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Digital Business
Building an Effective & Extensible
Data & Analytics Operating Model
To keep pace with ever-present business and technology change and challenges,
organizations need operating models built with a strong data and analytics
foundation. Here’s how your organization can build one incorporating a range of
key components and best practices to quickly realize your business objectives.
Executive Summary
Tosucceedintoday’shypercompetitiveglobaleconomy,
organizationsmustembraceinsight-drivendecision-making.
Thisenablesthemtoquicklyanticipateandenforcebusiness
changewithconstantandeffectiveinnovationthatswiftly
incorporatestechnologicaladvanceswhereappropriate.The
pivottodigital,consumer-mindednewregulationsaround
dataprivacyandthecompellingneedforgreaterlevelsof
dataqualitytogetherareforcingorganizationstoenact
bettercontrolsoverhowdataiscreated,transformed,stored
andconsumedacrosstheextendedenterprise.
Chiefdata/analyticsofficerswhoaredirectlyresponsibleforthe
sanctityandsecurityofenterprisedataarestrugglingtobridge
thegapbetweentheirdatastrategies,day-to-dayoperations
andcoreprocesses.Thisiswhereanoperatingmodelcanhelp.
Itprovidesacommonview/definitionofhowanorganization
shouldoperatetoconvertitsbusinessstrategytooperational
design.Whilesomematureorganizationsinheavilyregulated
sectors(e.g.,financialservices),andfast-pacedsectors(e.g.,
retail)aretweakingtheirexistingoperatingmodels,younger
organizationsarecreatingoperatingmodelswithdataand
analyticsasthebackbonetomeettheirbusinessobjectives.
This white paper provides a framework along with a set of
must-have components for building a data and analytics
operating model (or customizing an existing model).
Cognizant 20-20 Insights
August 2018
The starting point: Methodology
Eachorganizationisunique,withitsown
specificdataandanalyticsneeds.Differentsetsof
capabilitiesareoftenrequiredtofilltheseneeds.For
thisreason,creatinganoperatingmodelblueprintis
anart,andisnotrivialmatter.Thefollowingsystematic
approachtobuilding itwillensurethefinalproduct
worksoptimallyforyourorganization.
Buildingtheoperatingmodelisathree-stepprocess
startingwiththebusinessmodel(focusondata)
followedbyoperatingmodeldesignandthen
architecture.However,thereisaprecursorystep,
called“thepivots,”tocapturethecurrentstateand
extractdatapointsfromthebusinessmodelpriorto
designingthedataandanalyticsoperatingmodel.
Understandingkeyelementsthatcaninfluencethe
overalloperatingmodelisthereforeanimportant
considerationfromtheget-go(asFigure1illustrates).
Theoperatingmodeldesignfocusesonintegration
andstandardization,whiletheoperatingmodel
architectureprovidesadetailedbutstillabstractview
oforganizinglogicforbusiness,dataandtechnology.
Insimpleterms,thispertainstothecrystallizationofthe
designapproachforvariouscomponents,including
theinteractionmodelandprocessoptimization.
Preliminary step: The pivots
No two organizations are identical, and the
operating model can differ based on a number
of parameters — or pivots — that influence the
operating model design. These parameters fall into
three broad buckets:
❙
❙ Design principles: These set the foundation
for target state definition, operation and
implementation. Creating a data vision
statement, therefore, will have a direct impact
on the model’s design principles. Keep in mind,
effective design principles will leverage all
existing organizational capabilities and resources
to the extent possible. In addition, they will be
reusable despite disruptive technologies and
industrial advancements. So these principles
should not contain any generic statements, like
“enable better visualization,” that are difficult to
measure or so particular to your organization
that operating-model evaluation is contingent
upon them. The principles can address areas
such as efficiency, cost, satisfaction, governance,
technology, performance metrics, etc.
Cognizant 20-20 Insights
2  /  Building an Effective & Extensible Data & Analytics Operating Model
Sequence of operating model development
The pivots
(current state)
Preliminary
Business
model
Step 1 Step 2
Operating model
architecture
Step 3
Operating
model
Figure 1
Cognizant 20-20 Insights
3  /  Building an Effective & Extensible Data & Analytics Operating Model
❙
❙ Current state:Gaugingthematurityofdataand
relatedcomponents—whichisvitaltodesigning
therightmodel—demandsatwo-pronged
approach:topdownandbottomup.Thereason?
Findingswillrevealkeyleversthatrequireattention
andaroundofprioritization,whichinturncan
movedecision-makerstoseeifintermediate
operatingmodels(IOMs)arerequired.
❙
❙ Influencers: Influencers fall into three broad
categories: internal, external and support.
Current-state assessment captures these
details, requiring team leaders to be cognizant of
these parameters prior to the operating-model
design (see Figure 2). The “internal” category
captures detail at the organization level.
”External” highlights the organization’s focus
and factors that can affect the organization. And
“support factor” provides insights into how much
complexity and effort will be required by the
transformation exercise.
Operating model influencers
• Data & analytics vision
• Geography, spread
& culture
• Organization setup
(flat vs. consensus;
product-driven vs.
function-driven)
• Position in value chain
• Value proposition
• Customer/business
segment & communication
channels
• Competition (monopoly
vs. oligopoly)
• Regulatory influence
Internal
• Change impact index
(employee)
• Technology landscape
• Revenue & headcount
• Management commitment
and funding
Support factor
External
Figure 2
Cognizant 20-20 Insights
4  /  Building an Effective & Extensible Data & Analytics Operating Model
First step: Business model
A business model describes how an enterprise
leverages its products/services to deliver value,
as well as generate revenue and profit. Unlike a
corporate business model, however, the objective
here is to identify all core processes that generate
data. In addition, the business model needs to
capture all details from a data lens — anything that
generates or touches data across the entire data
value chain (see Figure 3).
We recommend that organizations leverage one
or more of the popular strategy frameworks, such
as the Business Model Canvas1 or the Operating
Model Canvas,2 to convert the information
gathered as part of the pivots into a business model.
Other frameworks that add value are Porter’s Value
Chain3 and McKinsey’s 7S framework.4 The output
of this step is not a literal model but a collection of
data points from the corporate business model and
current state required to build the operating model.
Second step: Operating model
The operating model is an extension of the business
model. It addresses how people, process
and technology elements are integrated and
standardized.
❙ Integration: This is the most difficult part, as it
connects various business units including third
parties. The integration of data is primarily at
the process level (both between and across
processes) to enable end-to-end transaction
processing and a 360-degree view of the
customer. The objective is to identify the core
processes and determine the level/type of
The data value chain
Data ingestion/
data integration
Data modeling/
reporting
Analytics &
Visualization
Data preparation/
data synthesis
Data
provisioning
Data acquisition/
Data generation
Business value
Enterprise data management Enterprise data analytics
Figure 3
Cognizant 20-20 Insights
5  /  Building an Effective & Extensible Data & Analytics Operating Model
integration required for end-to-end functioning
to enable increased efficiency, coordination,
transparency and agility (see Figure 4).
