Launching an Insights-

Driven Transformation
Building and Sustaining Analytics
Capabilities across the Enterprise
2 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015
Analytics, as a business discipline, We see many companies accelerating performers.2 This is creating a competitive
has been on many corporate agendas their investments in analytics capabilities landscape of “haves” and “have nots” in
for a number of years now. Leaders and strategies. We found that companies which many companies are undertaking
are establishing a center of gravity for major transformational initiatives to catch
across industries recognize that, in
analytics led by a Chief Data and Analytics up with the high performers who have been
today’s competitive landscape, Officer (CDAO). Companies are also creating building their capabilities for years. In order
insight-driven decisions are the agile analytics governance and value to drill down on these findings in Winning
key to developing a competitive realization offices to help ensure that in Analytics research, we conducted a
advantage. However, we believe that they are getting an appropriate return on deep-dive benchmarking study on analytics
the use of analytics to create a analytics investments. In addition, they are operating models in order to better
competitive advantage is about to paying close attention to talent sourcing understand how high performing companies
become even more widespread. The and planning as talent is in short supply. are organizing their capabilities.
increased growth in data sources They are focusing on faster deployment
of new analytics capabilities and tools by
and the ubiquitous nature of
piloting with the intent to scale. Finally,
analytics is creating an environment
they are focused on raising the analytics IQ
where robust analytics capabilities of the entire organization through training
are needed just to keep pace. To programs and new ways of working, such as
prepare for this environment and try using immersive analytics environments.
to attain the most value from their ANALYTICS OPERATING
data, many companies are evolving We believe that this focus on building MODEL BENCHMARKING
analytics capabilities can increase as
beyond just using analytics and are
companies come under pressure to
STUDY—METHODOLOGY
transforming themselves to build an demonstrate the value from analytics.
insight-powered enterprise. Our recent Winning in Analytics research To better understand how companies
study supported this notion by showing are structuring their analytics
To help gain a greater understanding of organizations and incorporating
these transformations, we studied what the that high performing companies are
embedding predictive analytics insights analytics into decision-making
most analytically mature companies are processes, Accenture conducted an
doing differently to understand the tangible into key business processes twice as much
as low performers, they are winning the analytics benchmarking study based
value from analytics, and how their on detailed online interviews with
practices might be adopted by companies competition for analytics talent through
multi-pronged talent sourcing strategies, more than 100 companies around
less far along the maturity curve. We also the world.
drew upon our own insights, taken from they are leveraging more advanced
working with companies in varied industries tools and techniques, and investing at Respondents held titles of director
and geographies, to look at ways in which a much higher rate.1 In fact, we found and higher and 75 percent were
companies can improve their analytics that 53 percent of high performers plan from C-suite roles. Companies
operating models to better leverage their to significantly increase their analytics included a range of industries and
analytics investments. investment over the next three years, geographies and were selected
compared to only nine percent of low on the basis of their analytical
sophistication.

ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 3

Evolving the Analytics Operating Model

Just a few years ago, companies were still mature companies well along the path to
in exploration mode, trying to balance the an agile, integrated analytics operating
benefits of centralized analytics resources model (as seen in Figure 1 below) with
against their business units’ demands for representation at the most senior levels of
ready access to analytics expertise.3 the organization. Accenture has worked
on defining an operating model framework
The Analytics Operating Model
to account for activities supporting
Benchmarking Study suggests that
performance and applying analytics within
companies are looking to more aggressively
the organization.
transform their analytics operating
model and drive change, with the most

FIGURE 1: Analytics Operating Model Framework

“Data to Information” “Information to Insights” “Insights to Outcomes”

1 Vision & Strategy

Defining the overall vision, priorities and journey for analytics across
the enterprise along with associated value proposition

