How To Create Data
How To Create Data
By Analysts Melissa Davis, Kurt Schlegel, Saul Judah, Adam Ronthal, Jim Hare, Jorgen Heizenberg
Successful digital business transformation requires data and analytics leaders to adopt a new
operating model that addresses the needs of local domains as well as leverages best
practices through a central organization. Use this research collection to help you on your
journey.
Analysis
To drive organizational efficiencies and grow the business, data and analytics must be at the heart
of the organization. It must beat at the same rhythm as finance, sales, marketing, supply chain and
all other core business functions. In fact, the 2019 Gartner CIO Survey found that the most
common technology area for increased investment is business intelligence/data analytics (see
Figure 1).
Domain data and analytics refers to the portfolio of data and analytics capabilities applied across
specific industry verticals and business processes to drive improved decision making. Domain
data and analytics recognizes that business domain expertise is a necessary component to
creating useful data insights. It enables the decentralized resources in that domain to perform data
and analytics on their own, while also aligning with centralized data and analytics capabilities to
maximize business impact. Data and analytics leaders driving the transformation required for
digital business should answer the following strategic questions:
■ What is the business value of domain data and analytics, and how can this be measured?
■ How can I leverage the best practices of a hybrid and distributed organizational model?
■ What governance approaches could be taken to better exploit domain-specific data and
processes?
■ How do I choose the appropriate analytic application among a spectrum of analytics and BI
technology?
■ How do I align the key business use cases and problems I am trying to solve with the most
appropriate underlying data management infrastructure?
Research Highlights
Several key issues are associated with the emergence of domain analytics:
■ Data and analytics adoption across the organization has become increasingly domain-specific
and fragmented, losing the leverage of core teams and established best practices.
■ A wide set data and analytics research exists within industry, domain and technology teams.
However, different domains have differing priorities for an organization as well as differing
levels of maturity.
■ A one-size-fits-all data and analytics strategy no longer fits the complex needs of doing
business.
■ Confusion exists in the market about how data management technologies, processes and
practices align with different use cases, audiences and skills. The confusion is exacerbated by
overarching vendor claims about the breadth, performance and capabilities of their offerings.
■ The concept of the enterprise data warehouse as a single repository of enterprise analytics was
never fully realized — and never will be.
■ Without a strategic discipline across all local domains and centralized data and analytics teams,
there is risk of duplicate or redundant data and analytics. The results are higher costs,
inconsistent analysis of data reducing trust in the results, and a lack of economies of scale that
leverage best practices for speed and scale.
Data and analytics leaders responsible for data and analytics strategies should answer the
following strategic questions to address the above issues.
Most IT-led data and analytics program initiatives are, by definition, technology-centric and often
lack alignment with business strategy and business impact. Business domains increasingly take
over control, ownership and responsibility of data and analytics applications and use cases, but
often underestimate the associated complexity and risks.
■ Industry vertical domain analytics — Analytics that are specific to an industry vertical (for
example, telecom analytics, banking analytics, healthcare analytics)
■ Business process domain analytics — Analytics applied to a business process or function (for
example, finance analytics, customer analytics, marketing analytics, advertising analytics,
supply chain analytics, HR/workforce analytics, IT analytics, risk analytics)
Using:
■ Data types, sources and management methods — A set of data types (internal/external;
relational, nonrelational), data sources (for example, social media, Internet of Things, mobile,
location, log, video) and management methods (for example, data lakes, data warehouses, etc.)
■ Analytical methods and styles — An array of analytical methods and techniques applied to a
given problem set ranging from well-understood and established methods such as statistical
analysis to more advance analytics, for example machine learning, streaming analytics, natural
language processing
The Gartner domain data and analytics framework maps business domain analytics across their
relevant industry verticals (see “Harnessing the Pervasive Nature of Domain Data and Analytics”).
It can also be used to provoke thinking about nontraditional data sources and analytical methods,
and key enablers (see Figure 2).