A good starting point is to create a cross-functional
process map, enterprise bus matrix, activity-
based map or competency map to understand
the complexity of core processes and data. In our
experience, tight integration between processes and
functions can enable various functionalities like self-
service, process automation, data consolidation, etc.
❙
❙ Standardization: During process execution,
data is being generated. Standardization ensures
the data is consistent (e.g., format), no matter
where (the system), who (the trigger), what
(the process) or how (data generation process)
within the enterprise. Determine what elements
in each process need standardization and the
extent required. Higher levels of standardization
can lead to higher costs and lower flexibility, so
striking a balance is key.
Creating a reference data & analytics
operating model
The reference operating model (see Figure 5) is
customizable, but will remain largely intact at this
level. As the nine components are detailed, the
model will change substantially. It is common to see
three to four iterations before the model is elaborate
enough for execution.
Figure 4
Integration & standardization
Cross-functional process map
Data standardization requirements
Data map: field services
Business process/data domain mapping
Customer
Product
Equipment
Order
Work management
Billing & invoice
Employee
Location
Transmission & distribution
Field services
Metering
Installation services
Services
Customer interaction
Billing & payment processing
Customer administration
Service request management
Third-party settlement
Receivables management
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
<attributelevelstandardizationrules&processlevelstandardizationrequirements>
x x x x
x x x
x x x x x x x
x x x x x
x x x
X x x x x
x x x x x x x
x x x x
X x x
Customer
Product
Equipment
Order
Work
management
Billing
&
invoice
Employee
Location
Cognizant 20-20 Insights
6  /  Building an Effective & Extensible Data & Analytics Operating Model
Figure 5
Reference data & analytics operating model (Level 1)
For anyone looking to design a data and analytics
operating model, Figure 5 is an excellent starting
point as it has all the key components and areas.
Final step: Operating model
architecture
Diverse stakeholders often require different views
of the operating model for different reasons. As
there is no one “correct” view of the operating
model, organizations may need to create variants
to fulfill everyone’s needs. A good example is
comparing what a CEO will look for (e.g., strategic
insights) versus what a CIO or COO would look
for (e.g., an operating model architecture). To
accommodate these variations, modeling tools like
Archimate
5
will help create those different views
quickly. Since the architecture can include many
objects and relations over time, such tools will help
greatly in maintaining the operating model.
The objective is to blend process and technology
to achieve the end objective. This means using
documentation of operational processes aligned to
industry best practices like Six Sigma, ITIL, CMM, etc.
for functional areas. At this stage it is also necessary
to define the optimal staffing model with the right
skill sets. In addition, we take a closer look at what the
organization has and what it needs, always keeping
value and efficiency as the primary goal. Striking the
right balance is key as it can become expensive to
attain even a small return on investment.
Each of the core components in Figure 5 needs
to be detailed at this point, in the form of a
checklist, template, process, RACIF, performance
Business units / functions Customer / employee Third party (vendor/supplier) Regulatory compliance Industry value chain
Manage governance
Manage project lifecycle
It
Business
Process
Organization
Channel
Data
Technology
People 5a.
Strategy,
Plan & align
5b.
Analyze &
define
5c.
Architecture
design
5d.
Detailed
design
5e.
Iterative
development
5f.
Iterative
Testing
5g.
Rollout &
transition
5h.
Sustain &
govern
Manage technology/platform
A. Manage demand/requirements + b. Manage channels
Manage process
Manage data
Manage data services
4a. Data management services 4b. Data analytics services
1
2
3
4
5
6
9
Manage
support
Manage
change
3a. Data acquisition/
data generation
3b. Data provisioning/
data storage
3c. Data preparation/
data synthesis
3d. Data ingestion/
data integration
3e. Data modeling/
reporting
3f. Data analytics &
visualization
8
7
Cognizant 20-20 Insights
7  /  Building an Effective & Extensible Data & Analytics Operating Model
Figure 6
Sampling of subcomponents: An illustrative view
metrics, etc. as applicable. the detailing of three
subcomponents one level down. Subsequent
levels involve detailing each block in Figure 6 until
task/activity level granularity is reached.
The operating model components
The nine components shown in Figure 5 will be
present in one form or another, regardless of the
industry or the organization of business units.
Like any other operating model, the data and
analytics model also involves people, process and
technology, but from a data lens.
❙ Component 1: Manage process: If an
enterprise-level business operating model exists,
this component would act as the connector/
Component 1: Manage Process: If an enterprise-
level business operating model exists, this
component would act as the connector/bridge
between the data world and the business world.
Every business unit has a set of core processes
that generate data through various channels.
Operational efficiency and the enablement
of capabilities depend on the end-to-end
management and control of these processes.
For example, the quality of data and reporting
capability depends on the extent of coupling
between the processes.
❙ Component 2: Manage demand/require-
ments & manage channel: Business units are
normally thirsty for insights and require different
types of data from time to time. Effectively
managing these demands through a formal
prioritization process is mandatory to avoid
duplication of effort, enable faster turnaround
and direct dollars to the right initiative.
Data/Information governance
Manage governance
Manage technology/platform
Technology, application, platform
a. Manage demand/requirements
Data checklist & templates
Business/Systemrequirements
Requirementstraceabilitymatrix
Business IT alignment
Process/Data flows
Infrastructure
Support requirements
Regulatory & compliance
Effort & ROI estimation
Value proposition matrix
Business case justification
RACI matrix
Wireframes/Templates
Meta model representation
Infrastructure
Tool/Vendor selection model
Staffing
Application inventory
Policy, process & procedures
KPI/Metrics
RACI/CRUD
Standards & controls
Framework & methodology
Issue management
DG organization model
Charter
Capacity
Backup & disaster recovery
Data center operations
License & renewals
Backup & disaster recovery
Security & access management
Usability requirements
Benefit/Value realization
Impact/Dependency analysis
2 6
9
Business units are normally thirsty for insights and require different
types of data from time to time. Effectively managing these
demands through a formal prioritization process is mandatory to
avoid duplication of effort, enable faster turnaround and direct
dollars to the right initiative.
Cognizant 20-20 Insights
8  /  Building an Effective & Extensible Data & Analytics Operating Model
❙
❙ Component 3: Manage data: This component
manages and controls the data generated by
the processes from cradle to grave. In other
words, the processes, procedures, controls and
standards around data, required to source, store,
synthesize, integrate, secure, model and report it.
The complexity of this component depends on
the existing technology landscape and the three
v’s of data: volume, velocity and variety. For a fairly
centralized or single stack setup with a limited
number of complementary tools and technology
proliferation, this is straightforward. For many
organizations, the people and process elements
can become costly and time-consuming to build.
	 To enable certain advanced capabilities, the
architect’s design and detail are major parts of
this component. Each of the five subcomponents
requires a good deal of due diligence in
subsequent levels, especially to enable “as-a-
service” and “self-service” capabilities.
❙
❙ Component 4a: Data management services:
Data management is a broad area, and each
subcomponent is unique. Given exponential
data growth and use cases around data, the
ability to independently trigger and manage
each of the subcomponents is vital. Hence,
enabling each subcomponent as a service adds
value. While detailing the subcomponents,
architects get involved to ensure the process
can handle all types of data and scenarios. Each
of the subcomponents will have its set of policy,
process, controls, frameworks, service catalog
and technology components.
