Survey after survey shows that companies are struggling to utilize data and analytics to transform their organization. Notably, a 2018 Gartner survey revealed that almost 87% of companies believe their analytics strategy did not provide optimized business outcomes, and that 91% have not reached “transformational” level of analytics maturity despite it being a top priority for CIOs.
McKinsey found in a 2019 survey that “constructing a strategy to pursue data and analytics” was the top reason, chosen by 21% of responders, why organizations were effective in analytics, and also the top challenge, chosen by 24%, for organizations that were ineffective in analytics.
Even when embracing data and analytics, a large portion of senior marketers reported to Gartner in 2020 that analytics have not had the expected influence, largely because “analysis does not present a clear recommendation.”
The hype is not matching reality.
As with any endeavor, companies must have a planned strategy to achieve analytical goals. Once the plan is in place, an organization will need support from leadership and follow through across the organization to optimize the impact of their new data-driven strategy. The analytics maturity model (AMM) can help with building a plan and also identify actionable steps for improving analytics outcomes.
What is the Analytics Maturity Model?
The analytics maturity model (AMM) has its roots in the software capability maturity model (CMM). Both models describe the stages a company travels through to reach process maturity in analytics and software, respectively.
The following model shows how businesses evolve from chaos to an optimized data-driven approach.
To discuss how businesses can move up the maturity model, we will present the 5 levels of the analytics maturity model through the lens of a sales organization. As needs become more analytically driven, businesses have the opportunity to evolve their understanding and analysis of the sales process. Each level – from chaos to optimized outcomes – will be presented below.
Let’s talk about each step in detail: