Achieving Value from

Data Analytics
Yogi Schulz

Abstract: This article describes:

1. The definition of data analytics.

2. The value organizations can achieve from data analytics.
3. The common impediments to achieving value from
data analytics.
4. Solutions to the impediments to achieving value from
data analytics.

Keywords: Data analytics, Data value, Impediments to

Yogi Schulz founded Corvelle
Consulting1, a firm specializing in
project management and information
technologyrelated management
consulting. He holds a BComm from
The University of Calgary. He is a
member of PMI and CIPS and holds its
ISP designation.
Yogi works extensively in the
petroleum industry to select and
implement financial, production
revenue accounting, land & contracts,
and geotechnical systems. He manages
projects that arise from changes in
business requirements, from the need
to leverage technology opportunities
and from mergers. His specialties
include IT strategy, web strategy, and
systems project management.
Yogi has presented at many
information technology and oil & gas
conferences. He writes a monthly blog
at ITWorldCanada.com2. He served as
a member of the Board of Directors of
the PPDM Association3 for 20 years.
He has written monthly columns
forComputing Canada and
The Calgary Herald that address
IT management issues.
data value
Introduction
Most organizations have enough data to accurately label it
Big Data4. Weve all heard a lot about the opportunities that
Big Data is supposed to offer our organizations. My view is
that Big Data is pretty much useless without data analyt-
ics. The previous generation of analytic software is over-
whelmed by the volume of data implied by Big Data and
therefore cant help organizations make sense of Big Data.
In this article, well explore what data analytics is and
how to resolve the common impediments that f requently
stand in the way of achieving value from data analytics
for our organization.
Objectives
The objective of this article is to:
1. Increase our understanding of the value of data
analytics to our organizations.
2. Recognize impediments to this value and resolve the
impediments.
What is the value that data analytics brings to the oppor-
tunity to wring more value from our organizations data?

1
https://www.corvelle.com/
2
http://www.itworldcanada.com/author/yogischulz
3
https://ppdm.org/PPDM/PPDM/Home.aspx
4
http://www.webopedia.com/TERM/B/big_data.html

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 Achieving Value from Data Analytics

Big Data Problem Perhaps this cartoon of a data flood is a

Data volumes are growing significantly every better way to describe the Big Data trend
year as more and more data is created digi- that most organizations are choking on.
tally and much less is created on paper forms.
Digital data includes structured5 and unstruc-
tured6 data. This data growth problem cre-
ates an opportunity that is named Big Data.
Digital data volume growth is caused by
these major trends that all generate huge
volumes of data:

1. Sensors7 that are being installed on all kinds

of devices such as automobiles, aircraft,
industrial equipment, and consumer
equipment to gather and communicate
performance data. This trend is called
the Internet of Things or IoT.8
2. Social media that creates huge volumes
of text, photographs, and sound.
3. Enterprise systems becoming more
comprehensive to:
a. Close remaining gaps that were h andled
by manual processes.
b. Store photographs.
c. Retain the historical evolution of data.
Data analytics is an important technology
that makes sense of all this data to p
roduce
value.
Value of Data Analytics
Data analytics provides value by helping
organizations:
1. Squeeze value from Big Data.
2. Differentiate themselves as leading or-
ganizations relative to their peers and
competitors.

The rate of growth of Big Data is accelerating W. Edwards Deming9 is the man who
as illustrated by this chart published by IBM. helped shape the world of manufacturing
5
Structured data is data that is organized into well-defined rows and columns of text and numbers.
6
Unstructured data is data that includes phrases, sentences, paragraphs, charts, and graphics.
7
https://en.wikipedia.org/wiki/Sensor
8
https://en.wikipedia.org/wiki/Internet_of_things
9
https://en.wikipedia.org/wiki/W._Edwards_Deming

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 Achieving Value from Data Analytics

by emphasizing the importance of superior Make Decisions Much Faster

data and how a defined, repeatable process
is a prerequisite to quality manufacturing
results. His concepts were subsequently ap-
plied to other industries and to data-driven
decision making in many organizations.
To our clients, the value that data-driven
decision making, through data analytics, cre-
ates is millions of dollars in incremental net
revenue per year without adding:
1. More money to the capital budget.
2. More professional or production staff to
the operating budget.
Leading organizations make decisions
much faster than peers. Lagging organiza-
tions make decisions more slowly or even
ponderously.
This concept is often called speed to insight.
Its important because in many competitive
situations, the first or fast mover ends up
with most of the market share and therefore
the value of an innovation.
Many executives are frustrated that their
organization cant move faster to realize the
opportunities theyve identified. Data analytics
enables organizations to rapidly churn through
the available data and examine multiple scenarios
to better understand opportunities and risks.
For example, organizations like Canadian
Natural Resources Ltd. make much faster
oil and gas property acquisition d ecisions
using asset value data analysis to beat out
other contenders that are interested to
acquire the assets.

Heres how. Execute Decisions Most of the Time

Leading organizations execute decisions as
Make Data-Driven Decisions Very intended most of the time. Lagging organiza-
Frequently tions allow unhelpful distractions or lack of dis-
Leading organizations make data-driven cipline to derail, sidetrack, or delay execution.
decisions very frequently. Lagging orga- Many organizations find that new crises or
nizations make data-driven decisions infre- opportunities distract them from executing
quently or make decisions based largely on agreed plans. Data analytics enables organiza-
experience or gut feel with limited or in- tions to easily and quickly monitor the data
complete information. from execution to maintain focus.
The executives Ive worked with have Examples of organizations that failed to
been frustrated by how often theyve made monitor execution effectively include:
investment decisions based on incomplete
information. They recognize the risk but 1. The disastrous Target expansion into
havent been able to reduce the risk until Canada10 that was ultimately canceled
the advent of data analytics. with a $5.4 billion write-down11 and the
For example, organizations like Amazon termination of the CEO due to not rec-
and Taobao fine-tune their product and ser- ognizing that the plan was way beyond
vice offerings frequently based on intense ambition into the realm of infeasibility.
data analysis of what their customers are 2. GM12 allowing a tiny problem with keys
buying and where theyre spending their in the ignition rotating on their own to
time on the companys websites. turn off the vehicle when underway to
10
https://hbr.org/2015/01/why-targets-canadian-expansion-failed
11
http://fortune.com/2015/01/15/target-to-exit-canada-market/
12
http://www.cbc.ca/news/business/gm-ignition-switch-probe-finds-misjudgment-but-no-conspiracy
-1.2664803

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