	 Enablement of some of the capabilities as a
service and the extent to which it can operate
depends on the design of Component 3. It is
common to see a few IOMs in place before the
subcomponents mature.
❙
❙ Component 4b: Data analytics services:
Deriving trustable insights from data
captured across the organization is not easy.
Every organization and business unit has its
requirement and priority. Hence, there is no
one-size-fits-all method. In addition, with
advanced analytics such as those built around
machine-learning (ML) algorithms, natural
language processing (NLP) and other forms of
artificial intelligence (AI), a standard model is
not possible. Prior to detailing this component,
it is mandatory to understand clearly what the
business wants and how your team intends to
deliver it. Broadly, the technology stack and data
foundation determine the delivery method and
extent of as-a-service capabilities.
	 Similar to Component 4a, IOMs help achieve the
end goal in a controlled manner. The interaction
model will focus more on how the analytics
team will work with the business to find, analyze
and capture use cases/requirements from the
industry and business units. The decision on the
setup — centralized vs. federated — will influence
the design of subcomponents.
Cognizant 20-20 Insights
9  /  Building an Effective & Extensible Data & Analytics Operating Model
❙
❙ Component 5: Manage project lifecycle: The
project lifecycle component accommodates
projects of Waterfall, Agile and/or hybrid
nature. Figure 5 depicts a standard project
lifecycle process. However, this is customizable
or replaceable with your organization’s existing
model. In all scenarios, the components require
detailing from a data standpoint. Organizations
that have an existing program management
office (PMO) can leverage what they already
have (e.g., prioritization, checklist, etc.) and
supplement the remaining requirements.
	 The interaction model design will help support
servicing of as-a-service and on-demand data
requests from the data and analytics side during
the regular program/project lifecycle.
❙
❙ Component 6: Manage technology/
platform: This component, which addresses
the technology elements, includes IT services
such as shared services, security, privacy and
risk, architecture, infrastructure, data center and
applications (web, mobile, on-premises).
	 As in the previous component, it is crucial to
detail the interaction model with respect to how
IT should operate in order to support the as-a-
service and/or self-service models. For example,
this should include cadence for communication
between various teams within IT, handling of live
projects, issues handling, etc.
❙
❙ Component 7: Manage support: No matter
how well the operating model is designed, the
human dimension plays a crucial role, too. Be it
business, IT or corporate function, individuals’
buy-in and involvement can make or break the
operating model.
	 The typical support groups involved in the
operating-model effort include BA team
(business technology), PMO, architecture
board/group, change management/advisory,
IOMs help achieve the end goal in a controlled manner. The
interaction model will focus more on how the analytics team will
work with the business to find, analyze and capture use cases/
requirements from the industry and business units. The decision
on the setup – centralized vs. federated – will influence the design
of subcomponents.
Cognizant 20-20 Insights
10  /  Building an Effective & Extensible Data & Analytics Operating Model
training and release management teams, the
infrastructure support group, IT applications team
and corporate support group (HR, finance, etc.).
Organization change management (OCM) is a
critical but often overlooked component. Without
it, the entire transformation exercise can fail.
❙
❙ Component 8: Manage change: This
component complements the support
component by providing the processes,
controls and procedures required to manage
and sustain the setup from a data perspective.
This component manages both data change
management and OCM. Tight integration
between this and all the other components is
key. Failure to define these interaction models
will result in limited scalability, flexibility and
robustness to accommodate change.
	 The detailing of this component will determine
the ease of transitioning from an existing
operating model to a new operating model
(transformation) or of bringing additions to the
existing operating model (enhancement).
❙
❙ Component 9: Manage governance:
Governance ties all the components together,
and thus is responsible for achieving the
synergies needed for operational excellence.
Think of it as the carriage driver that steers the
horses. Although each component is capable
of functioning without governance, over time
they can become unmanageable and fail. Hence,
planning and building governance into the DNA
of the operating model adds value.
	 The typical governance areas to be detailed
include data/information governance
framework, charter, policy, process, controls
standards, and the architecture to support
enterprise data governance.
Intermediate operating models (IOMs)
As mentioned above, an organization can create as
many IOMs as it needs to achieve its end objectives.
Though there is no one right answer to the question
of optimal number of IOMs, it is better to have no
more than two IOMs in a span of one year, to give
sufficient time for model stabilization and adoption.
The key factors that influence IOMs are budget,
regulatory pressure, industrial and technology
disruptions, and the organization’s risk appetite.
The biggest benefit of IOMs lies in their phased
approach, which helps balance short-term priorities,
manage risks associated with large transformations
and satisfy the expectation of top management to
see tangible benefits at regular intervals for every
dollar spent.
Cognizant 20-20 Insights
11  /  Building an Effective & Extensible Data & Analytics Operating Model
To succeed with IOMs, organizations need a tested
approach that includes the following critical
success factors:
❙
❙ Clear vision around data and analytics.
❙
❙ Understanding of the problems faced by
customers, vendors/suppliers and employees.
❙
❙ Careful attention paid to influencers.
❙
❙ Trusted facts and numbers for insights and
interpretation.
❙
❙ Understanding that the organization cannot
cover all aspects (in breadth) on the first attempt.
❙
❙ Avoidance of emotional attachment to the
process, or of being too detail-oriented.
❙
❙ Avoidance of trying to design an operating
model optimized for everything.
❙
❙ Avoidance of passive governance — as achieving
active governance is the goal.
Figure 7
DAOM (Level 2)
Manage
Support
Business units/functions Customer/Employee Third party (Vendor/Supplier) Regulatory compliance Industry value chain
Manage governance
Manage Project Lifecycle
IT
Business
Process
Organization
Channel
Data
Technology
People
5a.
Strategy
5b.
Analyze
5c.
Architecture
5d.
Design
5e.
Develop
5f.
Test
5g.
Transition
5h.
Sustain
Manage technology/platform
Manage
change
a. Manage Demand/Requirements + b. Manage Channels
Manage Process
Manage Data
Manage Data Services
1
2
3
4
5
6
9
8
7
Plan & Align Define Operate
Deliver
Design
Business
alignment
checklist
Business case,
Use case prioritization,
Requirements detailing
& analysis
IT / Data
alignment
checklist
Process definition
Stakeholder
involvement matrix
Delivery channel
(UX/UI)
Data identification
& collection
Use case elaboration
Workflow design
Process design
RACI / CRUD
UX/UI design
Proof of
concept (Pilot)
Workflow devl.
Process devl.
Configuration
KM base
Handover
Knowledge
transfer &
training
User
acceptance
testing
Process &
workflow
testing
UX/UI testing
IT solution
testing &
deployment
UX/UI
enhancements
Process
/Workflow
improvements
Enhancements
& upgrades
Data
provisioning
Development
&
configuration
OCM
impact
assessment
Training
IT solution design,
model design
& selection
Data profiling &
Data quality
Master data management
infrastructure
Operations Finance Fiserv FERC Generation Transmission Distribution
NERC
Potelco
Sales ...
