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    Analytical Skills, Tools &Attitudes 2013

    Analytics capabilities needed

    now and in the future

    October 2013

    Research conducted and written by:

    Lavastorm Analytics a global analytics software company that enables a new, agile way to analyze, optimiz

    and control data and business processes.

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    Table of Contents

    I. Executive Summary.......................................................................................... 3

    II. Methodology....................................................................................................... 3

    III. Key Takeaways.................................................................................................... 4

    IV. Survey Results.......................................................................... 5

    V. Description of Survey Respondents............................................................. 16

    VI. About Lavastorm Analytics.............................................................................. 22

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    Executive SummaryOrganizations continue to invest more in analytics, but increasingly there is recognition that a

    shortage of analytic talent is holding back even greater investment. Lavastorm Analytics polled

    more than 425 people in the analytics community about whether their organization needs more

    analytic resources or skills and which skills are valued most and are most urgently needed.

    Survey respondents included business analysts, technologists, data analytics professionals,

    managers, and C-level executives across a broad variety of industries. The top findings were:

    According to the survey respondents, a lack of skills/training/education is the biggest

    factor holding back organizations from using analytics more.

    Skills most urgently needed in their organizations are Statistics, math or other quantitative

    skills; Analytic tool training; and Critical thinking.

    Lack of funding or resources, however, also has a significant impact on adoption of

    analytics to drive day-to-day decisions. Lesser factors also include inadequate support

    from executives and data that is not integrated.

    MethodologyIn order to gain the most accurate insight into the market, we conducted our research within

    major analytic communities, including LinkedIns Lavastorm Analytics Community Group,

    Data Science Central and KDNuggets. These communities have a global reach of over 100,000

    analysts that offer a diverse membership of analytic professionals across a variety of verticalmarkets.

    This survey was conducted online using an electronic survey tool. More than 425 business

    analysts, technologists, data analytics professionals, managers and C-level professionals were

    polled across a broad variety of industriesincluding financial services, telecommunications,

    healthcare and software & internet. After the survey data was collected, the data was analyzed

    using the Lavastorm Analytics Engine to identify variances among different demographic groups.

    Every survey participant was encouraged to answer every question.

    http://www.linkedin.com/groups/Lavastorm-Analytics-Community-Group-3875000?home=&gid=3875000&trk=anet_ug_hmhttp://www.datasciencecentral.com/http://www.kdnuggets.com/http://www.kdnuggets.com/http://www.datasciencecentral.com/http://www.linkedin.com/groups/Lavastorm-Analytics-Community-Group-3875000?home=&gid=3875000&trk=anet_ug_hm
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    Key Takeaways:

    1. Nearly 83% of respondents indicated that analytics is critical to their organizations

    and their organization uses analytics to drive day-to-day decisions more than past

    experiences, intuition and gut feel.

    2. The biggest factors holding organizations from using analytics more are:

    Lack of skills/training/education (18.75%)

    Lack of funding or resources (17.82%)

    Inadequate support from executives (9.7%) Data is not integrated (8.8%)

    3. Skills most urgently needed in their organizations are:

    Statistics, math or other quantitative skills (47.7%) Analytics tool training (40.3%) Critical thinking (28.2%)

    4. Statistics, math or other quantitative skills and critical thinking/questioning were the skills

    mentioned most often as necessary for the respondent to be successful in their role.

    Database or query language, analytics tool training, and business/presentation skills were

    also highly valued skills.

    5. The most common organizational structure related to analytics is that business

    departments and IT both have analytic resources and they function independently.

    6. Requirements gathering continues to take a significant amount of time. People spend just

    as much time gathering requirements as they do in analysis/data mining.

    7. Though education is needed, ongoing education for analytics is largely not tied to external,

    analyst-related organizations. The overwhelming majority of respondents, regardless of

    industry and population group, have no organization they rely on for ongoing education

    and networking.

