Analytics

Analytics Projects: 6 Common Reasons They Fail

March 24, 2023

Why do so many analytics projects fail?

Data is being created and consumed at a pace that's hard to hold in your head. Global data experts predict that humans will produce and consume about 118 zettabytes of data by the end of 2023, and the curve only steepens from there.

That growth has changed what's expected of every business. Analytics is no longer a side project or a back-office reporting function. It's becoming core to how companies operate, compete, and grow. The question is no longer whether to invest in it. It's why so much of that investment never delivers.

Because that's where most of it stops. Teams build something promising, prove it out, and then watch it stall before it ever touches a business decision. Instead of removing complexity, the work adds more.

The numbers tell the story.

  • 85% of big data projects fail
  • 87% of data science projects never make it to production
  • 20% of analytics insights will deliver business outcomes

The technology is rarely the reason. The reasons are older, more familiar, and entirely fixable.

What actually causes analytics projects to fail

1. No clear strategy

Without a defined objective, there's no way to measure success or even agree on where to start. A clear data strategy aligns stakeholders and gives the work a roadmap tied to business outcomes, not just activity.

2. Poor data quality

Accuracy, completeness, and consistency aren't nice-to-haves. When the underlying data is wrong or incomplete, every insight built on top of it is unreliable, and the conclusions drawn from it are flawed.

3. Inadequate infrastructure

Analytics needs foundations built to process, store, and analyze data at scale. Without that, you get slow processing, system failures, and lost data, all of which put the work at risk.

4. A skills gap

Analytics depends on people with data science, statistics, and engineering expertise. Teams without the right talent struggle to take a project from idea to reliable, in-production insight.

5. Siloed systems

When data is trapped in disconnected applications, insight stops at the edge of each silo. The most valuable answers live across domains, and siloed data can't reach them.

6. Resistance to change

Analytics reshapes processes and workflows, and that meets friction at every level of an organization. The teams that succeed name the roadblocks early and bring people along instead of around them.

How OneSix closes the gap

We built OneSix to take analytics from roadmap to production. We design the strategy, build the systems, and scale the outcomes, with production reliability as the through-line across all three.

It starts with strategy, because that's where most analytics projects are won or lost. Our Data & AI Strategy work gives you a clear, deliberate path from where your organization is today to where it needs to be, prioritizing the projects with the highest value and the lowest risk. Our strategists work alongside your team to map the most impactful work in the short and long term, and to sequence it in the order that compounds.

  • Current state. We assess your existing data assets, platforms, people, and processes, and score your organization's data maturity.
  • Future state. We define the vision for your data-driven organization, including the technology, people, processes, and use cases that get you there.
  • Roadmap. We build a prioritized roadmap that moves you from current state to future state, ordered by the work that delivers the most value first.

From there, the same team that set the direction engineers the data foundations and analytics to deliver it, then stays embedded to optimize and expand what we build together. That continuity is the difference between a strategy on paper and insight in production.

The pace of data isn't slowing down, and neither is the pressure to do something useful with it. The organizations that pull ahead won't be the ones that started the most analytics projects. They'll be the ones that finished the right ones.

If your organization is ready to move from strategy to production, we're ready to help you get there.