4a. Data management services
4a.1. Metadata management
4a.2. Master data management
4a.3 Data quality management
4a.4. Information lifecycle management
4a.5. Data security & privacy
4a.6. Audit and compliance
4a.7 Backup & disaster recovery
Structured
data
Un-structured
data
4b. Data Analytics Services
4b.2 Search & discovery (Self-service)
4b.3 Visualization & UI/UX
4b.4. Cognitive
4b.5. Predictive & prescriptive
4b.6. Descriptive & diagnostic
4b.1. AI, IoT, Big data & blockchain
8a. Process
8b. Controls
8c. Framework
7a.
BA services
7b.
Architecture
7c.
Research
7d.
Release mgmt.
7e.
Infrastructure
7f. Training
7g. PMO
7h. OCM
7i. IT
7j. Security
Defensive
Offensive
3a. Data acquisition/
Data generation
3b. Data provisioning/
Data storage
3c. Data preparation/
Data synthesis
3d. Data ingestion/
Data integration
3e. Data modeling/
reporting
3f. Data analytics &
visualization
Cognizant 20-20 Insights
12  /  Building an Effective & Extensible Data & Analytics Operating Model
Figure 8
Methodology: The big picture view
Step 1
Business
model
(Precursory
steps)
Step 2
Operating
model
(data
focused)
Step 3
Operating
model
architecture
Extract
data points
Reference
points
Level 1:
Customized data
& analytics operating
model (daom)
Level 2:
DAOM
Level 3:
DAOM
Data &
analytics vision
Integration &
standardization
Level 1 daom
(illustrative)
Reference data &
analytics model
Design
principles
Current state
(data) Influencers
Each subcomponent in level 2 is detailed as required from a people, process and
technology standpoint. The physicalization/implementation of the same for
some subcomponents can get into the next level of detail (level 4).
Data
domains
Core
processes
Entities &
relationships
Information
architecture
Manage support
Manage change
Manage governance
The
pivots
Manage process
Manage demand
Manage data
Manage data services
Manage project
lifecycle
Manage technology
Issue
Register/
tool
Governance
Structure
Raci,
r&r
& skillset
Conceptual &
Logical
data models
Kpi/
metrics,
thresholds
Issue
management
& reporting
Issue
resolution
process
Corporate business model (existing)
1
2
3
4
5
6 9
8
7
...
Cognizant 20-20 Insights
13  /  Building an Effective & Extensible Data & Analytics Operating Model
Moving forward
Two factors deserve highlighting: First, as
organizations establish new business ventures and
models to support their go-to-market strategies,
their operating models may also require changes.
However, a well-designed operating model will
be adaptive enough to new developments that it
should not change frequently.
Second, the data-to-insight lifecycle is a very
complex and sophisticated process given the
constantly changing ways of collecting and
processing data. Furthermore, at a time when
complex data ecosystems are rapidly evolving and
organizations are hungry to use all available data
for competitive advantage, enabling things such
as data monetization and insight-driven decision-
making becomes a daunting task. This is where a
robust data and analytics operating model shines.
According to a McKinsey Global Institute report,
“The biggest barriers companies face in extracting
value from data and analytics are organizational.”
6
Hence, organizations must prioritize and focus on
people and processes as much as on technological
aspects. Just spending heavily on the latest
technologies to build data and analytics capabilities
will not help, as it will lead to chaos, inefficiencies
and poor adoption. Though there is no one-size-
fits-all approach, the material above provides key
principles that, when adopted, can provide optimal
outcomes for increased agility, better operational
efficiency and smoother transitions.
Cognizant 20-20 Insights
14  /  Building an Effective & Extensible Data & Analytics Operating Model
Endnotes
1	 A tool that allows one to describe, design, challenge and pivot the business model in a straightforward, structured way.
Created by Alexander Osterwalder, of Strategyzer.
2	 Operating model canvas helps to capture thoughts about how to design operations and organizations that will deliver
a value proposition to a target customer or beneficiary. It helps translate strategy into choices about operations and
organizations. Created by Andrew Campbell, Mikel Gutierrez and Mark Lancelott.
3	 First described by Michael E. Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior
Performance. This is a general-purpose value chain to help organizations understand their own sources of value — i.e., the
set of activities that helps an organization to generate value for its customers.
4	 The 7S framework is based on the theory that for an organization to perform well, the seven elements (structure, strategy,
systems, skills, style, staff and shared values) need to be aligned and mutually reinforcing. The model helps identify what
needs to be realigned to improve performance and/or to maintain alignment.
5	 ArchiMate is a technical standard from The Open Group and is based on the concepts of the IEEE 1471 standard. This
is an open and independent enterprise architecture modeling language. For more information: www.opengroup.org/
subjectareas/enterprise/archimate-overview.
6	 The age of analytics: Competing in a data-driven world. Retrieved from www.mckinsey.com/~/media/McKinsey/
Business%20Functions/McKinsey%20Analytics/Our%20Insights/The%20age%20of%20analytics%20Competing%20
in%20a%20data%20driven%20world/MGI-The-Age-of-Analytics-Full-report.ashx.
References
•	 https:/
/strategyzer.com/canvas/business-model-canvas.
•	 https:/
/operatingmodelcanvas.com/.
•	 Enduring Ideas: The 7-S Framework, McKinsey Quarterly, www.mckinsey.com/business-functions/strategy-and-
corporate-finance/our-insights/enduring-ideas-the-7-s-framework.
•	 www.opengroup.org/subjectareas/enterprise/archimate-overview.
Cognizant 20-20 Insights
15  /  Building an Effective  Extensible Data  Analytics Operating Model
About the authors
Jayakumar Rajaretnam
Senior Manager, AI and Analytics Practice, Cognizant Consulting
Jayakumar Rajaretnam is a Senior Manager within Cognizant Consulting’s AI and Analytics Practice. He
has 13 years of experience working on business intelligence (BI), data management, data governance
and operating model engagements across industries (hospitality, telecom, banking and utilities) and
geographies (India, APAC, Middle East, UK and the U.S.). Jayakumar is a Six Sigma green belt, holds an
MBA from SP Jain Center of Management, Dubai-Singapore and a B.Tech. from University of Madras. He
can be reached at Jayakumar.Rajaretnam@cognizant.com | www.linkedin.com/in/jayakumarr.
Mohit Vijay
Senior Consultant, AI and Analytics Practice, Cognizant Consulting
Mohit Vijay is a Senior Consultant within Cognizant Consulting’s AI and Analytics Practice. He has seven-
plus years of consulting and product/program management experience in providing BI, data strategy and
business analytics advisory to clients across industries including retail, hospitality and technology. Mohit
holds an MBA from SP Jain, Mumbai, and a B.Tech. from Rajasthan University. He can be reached at Mohit.
Vijay@cognizant.com | www.linkedin.com/in/mohit-vijay-57510b6/.
© Copyright 2019, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical,
photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks
mentioned herein are the property of their respective owners.