    8. Tool-related improvements, including improvement to self-service tools, the datawarehouse, and BI platforms, were cited as the changes that would make respondents

    job easier and more valuable (23.3% of respondents). Other changes mentioned often

    included changes related to the following categories:

    More resources and funding (13.3%)

    Increased awareness of the opportunities to apply analytics, including the use of Big Data (13%) Data integration improvements (12.6%)

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    Survey ResultsSelect the response that best describes your reaction to the following statement,

    Analytics is critical to my organizations business strategy and drives our day-to-day

    decisions more than past experiences, intuition, and gut feel.

    427 Survey Responses

    Demographic analysis:

    Overall, all industries and all groups have a positive outlook on their organizations use of analytics. Healthcare isthe most skeptical industry 12% either disagreed or strongly disagreed with the statement.

    People from the Software & Internet industry were the most optimistic 62% strongly agreed with the statement.

    Data Scientists and Executives/Managers disagree most with 17% and 9% respectively responding with either

    strongly disagree and disagree.

    Data scientists were the most skeptical population segment 17% either disagree or strongly disagree.

    Strongly Agree42.7%

    Agree40.1%

    Neither Agree norDisagree 10.0%

    Disagree 6.0%

    Strongly Disagree 1.2%

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    What is the biggest factor holding your organization back from using analytics to drive

    more day-to-day decisions?

    427 Survey Responses

    Other includes:

    Time

    Politics/people afraid of redundancy Fast changing environment

    Demographic analysis:

    By company size

    Small Companies most often selected lack of funding or resources as a factor (26%). It was also the segmentthat most often indicated Inadequate Support from Executives (12%).

    Large (19%) and Medium Companies (24%) most often reported a lack of skills/training/education as a factor.By industry

    Lack of skills/training/education was the most often mentioned factor for both the Financial Services andSoftware & Internet industry.

    Lack of funding or resources was the most often mentioned factor for both the Business Services andTelecommunications industry.

    In the Healthcare and Pharmaceutical industry, inadequate support from executives was the most oftenmentioned factor.

    By population group

    Twenty-three percent (23%) of Executives/Managers thought that lack of funding was a major factor.IT developers (35%) most commonly mention lack of skills/training as a major factor.

    Compared to Business Analysts, Data Scientists more often mentioned inadequate support from the business(9% vs 3%) and software and tools are under-powered (9% vs 5%).

    Business Analysts struggle with data integration more than Data Scientists (11% to 2%).

    Lack of funding orresources 17.6%

    Lack of skills/training/education(either for specific analytic

    techniques or specific tools) 18.8%

    Inadequate support fromexecutives 9.7%

    Software and tools are too complicated 2.1%

    Insufficient data/informationpresented in reports 1.6%

    Inadequate means to present analytic insightsto executives in ways they can trust 3.0%

    Inadequate access todata 5.1%

    Data is not integrated 8.8%

    Poor data quality 6.0%

    None - no factor is holding us back 11.1%

    Other (please specify) 3.0%

    Inadequate support from thebusiness organization 5.1%

    Software and tools areunder-powered 3.9%

    Inadequate supportfrom IT 3.9%

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    Select the response that best describes your organizational structure related to analytics.

    427 Survey Responses

    Other includes:

    We are a very small company wholly focused on analytics - 3 full time people Chaos Sporadic analytics resources in departments, none in IT

    Demographic analysis:

    More than 60% of respondents say their organizational structure for analytics places analytic resources in bothbusiness departments and in IT.

    Regardless of company size, the organizational structure used is most often one where business and IT groupsfunction independently. However, large Companies are more likely to have independently-functioning business

    and IT groups as their model (44%) than Small Companies (28%). In addition, Small Companies are most likely to

    have analytics centralized within IT (19% compared to 7% for Large Companies).

