Making data analytics work: Building a data-driven organization

McKinsey & Company
21 Mar 201303:58

Summary

TLDRThe transcript emphasizes the importance of organizational design, people, and processes alongside traditional technology hardware and software for effective big data analytics. It highlights the need for data hygiene, governance, and a service bureau culture to ensure analytics are useful to internal customers. The speaker suggests focusing on creating a service bureau culture before deciding on centralization or decentralization. Key roles such as data scientists, business solution architects, campaign experts, and advanced modelers are crucial for leveraging big data effectively, ensuring models are actionable and results-driven.

Takeaways

  • 🛠️ The script emphasizes the importance of traditional capabilities such as technology hardware, software, and applications in building infrastructure for big data and analytics.
  • 🏗️ It highlights the need for building capabilities around organizational design, people, and processes to effectively utilize big data and analytics.
  • 🧑‍🔬 The role of analysts and data scientists is crucial, and it's important to determine the type of expertise required, whether it's just analysts or more specialized roles like data scientists or business solution architects.
  • 🔍 The script stresses the importance of data quality, stating that 'garbage in, garbage out' still applies, and that data hygiene and cleansing are vital for achieving accurate results from analytics models.
  • 🗃️ Data governance is essential to ensure that data is clean, accurate, and secure, with clear responsibility assigned for maintaining this standard.
  • 🤝 The concept of a 'service bureau' culture within the analytics organization is introduced, where the focus is on providing useful and utilized analytics to internal customers.
  • 🌐 The script discusses the balance between centralizing and decentralizing analytics, suggesting that the first question should be about creating a service bureau culture rather than the structure itself.
  • 🤔 It suggests that companies should consider the advantages of centralization, such as a culture that rewards and protects advanced data scientists, while ensuring their work is used effectively.
  • 💡 The importance of having a framework to help companies decide how much to centralize or decentralize is mentioned, indicating that there is usually a mix of both approaches.
  • 📍 The script identifies 'kingpin roles' such as data scientists, business solution architects, campaign experts, and advanced modelers as critical for leveraging big data effectively.
  • 🛑 It concludes by emphasizing the need for these roles to ensure that models are not only created but also turned into actionable campaigns that impact consumers or customers.

Q & A

  • What are the traditional capabilities needed for building big data and analytics infrastructure?

    -The traditional capabilities include technology hardware and software, as well as the applications that people typically turn to.

  • Why is it important to build capabilities around organizational design, people, and processes in big data and analytics?

    -It is important because after building the infrastructure, organizations need to determine who will use the data, how it will be used, and what kind of analysts and roles are required for effective data utilization.

  • What roles are essential in ensuring that big data and analytics are used effectively within an organization?

    -Essential roles include data scientists, business solution architects, campaign experts, and advanced modelers, who are responsible for creating models, ensuring data accessibility, and turning models into actionable results.

  • Why is it crucial to have a service bureau culture within the analytics department?

    -A service bureau culture ensures that the analytics team focuses on providing useful and used analytics to internal customers, rather than just doing analytics for the sake of it.

  • What is the significance of data hygiene and data governance in big data analytics?

    -Data hygiene and governance are crucial because they ensure that the data used in analytics is clean, accurate, and secure, which directly impacts the quality of the results produced by the models.

  • What are some advantages of centralizing analytics within an organization?

    -Centralizing analytics can allow for a culture that rewards and protects advanced data scientists, ensuring that their work is used and useful within the organization.

  • What is the first question an organization should ask itself when considering centralizing or decentralizing analytics?

    -The first question should be how to ensure that the organization responsible for analytics views their role as a service bureau and provides useful analytics to internal customers.

  • What are the key roles that are critical for leveraging big data effectively and quickly?

    -The key roles include data scientists, business solution architects, campaign experts, and advanced modelers, who contribute to the creation, accessibility, and application of big data models.

  • How does the concept of 'garbage in, garbage out' apply to big data and analytics?

    -The concept applies as poor quality data input into a model will result in poor quality output, regardless of how sophisticated the model itself is.

  • What is the role of a business solution architect in big data and analytics?

    -A business solution architect is responsible for understanding and creating the right big data warehouse, ensuring that the data is accessible and useful in a usable way.

  • What is the importance of campaign experts in the context of big data and analytics?

    -Campaign experts are crucial as they ensure that advanced models are turned into actionable campaigns that can effectively engage consumers or customers.

