In this second installment, I will focus on:
A recent PwC Survey found that leaders are extremely concerned about their organization’s rate of innovation. In fact, 44% of CEOs felt their speed of technological change was insufficient, and 32% of CEOs surveyed felt that they did not possess the availability of key resources with the right skills and experience.
KPMG found that 57% of CEOs are concerned that their organizations don’t have innovative processes to respond to rapid, unexpected disruptions and their speed to market falls short of expectations as a result.
In my first post on this topic, I covered the fundamental definition and reasons behind creating an Analytics COEI. It’s now time to fully explore the organization required to make it work.
The Analytics COEI will need a charter tailored to each customer’s needs and maturity, but fundamentally it needs to focus on the alignment of business requirements to technical capabilities:
The COEI organization focuses on the alignment of business analytical goals, drivers, strategies, and plans to the best practices, tools, and technological capabilities of the enterprise. The COEI organization will serve as a very experienced analytical extension of the enterprise LOBs, that strives to deliver better, timelier, more reliable business analytics and insights while freeing up business resources to return to their intended focus areas and away from data wrangling and preparation activities. The COEI will serve as a bridging organization that will facilitate the consolidation and fine tuning of the enterprise’s analytical functions and capabilities over time. The COEI drives the enterprise strategic focus on optimizing data analytics and value creation by bringing together, defining where necessary, and leveraging:
You have seen some of these functions and responsibilities repeated throughout this blog, because they are important and fundamental.
The Analytics COEI also requires a set of Guiding Principles. These will vary somewhat between enterprises, but fundamentally:
There are at least two Operating Models for COEIs that represent scope, capabilities, and supporting infrastructure differently. Each enterprise will need to tailor oneof these to their specific circumstances, but both of these offer good starting points.
What LOBs should we start with?
The answer is always “depends, depends, depends” on many factors. I’ll use a large insurance customer as an example.
In my experience, I believe that for the first 12-18 months, your Analytics COEI should focus on the highlighted LOBs, or at least 1-2 of them. If possible, start with P&C and Life.
Not unlike other verticals, insurance companies have a general internal business and operations LOB structure that is very specifically designed to:
Other enterprises focus their Analytical COEI efforts where they feel the greatest need or pain exists. If they have two LOBs that are experiencing major, reoccurring data quality, availability, and timeliness issues, they will use these as their starting point, and will often use additional data management COEI resources to supplement the Analytics COEI efforts to tactically address data and reporting challenges.
Here are some Analytics COEI Roles and Responsibilities and functions/services examples:
The COEI needs to be able to deliver these functions and services, as needed, better and faster than the LOBs can. Services and functions that an Analytics COEI needs to provide:
The next set of questions focus on the Analytics COEI organization.
What should a mature organization look like?
What is the minimum staffing you can start with?
What resources you need to consider adding as you add support for additional LOBs?
The Analytics COEI organization is implemented differently by each client. This is an example of a mature enterprise implementation (4–6 years). It outlines what resources are needed to support 2–3 LOBs and which resources could be shared or borrowed from IT and Data Management groups.
The Analytics COEI organization needs to expand as additional LOBs are supported. Here are guidelines to the areas you need to consider adding one or two additional FTEs to each time a new LOB is supported. As more LOBs are added, existing staff can be cross trained to support them. After the first 3-5 LOBs are supported, the size of the COEI should not increase much at all.
In my next and final post, I will answer a number of questions about where you can get the staffing and funding for the Analytics COEI, more specifically:
And the experts agree:
You need COEs. Focus on your Analytics and Data Integration COEs first if you can only tackle two. Many companies also focus on implementing a Data Management COE.
Need help partnering with your business stakeholders to drive more value, build a roadmap, build a COE, or design your data strategy and data governance programs and processes? Contact Informatica’s Advisory Services group for an initial consultation.