Create your data and analytics strategy by applying the Data and Analytics Strategy and Operating
Model framework and use it to explore analytical opportunities.
Related Research
“Presentation: The Foundation of a Modern Data and Analytics Strategy.” Data and analytics has a
broader enterprise purpose than ever before and is increasingly integrated into business practices
that are fundamental to enterprises’ success. This presentation will help data and analytics
leaders, such as chief data officers, take a modern approach to strategy.
“Dare to Dream! Give Your Data and Analytics Programs a Mission to Transform Business and
Improve the World.” Data and analytics leaders, it’s time to up your game! Ensure your ambitions
keep up with the growing potential of data and analytics programs, which are vital for digital
transformation. Craft a bold, inspiring mission statement, and then build programs that deliver
indisputable value.
“Survey Analysis: Gartner’s Fourth Annual CDO Survey — Key Capabilities That Enable Business
Success.” CDOs often focus on the right priorities, but still struggle to balance their many
responsibilities. Using data and analytics to drive success is about measuring the value of
information, adopting emerging digital trust technologies and leading strategically oriented data
and analytics teams.
“Information as a Second Language: Enabling Data Literacy for Digital Society.” Digital society
expects its citizens to “speak data.” Unless data and analytics leaders treat information as the new
second language of business, government and communities, they will not be able to deliver the
competitive advantage and agility demanded by their enterprises.
“Toolkit: Enabling Data Literacy and Information as a Second Language.” Data literacy enables
data and analytics leaders, including chief data officers, to implement a successful data-driven
culture. Gartner’s Toolkit for data literacy provides key resources to raise data literacy awareness,
an organizational assessment and content to advance data literacy development.
What Is the Business Value of Domain Data and Analytics, and How Can This Be
Measured?
Data and analytics leaders must not overlook the importance of aligning the data and analytics
strategy with the enterprise goals and objectives, and specific business outcomes. Treat
investments in data and analytics the same way you would invest in a new market, new products
or new services. To get started, identify use cases for improving results through learning where
data and analytics investments create business value.
One of the best ways of finding business value is learning from others who do this well. Partnering
with your service provider can also be a source of real-world case studies and business value.
For further ideas and inspiration for developing the business cases, use the Gartner Toolkits, which
include examples of successful use cases leveraging data and analytics including AI.
Related Research
“6 Ways to Use Customer Data and Analytics for a Better CX.” Customer experience will improve if
application leaders approach customer analytics in innovative ways. Learn from thought leaders in
multiple industries about six ways of applying data and analytics to have a higher impact on the
business
“Survey Analysis: Where to Target Your Data and Analytics Investments to Improve Business
Value.” Data and analytics leaders struggle to show how data and analytics program investments
drive business value. Gartner’s Business Value of Data and Analytics Survey reveals that
improvements in measurable outcomes help data and analytics leaders build strong business
cases.
“Use Gartner’s Value Pyramid to Connect Data and Analytics to Business Value.” Organizations
struggle to relate the role of data to organizational vision and its impact on associated mission
objectives. Data and analytics leaders, including CDOs, should use this Toolkit to identify and
make explicit links between data (and analytics) and business outcome.
“Four Real-World Case Studies: Implement Augmented DSML to Enable Expert and Citizen Data
Scientists.” Augmented data science and machine learning not only gives citizen data scientists
access to DSML capabilities, it also makes experts more efficient and productive. Data and
analytics leaders should review these case studies to understand the business impact of
augmented DSML.
“How Chief Data Officers Can Scale the Value of Data and Analytics by Working With External
Service Providers.” Data and analytics leaders such as CDOs need to evaluate and select external
service providers to benefit from their expertise and experience. They should work with them to
manage and monetize their data and analytics assets and further scale the value of data and
analytics.
“Start Monetizing Data and Analytics With Your Service Provider Now.” Data and analytics leaders
struggle to monetize their data and analytics assets outside their organizations. Engaging with the
right external service provider can help to overcome these challenges and accelerate initiatives to
realize the business value of data and analytics assets.
