Why data analytics partnerships work - our experience
Investing in a data strategy is quickly becoming a mainstream component in a modern businesses armoury. With any strategy development, there are many ways to implement, often dictated by a number of controllable and uncontrollable elements.
In this article, we discuss why a longer-term, more balanced data strategy investment will often pay-off more than a shorter-term, quick-win based approach. Overly, it comes down to commitment to improve, stakeholder buy-in, and continually pushing the possibilities of the strategic use cases of a great data-driven business strategy. Achieving this arises from the foundational relationship you have with data, or the people or teams responsible for utilising it effectively.
An approach based argument
Over the years, we have worked with hundreds of clients across a range of different projects. We recently released an article about why 85% of data projects fail , which discussed four core elements. Below we will discuss two common project model approaches we see when it comes to client data investments, what they entail and the pros and cons of each.
One-off project model
One-off projects are fixed term, fixed price contracts paid in either one or two installments. They tend to focus on one or two key business problems surrounding data usage, and offer a fundamental basis for the ongoing usage of data as a strategic business asset.
Pros -
Short-term meaning the solution is built and delivered quickly
Solves one or a few critical business needs scoped into the project
Solution built to best solve the problems faced in the immediate future
1 or 2 payments max (i.e. commitment fee and end-of-project fee)
Provides a strong foundation for further development involving reporting, modelling, predictive analytics…
Cons -
Little to no room for requirement/development revisions (particularly if scope is tightly defined)
Lack of flexibility as the solution develops within the confines of the scope, resulting from time and budget pressure
Lack of support after final deployment means that without a dedicated resource to maintenance and improvement, the solution can often be disregarded or left untouched for periods at a time
Only medium amount of incentive for client to commit to long-term improvement and best practice data usage habits
Partnership model
A partnership model is a longer-term relationship to strategically work on building and improving the data capabilities of your business. It takes elements of the one-off project model, including building data solutions to solve core business problems within a specified time period, but also incorporates scope for ongoing support and improvements after deployment, meaning both parties are committed to ensuring the deliverable continues to provide strong value now and in the future.
Pros -
Core deliverable built and delivered quickly
Solves critical business needs and offers scope for continual improvement, support and training
Payments spread across the term of the partnership, meaning smaller initial outlays of capital, all while paying similar rates as a one-off project
Ability to update the terms of the agreement throughout to match changing business requirements, enabling ongoing solution optimisation
Cons -
Client must be willing to commit to their data investment over a longer period, which requires accountability and resource availability for reviewing updates and contributing to the improvement of delivered solutions.
Conclusion
The model chosen to invest in a corporate data strategy will always come down to the particular businesses circumstances and needs. Despite this, it is important to consider the objectives of the investment and whether a short-term, quick fix is desired, or a longer-term commitment to the strategic leveraging of data is preferable. At White Box, we cater to both circumstances, but implore clients to consider their commitment to the usage of data, given projects that emphasise an ongoing commitment to data investment almost always pay-off more favourably than shorter-term, one-off projects.
White Box acts as your extended team, with full access to senior data scientists, consultants and analysts
At White Box, we work transparently with your team to understand the right solution for you. We then define the project, and the required resources and support necessary for delivery. You then have access to a core project team, as well as the extended team if particular niche skills are required for certain project components. The below diagram explains this system, and the convenience it provides when compared to trying to hire an individual with all of the skills required.
Interested in kicking off your next successful data project with White Box? Reach out today and we’ll get back to you with the next steps for delivering long-term business value.
Contact the White Box team today
