As I roll through my Twitter feed every day, it feels like I’ve been transported to an analytics wonderland, populated with data scientists who can solve problems and transform industries with a wave of a magic Python wand. But the reality is, many companies are challenged to use data-driven analytics to improve their business.
The McKinsey Global Institute, in a 2016 follow-up of a major, earlier Big Data study, said, “Back in 2011, the McKinsey Global Institute published a report highlighting the transformational potential of big data. Five years later, we remain convinced that this potential has not been overhyped. In fact, we now believe that our 2011 analysis gave only a partial view.” But the report’s numerous findings, as cited by legendary IBMer Irving Wladawsky-Berger, include:
- Most companies are capturing only a fraction of the potential value of data and analytics. “Turning a world full of data into a data-driven world is an idea that many companies have found difficult to pull off in practice,” says McKinsey. Adoption is particularly lagging in the public and health-care sectors, due to incentive problems and regulatory issues.
- Legacy companies have to overcome hurdles to accelerate their analytics transformation. A number of companies have responded to competitive pressures by making large technology investments in data and analytics. Yet, they’ve failed to make the organizational changes required to realize the full value of these investments, from clearly articulating the business value of data and analytics to leveraging data-driven insights to improve decision-making.
- The value of data depends on how it will be ultimately used, and by whom. A piece of data may yield nothing, or it may yield the key to launching a new product line or cracking a scientific question. It might affect only a small percentage of a company’s revenue today, but it could be a driver of growth in the future.”
Decision Management Maturity: The First Step to Data-Driven Transformation
Rather than diving gung-ho into Big Data and analytics, many companies are realizing that translating analytics into action requires effective decision management. Analytics are only useful if they support better and faster decisions.
Not surprisingly, companies that have been using analytics and decision management for years are likely to have mature capabilities, while other companies may be racing to implement this technology at scale for the first time. Through hundreds of engagements with FICO clients, we recognized the need for an easy-to-understand maturity model and easy-to-use maturity map that provide guidance in adopting of analytics-powered decision management solutions.
Thus, the FICO Decision Management Maturity Map (DM3) was born. It’s a tool to guide organizations in the journey from novice to advanced users of decision management solutions. The map represents a description of best practices developed by FICO and our customers across industries and addresses all possible architectural layers: data, analytics, decision strategies, application design and development, execution, measurement and reporting, and learning loops (machine learned or otherwise).
The DM3 provides an accurate and actionable segmentation of users and businesses against their current capabilities, requirements, skills and end-state objectives. Whether your self-assessment indicates that your organization is at the Novice, Intermediate or Advanced level, it provides guidance on how to plan for and implement customer journeys against a best-practice, standardized maturity curve.
Raise Your Maturity Level at FICO World 2018
As FICO’s Chief Analytics Officer, I am thrilled to see how our customers are applying decision management technology to solve all manner of business challenges. Over the next 10 days I’ll be writing more about the DM3, and highlight some FICO World sessions that will benefit Novice, Intermediate and Advanced users.
If you can’t wait until FICO World, you can learn more about FICO DM3 by downloading the white paper, “FICO Decision Management Maturity Model and Map,” now. See you in Miami, where I’ll be tweeting throughout the conference. Follow me on Twitter @ScottZoldi.