How to Organize a Data Analytics Department in a Company

Abstract:

The paper investigates the intricate decision-making process involved in establishing the organizational framework for data analytics within a company. Before determining whether a centralized, decentralized, or federated approach is most suitable, it is essential to clearly define the scope of data analytics in the organization and outline the roles it will serve. Each type of organizational model for data analytics has its own distinct social consequences. For example, a centralized model allows managers to maintain exclusive control over vital information, while a decentralized model fosters data sharing and enhances employee engagement. It is critical to ensure that the selected organizational model aligns with the defined organizational units and roles, including their respective rights and responsibilities. This paper provides an in-depth analysis of the roles of four specific units: BI & Data Governance, Central Analytics, and Advanced Analytics, which are proposed for centralization, along with the Business Analytics unit, which is suggested for decentralization.