One does not have to look too far to find articles and reports detailing the potential business opportunities and performance improvements that big data, technology, and advanced analytics will bring to the table.
But in a recent Forbes article presenting big data and advanced analytic market forecasts, a clear defining point emerged:
“[Across all our research]…The high priority of gaining greater insights into customers and their needs, more precise information on how to best simplify sales cycles, and streamline customer service are common.” (source: Forbes)
The question is: how are these goals achieved?
Common sense would dictate some sort of hierarchy of data collection and management; data extraction; and then applied analytics and delivery (to internal and/or external clients).
The issue between CDOs and CAOs
The issue is that the areas enveloped by the Chief Data Officer (CDO) and the areas enveloped by the Chief Analytics Officer (CAO) are not easily subsumed into each other. If organizations follow a top down approach, they will choose one or the other to ‘lead’ the charge. This has the potential to lead to stunted opportunities and suboptimal performance, and misses the synergistic impacts possible with a combined approach.
CDOs are masters of data collection, storage, manipulation, and delivery of data to BI and analytics’ teams. CAOs are masters of organizing the data, statistically analyzing it, and deriving insight and intelligence. And more importantly, they are more likely to have the ability to translate the results into understandable and practical business actions, since many analysts have business and subject matter expertise in tandem with analytical skills.
The issue is that the areas enveloped by the Chief Data Officer (CDO) and the areas enveloped by the Chief Analytics Officer (CAO) are not easily subsumed into each other.
The Way Forward
Claudia Imhoff, a well-known technology and data architecture consultant and thought leader, clearly delineates the issue:
"We need to be able to expand who is using analytics throughout the organization," she said, calling attention to the disconnect between the BI industry's obsession with tech, features, and functions and how people actually use and interact with software and technology. (source: TDWI)
This new architecture includes the need for:
- Advanced analytics capabilities, such as statistical and predictive analyses, real-time analysis on real-time data, and sophisticated data visualization.
- Enhanced management of new and unusual data sources through new concepts such as data refineries and the use of data virtualization or data blending tools to augment standard extract, transform and load approaches to data integration.
- New deployment options such as the cloud, mobile devices, and integrated hardware and software appliances.(source: techtarget)
We believe that to achieve this objective, the CDO and CAO need to work hand in hand to merge the specialized skills and expertise into a blended team. That is, neither one nor the other is more important. There should be co-management, co-creation, and co-thinking to align on shared plans, processes, and objectives that include the perceptions, needs, and objectives of the business side.
Politics aside, there is just too much to deal with to have any one team ‘in charge’ of another. Winning organizations will artfully combine the resources and teams so that CDO and CAO are operating on the same playing field. And both should reflect and support the ‘business’ perspective that is often critically left out of the picture.
By: Dr. Raymond Petit
Dr. Raymond Petit is the VP, Analytics at comScore,. Through new analytics and applications and the infusion of research, forensic intelligence and advanced analytics, Dr. Raymond Pettit has contributed to the strategic direction of comScore. A leader in TV and film audience measurement, Pettit honed his expertise as SVP of research and standards at the Advertising Research Foundation and is known as an industry thought leader. Dr. Raymond Petit will be hosting a Masterclass at the Chief Analytics Officer Forum, West Coast May 25-27 which will delve deeper in to this topic, to attend his session please register here.
