice not only to IT in particular but the company in general if IT doesn't understand the business, its customers, and its goals? How can it do its job effectively, otherwise?
Yes very true it's a basic right of IT. IT is built around thought provoking analytics. IT can survive only if it supports analytics since it defines the future of IT
We may have to agree to disagree on this point. In larger companies - IT probably has a chance of being able to manage the security and administration of the data - however for smaller companies - I don't think it's a great idea unless you have exceptional thought leaders in place.
Analytics requires an understanding of the business, it's customers, and it's goals. I think it is a dis-service to IT to place that kind of burden on them. In a smaller company - it spreads IT too thin.
MDMConsult, i agree 100 percent. The modern corporation needs to agile, flexible and adaptive. Same goes for its leaders, and its analytics programs for that matter!
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