    Analytic resources arecentralized within IT 14.9%

    Analytic resources arecentralized outside of IT

    19.5%

    Business departments and IT bothhave analytic resources and theyfunction independently 36.4%

    Business departments and IT both have analyticresources and they function collaboratively 26.0%

    Other (please specify) 3.3%

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    Do you agree with the following statement? My organization has a shortage of people

    with the skills to analyze and glean insights from data.

    427 Survey Responses

    Demographic analysis:

    While most people thought they are doing a good job of using analytics to drive decision making, 66% either agreeor strongly agree that they have a shortage of people with the skills to analyze and glean insights from the data.

    Financial Services and Healthcare (73% and 77%, respectively) had the highest percentage of people agreeing that

    there is a shortage of talent.

    Telecommunications (24% either strongly disagree or disagree) and Business Services (21% either strongly disagreeor disagree) thought that they were in the best shape.

    Agree39.2%

    Strongly Agree26.2%

    Neither Agreenor Disagree

    17.4%

    Disagree 13.7%

    Strongly Disagree 3.5%

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    What analytic skills does your organization most urgently need to increase?

    Select no more than 3.

    427 Survey Responses

    Other includes:

    Modern big data technologies Programming skills Requirement gathering and commercial orientation Suitable software - related skills

    Demographic analysis:

    The most urgently needed skills for Medium Companies were statistics, math or other quantitative skills,database query, and tool training as needed skills.Small Companies (23%) were more than twice as likely as Large Companies (10%) to need organizational/planning skills.

    Data scientists and Executives/Managers mentioned statistics, math or other quantitative skills as an urgentneed more than other groups (64% and 52%, respectively).

    IT Developers were the only group to list analytic tool training as their top choice. Respondents in the Telecommunications industry (16%) mentioned Excel skills and experience more often thanother industries.

    Respondents from the Healthcare (38%) and Software & Internet (40%) industries mentioned critical thinkingmore often than other industries.

    Critical thinking

    Statistics, math or other quantitative skills

    Database or query language skills and experience

    47.8%

    40.4%

    31.8%

    28.1%

    16.2%

    None - at the moment we do not need to increasethe analytic skills of our organization

    11.6%

    11.1%

    10.2%

    7.2%

    5.1%

    4.9%

    3.3%

    Analytics tool training

    Business communication/presentation skills

    ETL skills and experience

    Industry certification in Business Analysis

    Industry experience

    Organizational/planning skills

    Excel skills and experience

    Prior business analyst experience

    Negotiation skills

    Other (please specify)

    15.5%

    15.3%

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    What are the 3 analytic skills or experiences that are most necessary for you to be

    successful in your current role? Select no more than 3.

    Critical thinking/questioning

    Statistics, math or other quantitative skills

    Database or query language skills and experience

    43.6%

    41.7%

    32.3%

    31.4%

    26.9%

    Design skills for user interfaces and reports

    20.8%

    17.8%

    17.3%

    15.0%

    13.8%

    9.1%

    8.9%

    7.3%

    1.2%

    Analytics tool training

    Business communication/presentation skills

    Programming skills

    ETL or data integration skills and experience

    Industry experience

    Organizational/planning skills

    Excel skills and experience

    Prior business analyst experience

    Negotiation skills

    Other (please specify )

    427 Survey Responses

    Other includes: Conceptual modeling Lower level e.g. Unix scripting skills Experience of the business Time management Sales

    Demographic analysis:

    Large Companies (34%) were less likely than Small (47%) and Medium (42%) Companies to select statistics, mathor other quantitative skills as an important skill.

    Large Companies (27%) value industry experience more than Small and Medium Companies (both 19%). Negotiation was twice as important in Small Companies (12%) than Large Companies (only 6%). Respondents from the Telecommunications and Business Services industries mentioned tool training more oftenthan other industries (39% and 36%, respectively).

    Data scientists thought statistics, math or quantitative skills (74%) were their most important skills. Business analysts thought that database or query language skills (39%) and critical thinking/questioning (38%) weretheir most important skills.