Codex 3579.02
World Headquarters
500 Frank W. Burr Blvd.
Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
Fax: +1 201 801 0243
Toll Free: +1 888 937 3277
European Headquarters
1 Kingdom Street
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London W2 6BD England
Phone: +44 (0) 20 7297 7600
Fax: +44 (0) 20 7121 0102
India Operations Headquarters
#5/535 Old Mahabalipuram Road
Okkiyam Pettai, Thoraipakkam
Chennai, 600 096 India
Phone: +91 (0) 44 4209 6000
Fax: +91 (0) 44 4209 6060
About Cognizant Consulting
With over 5,500 consultants worldwide, Cognizant Consulting offers high-value digital business and IT consulting services that improve business
performance and operational productivity while lowering operational costs. Clients leverage our deep industry experience, strategy and transformation
capabilities, and analytical insights to help enhance productivity, drive business transformation and increase shareholder value across the enterprise. To
learn more, please visit www.cognizant.com/consulting or e-mail us at inquiry@cognizant.com.
About Cognizant Digital Business
Cognizant Digital Business helps our clients imagine and build the Digital Economy. We do this by bringing together human insight, digital strategy,
industry knowledge, design and new technologies to create new experiences and launch new business models. For more information, please visit www.
cognizant.com/digital or join the conversation on LinkedIn.
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology
models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient business-
es. Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world.
Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.

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Building an effective and extensible data and analytics operating model

  • 1. Digital Business Building an Effective & Extensible Data & Analytics Operating Model To keep pace with ever-present business and technology change and challenges, organizations need operating models built with a strong data and analytics foundation. Here’s how your organization can build one incorporating a range of key components and best practices to quickly realize your business objectives. Executive Summary Tosucceedintoday’shypercompetitiveglobaleconomy, organizationsmustembraceinsight-drivendecision-making. Thisenablesthemtoquicklyanticipateandenforcebusiness changewithconstantandeffectiveinnovationthatswiftly incorporatestechnologicaladvanceswhereappropriate.The pivottodigital,consumer-mindednewregulationsaround dataprivacyandthecompellingneedforgreaterlevelsof dataqualitytogetherareforcingorganizationstoenact bettercontrolsoverhowdataiscreated,transformed,stored andconsumedacrosstheextendedenterprise. Chiefdata/analyticsofficerswhoaredirectlyresponsibleforthe sanctityandsecurityofenterprisedataarestrugglingtobridge thegapbetweentheirdatastrategies,day-to-dayoperations andcoreprocesses.Thisiswhereanoperatingmodelcanhelp. Itprovidesacommonview/definitionofhowanorganization shouldoperatetoconvertitsbusinessstrategytooperational design.Whilesomematureorganizationsinheavilyregulated sectors(e.g.,financialservices),andfast-pacedsectors(e.g., retail)aretweakingtheirexistingoperatingmodels,younger organizationsarecreatingoperatingmodelswithdataand analyticsasthebackbonetomeettheirbusinessobjectives. This white paper provides a framework along with a set of must-have components for building a data and analytics operating model (or customizing an existing model). Cognizant 20-20 Insights August 2018
  • 2. The starting point: Methodology Eachorganizationisunique,withitsown specificdataandanalyticsneeds.Differentsetsof capabilitiesareoftenrequiredtofilltheseneeds.For thisreason,creatinganoperatingmodelblueprintis anart,andisnotrivialmatter.Thefollowingsystematic approachtobuilding itwillensurethefinalproduct worksoptimallyforyourorganization. Buildingtheoperatingmodelisathree-stepprocess startingwiththebusinessmodel(focusondata) followedbyoperatingmodeldesignandthen architecture.However,thereisaprecursorystep, called“thepivots,”tocapturethecurrentstateand extractdatapointsfromthebusinessmodelpriorto designingthedataandanalyticsoperatingmodel. Understandingkeyelementsthatcaninfluencethe overalloperatingmodelisthereforeanimportant considerationfromtheget-go(asFigure1illustrates). Theoperatingmodeldesignfocusesonintegration andstandardization,whiletheoperatingmodel architectureprovidesadetailedbutstillabstractview oforganizinglogicforbusiness,dataandtechnology. Insimpleterms,thispertainstothecrystallizationofthe designapproachforvariouscomponents,including theinteractionmodelandprocessoptimization. Preliminary step: The pivots No two organizations are identical, and the operating model can differ based on a number of parameters — or pivots — that influence the operating model design. These parameters fall into three broad buckets: ❙ ❙ Design principles: These set the foundation for target state definition, operation and implementation. Creating a data vision statement, therefore, will have a direct impact on the model’s design principles. Keep in mind, effective design principles will leverage all existing organizational capabilities and resources to the extent possible. In addition, they will be reusable despite disruptive technologies and industrial advancements. So these principles should not contain any generic statements, like “enable better visualization,” that are difficult to measure or so particular to your organization that operating-model evaluation is contingent upon them. The principles can address areas such as efficiency, cost, satisfaction, governance, technology, performance metrics, etc. Cognizant 20-20 Insights 2  /  Building an Effective & Extensible Data & Analytics Operating Model Sequence of operating model development The pivots (current state) Preliminary Business model Step 1 Step 2 Operating model architecture Step 3 Operating model Figure 1
  • 3. Cognizant 20-20 Insights 3  /  Building an Effective & Extensible Data & Analytics Operating Model ❙ ❙ Current state:Gaugingthematurityofdataand relatedcomponents—whichisvitaltodesigning therightmodel—demandsatwo-pronged approach:topdownandbottomup.Thereason? Findingswillrevealkeyleversthatrequireattention andaroundofprioritization,whichinturncan movedecision-makerstoseeifintermediate operatingmodels(IOMs)arerequired. ❙ ❙ Influencers: Influencers fall into three broad categories: internal, external and support. Current-state assessment captures these details, requiring team leaders to be cognizant of these parameters prior to the operating-model design (see Figure 2). The “internal” category captures detail at the organization level. ”External” highlights the organization’s focus and factors that can affect the organization. And “support factor” provides insights into how much complexity and effort will be required by the transformation exercise. Operating model influencers • Data & analytics vision • Geography, spread & culture • Organization setup (flat vs. consensus; product-driven vs. function-driven) • Position in value chain • Value proposition • Customer/business segment & communication channels • Competition (monopoly vs. oligopoly) • Regulatory influence Internal • Change impact index (employee) • Technology landscape • Revenue & headcount • Management commitment and funding Support factor External Figure 2
  • 4. Cognizant 20-20 Insights 4  /  Building an Effective & Extensible Data & Analytics Operating Model First step: Business model A business model describes how an enterprise leverages its products/services to deliver value, as well as generate revenue and profit. Unlike a corporate business model, however, the objective here is to identify all core processes that generate data. In addition, the business model needs to capture all details from a data lens — anything that generates or touches data across the entire data value chain (see Figure 3). We recommend that organizations leverage one or more of the popular strategy frameworks, such as the Business Model Canvas1 or the Operating Model Canvas,2 to convert the information gathered as part of the pivots into a business model. Other frameworks that add value are Porter’s Value Chain3 and McKinsey’s 7S framework.4 The output of this step is not a literal model but a collection of data points from the corporate business model and current state required to build the operating model. Second step: Operating model The operating model is an extension of the business model. It addresses how people, process and technology elements are integrated and standardized. ❙ Integration: This is the most difficult part, as it connects various business units including third parties. The integration of data is primarily at the process level (both between and across processes) to enable end-to-end transaction processing and a 360-degree view of the customer. The objective is to identify the core processes and determine the level/type of The data value chain Data ingestion/ data integration Data modeling/ reporting Analytics & Visualization Data preparation/ data synthesis Data provisioning Data acquisition/ Data generation Business value Enterprise data management Enterprise data analytics Figure 3
