More Related Content Similar to CFO Series #1_2 Similar to CFO Series #1_2 (20) More from Charles Wilson (7) CFO Series #1_21. a single solution
7 MINUTES 7 QUESTIONS
ONLY 4% OF COMPANIES ARE GOOD AT ANALYTICS. ARE YOU ONE
OF THEM?
July 22, 2014
CFO ROUNDTABLE DISCUSSION
transforming complex challenges
into a single solution
2. a single solution
FEATURED SPEAKER
Charles Wilson
Founder and Principal Consultant
Gudmundr
• Led by the top talent in analytics and enterprise
performance management
• Strive to influence how executives harness their
data to make informed decisions for their
organizations
• Officially founded in 2013 in Southern California,
boasts over 60 references gathered over the years
of working together on successful analytics
projects
A fast‐growing agile
management and execution
consulting firm
3. transforming complex challenges
into a single solution
Are you good at
analytics?
Why is it still a
struggle for so
many companies?
Who should lead
analytics in the
organization? etc.
© Copyright 2014 Guðmundr, LLC All Rights Reserved
4. Only 4% of companies are good at analytics
In a 2013 study Bain & Company* reviewed the analytics capabilities of more than 400
companies around the world with revenues larger than $1 billion. The results were stunning: only
4% of companies are good at analytics.
Yet, those who are good, are:
▪ two times as likely to be in the top quartile of financial performance within their industries,
▪ three times more likely to execute decisions as intended, and
▪ five times more likely to make decisions faster.
Analytics is no longer a luxury, it is a requirement to compete and a real opportunity to pull ahead
of the competition. Then why are so many companies lagging behind?
We spoke to over 50 executives from leading companies across North America to find out.
* Bain & Company, The Value of Big
Data: How Analytics differentiates
winners, September 2013
© Copyright 2014 Guðmundr, LLC All Rights Reserved
5. Who did we talk to?
We surveyed a wide variety of individuals with different responsibilities from
many different industries and sizes of organizations.
$100 - 500 Million, 12.96%
< $100 Million, 40.74%
> $500 Million, 46.30%
Organization Size
© Copyright 2014 Guðmundr, LLC All Rights Reserved
6. Who did we talk to?
We surveyed a wide variety of individuals with different responsibilities from
many different industries and sizes of organizations.
Analytics,
18.52%
Executive,
9.26%
Finance,
18.52%
IT, 20.37%
Marketing,
11.11%
Operations,
22.22%
Manufacturing,
16.67%
NonProfit,
20.37%
Retail/Distribution,
25.93%
Services,
37.04%
Industry Department/Role
© Copyright 2014 Guðmundr, LLC All Rights Reserved
7. Are you part of the Analytics Elite?
According to Bain & Company the 4% of companies which are good at analytics
deliberately invest in all four of these areas: data-savvy people, quality data,
state-of-the-art tools and organizational intent, or incentives and processes that
support analytics-based data-driven decision making.
© Copyright 2014 Guðmundr, LLC All Rights Reserved
8. Do you have a data-savvy team?
© Copyright 2014 Guðmundr, LLC All Rights Reserved
9. Do you have quality data?
© Copyright 2014 Guðmundr, LLC All Rights Reserved
10. How does data quality change as a company grows?
< $100 Million
We do not have the right tools to easily visualize our data
The data is trapped in too many different systems, so it is hard to get a unified view of the business
We do not have the right systems to collect useful data
$100 ‐ 500 Million
We do not have the right tools to easily visualize our data
The data is trapped in too many different systems, so it is hard to get a unified view of the business
Data is not stored properly and access to it is limited to certain people/teams
> $500 Million
The data is trapped in too many different systems, so it is hard to get a unified view of the business
We have too much data and it is difficult to decide what are the most relevant pieces to analyze
The data is not good enough ‐ it is too messy or low quality
As organizations get bigger the perceived challenges with data quality evolve
and change. This change suggests that investments in traditional enterprise
systems do not inherently make a company more analytically savvy or improve
data quality.
© Copyright 2014 Guðmundr, LLC All Rights Reserved
11. Do you have state-of-the-art tools?
© Copyright 2014 Guðmundr, LLC All Rights Reserved
12. Do you have the organizational intent for analytics?
Level1 Level2 Level3
CEO 92.9% 67.9% 35.7%
CAO 80.8% 53.8% 23.1%
Division Head 100.0% 53.6% 17.9%
CIO 91.0% 50.0% 8.8%
CFO 90.0% 45.0% 2.5%
Organizations that believe that the CEO should set analytics priorities are
approximately twice as likely to be perceived as part of the analytics elite than
organizations that believe a division head should set analytics priorities
© Copyright 2014 Guðmundr, LLC All Rights Reserved
13. Quality
data
State-of-the-art
tools
Data-
savvy
people
Organizational
intent, i.e.
commitment to
make data-savvy
decisions
What can an executive do to encourage a
data driven culture?
How can an executive influence co-workers
and senior leadership to make analytics a
bigger part of the organizations mission?
What role do tools and technology play in
making an organization more analytical?
Is it possible to be over reliant on tools?
How do you keep up with the changes in
technology and avoid falling behind
because of rapid changes in technology?
How do you think the cloud might help
address the issue of obsolescence?
What is the link between intent, tools,
people and data quality?
© Copyright 2014 Guðmundr, LLC All Rights Reserved