Transforming analytics from a “science-fair project” to the core of a business model starts with leadership from the top. Here are five questions CEOs should be asking their executive teams.
The revolution isn’t coming—it’s already under way. In the science of management, the revolution in big data analytics is starting to transform how companies organize, operate, manage talent, and create value. Changes of this magnitude require leadership from the top, and CEOs who embrace this opportunity will . Those who ignore or underestimate the eventual impact of this radical shift—and fail to prepare their organizations for the transition—do so at their peril.
It’s easy to see how analytics could get delegated or deprioritized: CEOs are on the hook for performance, and for all of the potential associated with analytics, many leaders operating in the here and now are reporting underwhelming results. In fact, when we surveyed a group of leaders from companies that are committed to big data–analytics initiatives, three-quarters of them reported that their revenue or cost improvements were less than 1 percent. Some of the disconnect between promise and payoff may be attributed to undercounting—the sum of the parts is not always immediately apparent. Ironically, the results of “big data” analytics are often thousands—or more—of incrementally