  • 5. Cognizant 20-20 Insights 5  /  Building an Effective & Extensible Data & Analytics Operating Model integration required for end-to-end functioning to enable increased efficiency, coordination, transparency and agility (see Figure 4). A good starting point is to create a cross-functional process map, enterprise bus matrix, activity- based map or competency map to understand the complexity of core processes and data. In our experience, tight integration between processes and functions can enable various functionalities like self- service, process automation, data consolidation, etc. ❙ ❙ Standardization: During process execution, data is being generated. Standardization ensures the data is consistent (e.g., format), no matter where (the system), who (the trigger), what (the process) or how (data generation process) within the enterprise. Determine what elements in each process need standardization and the extent required. Higher levels of standardization can lead to higher costs and lower flexibility, so striking a balance is key. Creating a reference data & analytics operating model The reference operating model (see Figure 5) is customizable, but will remain largely intact at this level. As the nine components are detailed, the model will change substantially. It is common to see three to four iterations before the model is elaborate enough for execution. Figure 4 Integration & standardization Cross-functional process map Data standardization requirements Data map: field services Business process/data domain mapping Customer Product Equipment Order Work management Billing & invoice Employee Location Transmission & distribution Field services Metering Installation services Services Customer interaction Billing & payment processing Customer administration Service request management Third-party settlement Receivables management <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> <attributelevelstandardizationrules&processlevelstandardizationrequirements> x x x x x x x x x x x x x x x x x x x x x x X x x x x x x x x x x x x x x x X x x Customer Product Equipment Order Work management Billing & invoice Employee Location
  • 6. Cognizant 20-20 Insights 6  /  Building an Effective & Extensible Data & Analytics Operating Model Figure 5 Reference data & analytics operating model (Level 1) For anyone looking to design a data and analytics operating model, Figure 5 is an excellent starting point as it has all the key components and areas. Final step: Operating model architecture Diverse stakeholders often require different views of the operating model for different reasons. As there is no one “correct” view of the operating model, organizations may need to create variants to fulfill everyone’s needs. A good example is comparing what a CEO will look for (e.g., strategic insights) versus what a CIO or COO would look for (e.g., an operating model architecture). To accommodate these variations, modeling tools like Archimate 5 will help create those different views quickly. Since the architecture can include many objects and relations over time, such tools will help greatly in maintaining the operating model. The objective is to blend process and technology to achieve the end objective. This means using documentation of operational processes aligned to industry best practices like Six Sigma, ITIL, CMM, etc. for functional areas. At this stage it is also necessary to define the optimal staffing model with the right skill sets. In addition, we take a closer look at what the organization has and what it needs, always keeping value and efficiency as the primary goal. Striking the right balance is key as it can become expensive to attain even a small return on investment. Each of the core components in Figure 5 needs to be detailed at this point, in the form of a checklist, template, process, RACIF, performance Business units / functions Customer / employee Third party (vendor/supplier) Regulatory compliance Industry value chain Manage governance Manage project lifecycle It Business Process Organization Channel Data Technology People 5a. Strategy, Plan & align 5b. Analyze & define 5c. Architecture design 5d. Detailed design 5e. Iterative development 5f. Iterative Testing 5g. Rollout & transition 5h. Sustain & govern Manage technology/platform A. Manage demand/requirements + b. Manage channels Manage process Manage data Manage data services 4a. Data management services 4b. Data analytics services 1 2 3 4 5 6 9 Manage support Manage change 3a. Data acquisition/ data generation 3b. Data provisioning/ data storage 3c. Data preparation/ data synthesis 3d. Data ingestion/ data integration 3e. Data modeling/ reporting 3f. Data analytics & visualization 8 7
  • 7. Cognizant 20-20 Insights 7  /  Building an Effective & Extensible Data & Analytics Operating Model Figure 6 Sampling of subcomponents: An illustrative view metrics, etc. as applicable. the detailing of three subcomponents one level down. Subsequent levels involve detailing each block in Figure 6 until task/activity level granularity is reached. The operating model components The nine components shown in Figure 5 will be present in one form or another, regardless of the industry or the organization of business units. Like any other operating model, the data and analytics model also involves people, process and technology, but from a data lens. ❙ Component 1: Manage process: If an enterprise-level business operating model exists, this component would act as the connector/ Component 1: Manage Process: If an enterprise- level business operating model exists, this component would act as the connector/bridge between the data world and the business world. Every business unit has a set of core processes that generate data through various channels. Operational efficiency and the enablement of capabilities depend on the end-to-end management and control of these processes. For example, the quality of data and reporting capability depends on the extent of coupling between the processes. ❙ Component 2: Manage demand/require- ments & manage channel: Business units are normally thirsty for insights and require different types of data from time to time. Effectively managing these demands through a formal prioritization process is mandatory to avoid duplication of effort, enable faster turnaround and direct dollars to the right initiative. Data/Information governance Manage governance Manage technology/platform Technology, application, platform a. Manage demand/requirements Data checklist & templates Business/Systemrequirements Requirementstraceabilitymatrix Business IT alignment Process/Data flows Infrastructure Support requirements Regulatory & compliance Effort & ROI estimation Value proposition matrix Business case justification RACI matrix Wireframes/Templates Meta model representation Infrastructure Tool/Vendor selection model Staffing Application inventory Policy, process & procedures KPI/Metrics RACI/CRUD Standards & controls Framework & methodology Issue management DG organization model Charter Capacity Backup & disaster recovery Data center operations License & renewals Backup & disaster recovery Security & access management Usability requirements Benefit/Value realization Impact/Dependency analysis 2 6 9
  • 8. Business units are normally thirsty for insights and require different types of data from time to time. Effectively managing these demands through a formal prioritization process is mandatory to avoid duplication of effort, enable faster turnaround and direct dollars to the right initiative. Cognizant 20-20 Insights 8  /  Building an Effective & Extensible Data & Analytics Operating Model ❙ ❙ Component 3: Manage data: This component manages and controls the data generated by the processes from cradle to grave. In other words, the processes, procedures, controls and standards around data, required to source, store, synthesize, integrate, secure, model and report it. The complexity of this component depends on the existing technology landscape and the three v’s of data: volume, velocity and variety. For a fairly centralized or single stack setup with a limited number of complementary tools and technology proliferation, this is straightforward. For many organizations, the people and process elements can become costly and time-consuming to build. To enable certain advanced capabilities, the architect’s design and detail are major parts of this component. Each of the five subcomponents requires a good deal of due diligence in subsequent levels, especially to enable “as-a- service” and “self-service” capabilities. ❙ ❙ Component 4a: Data management services: Data management is a broad area, and each subcomponent is unique. Given exponential data growth and use cases around data, the ability to independently trigger and manage each of the subcomponents is vital. Hence, enabling each subcomponent as a service adds value. While detailing the subcomponents, architects get involved to ensure the process can handle all types of data and scenarios. Each of the subcomponents will have its set of policy, process, controls, frameworks, service catalog and technology components. Enablement of some of the capabilities as a service and the extent to which it can operate depends on the design of Component 3. It is common to see a few IOMs in place before the subcomponents mature. ❙ ❙ Component 4b: Data analytics services: Deriving trustable insights from data captured across the organization is not easy. Every organization and business unit has its requirement and priority. Hence, there is no one-size-fits-all method. In addition, with advanced analytics such as those built around machine-learning (ML) algorithms, natural language processing (NLP) and other forms of artificial intelligence (AI), a standard model is not possible. Prior to detailing this component, it is mandatory to understand clearly what the business wants and how your team intends to deliver it. Broadly, the technology stack and data foundation determine the delivery method and extent of as-a-service capabilities. Similar to Component 4a, IOMs help achieve the end goal in a controlled manner. The interaction model will focus more on how the analytics team will work with the business to find, analyze and capture use cases/requirements from the industry and business units. The decision on the setup — centralized vs. federated — will influence the design of subcomponents.
