Public Sector AnalyticsOptimizing Resource Usage with Data-Driven Decisions May 2011 Michael Lock
May, 2011 Public Sector Analytics: Optimizing Resource Usage with Data-Driven DecisionsOrganizations in the public sector - many of which either primarily or Sector Insightexclusively beholden to a pre-determined annual budget - will always have a Aberdeen’s Sector Insightspressing need for operational visibility and a framework to support smarter provide strategic perspectiveallocation of precious resources. Aberdeens May 2010 examination of this and analysis of primarytopic, Business Intelligence in the Public Sector: The Value of Efficient Resource research results by industry,Utilization, revealed that the top pressure driving analytical investment in the market segment, or geographypublic sector was the need for better visibility into key operationalprocesses. This improved visibility, however, is not the only piece of the For the purpose of clarification, this document defines thepuzzle when it comes to achieving performance in the public sector. The public sector as encompassingresearch demonstrates that superior decision support using business the following threeanalytics is predicated on data management efficiency, the application of the subcategories:right business knowledge to that data, and the timely delivery of relevantinsight-based analysis. √ Government (Federal, State, Local) OrganizationsThis Aberdeen Sector Insight draws from three discrete data sets toexamine the impact of business analytics within the public sector. The √ Educational Institutionsresearch shows that while these organizations typically have a mature and √ Public Utilitieslargely effective strategy for back-end data management, many are notexploiting the operational visibility and analytical potential of front-end userfacing Business Intelligence (BI) tools and strategies.Business ContextWhile the economy continues its slow but steady ascent from the doldrums Recommended Actionsof early 2009, with many companies shifting back to a growth strategy, the Strategic recommendations forpublic sector has maintained its laser-focus on cost. Data from the public sector organizationsAberdeen Quarterly Business Review survey shows that cost reduction is, looking to develop a deeperby far, the top business goal for public sector organizations (Figure 1). and more effective strategy for business analytics:Figure 1: Top Business Goals for 2011 √ Collect and incorporate end- user analytical needs Cost Reduction 58% 27% √ Develop programs to coach Improve Public Image / Brand Value 41% / train / develop analytical 27% 40% talent in-house Sustain Business through Downturn 21% 19% √ Implement automated alert Organic Revenue Growth 47% reporting capabilities for real-time visibility into 0% 20% 40% 60% crucial changes Public Sector All Other Industries Percentage of Respondents, n = 1,663 √ Evaluate in-memory technology for operational Source: Aberdeen Group, January 2011 decision supportThis document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.