    Executives/Managers thought critical thinking (52%) was the most important skill.IT thought statistics, math or quantitative skills (50%) as well as analytic tool training (50%) were their most

    important skills.

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    How did you spend your time over the past year? Indicate the percentage of time you

    dedicated to the activities below. Your answers should add up to 100% and account for

    100% of your time over the past year.

    427 Survey Responses

    Demographic analysis:

    Respondents from the Telecommunications, Financial Services, and Software & Internet industries spent moretime gathering requirements than any other task.

    Respondents from the Business Services industry spend more of their time presenting results (16%). Respondentsfrom the Healthcare industry also spend a significant amount of time presenting results (14%).

    Business analysts spend the highest percentage of their time on requirements gathering and data analysis (17%).

    Data scientists spend most of their time on data analysis/mining (19%), data modeling (14%), and data

    transformations and integration (14%). They spend much less time on requirements gathering than Business

    Analysts, Executives/Managers, and IT.As expected, Executives/Managers spend most of their time on planning/strategy meetings, requirements

    gathering, and data analysis.

    Data analysis/mining

    Requirements gathering

    Preparing or presenting results/reports

    14.1%

    13.4%

    10.5%

    9.1%

    8.3%

    Training others to use results/reports

    7.4%

    7.1%

    6.5%

    4.8%

    4.3%

    4.0%

    3.0%

    2.2%

    5.2%

    Planning/strategy meetings with others

    Filtering and organizing data

    Administrative activities

    Data modeling

    Data transformation and integration

    Making business decisions based onanalytic insights

    Infrastructure design and implementation

    Testing and tuning processes

    Other (analysis related)

    Other (not analysis related)

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    Related to data access, what do you believe hurts or prevents your access to data?

    (Check all that apply)

    427 Survey Responses

    Other includes:

    Business Analyst does not have access to DataWarehouse for mining Lack of integration Operational data systems not designed to retrieve/report/analyze information Poor data quality Lack of understanding the data No problems

    Demographic analysis:

    By company size

    Data governance policies by IT was more often mentioned as a factor in Large (44%) and Medium (40%)Companies than Small Companies (30%).

    Inadequate self-service tools/report was more often mentioned as a factor in Large (42%) and Medium (44%)Companies than Small Companies (28%).

    Lack of skills/knowledge was more often mentioned as a factor in Large (32%) and Medium (32%) Companiesthan Small Companies (24%).

    Lack of APIs was more often mentioned as a factor in Large (31%) Companies than in Medium (22%) and SmallCompanies (19%).

    By industry

    Respondents from the Business Services and Software & Internet industries report that incompatible formats/lack of data model (42%) is the factor that most hinders data access.

    Respondents from the Healthcare industry report that inadequate self-service tools/reports is the factor thatmost hinders data access.

    Respondents from the Financial Services and Telecom industries report that data governance policies by IT arethe things that most hinder data access.

    By population group

    Business Analysts (45%) and Data Scientists (47%) said data governance is the major issue.Executives said lack of self-service tools/reports (44%) is the major issue related to data access.

    IT developers said data governance policies by IT (40%) is the factor that hurts or prevents data access.

    Inadequate self-service tools/reports

    Data governance policies by IT

    IT does not have the data in the data warehouse

    Incompatible formats/lack of data model

    Lack of skills/knowledge to use the tools/reports that are available to me

    Lack of APIs from operational systems

    Other (please specify)

    38.3

    38.0%

    35.3%

    34.8%

    29.5%

    23.7%

    9.7%

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    Select the option that best describes your reaction to the following statement, Analyst

    related certifications/degrees have been very important to my initial education, ongoing

    education, and ultimate success in the field of analytics.

    427 Survey Responses

    Demographic analysis:

    Respondents from the Software & Internet (51%), Financial Services (49%), Business Services (45%), and Telecom(45%) agree most that analyst related certifications/degrees are important to their initial and ongoing education.

