An Operating System For Analytics?

Five Critical Components For Executing The Analytic Process

Operating systems are a solid model for The Analytic Process. Their role in computers and various smart electronics is nearly identical to the structures and frameworks we seek to leverage when building meaningful and actionable analytics. Operating systems are the foundation for all the intelligence eventually embedded into the device.

These days, it is not uncommon for organizations to leverage and develop operating systems of their own. They are an up-and-coming buzz on the consulting landscape and the topic of more than a few recent publications. Perhaps their popularity will grow? Perhaps they will fade away? Regardless, it is a concept that can be leveraged to provide value and understanding. It is certainly worth a short article.

Operating systems are predicated on the management of resources. Analytics is, too. No single resource may be more valuable or important to this function than that of information. Of course, information is rarely found. It typically requires cultivation.

Analysts and organizations should always begin any analytic initiative with an inventory of available data. This includes both structured and unstructured sources. It includes both collected and uncollected ones. Storage, ETL, definitions, and formatting — all have a role to play as well. Though some of these attributes cross into other steps.

Remember — iterative and recursive.

Your organization has a process. It may be well-defined or loosely executed. Your data is processed, inline with your business model or otherwise. Process defines your business. As a result, it also defines analytics. It is a process itself, after all.

Process is also the heart of an operating system. The Analytic Process needs to leverage and model the process that defines your business — in order to adapt that process to serve the development of analytics. It is a question of insight, discovery, and logic.

Once the information sources are known and the processes understood — structure must be added. Organization, structure, and order create the “form” of information. This is the critical step in true understanding, of developing data into knowledge and understanding.

This is also the step that solidifies the concept of a system. It is where The Analytic Process wins or loses. It is hard not to overplay just how critical this step truly is. It is also critical to note that organization is driven by purpose and perspective. Data is organized in many different fashions to support many different needs.

Whether analytic is used directly in an organization for decision-making or only provides recommendations to decision makers, determination is a critical step in the process. Resource management requires prioritization and value is rarely generated without judgement.

A proper operating system tracks and monitors resource decisions. This is part of the learning process. It is part of optimization. By definition, it is also part of the analytic process. This is the step that requires the most practice to perfect and the one that provides the knowledge that perfection is never a true possibility.

Analysis means “to break apart”. It is only one half of The Analytic Process… and honestly the lesser. Synthesis is the bringing together of the story, the argument, the model, or the lesson. It requires communication, persuasion, and education.

It is the synthesized, simplified, and highly tangible outputs of the analytic process which allow it to act as an operating system for an organization. It is the very DNA of a companies learning, insight, and ultimately — success. It is also hard.

Machines can be taught to find information, process it, organize it, and calculate determinations. Few, if any, have been developed that could actually synthesize meaningful solutions, models, or stories. A time may certainly come when they can but they will likely still fall short of the abilities of a human analyst — at least one that has diligently employed the five steps above.

Thanks for reading!

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