“You're traveling through another dimension, a dimension not only of sight and sound but of data; a journey into a wondrous land whose boundaries are limitless with business insight. That's the signpost up ahead — your next stop, the Analytics Zone.” (Apologies to Rod Serling.)
IBM today unveiled “Analytics Quotient” (AQ), a measure of an organization’s readiness, ability and capacity to apply analytics to re-orient the business, make better decisions and deliver better outcomes.
Simply put, AQ helps organizations of all sizes better assess how well they are using analytics. And, more importantly, how organizations can begin using analytics and take their first step on an analytic journey, or progress to a higher level of analytic proficiency.
By taking the AQ Quiz – powered by IBM SPSS data collection software – organizations will receive a real-time AQ score that describes the level of their analytics maturity. IBM’s AQ Maturity Model maps the organization to one of four stages (Novice, Builder, Leader and Master), and recommends a plan to reach the next stage.
For example, is your organization applying history and context from the past with the ability to make insightful forecasts, anticipate likely outcomes, and automate decisions? If so, you might be receive a high AQ score.
Just as with IQ (Intelligence Quotient) or EQ (Emotional Quotient), AQ is the hip, new way to determine just how smart an organization is at leveraging its data assets to make better decisions.
Today’s organizations are dealing with greater uncertainty and risk, increased pressure from shareholders, new legislation, exploding data volumes and a proliferation of social networks and mobile devices unlike anything we’ve seen before. This is the new reality – the “new normal.”
Individual business leaders are feeling immense pressure to outperform their peers and contribute significantly to their team’s and organization’s success. However, intuition and gut feel-fueled decision making informed mostly by personal experience is no longer sufficient.
Decision makers are demanding a broad range of business analytics capabilities to gain actionable insight that can help them better understand how their business is doing, why it is on or off track, and what they should be doing about it.
A recent study conducted by MIT Sloan Management and IBM’s Institute for Business Value indicates organizations that use analytics in the most mature ways are three times more likely to outperform their competitors than those that are just beginning to adopt analytics.
Similarly, the recent CFO study from IBM shows that objective financial data validates that decision making supported by business insight contributes to enterprise outperformance, such as two times greater EBITDA growth, 36 percent greater revenue CAGR and 15 percent greater return on invested capital.
The Analytic Journey
The integration of business analytics within and across the enterprise is really a journey that may begin in one department in one business function, but with quick and tangible results adoption continues deeper and broader across the organization. Organizations on this analytic journey gain greater competitive advantage and higher and higher returns.
Therefore, the AQ measure was designed to show how far an organization has come to fully embrace business analytics. The more analytics is infused into the business, the more a business will outperform others, and the higher the AQ will climb – let alone revenues.
Hence, AQ was created to create a clearer path to value.
Every organization, team or individual is at their own point leveraging analytics to outperform. Some are masters, while others are just beginning. The maturity model illustrates the four fundamental steps to improve AQ. They include:
· Novice: Organizations have spreadsheets, but don’t trust them. They’re more reactive than proactive. They’re disconnected and want to do better.
· Builder: Organizations see current results and a little of what’s driving them. They’re sharing results with other teams in your department and they’re ready for more.
· Leader: The VP sets the strategy. Marketing and sales share metrics and plans. They’re predicting the future as well as reviewing the past.
· Master: Top-down goals meet bottom-up tactics. Insights flow freely across divisions and departments. Resources are allocated, risk minimized and outcomes maximized with equal ease and speed.
Are you ready for analytic freedom? Future success will depend on the ability to turn an ever-increasing deluge of data into better decision making. With the amount of data doubling every year, achieving a high AQ is imperative to outpacing the competition.
So, we invite you to take a trip to the Analytics Zone. No longer will you have murky insight into the business that undoubtedly leads you down the wrong path into the Twilight Zone.
Measure your AQ – Take the Quiz
Come to www.ibm.com/analytics/aq to take the fast, easy quiz. Answer a few questions to understand your AQ and see where you are on the journey to becoming analytics driven.
You’ll also be able to share ideas and connect with others who use their high AQ to outperform.