The Analytics Maturity Model
JeanFrancoisPuget 2700028FGP Visits (8201)
Analytics can be defined in many ways, but what matters is the purpose of analytics. Most definitions agree on the following: analytics is used to gain insights from data in order to make better decisions, see for instance INFORMS definition:
Analytics is defined as the scientific process of transforming data into insight for making better decisions.
Some speak of actionable insights to stress the purpose of such insights. Then, various levels of analytics maturity can be distinguished, depending on how much of the decision process is automated, and how much is left for human intervention. I find the following Gartner figure to be quite comprehensive
I like it because it relates analytics to the business problems it helps solve. Questions like "What happened?", "Why did it happen?", "What will happen?, and "What should I do?" are indeed self explaining.
I like it because it shows the tradeoff between automatic analysis (the analytics part), and what's left for the human. With descriptive analytics (dashboards and query/drill down tools) the intelligence is entirely left to the Human. It also shows that more of the intelligence is automated as we move towards more advanced analytics.
I also like it because it shows that moving from descriptive analytics to more advanced analytics move us to a point closer to decisions and actions, i.e. closer to business impact. As such the business value increases. As a matter of fact, this is the only piece that I find missing: the business value increases as you move from left to righ.
But the main reason I like it (let me a bit selfish here) is that it is quite close to the one I designed and published last year. I reproduce it here.
The analytics journey
Gartner made two interesting changes:
These are good changes IMHO. However, as said above, I regret that they left out the increase in business value. Why? Again, a selfish reason probably. It so happens that my favorite analytics technology, namely optimization, is part of prescriptive analytics. I like when we make it clear that it provides tremendous business value!