    But, many respondents werent sure whether they were a help or not.

    IT Developers are the group that most agrees that certifications/degrees help them (70%) gain success in analytics.

    Strongly agree18.1%

    Somewhat agree30.6%

    Do not agree or disagree27.8%

    Somewhat disagree13.2%

    Strongly disagree10.2%

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    What analyst related organizations, if any, do you rely on for ongoing education and

    networking to help you in your job? (select all that apply)

    427 Survey Responses

    Other includes:

    SAS certificates American Statistical Association INFORMS Massive Open Online Courses (MOOCs) Coursera University courses Project Management Institute (PMI) Project Management Professional (PMP)

    We educate our own people. Formal education is outdated.

    Demographic analysis:

    Financial Services has the least reliance on analyst-related organizations for education and networking (69%). Only 36% of Business Analysts carry a certification from the IIBA. But that is much greater than only 18% of DataScientists.

    IIBA Certification was more likely in Large Companies (15%) compared to Small (4%) and Medium Companies (5%). More respondents from Small Companies (76%) than Large (58%) and Medium Companies (57%) said they did notrely on analyst-related organizations for ongoing education and networking.

    None - I do not rely on any organization forongoing education and networking

    Information Technology Infrastructure Library (ITIL)Certified Business Analyst

    TDWI Certified Business Intelligence Professional(CBIP)

    IIBA Certified Business Analysis Professional

    (CBAP)

    IIBA Certification of Competency in Business Analysis(CCBA)

    BSC (formerly ISEB) Certificate inBusiness Analysis Practice

    Other (please specify)

    63.6%

    12.5%

    12.3%

    11.8%

    7.2%

    3.3%

    9.7%

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    What is the biggest change you would like to see in your organization to make your job

    easier or more valuable?Note - This survey question was open ended. Results were categorized by Lavastorm Analytics after the survey

    responses were collected.

    427 Survey Responses

    Better tools/Self-service Tools/Warehouse/BI Tools/BI Platforms 23.3%

    More Alignment of Resourcesand Funding 13.3%

    Increased Awareness/Opportunities of Analytics/Big Data 13.0%

    Data Models/Data Integration/Consistency in Data AcrossSystems 12.6%

    Data-based Decisions/Data Governance/Data Ownership/Trusted Data 7.2%

    Data Quality 4.9%

    More Training 11.4%Collaboration/Communication/Process Flow/Strategy/Project Issues 11.2%

    Need Change in Business Infrastructure 10.0%

    Management/Executive Buy-in/Culture 8.4%

    Data Access 7.4%

    Need More Analytics/BI Professionals 4.9%

    More Data Sources 2.3%

    Agility/Flexibility/More Time for Analysis 1.4% Other 10.5%

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    Description of Survey Respondents

    Which of the following best describes your role within your organization?

    427 Survey Responses

    Other includes:

    Owner

    Big data analyst Data analyst Market research

    For demographic analysis, the following additional aggregations were used to analyze the survey responses:

    Executives/Managers = sum of responses from Corporate Executive (CEO, CFO, COO, etc.); CIO or IT Executive;

    Department VP, Director or Manager; VP or Director of BI/Analytics

    Corporate Executive (CEO, CFO, COO, etc.) 2.8%

    CIO or IT Executive 2.1%

    Department VP, Director orManager15.3%

    VP or Director of BI/Analytics8.6%

    Business Analyst22.0%

    Data Scientist10.9%

    Business Systems Analyst6.3%

    Business Process Analyst 1.4%

    IT Developer 4.6%

    Consultant11.8%

    Other (please specify)14.2%

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    What education levels have you completed?

