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Key challenges for an organization planning to set up an analytic function?

I am interested to know about the key challenges ( both technical and managerial ) that an organization need to overcome for the analytic function to be successful?


Arnab K Laha  

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Managerial challenges:

1. defining the strategy for Analytics center of excellence

2. getting senior management support

3. creating culture of analytics for decision making

4.  budget availability for initial period for investments in people, tools, alliances etc


Technical challeges:

1. identifying the business problems

2. finalizing the technology & tools for the analytics function

3. availability of quality data for analytics solutions

4. availability of skilled resources

This article presents how UPS saved its OR department.

I believe that there are some lessons to be learnt from this experiences.


@Sandeep Raut: Fantastic list.


In my view: The end users of data analytic functions are the functional departments (operations, marketing, HR and finance).

- An ideal analytic department will comprise of i) core team members with 'OR/MS' as their key expertise ii) functional 'subject matter experts'.

- Each functional department (senior management and staffs) need to identify the projects within their functional role and then prioritise the ones that have demonstrable impact at the organisation level.

- In house Training of a) data analytic members to receive functional knowledge relevant to the project. b) functional members will gain an 'overview' of the OR techniques.

- Execute the project as an internal project and see through the implementation of the solutions.

- Prepare lessons learned, share with other employees and foster continuous improvement.


Apart from the well grouped items listed by Sandeep, additional key challenges are:

i) identifying the prioritised analytic projects or missions.                                      [Managerial]

ii) Forming an inter-departmental team. [Managerial]

iii) developing and implementation of the solutions. [technical]

iv) Transferring knowledge gained through the analytic project to others. [technical]


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