Outlines

00:00

🤖 Building Organizational Capabilities for Big Data Analytics

The paragraph discusses the multifaceted nature of establishing a robust big data analytics infrastructure. It emphasizes that beyond the traditional focus on technology hardware and software, there's a critical need to build organizational capabilities around design, people, and processes. The speaker highlights the importance of determining who will utilize the analytics, the kind of analysts required (data scientists or just analysts), and the necessity for a business solution architect or a simple database. Furthermore, the paragraph underscores the significance of data quality, data governance, and ensuring data hygiene to avoid the 'garbage in, garbage out' scenario. The speaker suggests that companies should focus on creating a service bureau culture within their analytics teams to provide useful and actionable insights to internal customers. The paragraph also touches on the debate between centralizing and decentralizing analytics, advocating for a balanced approach with a focus on the right service bureau culture.

Mindmap

Keywords

💡Technology Hardware and Software

Technology hardware refers to the physical components of a computer system or network, such as servers, routers, and storage devices. Software, on the other hand, encompasses the programs and applications that run on these hardware platforms. In the context of the video, these are foundational elements that enable the building of infrastructure necessary for big data and analytics. The script mentions that while these are traditional aspects people turn to, there's more to consider, indicating that technology alone is not sufficient for effective data utilization.

💡Applications

In the script, applications refer to software programs designed for specific tasks or purposes, which can be used to analyze and interpret data. Applications are crucial in the big data context as they provide the means to interact with data, derive insights, and make decisions based on analytics. They are part of the broader ecosystem that supports data-driven decision-making.

💡Organizational Design

Organizational design involves structuring how an organization operates, including its management hierarchy, division of labor, and processes. The script highlights the importance of building capabilities around organizational design to ensure that the infrastructure for big data and analytics is effectively utilized. It implies that the structure and design of an organization can significantly impact how data is managed and used.

💡Data Governance

Data governance is the oversight framework for managing data availability, usability, integrity, and security in an organization. The script emphasizes the importance of data governance in ensuring that data is clean, accurate, and responsibly managed. It is a critical component in the big data analytics process, as it helps maintain the quality and reliability of the data being analyzed.

💡Data Hygiene

Data hygiene refers to the practices and procedures that ensure the quality and integrity of data. The script mentions the old adage 'garbage in, garbage out,' which underscores the importance of data cleansing and maintaining data hygiene. Poor quality data can lead to inaccurate analytics and decisions, making data hygiene a vital aspect of the big data infrastructure.

💡Data Scientists

Data scientists are professionals skilled in analyzing and interpreting complex digital data to aid decision-making. The script discusses the need for data scientists in the context of creating advanced models and ensuring that these models are programmatically repeatable. They play a key role in the big data analytics process by providing the technical expertise required to derive meaningful insights from data.

💡Business Solution Architects

A business solution architect is a professional who designs and implements technology solutions to meet business needs. In the script, they are mentioned as being responsible for creating the right big data warehouse, ensuring that data is accessible and useful. They are a critical link between the technical capabilities of big data infrastructure and the business objectives of an organization.

💡Campaign Experts

Campaign experts are professionals who specialize in planning and executing marketing campaigns. The script highlights their role as the 'last mile' in the big data process, ensuring that models developed by data scientists are turned into actionable campaigns that engage consumers or customers. They are essential in translating data insights into tangible business outcomes.

💡Advanced Modelers

Advanced modelers are individuals who specialize in creating complex predictive models using data. The script refers to them as being critical in the big data analytics process, as they develop sophisticated models that can provide deep insights. They also ensure that these models are programmatically implemented, reducing the need for manual intervention.

💡Centers of Excellence

A center of excellence (CoE) is a knowledge hub or a team of experts that provides thought leadership and best practices within a specific domain. The script discusses the idea of creating centers of excellence, both centralized and distributed, to focus on the breadth of capabilities needed for big data analytics. These centers are intended to foster expertise and drive innovation in data analytics.

💡Service Bureau Culture

A service bureau culture refers to an organizational mindset where the analytics team views their role as providing valuable services to internal customers. The script suggests that companies should focus on creating a service bureau culture where analytics are not done for their own sake but to help the business. This approach ensures that the analytics are useful and utilized by the business, driving better decision-making and outcomes.

Highlights

The importance of building capabilities around organizational design, people, and processes in addition to technology hardware and software.

The necessity of determining who will use big data and analytics and how it will be utilized within an organization.

The role of analysts and data scientists in an organization's big data and analytics strategy.

The need for a business solution architect to understand and create the right big data warehouse.

The significance of data governance in ensuring clean, accurate data for analytics.

The concept of 'garbage in, garbage out' and its relevance to data quality and model outcomes.

The importance of data hygiene and cleansing for effective big data analytics.

The debate between centralizing and decentralizing analytics within an organization.

