DATA DISCOVERY AND INTERACTIVE VISUALIZATION: AFFECT THRO THEIR EYES

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1 DATA DISCOVERY AND INTERACTIVE VISUALIZATION: AFFECT THRO THEIR EYES October, 2015 Peter Krensky, Research Analyst, Analytics & Business Intelligence Report Highlights p2 p4 p5 p7 Pressures and challenges of data discovery The right data in the right hands Leaders and Followers Delivering analytics far and wide to affect thro their eyes what we fail to convey to the public through their word-proof ears. - Florence Nightingale

2 2 Data-driven organizations know the best way to capture anybody s analytical attention is with an arresting image. Data presented in this research was collected in Aberdeen s 2015 Business Analytics survey. The penetrative powers of visual information are nothing new. During the Crimean War, famed nurse (and statistician), Florence Nightingale, encountered a nightmarish scene at a British hospital in Turkey. Men were packed together, spilling out of rooms and into hallways. The air was foul with the scent of human waste and the purification of wounds. Nightingale estimated that the eight regiments she cared for lost nearly three quarters of their men to disease in the course of six months. To enact change in hospital procedures, she pored over hospital statistics and discovered that poor sanitation was causing thousands of unnecessary deaths both in Turkey and back in England. To convince both the public and those in charge, she converted her vast data into simple charts to illustrate the problem. Nightingale knew that her vital findings would only resonate if she could show people instead of telling them. That same principle holds true for applied statistics in modern business. Dry reports and endless tables of data often fail to adequately convey important insights. Data-driven organizations know the best way to capture anybody s analytical attention is with an arresting image. Currently, the adoption rate for data discovery and interactive visualization tools sits at 22% in Aberdeen s community. Aberdeen isolated these adopter organizations to understand their goals for data discovery, as well as their best practices and analytical performance. This report will examine the challenges of creating visual insight, the approach of top performers, and the impact that data discovery tools can have on all manners of organizations.

3 3 The Need to Reason Why Aberdeen asked survey respondents to identify the top pressures driving new analytical initiatives (Figure 1). Far and away the top goal of data discovery adopters is to become a more data-driven organization. Data discovery is a conduit through which a wide range of users can engage data and bring it to bear the demands of their respective job roles. Data-driven minds can not only create and interact with visualizations; they can also share them throughout the organization. Distributing visual insights is the fastest way to make an entire organization more data-driven. Business leaders know their competitors are doing incredible things with data and cannot afford to fall behind. Distributing visual insights is the fastest way to make an entire organization more data-driven. Figure 1: Pressures Driving Analytical Initiatives n=86 Source: Aberdeen Group, June 2015 Data discovery adopters inevitably encounter the challenge of data silos. Many organizations have developed information barriers and competing data sets over time. The creation of data silos is usually unintentional, but can sometimes be attributed to antiquated and counterproductive senses of data ownership in certain departments. To unlock the full potential of their user Some adopters report that they are far richer in data than impactful analysis.

4 4 base, data discovery adopters are attempting to identify and eliminate these roadblocks to greater insight. Data discovery adopters are 86% more likely than non-adopters to have invested in dedicated data prep tools. Some adopters report that they are far richer in data than impactful analysis. Too many users are either overwhelmed by the volume of available information or ignorant of additional data sources they could be incorporating into their analysis. Adopters need to help their users leverage all available information to paint more complete pictures. Many users are clamoring for stronger analytical capabilities and more comprehensive data access. Data discovery adopters must work to empower their most ambitious users with the right functionality. Many users may feel overly reliant on IT and want self-service data discovery and visualization. Users with access to data discovery tools may also want the ability to profile, integrate, and cleanse their data (see sidebar). Organizations should listen to their workforce, and create processes for users to propose and execute analytical initiatives. Aberdeen defines the decision window as the period of time when information is valuable for a choice at hand. A Stronger, Happier User Base Data discovery users are demanding better capabilties because they understand the impact the right tool can have on their analytical endeavors. Data discovery adopters reported a better user experience and higher satisfaction rates, when compared to non-adopters (Figure 2). Analysts need to collect, analyze, and present data on tight deadlines. Data discovery users generate insight within the decision window (see sidebar) 17% more often than all other information workers. This means 17% more decisions are based on applied statistics rather than incomplete analysis and guesswork. Visualization accelerates the analytical process and makes it easy for final decision makers to present their data and garner support for their actions.

5 5 Figure 2: A Better Analytical Experience n=453 Source: Aberdeen Group, June 2015 The ability to visually interact with data entices users to engage tools more regularly. Data discovery adopters have 85% more users per capita than non-adopters who engage BI tools on a weekly or more frequent basis. Data discovery users know they can generate helpful visualizations for themselves and others whenever they need to. Data discovery adopters have 85% more users per capita than non-adopters who engage BI tools on a weekly or more frequent basis. Data discovery tools help users leverage all the data they need to make the best decision possible. Users of data discovery tools are also more satisfied with their analytical capabilities and data access. They can tailor visualizations to their needs and dive deeper into the metrics that matter most to them and their job performance. Users without data discovery often have their data dictated to them. They are not free to explore data sources and gain access to additional troves of potential insight. Happy and active users multiply the value of data discovery tools as they analyze more data more often and generate visualizations that many can benefit from.