“Toolkit: How to Select and Prioritize AI Use Cases Using Real Domain and Industry Examples.”
Choosing the right use cases to deliver business value in a particular domain is essential for
seizing new artificial intelligence opportunities. This Toolkit will help data and analytics leaders
select and prioritize the most promising areas for AI, using sample domains and industry use
cases.
■ The advancement and availability of self-service data preparation, data visualization tools and
augmented data and analytics have empowered a generation of new citizen data scientists.
■ The emergence of adaptive data and analytics governance is starting to deploy different data
and analytics governance efforts in domains/BUs directly, but also with centralized and regional
support.
■ Data management is no longer only about a single, central data warehouse. Distributed assets
are now being collected, connected, virtualized and otherwise consumed.
We recommend you create an organizational model that empowers domain data and analytics
practitioners within their sphere of influence, but that also fosters collaboration and consistency
with other domains — including that of the central IT department. The name of the group is less
important than the focus:
■ Data management
The growing importance and strategic significance of data and analytics is creating new
challenges for organizations and for data and analytics leaders. Although some traditional IT roles
are being disrupted by citizen roles performed by line-function business users, new hybrid roles are
emerging that span functions and departments and blend IT and business roles to become almost
the norm. The analytics center of excellence (ACE; sometimes also called the analytics community
of excellence) has evolved from more technically oriented BICCs into ACEs. The ACE contains a
broader set of capabilities and domain knowledge encompassing governance expertise as part of
its:
■ Economies of scale — By leveraging best practices and frameworks that can be contextualized
and scaled across the entire organization.
■ Speed and agility — Filling in the white space to increase analytics maturity in domains and
encouraging innovation.
■ Alignment across the enterprise between central IT and business domains — For the
organizational model and governance model, including data quality, security and privacy, and
business value.
“Build a Data-Driven Enterprise.” Building a data-driven enterprise is not just about encouraging the
use of data in decision making. Data and analytics leaders must lead development of the correct
competencies and rebalance work to be consistent with their enterprise’s ambitions for generating
information value.
“Where to Organize the Work of Data and Analytics.” Data and analytics leaders expecting to meet
tomorrow’s business challenges with yesterday’s disconnected organization models are bound to
fail. Digital business success requires a new structured approach to determine where the work of
data and analytics takes place.
“How IT Must Work With Business to Ensure Analytics and BI Alignment.” Business leaders buy
and develop their own analytical and BI solutions, often bypassing internal IT in the process. Data
and analytics leaders within IT must establish new working relationships with business domains to
meet analytics objectives and alignment at the enterprise level.
“5 Pitfalls to Avoid When Designing an Effective Data and Analytics Organization.” To deliver real
business outcomes from data-driven programs, an effective data and analytics organization is
required. But what are the main design challenges of the data and analytics organizational model
and what do data and analytics leaders need to do to overcome them?
“Must-Have Roles for Data and Analytics, 2018.” Data and analytics leaders cannot master today’s
opportunities and challenges of digital business with yesterday’s roles and organization design.
Now is the time to create an organization with new data and analytics roles that are fit for the
future.
“The Supply Chain Analytics Leader’s First 100 Days.” The first 100 days for a supply chain
analytics leader are crucial to set the foundation for the successful adoption of analytics in supply
chain. Supply chain leaders can use this research to map out their team’s strategy, assess current
capabilities and build key relationships with stakeholders.
What Best Practices Should I Adopt to Govern and Enable Domain-Specific Data
and Processes?