    427 Survey Responses

    Doctoral degree (business ornon-technical/quantitative major) 2.3%

    None of the above 4.4%

    2-year college degree (Associates) 4.4%

    4-year college degree (technical/quantitative major) 26.7%

    4-year college degree

    (business or non-technical/quantitative major) 18.6%

    Masters degree (technical/quantitative major) 23.9%

    Masters degree (business ornon-technical/quantitative

    major) 29.9%

    Doctoral degree (technical/quantitative major) 6.7%

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    In your organization, to which department do you report?

    427 Survey Responses

    Other includes:

    President

    Analytics Board Business unit Risk

    Finance8.6%

    IT29.9%

    Sales5.3%

    Marketing10.4%

    Operations16.7%

    Other (please specify)29.0%

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    How many total people work in your organization?

    427 Survey Responses

    Other includes:

    For demographic analysis, the following additional aggregations were used to classify the survey responses:

    Small Companies = sum of responses from Fewer than 100; 100 249 and 250 499

    Medium Companies = sum of responses from 500 999 and 1,000 10,000 Large Companies = 10,000 +

    Fewer than 100

    16.9%

    100 249

    8.8%

    250 - 499

    6.5%

    500 999

    11.4%

    1,000 10,000

    29.9%

    10,000+

    26.5%

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    How many business analysts or data scientists work in your organization?

    427 Survey Responses

    What are the annual revenues of your organization?

    427 Survey Responses

    Less than $50 million 17.6%

    $50 million - $100 million

    6.0%

    $500 million - $1 billion 7.4%

    $100 million - $500 million

    9.1%

    $1 billion+

    29.5%Unable to disclose

    18.6%

    Dont know

    11.8%

    0

    3.9%

    1 9

    38.8%

    10 24

    16.5%

    25 49

    9.3%

    50 99

    9.3%

    100 499

    12.1%

    500 1,000

    3.7%

    1,000 +6.5%

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    How long have you worked in the field of business analysis?

    427 Survey Responses

    Less than one year6.0%

    1 2 years8.1%

    2 5 years21.4%

    5 10 years29.0%

    10+ years26.9%

    I have never worked in the field ofbusiness analysis 8.6%

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    Which of the following best describes your companys primary industry?

    427 Survey Responses

    Other includes:

    Marketing

    Consulting Automotive IT

    Agriculture & Mining 0.9% Telecommunications18.79%

    Business Services 7.7%

    Computers & Electronics 3.0%

    Education 6.5%

    Energy & Utilities 2.1%

    Financial Services14.4%

    Government 3.3%

    Healthcare, Pharmaceuticals, & Biotech 9.1%

    Manufacturing 2.3%

    Media & Entertainment 1.6%

    Non-Profit 1.2%

    Real Estate & Construction 0.9%

    Retail 3.0%

    Software & Internet10.4%

    Transportation & Storage 1.4%

    Travel, Recreation & Leisure 0.7%

    Wholesale & Distribution 0.7%

    Consumer Services 1.2%

    Other 2.1%

    Other (please specify) 8.8%

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    About Lavastorm AnalyticsLavastorm Analytics is a global analytics software company that enables a new, agile way to analyze, optimize, and

    control data and business processes. The companys products provide analysts with programming powers previously

    limited to IT to rapidly unify disparate data, easily construct complex analytics, and effectively deliver actionable insight

    and results. Analytics built in Lavastorm can easily be deployed as persistent solutions and applications, providing

    continuous analytic monitoring across multiple systems and complex, data-intensive processes. Lavastorms solutions

    have identified business improvements worth billions of dollars for some of the largest corporations in the world.

    For more information on Lavastorm Analytics or to download a desktop edition of the Lavastorm Analytics Engine,

    our data analytics software for business analysts, please visit www.lavastorm.com or

    www.lavastorm.com/resources/software -downloads-trials, respectively.

    http://www.lavastorm.com/http://www.lavastorm.com/resources/software-downloads-trialshttp://www.lavastorm.com/resources/software-downloads-trialshttp://www.lavastorm.com/
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    www.lavastorm.com

    Lavastorm Analytics, 2013. All rights reserved.