2 4 Organization Structure & Talent Strategy 7 8

The people, their skills and experience, and
consumption by the business to make

analytic insights as well as track the

The processes to assess the value of
The processes to deliver insights for
The capabilities to identify, govern,
and manage the data architecture,

the organizational structure needed to

Data & Information Mgmt.*

Insight-Driven Decisions*

support analytic transformation

data structure, data quality

Outcome Measurement*

benefits realized over time

smarter decisions

5 Data to Analytics Insights*

and security

The roles and processes required to analyze

data and uncover insights

6 Capability Development
The industrialization of functional and
technical analytics capabilities and skills to
move up the analytics maturity scale

3 Sponsorship & Governance

The process to obtain executive sponsorship, financial support, and
manage and prioritize the analytics demand and supply

*Process-centric components

4 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015

In the Analytics Operating
Model Benchmarking Study,
we concentrated our efforts on
1 They establish a Center
of Gravity for analytics.
Companies with high maturity levels
course of its journey. In 2013, the company
CEO stated that the company needed to put
people with data analysis skills close to the
business operations to solve key problems.4
companies with characteristics
(Stage 5 companies) were more likely to This was after they had spent years creating
identified in earlier studies as a center of gravity focused on building
have established a center of gravity for
indicative of high analytics foundational analytics capabilities.
analytics activities, often in the form of
maturity. We did not include a Center of Excellence (CoE) or similar
companies at what we refer to as concentration of talent and resources. Chief Data and Analytics Officers
Stage 1 (low levels of investment For example, over three-quarters of Stage Leadership is another key element.
and/or little management 5 companies had concentrated their Nearly 40 percent of the companies we
commitment to analytics) or strategy and planning activities, versus surveyed said they are elevating analytics
Stage 2 (scattered pockets of less than half of those at Stage 3 maturity by creating a Chief Data and Analytics
analytics capabilities.) Rather, we levels. Other activities such as analytics Officer (CDAO) role responsible for both
interviewed companies at Stage 3 modeling and structured reporting, as the vision and the implementation of the
well as strategic functions like supplier
(coordinated analytics integration, enterprise analytics strategies. But Stage
management, talent planning, portfolio 5 companies were nearly twice as likely as
with a data-driven architecture governance, and outcome tracking, were
in place), Stage 4 (enterprise- Stage 3 companies to have the analytics
more likely to be concentrated at Stage 5 lead at the C-level of the organization.
wide analytics with a clear talent companies. Establishing a center of gravity
development strategy in place) for key resources builds capabilities, but The CDAO is often responsible for
and Stage 5 (Analytics is seen as it also supports consistency and high developing goals, strategies and plans to
a strategic competitive advantage standards while allowing functional support the information, reporting and
with a true commitment by leaders resources to focus on key business analytical needs of the company, but also
in terms of time and focus and problems and applying insights. acts as an agent to change the analytics
culture of the company. One of the CDAO’s
C-level accountability.) While this trend continues, companies biggest challenges is how to design an
also realize that it is important to effective operating model that will convey
We found as a result of the studies
counterbalance this collection of specialized this change throughout the organization.
performed that companies with mature
resources with local decision-making We have heard from the CDAOs of large,
analytics operations generally share five
closely connected to the business functions. high performing organizations that the
key characteristics.
One of the more interesting findings in our analytics journey used to be an out-of-
study was that some companies plan to body experience that most struggled to
distribute certain activities back out to the understand, while today analytics is an
business functions in the future once the in-body experience that needs to become
standardized processes are in place. This is part of the cultural DNA.
similar to the path that a global consumer
packaged goods (CPG) company, an early
adopter of analytics, has taken over the

ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 5

Market Archetypes as an
Organizational Construct
A Global Consumer Products capabilities to assist in driving
We found that companies are investing value, a data and technology strategy,
Company Established a New
considerable time and resources in and the design of a new, global,
building operating models, and many Analytics Organization to cross-functional operating model
are thinking along non-traditional lines. Target $1 Billion in Potential to help the organization become
Global CPG companies, for example, Benefits more competitive.
cluster capabilities within similarly
mature markets, rather than by traditional Senior leadership at a global Another core output of the
geographic boundaries. For example, a consumer products company program was the design of a
company might have a group of resources recognized the need to build dedicated, cross-functional
focused on building Marketing Spend analytics as a core capability to integrated analytics organization
Optimization models for the UK, Japan, generate actionable insights and with a “center of gravity” for
and Mexico if those markets are of a fuel a competitive advantage. insights and analytics capabilities.
similar level of maturity in terms of data, The company’s competitors were This new organization would
tools, and processes. For some companies, investing heavily in analytics, and employ standardized analytics
clustering markets by capability has its customers expected them to processes but balance them
proven to be a cost-effective approach to have these capabilities—especially with local execution. It would
allocating scarce analytics resources. to understand the increasingly also include capabilities such as
unpredictable and individualized data science and data discovery,
behavior of shoppers. along with an agile governance
framework to focus on improving
The company recognized that investments and deploying needed
fundamental capability gaps capabilities faster.
severely limited their ability to
advance and scale analytics By outlining a roadmap with a
capabilities. Despite significant multiyear target of $1 billion in
investment, analytic maturity was gains through improved governance
still very basic and hindered the and advancing priority analytics
delivery of needed insights. capabilities, including business
Accenture partnered with senior planning, commercial analytics
leadership to align on the analytics and insight capabilities the project
vision and strategy. This included a team was able to secure funding
comprehensive analytics diagnostic, approval and mobilize this new
prioritization of functional analytics organizational structure.

6 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015

2 They employ
“agile governance.”
Traditional governance models are often
Executive Scorecards
Perhaps the most critical part of
establishing an agile governance structure
is ensuring that it uses the key metrics
thought of as sluggish, with a focus on that are most important to the business.
standards and processes, but today, high To this end, CDAOs are designing executive
performing analytics leaders are building scorecards to track performance against
thin, horizontal governance structures, these key metrics, which might include:
focused on outcomes and speed to value,
rather than creating hierarchies that are • Speed to standing up priority
slow to adapt. capabilities—How quickly was an
initiative tested and / or piloted
These structures take a “test and learn”
approach to rolling out new capabilities. • Pace of adopting new capabilities—
They establish success criteria, with Identifying and tracking the adoption of
regular checkpoints for measuring priority capabilities, and compressing the
performance against these criteria. They time from pilot to industrialization
also employ “fail fast” techniques, rapidly
rolling out new ideas and capabilities and • Value realization—Defining overall value
testing them repeatedly. If an idea is not delivered through the analytics initiative
working, it is dropped quickly, so that the or project
company does not continue to invest in
something that does not add value. Value Creation Offices
Leaders are also instituting value creation
Structured Innovation “offices” to spearhead outcome tracking
Another element of agile governance is a against key metrics and to ensure that
structured innovation process. Leaders may the value from analytics is realized. These
set up innovation or “SWAT teams” with a “offices” have involvement from senior
mandate to focus on key business questions leaders with accountability for analytics
for a concentrated period of time, often as as well as program management office
short as 30 days. Or they may use a form resources who can develop templates and
of open sourcing; a large global retailer, for processes as needed. Some of the key
example, established an Innovation Forum success factors for these offices include
through which everyone in the organization their ability to design and implement a
(including contractors) could submit ideas closed loop process for identifying and
for solutions to problems posed by senior measuring the value of each analytics
leadership. The leadership team chose the project or initiative. If the analytics
best idea at the end of each designated initiative fails or does not meet the
period and provided resources for the identified baseline value, the closed loop
winner to go forward and build out the process should incorporate that learning
analytics solution. back into future cycles.

ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 7

3 They create a
inter-disciplinary, high-
performing analytics team.
Analytics Career Paths
Analytics talent tends to follow non-
traditional career paths in response to the
ranging from assortment optimization,
social media and market trends to large-
scale data initiatives, bringing together
the universities’ top talent with the
value that this talent tends to place on
company’s portfolio of leading beer brands
Companies with advanced analytics becoming subject matter experts in finding
in a vibrant environment designed to
capabilities field teams with diverse skills. insights in large data sets, often instead
stimulate innovative thinking.6 Accenture
Talent is organized effectively and there are of following traditional managerial career
has also developed partnerships with the
innovative programs to keep the best talent paths. In fact, Accenture has created an
Massachusetts Institute of Technology and
engaged. The Analytics Operating Model entire new talent segment and set of career
Stevens Institute to develop innovative
Benchmarking Study shows that these paths for its talent pool of more than
analytics solutions through world-class
companies use multiple talent sourcing 1,200 data scientists and statisticians, with
research and collaboration.
options, including, but not limited to, different performance management metrics
internal development and hiring, but they and individualized career paths. Other
are also attracting more talent from other companies are encountering similar talent Talent Retention
companies. planning challenges and are responding Analytics talent is seen as being in short
with a variety of methods including varied supply. Given that there does not appear to
Analytics Pod Structures work assignments and compensation based be a solution to the talent shortage in the
on technical competency. near future, it is important for analytics
It remains difficult, if not impossible, to
organizations to focus on talent retention
find all of the skills required for analytics
success within any one individual. Many Talent Sourcing by developing reward and incentive
programs that keep these individuals
mature companies, therefore, are establishing Leading analytics companies create
engaged. We have seen that a key to
“pod” teams (as seen in Figure 2) which mechanisms to source the best talent for
retention is keeping the analytics resources
have a mix of roles, including data scientist, their organization. They may, for example,
challenged. Many of our financial services
analytics modeler, visualization expert, data build their brands internally and externally,
clients are seeing a boomerang effect as
engineer, business analyst and business marketing themselves as the destination for
analytics talent left to go to high tech
domain expert. By combining these top talent. A major global retailer describes
companies in the last 5-7 years and that
capabilities, analytics pods can take an itself as “The Best Place to Build Your Data
talent is now returning to Financial Services
integrated view of business problems. Science Career.”5 Other companies use
as the business problem set to solve is more
crowdsourcing, sponsoring competitions
At less mature (Stage 3) companies, more of interesting and complex than at the high
and offering prizes to solve problems. Still
these individuals tend to remain aligned with tech companies, which keeps the advanced
others run open challenges or “hackathons”
the IT organization. More mature companies analytics talent engaged and constantly
that provide incentives for people to
have a greater percentage of modeling learning. This engagement has resulted in
respond to and solve business problems.
and discovery resources aligned with a higher retention over time.
standalone analytics function. However, skill Some companies even partner with
requirements change as analytics capabilities academia to source talent. A leading global
mature; Stage 3 companies call for more brewer recently announced a partnership
data modeling and stewardship, while with a leading university to open a state of
Stage 5 companies—who are past the core the art data analytics center. The lab will
challenges—need more data scientists and focus on data analytics, developing data
other specialized roles. research and innovation to solve problems

