IT is fundamentally changing how it operates. The changes are broad and far-reaching. New technologies enable new operational practices, but they require fundamental changes in the way companies deploy and manage technology. Basically, companies are turning IT into a product rather than a set of processes and projects.
Enterprises that achieve the greatest success with data and analytics focus on customer experience and revenue growth
Those enterprises that outperform their peers in data and analytics within their global in-house centers (GICs) have an entirely different mindset than all the rest, according to Everest Group. The best-of-the-best organizations are intent on using data and analytics to improve effectiveness of existing delivery teams and achieve improved customer experience and revenue growth, whereas other enterprises focus primarily on cost savings.
“Interestingly, those organizations that focus their GIC’s data and analytics efforts on higher-level business impact also achieve far better cost-savings—three times as much—than those who focus on cost-savings alone,” said H. Karthik, partner at Everest Group.
Everest Group recently assessed the data and analytics capabilities of 50 enterprises’ global in-house centers (GICs) and also appraised the business outcomes of their data and analytics initiatives. Five GICs were deemed Pinnacle GICs™ for their ability to achieve significant impact through data and analytics, both in terms of cost savings and improvement in operational and strategic/business indicators.
In comparison to other GICs implementing data and analytics initiatives, Pinnacle GICs
Realized 1.3 to 1.5 times greater improvement in strategic areas as compared to other GICs. For example, Pinnacle GICs demonstrate much higher improvement in customer experience scores, top-line revenue growth and employee satisfaction as well as greater reduction in fraud- and risk-related incidents.
Achieved 1.4 times more improvement in staff productivity. Eighty percent of Pinnacle GICs witnessed significant improvement in staff productivity as compared to 39% of other GICs.
Generated 3 times the cost savings for the enterprise. Average cost savings (beyond cost arbitrage) delivered by Pinnacle GICs is 55% versus 19% cost savings delivered by other GICs.
These results and other findings are explored in a recently published Everest Group report: “Data and Analytics Maturity in GICs: Pinnacle Model™ Analysis.” Everest Group’s Pinnacle Model research methodology is designed to illuminate the best practices of global enterprises that are most effectively developing and deploying capabilities to achieve business outcomes.
“Pinnacle GICs teach us a great deal about how to achieve the greatest return on data and analytics investments,” said Karthik. “We have found that the journeys of Pinnacle GICs are quite unique, differing greatly from others not only in their technological and people capabilities but also in in their vision, their operating models, and the strategic, proactive role they play within the parent organization.”
With respect to successful data and analytics initiatives, Pinnacle GICs have these key enablers and investments in common:
Serve as their parent enterprise’s strategic partner in global data and analytics programs and are two times more likely to proactively develop solutions ahead of demand. Also, many more Pinnacle GICs drive enterprise-wide initiatives (100% for Pinnacle GICs versus 20% for others).
Achieve greater adoption of data and analytics across functions. Best-in-class GICs have achieved more than 50% penetration for multiple functions.
Own entirely the enterprise’s capability in key areas such as data management (60% of Pinnacle GICs), modeling and decision support (60%), visualization/dashboarding (80%) and data trust (60%).
Spend 1.7 times as much as other GICs, which allows them to invest in specific skills and technologies.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
The announcement is a masterful move to aid Salesforce’s hyper growth agenda to become a US$28 billion company in three years’ time. In the past 15 months, Salesforce has accelerated the data pivot through its acquisitions of Mulesoft in March 2018 and now Tableau, for a combined value of $22.2 billion.
Given its ambitious topline growth goals, Salesforce has hedged its bet against a pure cloud play. Tableau, which is not a cloud company, runs most of its products on-premise, with over one-third deployments in the cloud. However, last year, Tableau announced that its products will also be available on hyperscalers’ cloud platforms (AWS, Microsoft Azure, and GCP.) Addressing the ubiquity of data in a modern enterprise and recognizing the transition in software consumption pattern, Salesforce is taking an “anytime, anywhere” analytics approach to cater to enterprise’s hybrid cloud-first mandate.
In addition, Tableau’s strong performance against rivals including IBM Cognos, MicroStrategy, Oracle BI, and QlikView makes a strong case for the acquisition, given Salesforce’s big bet on its Customer 360 initiative and its broader foray into empowering clients with data analytics and visualization capabilities.
Enhancing the Data Analytics and Experience Pivot
Salesforce, a veteran in the CRM space, is repositioning itself as a digital experience (DX) platform, wherein it intends to become a one-stop, end-to-end solution for enterprises’ DX needs. It has been making strategic acquisitions over the years to plug in the gaps in its DX platform portfolio to achieve this goal.
Because Tableau and Salesforce’s in-house analytics tool, Einstein Analytics, can easily interoperate, the company will be able to sell a well-packaged data analytics offering. Tableau’s niche capabilities in data analytics will not only deliver an improved data management solution but will also help enterprises form data-intensive strategies and optimize the overall stakeholder experience. And, the acquisition gives Salesforce new up- and cross-sell opportunities, as enterprises will be able to purchase CRM and business intelligence (BI) capabilities from a single vendor.
Gaining a Full View of Enterprise Data
Looking at the timeline of Salesforce’s acquisitions, we see a strategic shift from targeting digital marketing and commerce space toward enhancing enterprise data lifecycle management. Since 2018, Salesforce’s top deals have been to expand its coverage in the data and analytics space. Undoubtedly, the move has given Salesforce a shot in the arm when it comes to showcasing its capabilities across the data management value chain. Tableau sits atop of its acquisitions, plugging in multiple outside data sources and offering an easy to use UI for data visualization.
Indeed, Salesforce’s acquisition of Tableau is a strategic next step after its 2018 acquisition of MuleSoft. While Salesforce leveraged Mulesoft to create a “Salesforce Integration Cloud” that allows different cloud applications to connect via APIs, Tableau can help it gain deeper insights in this data, in turn driving enterprises toward data-driven decision making.
Data Orchestration Meets Cognitive
We give a thumbs up to this deal, particularly for what it means to the market going forward. Why?
The move fits well with Salesforce’s agenda to move into machine learning-driven analytics. Essentially, it will now have a strong BI tool, underpinned by AI, that will democratize enterprise access to next-generation data modeling and analytics capabilities. A Tableau-integrated Salesforce Einstein Analytics offering should be able to deliver an intelligent, intuitive analytics and data visualization platform that leverages enterprise-wide data to help enterprise customers, employees, and partners with well-curated insights.