  • 9. Cognizant 20-20 Insights 9  /  Building an Effective & Extensible Data & Analytics Operating Model ❙ ❙ Component 5: Manage project lifecycle: The project lifecycle component accommodates projects of Waterfall, Agile and/or hybrid nature. Figure 5 depicts a standard project lifecycle process. However, this is customizable or replaceable with your organization’s existing model. In all scenarios, the components require detailing from a data standpoint. Organizations that have an existing program management office (PMO) can leverage what they already have (e.g., prioritization, checklist, etc.) and supplement the remaining requirements. The interaction model design will help support servicing of as-a-service and on-demand data requests from the data and analytics side during the regular program/project lifecycle. ❙ ❙ Component 6: Manage technology/ platform: This component, which addresses the technology elements, includes IT services such as shared services, security, privacy and risk, architecture, infrastructure, data center and applications (web, mobile, on-premises). As in the previous component, it is crucial to detail the interaction model with respect to how IT should operate in order to support the as-a- service and/or self-service models. For example, this should include cadence for communication between various teams within IT, handling of live projects, issues handling, etc. ❙ ❙ Component 7: Manage support: No matter how well the operating model is designed, the human dimension plays a crucial role, too. Be it business, IT or corporate function, individuals’ buy-in and involvement can make or break the operating model. The typical support groups involved in the operating-model effort include BA team (business technology), PMO, architecture board/group, change management/advisory,
  • 10. IOMs help achieve the end goal in a controlled manner. The interaction model will focus more on how the analytics team will work with the business to find, analyze and capture use cases/ requirements from the industry and business units. The decision on the setup – centralized vs. federated – will influence the design of subcomponents. Cognizant 20-20 Insights 10  /  Building an Effective & Extensible Data & Analytics Operating Model training and release management teams, the infrastructure support group, IT applications team and corporate support group (HR, finance, etc.). Organization change management (OCM) is a critical but often overlooked component. Without it, the entire transformation exercise can fail. ❙ ❙ Component 8: Manage change: This component complements the support component by providing the processes, controls and procedures required to manage and sustain the setup from a data perspective. This component manages both data change management and OCM. Tight integration between this and all the other components is key. Failure to define these interaction models will result in limited scalability, flexibility and robustness to accommodate change. The detailing of this component will determine the ease of transitioning from an existing operating model to a new operating model (transformation) or of bringing additions to the existing operating model (enhancement). ❙ ❙ Component 9: Manage governance: Governance ties all the components together, and thus is responsible for achieving the synergies needed for operational excellence. Think of it as the carriage driver that steers the horses. Although each component is capable of functioning without governance, over time they can become unmanageable and fail. Hence, planning and building governance into the DNA of the operating model adds value. The typical governance areas to be detailed include data/information governance framework, charter, policy, process, controls standards, and the architecture to support enterprise data governance. Intermediate operating models (IOMs) As mentioned above, an organization can create as many IOMs as it needs to achieve its end objectives. Though there is no one right answer to the question of optimal number of IOMs, it is better to have no more than two IOMs in a span of one year, to give sufficient time for model stabilization and adoption. The key factors that influence IOMs are budget, regulatory pressure, industrial and technology disruptions, and the organization’s risk appetite. The biggest benefit of IOMs lies in their phased approach, which helps balance short-term priorities, manage risks associated with large transformations and satisfy the expectation of top management to see tangible benefits at regular intervals for every dollar spent.
  • 11. Cognizant 20-20 Insights 11  /  Building an Effective & Extensible Data & Analytics Operating Model To succeed with IOMs, organizations need a tested approach that includes the following critical success factors: ❙ ❙ Clear vision around data and analytics. ❙ ❙ Understanding of the problems faced by customers, vendors/suppliers and employees. ❙ ❙ Careful attention paid to influencers. ❙ ❙ Trusted facts and numbers for insights and interpretation. ❙ ❙ Understanding that the organization cannot cover all aspects (in breadth) on the first attempt. ❙ ❙ Avoidance of emotional attachment to the process, or of being too detail-oriented. ❙ ❙ Avoidance of trying to design an operating model optimized for everything. ❙ ❙ Avoidance of passive governance — as achieving active governance is the goal. Figure 7 DAOM (Level 2) Manage Support Business units/functions Customer/Employee Third party (Vendor/Supplier) Regulatory compliance Industry value chain Manage governance Manage Project Lifecycle IT Business Process Organization Channel Data Technology People 5a. Strategy 5b. Analyze 5c. Architecture 5d. Design 5e. Develop 5f. Test 5g. Transition 5h. Sustain Manage technology/platform Manage change a. Manage Demand/Requirements + b. Manage Channels Manage Process Manage Data Manage Data Services 1 2 3 4 5 6 9 8 7 Plan & Align Define Operate Deliver Design Business alignment checklist Business case, Use case prioritization, Requirements detailing & analysis IT / Data alignment checklist Process definition Stakeholder involvement matrix Delivery channel (UX/UI) Data identification & collection Use case elaboration Workflow design Process design RACI / CRUD UX/UI design Proof of concept (Pilot) Workflow devl. Process devl. Configuration KM base Handover Knowledge transfer & training User acceptance testing Process & workflow testing UX/UI testing IT solution testing & deployment UX/UI enhancements Process /Workflow improvements Enhancements & upgrades Data provisioning Development & configuration OCM impact assessment Training IT solution design, model design & selection Data profiling & Data quality Master data management infrastructure Operations Finance Fiserv FERC Generation Transmission Distribution NERC Potelco Sales ... 4a. Data management services 4a.1. Metadata management 4a.2. Master data management 4a.3 Data quality management 4a.4. Information lifecycle management 4a.5. Data security & privacy 4a.6. Audit and compliance 4a.7 Backup & disaster recovery Structured data Un-structured data 4b. Data Analytics Services 4b.2 Search & discovery (Self-service) 4b.3 Visualization & UI/UX 4b.4. Cognitive 4b.5. Predictive & prescriptive 4b.6. Descriptive & diagnostic 4b.1. AI, IoT, Big data & blockchain 8a. Process 8b. Controls 8c. Framework 7a. BA services 7b. Architecture 7c. Research 7d. Release mgmt. 7e. Infrastructure 7f. Training 7g. PMO 7h. OCM 7i. IT 7j. Security Defensive Offensive 3a. Data acquisition/ Data generation 3b. Data provisioning/ Data storage 3c. Data preparation/ Data synthesis 3d. Data ingestion/ Data integration 3e. Data modeling/ reporting 3f. Data analytics & visualization
  • 12. Cognizant 20-20 Insights 12  /  Building an Effective & Extensible Data & Analytics Operating Model Figure 8 Methodology: The big picture view Step 1 Business model (Precursory steps) Step 2 Operating model (data focused) Step 3 Operating model architecture Extract data points Reference points Level 1: Customized data & analytics operating model (daom) Level 2: DAOM Level 3: DAOM Data & analytics vision Integration & standardization Level 1 daom (illustrative) Reference data & analytics model Design principles Current state (data) Influencers Each subcomponent in level 2 is detailed as required from a people, process and technology standpoint. The physicalization/implementation of the same for some subcomponents can get into the next level of detail (level 4). Data domains Core processes Entities & relationships Information architecture Manage support Manage change Manage governance The pivots Manage process Manage demand Manage data Manage data services Manage project lifecycle Manage technology Issue Register/ tool Governance Structure Raci, r&r & skillset Conceptual & Logical data models Kpi/ metrics, thresholds Issue management & reporting Issue resolution process Corporate business model (existing) 1 2 3 4 5 6 9 8 7 ...