8 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015

FIGURE 2: Analytics Pod Team

Business
Data
Domain
Scientist
Expert

Business ANALYTICS Analytics

Analyst POD Modeler

Data Visualization
Engineer Expert

Focus and Proficiency

Advanced Analytics low

Business Acumen med

Communication & Collaboration high

Creativity

Data Integration

Data Visualization

Software Development

Systems Administration
ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 9
4 They deploy new
capabilities faster.
One of the biggest challenges for analytics
Using Analytics to
Re-think and Revamp
for the real-time scoring of
credit line increases for customers.
This helped produce an increase
organizations is to establish an operating Consumer Engagement in annual operating income.
model with a view to scaling priority
capabilities, especially in light of the The consumer banking operation With the data and rules engine,
roadblocks posed by existing analytics skills of a major multinational bank was the bank was able to identify the
and in-place data architectures. Leading suffering drop-offs in their net cause of the drop-off in customer
analytics organizations deploy new, agile promoter scores and wanted to satisfaction—and it was not what
technologies, as well as hybrid architectures understand why. They had a very they had thought. The most affluent
and specifically designed toolsets, to help complex and convoluted technology customer segments were the most
achieve speed to capability and desired environment with a slow, costly and digitally savvy, and they were
outcomes. One distinguishing characteristic inflexible legacy infrastructure. It dissatisfied with their experience
of fast-moving companies is that they took on average 9-12 months to on the Web and on mobile devices.
pilot with the intent to scale; that is, they develop and deploy new models (for The bank had thought that service
establish the right mindset, processes example, credit risk scoring for loans fees were the issue, and while
and accountability in advance, then move or credit line increases). service fees were an issue across all
quickly to test, learn, refine and implement. segments, the key issue for the most
The bank had a vision of leveraging
We believe that scaling priority capabilities analytics to improve their overall profitable customers was the online
requires new approaches and mindsets for customer experience yet they and mobile experience.
many organizations. These organizations needed the technical capability The bank is now moving towards an
may need to “unlearn” what has already to enable this strategy. They also “always on” capability to improve
been learned; for example, they may need to wanted to leverage big data the customer experience and
bring the data to the analytics, rather than technologies as an alternative to thereby improve customer retention
the other way around. There may also be traditional approaches for both speed and profitability. By leveraging an
differences in the way teams with statistical to capability and cost benefits. inter-disciplinary blend of skills—
backgrounds tackle scaling problems, using a
Accenture worked with the bank data scientists, visualization experts,
hypothesis/test/verify framework.
on a data and analytics strategy data architects, and business
Many organizations have already begun evaluation leading to a roadmap domain experts—the bank was able
addressing these issues. Within the for them to become more dynamic to understand the insights and act
Analytics Operating Model Benchmarking and more real-time, and to improve quicker to design and implement
Study, 68 percent of respondents said that the customer experience. The first solutions. This innovative project at
the need for a relentless focus on scaling area of focus was to revamp the the core of the bank’s operating
key, priority capabilities was a top learning technology infrastructure so that system helped the bank realize a
gained from designing and implementing the bank could achieve desired faster return on its technology and
their analytics organization. By prioritizing outcomes. The next step was to analytics investments.
the scaling of capabilities, companies develop a data library using open
stated that they were able to optimize source technology rules engines
analytics investments, rationalize vendors
and suppliers, improve talent acquisition,
and rationalize data and tools.

10 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015

5 They work to raise the
company’s analytics IQ.
The final distinguishing characteristic of
Some companies use the Accenture
Connected Analytics Experience or build
their own immersive environments that
leverage visualization techniques to
leading analytics organizations is their provide greater context for the information
commitment to raising the “analytics presented as well as the trends that are
IQ” of all roles within the enterprise. being illustrated. They are moving away
They may, for example, implement an from traditional presentation tools and are
Analytics Academy that provides analytics leveraging more interactive tools to improve
training for functional business resources collaboration. To encourage use of these
in addition to the core management new interactive tools, these companies
training programs. Within the analytics might set up contests where resources
organization, the Academy may focus on can earn badges and certifications based
developing business and communications on insights developed and actions taking
skills to make sure that the insights within the tool.
obtained are put to good use within
This holistic, interactive learning approach
the business units. And it may provide
where business, analytics, and IT resources
training courses to raise the business and
are equipped with new immersive tools,
analytical acumen of the IT organization.
techniques, and formal training opportunities
allows companies to: 1) activate leaders
The Intelligent Enterprise by focusing time, funding and attention
Leading analytics organizations—those on desired behaviors and skills; 2) shift
surveyed by Accenture as well as those we behaviors and mindsets to engrain new
have worked with directly—have a vision habits, and 3) embed behaviors into
of what might be termed the “intelligent business processes and metrics, all in
enterprise.” They are training resources to service of driving a cultural transformation.
use new tools and techniques to improve
decision-making throughout the enterprise
and they are also implementing innovative
technologies such as advanced data
visualization to communicate the value of
analytics to business units, core functional
teams and IT.

ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 11

12 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015
Accelerating the Analytics Journey
As our research findings and client experience indicate, high performing companies are
accelerating their investments in order create a more effective analytics operating model and
drive an analytics transformation. We have identified three immediate priorities that companies
can take to kick start their journey.

As analytics grows in importance and

1
commands a greater share of enterprise Start by aligning on the North Star for analytics by
resources, companies will need to transform determining where your company is in its journey and what it
their analytics operating models, or, where needs to do to develop sustainable capabilities to reach its goals.
transformation has been completed, to refine SELECT This is often driven by an understanding of the organization’s
those models to reflect changing realities. AN AGILE existing talent, tools, and investments so that gaps, redundancies
These include vast new quantities of data APPROACH. and opportunities can be identified. Knowing the current
(from the Internet of Things and elsewhere) landscape will also help to prioritize investments in capabilities
needing organization and analysis, as well as and will serve as an input to the analytics operating model,
new technologies and competition for scarce governance structure and ways of working between the
resources in talent and other areas. functions. It is also important to identify a Chief Data and
Analytics Officer or equivalent individual with the authority
Many of the companies we studied, and
and accountability to initiate and manage the journey.
many of the companies we work with, have
extracted enormous value from analytics

2
and are significantly increasing their
investments in hope of accelerating new Experiment with team structures and other approaches to
product development, opening new markets, ensure that talent from all required disciplines is identified,
enhancing their customers’ experience organized effectively, and retained. Companies should explore
and ultimately becoming an insight-driven
DEVELOP non-traditional ways of identifying “diamonds in the rough”
enterprise.
INDUSTRIALIZED or untapped analytical talent such as innovative marketing or
EXECUTION partnerships with academia. Once the talent has been hired,
There is, however, much more to be done. CAPABILITIES. analytics pods often serve as a means to effectively deploy
Functional business leaders recognize the analytics resources. Further, look at governance as a way to
promise of analytics and will continue quickly empower and drive programs, rather than as a control
to apply pressure to increase returns on function that only slows things down. Lastly, identify the top
investment and to develop and employ priority capabilities to invest in, relentlessly concentrate on
accurate metrics that reflect the value proving the value in days and weeks (not months), and identify
added through greater insights and faster, a path to scale once the value has been proven.
more informed decisions. We believe that
organizational considerations—including an

3
operating model that centralizes expertise
Make a candid assessment of the company’s analytics IQ
while building stronger connections with
and undertake programs, such as implementing an Analytics
business and IT (bridge roles)—can support
Academy, to raise the business acumen for analytics
an insights-driven cultural transformation
SUSTAIN THE resources and the analytics acumen of business resources.
as the competition for better and more
CHANGE. This also includes implementing interactive learning plans
powerful analytics accelerates.
and innovative technologies such as advanced visualization,
immersive environments and collaboration tools.

ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 13

References
1
Simchi-Levi, D., Gadewadikar, J., McCarthy, 5
Wal-Mart Careers Website, 2015.
B., LaFiandra, L. Winning in Analytics, 2015. http://careers.walmart.com/university
https://www.accenture.com/us-en/insight-
high-performance-analytics.aspx
6
Anheuser-Busch InBev Unveils ‘Bud Lab’
at the University of Illinois Research Park,
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evopensatresearchpark#sthash.KDOMA3H2.
3
Berkey, B., Bhattacharya R. Building dpuf, http://researchpark.illinois.edu/
an Analytics Driven Organization, 2013. abinbevopensatresearchpark
https://www.accenture.com/gr-en/insight-
building-analytics-consumer-goods.aspx
4
Murphy, C. P&G CEO Shares 3 Steps to
Analytics-Driven Business, 2013.
http://www.informationweek.com/it-
leadership/pandg-ceo-shares-3-steps-to-
analytics-driven-business/d/d-id/1108559

14 ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015

ACCENTURE ANALYTICS OPERATING MODEL BENCHMARKING STUDY, NOVEMBER 2015 15
Contact us
Brian McCarthy Robert Berkey Chad Vaske
Managing Director—Accenture Analytics Managing Director—Accenture Analytics Manager—Accenture Analytics
Analytics Advisory Practice Analytics Transformation Analytics Advisory Practice
+1 678 488 8744 +1 917 817 5923 +1 507 360 4464
[email protected] [email protected] [email protected]

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