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Value of Analytics? - MeasureCamp Helsinki 2023 edition

  1. My search to question VALUE OF ANALYTICS? by Antti Koski
  2. Who am I? Antti Koski Product Owner, Digital Analytics @ OP (Adobe Analytics/Launch stack in recent years) Presentation includes content & inspiration from these sources: • by Ibrahim Elawadi ”measuring the value of analytics” (Superweek 2023 on Youtube) • by Doug Hall ”Fact Check Your Data” • by Tim Wilson ”A Claim: All Data Work Falls into One of Two Categories”
  3. Value of data? 0 VALUE
  4. What is Analytics? Data collection & management plan (technology, framework, data security, consents, metrics etc), implement, test & validate + Data usage methods, analyse, insights & decision/action =VALUE You need to succeed on both to get value
  5. We assume there is value IS THAT EVEN VALID ASSUMPTION?
  6. Based on my knowledge and experience I KNOW there is value There are studies that says data-driven companies get 15%-25% MORE GROWTH McKinsey 2022 However, some studies says only 20% OF ANALYTICS insights provides real value Gartner 2019 Where is the evidence?
  7. Real answer to value is IT DEPENDS & CONSTANTLY CHANCING Because value (mainly) occurs when ACTION IS TAKEN Action usually requires change & change usually requires people (sometimes action can be decision for not to act) EVENTUALLYVALUE IS DIFFERENT PER PERSON/TEAM/UNIT etc… & that’s why difficult to count in total The truth
  8. Why is your house more valuable than your neighbours house? You have taken ACTIONS & renovated your house up-to-date to get more value
  9. Analytics is REALLY (!!!) difficult #1 MISSING (DATA) CULTURE People, process, organization, change management, resources, goals… = Lack of data-driven work on daily basis #2 DATA QUALITY Data governance, data ownership, missing/bad data, data security regulations, legacy systems, biases among analysts, different methods to use data… = Lots of uncertainty Tip for tool providers: As Analyst I love your tool’s new capabilities, but as a Product Owner or Business Lead I would love to get more efforts to solve our real problems
  10. Methods for challenges FOR DATA CULTURE Plan and start with ”why?” – Why do we collect that data? No goals, no money – Start with hypothesis if nothing more Start with one use case, eventually make a business case Start every day with data Every company has one customer, break silos Hire right people and build processes Usually one metric bad (impression, click, order), combined metrics are better (roi, roas, romi and continue to attributions and eventually to marketing mix model) Agree what to measure, we can analyse data in many ways Make a strategy with standards for quality and processes for people FOR DATA QUALITY Say ”no” to hacks – Don’t use bad data Minimize bias Every model is wrong some are useful Data ownership contains one name Without documentation there is no trust Test & validate
  11. Back to Analytics formula & the missing last mile Companies don’t win by having most Analysts Analysts are crazy about the data collection and we are angry if something is missing on our data collection, however, we should be more angry if our data is not used! Companies don’t win by having most data More data = more hope to get value? Image by Brent Dykes There is also a need to have more product owners, management and lead roles to be obsessed about using data. Actually every role in a company should be OBSESSED TO USE DATA
  12. Unboxing the value of Analytics MONEY (profit) Everyone loves money, better to be profit center than cost center (cost saving) TIME & EFFICIENCY Time is money too! Decision not to do something stupid is valuable too (better) USER EXPERIENCE Better products and services with data affects all the way to brand….
  13. Are you a profit center or cost center? VALUE – COSTS = ROI However, how to include time savings and better user experience in value? THATWOULD BE ANOTHER INVESTIGATION… Here is one point of view to investigate more: on-analytics-investment/ Value vs. Return on Investment
  14. Summary If you have data you are still a person with opinion There is NO direct business value in collecting data Focus on data that drives change Start from something – Customer 360 view is a myth Avoid ”needs more data/analysis”, focus on actions ”what? So what? What next?” You have a real possibility to get value from data if you are making decisions and/or actions based on data Auditing your maturity level on different data capabilities will provide insights do you have real possibilities to get value, also use case & business case calculations will provide understanding Total value of Analytics is quite impossible to measure, but doesn’t mean that we shouldn’t try to understand and calculate it using different methods
  15. Value in context of Web / Digital Analytics 01 Value in context of Digital Analytics team 02 BONUS SLIDES – VALUE IN OUR COMPANY´S CONTEXT
  16. Thank you. The end.

Editor's Notes

  1. Board information – MeasureCamp Helsinki March 2023
  2. My search to question what is the value of Analytics?
  3. Are we talking about analytics or data? Why don’t we talk about value of data? Because data has zero value. It surely is important and we need it, but by itself it is not valuable.
  4. Ibrahim Elawadi had a great question, is this valid assumption?
  5. Sources:
  6. Real life example