There is increasing awareness in organizations that data and analytics-led decision making takes
place everywhere — not just in a department called data and analytics. Business area leaders and
domain data and analytics leaders have always known this, but the decentralization of data and
analytics capabilities has often been difficult for central data and analytics functions to embrace
— but still they must embrace it. Business domain leaders work at the pace of the market and
Traditionally, old-school information governance has focused on the decision framework and
authority aspects, which frankly never quite worked the way it was envisioned. Evolution of
traditional governance to a more outcome-based approach expanded the context: The
specification of decision rights and an accountability framework to ensure the appropriate
behavior in the valuation, creation, storage, use, archival and deletion of information. It includes the
processes, roles, standards and metrics that ensure the effective and efficient use of information in
enabling an organization to achieve its goals. The pace of digital transformation has further
necessitated evolution toward adaptive governance — which is where the state-of-the-art in
governance exists today.
Likewise, slowly emerging and converging technology capabilities are starting to orient and align
around different platforms — one of these is the newer and less well defined platform needed to
support the work of data and analytics governance. Data management, where data and analytics
governance are executed, is also converging around a different set of use cases.
Related Research
“Use Adaptive Governance for Data and Analytics to Drive Digital Business Success.” Traditional
approaches to data and analytics governance are inadequate for delivering the value and scale
that digital business demands. An adaptive approach enables data and analytics leaders to apply
different governance styles to suit the context of the business scenarios they face.
“Ignition Guide to Building a Data and Analytics Governance Program.” Traditional approaches to
data and analytics governance are inadequate to deliver the value that big data and digitization
demand. Data and analytics leaders can use this guide to establish a governance program that
aligns with business priorities and divides strategic and tactical responsibilities.
“Reset Your Information Governance Approach by Moving From Truth to Trust.” Organizations can
no longer assume they own all of the data they govern. If data and analytics leaders are to deliver
real business value, they must adopt a trust-based approach to information governance.
Figure 3. Analytics Is Really a Spectrum of Capabilities and Requires Using a Portfolio Approach
For domain-specific applications across business processes, Gartner’s Hype Cycles provide a
graphic representation of the maturity and adoption of technologies and applications, and how
they are relevant to solving real business problems and exploiting new opportunities. Two Hype
Cycles provide insight into analytical applications supporting business processes such as back-
office finance, HR, procurement, IT supply chain and customer experience. Additional Hype Cycles
also support a range of industry verticals.
Related Research
“When to Choose a Line-of-Business Analytic Application.” Business leaders who want to give their
users contextualized analytics are increasingly deploying packaged line-of-business analytic
applications. The best practices detailed here can help data and analytics leaders understand
when — and when not — to choose a packaged solution.
“Take Advantage of the Disruptive Convergence of Analytic Services and Software.” Analytic
services and software are converging into new solutions (servware) that disrupt vendor practices
and create prospects for organizations to differentiate competitively. Data and analytics leaders
should embrace the disruption to leverage converged solutions across the organization.
“How Chief Data Officers Can Scale the Value of Data and Analytics by Working With External
Service Providers.” Data and analytics leaders such as CDOs need to evaluate and select external
service providers to benefit from their expertise and experience. They should work with them to
manage and monetize their data and analytics assets and further scale the value of data and
analytics.
“Hype Cycle for Customer Experience Analytics, 2019.” Customer experience expectations are now
driven by the explosion of channels, digital interactions and the volume and connections of diverse
data types. This Hype Cycle will help data and analytics leaders prioritize investments based on
the maturity, adoption and benefits of CX analytics.
“Hype Cycle for Back-Office Analytic Applications, 2019.” Analytic applications democratize the use
of AI and analytics by supporting specific decision-making processes for business users. This
Hype Cycle helps data and analytics leaders understand the landscape of analytic applications
across a range of industries and functions
How Do I Align Key Business Use Cases and Problems With the Most Appropriate
Data Management Infrastructure?
Data management strategies are driven by multiple components, including:
■ Data persistence within the context of a DBMS for both operational and data management
solutions for analytics (DMSA) use cases
■ Business intelligence
■ Enterprise reporting
■ Data quality
■ Data science
■ Data discovery
■ Data governance
■ Data integration
Individual components are easy to understand in isolation, and that’s how they are generally
marketed and sold, but they are not used in isolation. Although each component is closely related
to and dependent on the others, they are not recognized as such until the risks and cost of
remaining in isolated silos become too great compared with the cost of integrating them. These
relationships and dependencies often create confusion about the right mix of technologies, and
how different use cases relate to the available skills, practices and infrastructure.