  • 13. Cognizant 20-20 Insights 13  /  Building an Effective & Extensible Data & Analytics Operating Model Moving forward Two factors deserve highlighting: First, as organizations establish new business ventures and models to support their go-to-market strategies, their operating models may also require changes. However, a well-designed operating model will be adaptive enough to new developments that it should not change frequently. Second, the data-to-insight lifecycle is a very complex and sophisticated process given the constantly changing ways of collecting and processing data. Furthermore, at a time when complex data ecosystems are rapidly evolving and organizations are hungry to use all available data for competitive advantage, enabling things such as data monetization and insight-driven decision- making becomes a daunting task. This is where a robust data and analytics operating model shines. According to a McKinsey Global Institute report, “The biggest barriers companies face in extracting value from data and analytics are organizational.” 6 Hence, organizations must prioritize and focus on people and processes as much as on technological aspects. Just spending heavily on the latest technologies to build data and analytics capabilities will not help, as it will lead to chaos, inefficiencies and poor adoption. Though there is no one-size- fits-all approach, the material above provides key principles that, when adopted, can provide optimal outcomes for increased agility, better operational efficiency and smoother transitions.
  • 14. Cognizant 20-20 Insights 14  /  Building an Effective & Extensible Data & Analytics Operating Model Endnotes 1 A tool that allows one to describe, design, challenge and pivot the business model in a straightforward, structured way. Created by Alexander Osterwalder, of Strategyzer. 2 Operating model canvas helps to capture thoughts about how to design operations and organizations that will deliver a value proposition to a target customer or beneficiary. It helps translate strategy into choices about operations and organizations. Created by Andrew Campbell, Mikel Gutierrez and Mark Lancelott. 3 First described by Michael E. Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. This is a general-purpose value chain to help organizations understand their own sources of value — i.e., the set of activities that helps an organization to generate value for its customers. 4 The 7S framework is based on the theory that for an organization to perform well, the seven elements (structure, strategy, systems, skills, style, staff and shared values) need to be aligned and mutually reinforcing. The model helps identify what needs to be realigned to improve performance and/or to maintain alignment. 5 ArchiMate is a technical standard from The Open Group and is based on the concepts of the IEEE 1471 standard. This is an open and independent enterprise architecture modeling language. For more information: www.opengroup.org/ subjectareas/enterprise/archimate-overview. 6 The age of analytics: Competing in a data-driven world. Retrieved from www.mckinsey.com/~/media/McKinsey/ Business%20Functions/McKinsey%20Analytics/Our%20Insights/The%20age%20of%20analytics%20Competing%20 in%20a%20data%20driven%20world/MGI-The-Age-of-Analytics-Full-report.ashx. References • https:/ /strategyzer.com/canvas/business-model-canvas. • https:/ /operatingmodelcanvas.com/. • Enduring Ideas: The 7-S Framework, McKinsey Quarterly, www.mckinsey.com/business-functions/strategy-and- corporate-finance/our-insights/enduring-ideas-the-7-s-framework. • www.opengroup.org/subjectareas/enterprise/archimate-overview.
  • 15. Cognizant 20-20 Insights 15  /  Building an Effective Extensible Data Analytics Operating Model About the authors Jayakumar Rajaretnam Senior Manager, AI and Analytics Practice, Cognizant Consulting Jayakumar Rajaretnam is a Senior Manager within Cognizant Consulting’s AI and Analytics Practice. He has 13 years of experience working on business intelligence (BI), data management, data governance and operating model engagements across industries (hospitality, telecom, banking and utilities) and geographies (India, APAC, Middle East, UK and the U.S.). Jayakumar is a Six Sigma green belt, holds an MBA from SP Jain Center of Management, Dubai-Singapore and a B.Tech. from University of Madras. He can be reached at Jayakumar.Rajaretnam@cognizant.com | www.linkedin.com/in/jayakumarr. Mohit Vijay Senior Consultant, AI and Analytics Practice, Cognizant Consulting Mohit Vijay is a Senior Consultant within Cognizant Consulting’s AI and Analytics Practice. He has seven- plus years of consulting and product/program management experience in providing BI, data strategy and business analytics advisory to clients across industries including retail, hospitality and technology. Mohit holds an MBA from SP Jain, Mumbai, and a B.Tech. from Rajasthan University. He can be reached at Mohit. Vijay@cognizant.com | www.linkedin.com/in/mohit-vijay-57510b6/.
  • 16. © Copyright 2019, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Codex 3579.02 World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 European Headquarters 1 Kingdom Street Paddington Central London W2 6BD England Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 India Operations Headquarters #5/535 Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 About Cognizant Consulting With over 5,500 consultants worldwide, Cognizant Consulting offers high-value digital business and IT consulting services that improve business performance and operational productivity while lowering operational costs. Clients leverage our deep industry experience, strategy and transformation capabilities, and analytical insights to help enhance productivity, drive business transformation and increase shareholder value across the enterprise. To learn more, please visit www.cognizant.com/consulting or e-mail us at inquiry@cognizant.com. About Cognizant Digital Business Cognizant Digital Business helps our clients imagine and build the Digital Economy. We do this by bringing together human insight, digital strategy, industry knowledge, design and new technologies to create new experiences and launch new business models. For more information, please visit www. cognizant.com/digital or join the conversation on LinkedIn. About Cognizant Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient business- es. Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.