6 6 Leaders have addressed the challenge of data silos by creating open exchanges of data across business functions. Capabilities of Leaders Aberdeen created a maturity framework to identify the top performers amongst data discovery adopters (Figure 3). These Leaders (the top 35% of performers) demonstrate several best practices for supporting successful data discovery. Leaders have addressed the challenge of data silos by creating open exchanges of data across business functions. This capability recognizes the value that information workers can find in the data of outside departments. Marketers should look at sales data on average sales cycle and deal size when designing new campaigns and offerings. Product design teams should visualize customer service data to identify consistent flaws and points of dissatisfaction. Figure 3: Leading Practices for Data Discovery n=86 Source: Aberdeen Group, June 2015 While the free exchange of data is a best practice, it should not be conducted without supervision. Leaders put policies in place and leverage tools for data governance. This ensures compliance with internal data security protocols and any applicable regulatory standards. Governance also spares users from having to parse through extraneous information and clears their path to

7 7 insight. Two Aberdeen reports, Data Governance for the CFO: Guided Financial Excellence and Customer Data Governance for Better Sales and Marketing, explore the value of data governance for analytics in the line of business. Finally, Leaders recognize the importance of training users on BI tools and honing analytical skills. Organizations should make formal programs available to users who want to improve their ability to analyze and visualize data. Conducting such training in-house will unlock the full functionality of data discovery tools for users and tailor their development to the needs of the organization. Analytics Everywhere According to Aberdeen s research, organizations with data discovery are more likely to report strong or highly pervasive analytical activity throughout the organization (Figure 4). This means that data and analytics have become a part of daily operations. In these environments, the first thought of decision makers faced with a tough call is to turn to the numbers. Data discovery adopters should continue to strive to be more datadriven, but should also recognize that they are far ahead of their less visually inclined competitors. Organizations that help information workers engage data visually foster an analytical culture that will lead to consistently stronger decisions. Aberdeen s report, The BI Tipping Point: Achieving an Epidemic of Analytics, runs down all the benefits of promoting pervasive analytics throughout the organization. Organizations that help information workers engage data visually foster an analytical culture that will lead to consistently stronger decisions.

8 8 Figure 4: Strong or Highly Pervasive Analytical Activity Key Takeaways n=304 Source: Aberdeen Group, June 2015 Florence Nightingale s work with data visualization ultimately led to life-saving reforms in hospital design and operations. The stakes in business analytics are not quite so high, but nevertheless, data discovery and interactive visualization are vital to capture an audience s attention and evangelize statistical findings. Adopters and non-adopters alike should consider the challenges of successful data discovery and the impact the right tool can have on analytical efforts: Data discovery adopters. Organizations view becoming more data-driven as the best way to stay ahead of their competition. Breaking down data silos should be a top priority for all data discovery adopters. Adopters must also face the dual challenge of users under-utilizing data and demanding better access and capabilities. Data discovery users get information faster and are more satisfied with their capabilities. Compared to all other information workers, data discovery users are more active and obtain information within the decision window

9 9 more often. Their visual experience also makes them more satisfied with the relevance of their analytical capabilities and their overall data access. Leaders provide a roadmap for success with data discovery. Top performers achieve open data exchanges across business functions. This level of data discovery does not go on unchecked, however, as they are also more likely to have policies and tools in place for data governance. Leaders also provide their users with inhouse training. Data discovery promotes a widespread culture of analytics. Data discovery adopters report more pervasive analytical activity in finance, corporate management, sales, marketing, and customer service. With the right visualization tools, users engage more data more often to perform better in their jobs. As the future brings increasingly complex analytical capabilities, remember this tenet: the most effective way to communicate insight is through the eyes. For more information on this or other research topics, please visit. There will be Blood: Pain Points in Analytics; July 2015 Self-Service Analytics, the Cloud, and Just-in- Time Insight; July 2015 The Landscape of Self-Service Analytics; May 2015 Related Research Author: Peter Krensky, Research Analyst, Analytics & Business Intelligence (peter.krensky@aberdeen.com) The BI Tipping Point: Achieving an Epidemic of Analytics; May 2015 Customer Data Governance for Better Sales and Marketing; February 2015 Data Governance for the CFO: Guided Financial Excellence; March 2015

10 10 About Aberdeen Group Since 1988, Aberdeen Group has published research that helps businesses worldwide improve their performance. Our analysts derive fact-based, vendor-agnostic insights from a proprietary analytical framework, which identifies Best-in-Class organizations from primary research conducted with industry practitioners. The resulting research content is used by hundreds of thousands of business professionals to drive smarter decision-making and improve business strategy. Aberdeen Group is headquartered in Boston, MA. This document is the result of primary research performed by Aberdeen Group and represents the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group

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