Organizations seeking to maximize their data and analytics capabilities should follow a logical
data warehouse approach combining multiple data-persistent technologies to support a broad set
of use cases, end users and data types.
The logical data warehouse architecture aims to provide a holistic vision that integrates these
disparate — and often conflicting — requirements. Inherent in this architecture is the recognition
that a single data persistence tier is generally inadequate when trying to meet the increased data
and analytics demands that most organizations are seeing. As a result, analytics-savvy
organizations are seeking to augment (not replace) their traditional relational data warehouse
environments with nonrelational technologies. These might include Apache Hadoop, SQL-
accessible cloud-based object stores, flexible deployment models, data virtualization technologies,
and the separation of storage and compute, as well as alternate use cases for relational
technologies. Equally, many organizations using Hadoop, cloud object stores and other
nonrelational-based technologies are realizing the need for a traditional, structured data
warehouse. These technologies are not interchangeable, but are complementary, and support
different use cases to solve different — but overlapping — sets of problems.
Resolving this dilemma requires a new way of thinking about how data is managed across various
infrastructures. This is where the Data and Analytics Infrastructure Model comes into play. It
represents how different infrastructure components align to specific types of use cases, and how
to evolve those use cases so that data and desired outcomes are better understood.
The Data and Analytics Infrastructure Model provides a framework for data and analytics leaders
to identify and describe their core use cases and map them in terms of unknown and known data
and questions. A number of contextual overlays can then be applied to provide clarity and
additional guidance for a range of data management challenges.
Related Research
“Solve Your Data Challenges With the Data Management Infrastructure Model.” Investment in data
management infrastructure has outpaced development of the necessary alignment of
technologies, skills, processes and governance across data management initiatives. Data and
analytics leaders should use this model to rationalize their data management strategies and
infrastructure.
“The Practical Logical Data Warehouse: A Strategic Plan for a Modern Data Management Solution
for Analytics.” The concept of the logical data warehouse is gaining market traction and
acceptance, but data and analytics leaders still struggle with practical implementations. We
demonstrate a pragmatic approach to the LDW by leveraging the data and analytics infrastructure
model.
“Toolkit: Map Your Data Management Landscape With the Data and Analytics Infrastructure
Model.” The Toolkit allows data and analytics leaders to map key use cases on the Data and
Analytics Infrastructure Model with the dimensions of known and unknown questions and data.
Contextualization overlays are available for a broad range of data and analytics disciplines.
“Toolkit: Use the Data and Analytics Infrastructure Model to Align Strategies With Key
Stakeholders’ Objectives.” The Data and Analytics Infrastructure Model is a conceptual framework
that clarifies and rationalizes both data management strategies and infrastructure decisions. Data
and analytics leaders should use the slides in this Toolkit to educate and engage stakeholders for
strategic and tactical planning.
BI business intelligence
Evidence
This research is based on domain data and analytics research, hundreds of client inquiries and
interactions with many analysts across all aspects of data and analytics — across both industries
and business domains.
The 2019 Gartner CIO survey was conducted online from 17 April 2018 through 22 June 2018
among Gartner Executive Program members and other CIOs. Qualified respondents are the most
senior IT leader (CIO) for their overall organization or a part of their organization (e.g., a business
unit or region). The total sample is 3,102, with representation from all geographies and industry
sectors (public and private). The survey was developed collaboratively by a team of Gartner
analysts and was reviewed, tested and administered by Gartner’s Research Data and Analytics
team.
Note: The results of this study are representative of the respondent base and not necessarily the
market as a whole.
How to Monetize Data Assets With Your Data and Analytics Service Provider
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