Web Reporting vs. Web Analysis
I believe very strongly that one have to understand that reporting on any metric at pure face value within a very limited context is unsound and should not be confused with actionable insight from analysis! – To wrap up that statement I tend to conclude that:
- Reporting is produced by tools
- Analysis is done by people
- Processes are deployed by organisations
Which leads us to following daring fact:
The right tools +
The right people +
The right processes +
= Data Driven Organisation
Watch my presentation on the matter and find out (or at least watch my take on it) how you tell the difference between reporting and analysis.
Download the PDF here: IndexTools-Dennis-Reporting-vs-Analytics.pdf
… OR ask me to do a presentation on the subject for your organisation. :-)
The conclusion is worth repeating – analysis is all about:
- Developing KPI’s
- Creating Insight
- Taking action
I would like to recommend the following great and in depth posts about the subject:
- Seven Steps to Creating a Data Driven Decision Making Culture (by: Avinash)
- Reporting versus Analysis: The “Actionable” Debate (by: Jim Novo)
It does not get any better than that!
June 10th, 2007 at 6:09
Dennis,
I recently wrote about this at http://www.grokdotcom.com/2007/06/06/web-marketing-and-analytics-process-talent-tools/ .
The challenge is most people would agree that you should start with process, people and then choose tools. However, it is almost done in reverse, but process is never realized and then rarely is ROI actualized. Then they spend their time blaming the tools for not working, then try to figure out what is wrong with the people without realizing that this is a organizational issue. This is about being a customer focused organization that is data driven.
June 10th, 2007 at 15:09
What many companies do not seem to realize is that a true dotcom needs to have analytics brain on its team, be it in-house or outsourced. While a good tool can unocover many hidden opportunities, be it a “leak” in the funnel, high exit rate from a search results page or a sudden drop in conversions from organic referrals and really good ones can even alert you of it, there needs to be someone who knows the context of the change, understands the business impact of it and can ACT on the intelligence provided. With Analytics tools being so rich in functionality and features, you need to have someone who can actually USE the system to tell you more than the usual “number of first time visitors increased 10% but sales conversion rate dropped 2% in the past period”, someone who will give you INSIGHT by telling you HOW and WHY your conversion rate dropped and what can be done to IMPROVE it.
June 13th, 2007 at 1:19
Hi Bryan,
Thank you very much for your insight. AND I am sorry to say that I agree with you :-)
I definitely believe AND experience (me being a Vendor) that a lot of organisations start out with the TOOL. However; we have seen lately that organisations, at least to some extent, have prepared and defined KPI’s beforehand and use that as part of their tool selection process. I am not saying this is where the industry should be, but I actually think we are moving in the right direction.
Here is a LINK to Bryan’s article (go read it, it is a great take on the subject)
process-talent-tools
cheers
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