PLS Financial Services

Why Data Analytics

It is said that data is the digital oil of our age. We all hoard it because we intuitively know it’s valuable. However, data without refinement is only a cost to the business. Data analytics is the refinement of your data assets in a way that drives measurable business value. I advise you to implement a lowcost, minimal-risk project as a technique to prove the viability and business value of data analytics in a budget-constrained environment.

Determining Impactful Projects

I like to identify projects that have the following characteristics:

• Directly linked to executive goals

• Business perception of high value

• Easily identifiable

• A lower level of effort and complexity Your early projects should match this checklist. Envision that at your project’s completion, you will be able to point to the P&L and describe how your project created or at least directly affected one or more line items. Example goals:

• Enablement of growth in customers, revenue, EBITA, or transactions

• Costs savings Example projects:

• Understanding your transaction and customer trends, customer lifetime value

• Automation of existing analysis being provided by a vendor or performed manually

• Staffing analysis and forecasting

I’ve never met a CEO that didn’t have growing the business within their top 3 goals for the organization. All organizations have pain points and obstacles to reaching their goals. As a business and technology executive, you are uniquely positioned with the knowledge of how to leverage your data assets to realize these goals. Key lesson: Business goals and pain points are your best opportunities.

Finding the resources

Once you have identified your top target projects, it’s time to determine what the minimal viable result that will achieve actionable business value looks like. Leverage existing resources by finding stretch goals with someone that may be looking for an opportunity to prove themselves. Don’t limit yourself to just those within IT. These opportunities are often overlooked and are a terrific way to upgrade your organizational capabilities - a winwin for everyone. Tooling is also an area where existing resources should be used. If new tooling is truly needed, consider low-cost or open-source alternatives.

 Lower your reputational risk by leveraging existing resources and tooling 

Key lesson: Do not be limited by your organizational structure and resources.

Make the sale

Now that you have target ideas, it’s time to leverage your relationships. Sell your ideas to your peers and your fellow executives. Get their buy-in. Depending on the item, a bottom-up approach may be more effective. Build up an army of supporters for your idea. A targeted approach that goes to the business leadership areas that will directly benefit from the results may be more appropriate to the project and your organization as a top down approach. Weigh your choices strategically.

Lower your reputational risk by leveraging existing resources and tooling. The perception of you and your teams’ past performance is critical at this juncture. You must have established trust with your peers and your executive team. Determine the informal and formal steps you need to get this started and do not overcomplicate it. Set the meeting that capitalizes on your relationships/ supporters/cheerleaders to make the sale. Listen to your detractors and learn from their perspectives. Their input will either improve your project or motivate you to overcome any challenges raised.

 Key lesson: You win the room before you get in the room.

Execution and ownership

Once you a prepared to get your project started, be ready to put in the time and effort beyond your normal role. Make sure your team has the same level of commitment and treat this project like your career depends on it. Your success here is a stepping stone to the next project. The relationship-building pre-work that you did will help you overcome challenges as they come up.

Key lesson: Treat this project like your career depends on it and deliver the results!

Communicate your findings

Share and measure the results. Don’t let your ego get in the way here. When you achieve success on this project, make sure to thank and recognize those that supported you. Celebrate the wins, however, they exist to help you build trust to take on the next project. Trust is more important than any bragging rights. The feedback you receive may lead to the next iteration or project idea.

Key lesson: Share the success.

Concluding thoughts

Future project implementations are likely to increase complexity, tooling, and staffing challenges. Achieving success is an interative process, building upon the achievements, insights, and business value of your last iteration. Creating and/or obtaining resources will only happen once you have demonstrated value generated through this project. Don’t wait for someone else to lead this effort. Get started. Data analytics is a business capability where the juice is worth the squeeze.