A guide to Analytic Organization Models

Posted on By fabrizio.andreai@gmail.com

This article presents the main analytic organization models, their main characteristics and when use them inside a Corporate.

An analytic organization model defines the distinct roles and responsibilities that each group or individual assumes as it relates to Analytics across an enterprise, e.g., where analytics capabilities “reside” in the organization or how resources are allocated or who decide the priorities.

Operationalizing analytics requires selecting the right analytic operating model; indeed only an appropriate organization can effectively manage supply and demand of analytical services across the enterprise. And only a robust analytical governance enables all stakeholders to build confidence and ensures focusing on the right target.

Analytic team can be organized in several ways. Options range from wholly decentralized or centralized groups to functional or Center of Excellence (CoE) constructs. In choosing an organization model for their analytics capabilities, enterprises should consider how each model facilitates (or inhibits) governance over multiple analytics projects and the infusion of analytics inside company decision-making processes.

The selection of the right model should be based on the analysis of the following primary considerations:  

  1. enterprise analytic (and digital) needs, 
  2. analytic capability maturity, 
  3. ability to manage organizational transformation.

Analytic organization models overview

There are many ways to implement an analytic organization in a company. Here are described the main models and their related characteristics.

Analytic organization responsibilities

An analytical organization has several corporate responsibilities. The list of these responsibilities is reported below

Analytic organizations models description

In this section, the main organization models are explored in terms of mission and responsibilities.

  1. Decentralized model
  2. Consulting model
  3. Federated model
  4. Functional or COE model
  5. Centralized Model

Decentralized Model

The decentralized analytic organization is generally the starting point of many companies. It is a laisser-fair model which works well with large, high effective, and independent business units

Consulting Model

The main scope of a consulting analytic organization is the fast spreading of analytic capabilities in absence of strong leadership commitment

Federated Model

The main scope of a federated analytic organization is the governance of analytic initiatives across the whole enterprise

Functional or COE Model

The main scope of the Functional or Center of Expertise (COE) analytic organization is supporting complex analytical projects implementation across the whole enterprise

Centralized Model

The main scope of the central analytic organization is leading, Providing and governing analytics capability and initiatives across the whole enterprise

Conclusion: what's the best model to use?

As seen in the previous sections, analytical capabilities, inside an Enterprise, can be implemented using different organizational models.

In the following table I want to provide a guide to select the right model based on the main goals of your analytic organization.

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