The suggestion to first focus on creating a service bureau culture for analytics within the organization.

The advantages of centralizing analytics, such as fostering a culture that rewards and protects data scientists.

The critical roles of data scientists, business solution architects, campaign experts, and advanced modelers in leveraging big data.

The role of campaign experts in turning models into actionable campaigns that impact consumers or customers.

The framework for companies to determine the right balance between centralization and decentralization of analytics.

The idea that the first question should be about ensuring the analytics team views their role as providing useful analytics to internal customers.

The emphasis on the importance of the business solution architect in making data accessible and useful.

The discussion on the mix between centralization and decentralization, suggesting there is no one-size-fits-all approach.

Transcripts

play00:13

the capabilities needed include the

play00:17

traditional things that people run to

play00:18

like technology hardware and software

play00:20

and what kind of applications but the

play00:22

truth is there's a lot of capabilities

play00:24

that have to be built around the

play00:26

organizational design people and

play00:28

processes because the truth is when you

play00:30

finish building your infrastructure and

play00:33

you've got big data and big analytics

play00:34

you've got to figure out who's going to

play00:37

use it how's it going to be used

play00:39

what kind of analysts are you're going

play00:41

to have do you need data scientists or

play00:42

just analysts you need a business

play00:44

solution architect or is it a simple

play00:46

database in addition to that how do you

play00:48

make sure that the data you get is good

play00:50

clean data you know the old garbage in

play00:53

garbage out still applies garbage in to

play00:56

a great model the model itself doesn't

play00:58

give great results so data hygiene data

play01:01

cleansing making sure data is clean and

play01:03

having data governance around who is

play01:05

responsible for keeping and securing

play01:08

clean accurate data that gets fed into

play01:10

the big data analytics becomes very very

play01:12

important so it's more than just the

play01:14

hardware infrastructure software and

play01:16

applications it's the people and the

play01:18

governance around it and we see

play01:20

companies and clients working towards

play01:22

centers of excellence and distributed

play01:24

centers of excellence but they focus on

play01:26

that kind of breadth a lot of our

play01:33

clients start there should we centralize

play01:35

our analytics so should we decentralize

play01:36

them I don't think that's perhaps the

play01:38

first question I think the first

play01:39

question is how do you make sure that

play01:41

the organization responsible for the

play01:43

analytics looks at their job as a

play01:46

Service Bureau and makes sure that they

play01:48

are providing useful and used analytics

play01:49

to internal customers there are

play01:51

advantages to centralizing as an example

play01:54

some of our more advanced data

play01:56

scientists you know they're their

play01:58

definition of a funny joke is about SAS

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and sequel most of us don't get that

play02:01

they want to be in a culture that makes

play02:03

them rewarded and protected but they

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want to see their analytics used and

play02:06

useful and so yes you can focus on

play02:10

centralized and decentralized but first

play02:12

we would suggest focus on are you

play02:15

creating the right service bureau

play02:16

culture are your analysts doing

play02:19

analytics for analytics sake or to help

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the business and who in the business and

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does that business user believe they

play02:25

were

play02:25

helped so that's a framework that we

play02:28

find is very helpful as companies sort

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through how much decentralize and how

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much to decentralize and it's always a

play02:34

mix between both there usually are four

play02:41

or five kingpin roles where a tremendous

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amount of deep expertise can be shared

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and in a way that helps a lot of

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internal constituents and customers

play02:51

those roles really fall into the data

play02:53

scientist category business solution

play02:55

architects campaign experts and advanced

play03:00

modelers those roles are really critical

play03:03

the business solution architect is

play03:05

someone who's going to really understand

play03:06

how to create the right big data

play03:09

warehouse so you can use the data and so

play03:12

that it's accessible and useful in a

play03:13

usable way the data scientists our folks

play03:16

that are going to really help create

play03:16

that advanced modeling but also they're

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going to be able to programmatically

play03:20

take those models and make sure they're

play03:22

repeatable and use use programming

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language to reduce some of the human

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interaction the campaign experts are the

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folks that that's that last mile if you

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got a great model but you can't turn the

play03:32

model into a campaign that touches a

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consumer or a customer you've got

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nothing so campaign experts are that

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last mile that make sure that the models

play03:42

get turned into results that turned into

play03:43

actions and those are some of the key

play03:45

roles that are really important to make

play03:48

sure that a client can leverage big data

play03:50

effectively and quickly

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Related Tags
Big DataAnalyticsData ScienceOrganizational DesignData GovernanceData HygieneService BureauCentralized AnalyticsDecentralized AnalyticsExpert Roles