International Institute for Analytics

Inquiry:

We’re just getting started with HR analytics, and we’re struggling with building a baseline reporting capability. There is an HRIS team; should HRIS own the analytics? Where should we start with our initial HR analytics projects? We use Workday for human capital management; can we use it for analytics too?

Each year, the International Institute for Analytics ends the year with a look at the latest analytics trends and the most pressing analytics challenges currently facing organizations. Our predictions are based upon our day-to-day work supporting and advising analytics leaders and organizations. We take advantage of the breadth of expertise and cross-industry perspectives we encounter every day from our clients, partners, and members of the IIA expert network. This is our 10th annual look toward the upcoming year, and our annual Predictions and Priority research brief and the associated webinar have become among IIA’s most popular content of the year. This year, we’ve stuck with our approach of augmenting each of our predictions with a specific priority for leaders to focus on as they attempt to address that prediction. As a result, each priority provides specific guidance as to how to best prepare for, and adapt to, its corresponding prediction.

Inquiry:

We just formed a Center of Excellence (CoE) for our data science community. We’re finding ourselves challenged by the translator role. Should we up-skill current members, bring in external people from the business, or not have anyone at all?

Inquiry:

Our advanced analytics team has been tasked with looking at the state of our data program with an eye toward arriving at a new future-state framework. Currently, our biggest challenge is that our internal customers’ processes are not set up to consume what we provide. Do you have any advice?

Since the dawn of Wall Street, investors have sought an edge: a source of advantage they could leverage to beat the market. It’s the only way to win in the zero sum game of institutional investing. Today that edge comes from information found within the exabytes of data we all create every single day of our lives; something made possible by the technology boom of the 90s along with Moore’s Law of improvements in processing power and data storage. The prevailing belief is that the predictive signals buried in the “data economy” have the power to move markets. This is the age of alternative data, and investors are racing to get their hands on it. With an estimated market size of $7 billion by 2020, alternative data is transforming capital markets. Abraham walks you through how investors are finding, leveraging, and profiting from alternative data today.

The vast majority of people building analytics and data science processes have every intention of being good and ethical. As a result, most potentially unethical and evil processes arise in situations where that wasn’t the intention. The problem is typically that proper focus and governance is not in place to keep analytics and data science processes on the side of good. On top of that, what is good and what is evil isn’t nearly as clear cut as we’d wish it to be.

Information Economies in Organizations

The data warehouse revolution began in 1991 when Bill Inmon published Building the Data Warehouse. Inmon observed, early in that book, that every organization has a naturally occurring information economy, and that most naturally occurring information economies were inefficient, duplicative and prone to produce suboptimal decisions.

This observation of Inmon’s has not gotten anywhere near the credit, or attention, it deserves. A decade’s worth of collective practice in advanced analytics should tell us that everything we know about real-world economies applies to our information economies. There is demand for information by people and functions in an organization, and there is a supply of (some of) that information. There is (some amount) of technical and procedural infrastructure – some kind of market — to bring demand and supply together in an organized way. That “market” infrastructure is often partial, fragile and in some cases ineffective. There are competitive alternatives (like cloud service providers and SaaS vendors), over- and under-regulation (various data governance models), excessive demand-side taxation (cost allocation strategies), failure to invest in infrastructure, and all other elements of economies.

When organizations are planning strategy-driven large-scale advanced analytics programs, they should begin their planning by characterizing their as-is information economy.

We’ve had technical people focused on the ingestion and management of data for decades. But, only recently has data engineering become a critical, widespread role. Why is that? This post will outline a somewhat contrarian view as to why data engineering has become a critical function and how we might expect the role to evolve over time.

Why do some analytics projects succeed while so many fail? According to Gartner analyst Nick Heudecker, as many as 85% of big data projects fail. However, the ROI from the other 15% that succeed is incredibly promising. With such a clearly high barrier to competency in executing big data strategies, there remains significant opportunity for first-mover advantage for enterprises that can crack the code to improving their outcomes.

So, what can organizations do to increase their chances of big data success? Part of the answer lies in creating a data engineering culture. This is the necessary foundation underpinning a big data analytics proficiency and enables companies to outperform the competition.

Not long ago, the role of Data Scientist was what most companies wanted to discuss with me in terms of roles they needed to understand and add to their organizations. Then, the role of Data Engineer became a big topic of discussion. In the past year, there has been a massive increase of attention being paid to yet another role that is still new enough that its title hasn’t been standardized. This role is referred to by a range of names from Analytics Translator, to Analytics Catalyst, to Analytics Liaison, and more.