How are analytics being used by HR Professionals: Out-of-the-Box Analytics vs Custom Analytics

“Build vs Buy” is a fundamental question that companies and IT departments face all the time. It’s also a question that has no easy and universally answer. 
How are analytics being used by HR Professionals: Out-of-the-Box Analytics vs Custom Analytics

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Author: Armando Ackerman

“Build vs Buy” is a fundamental question that companies and IT departments face all the time. It’s also a question that has no easy and universally answer. 

On one end of the build-vs-buy spectrum, where functional requirements are well defined, the scope is finite, the timeframe is clear and the tradeoffs are quantifiable, the value equation is relatively straightforward.  How much does the purchased software cost to buy and own vs how much would it cost to internally develop and support home-grown software.  Of course, even in the simplest situation, it is important to also consider factors such as opportunity costs. Could your internal resources be applied to higher priority projects?

On the other end of the spectrum, where the decision will impact the entire company and the requirements are more open-ended, it can be much harder to reduce the build-vs-buy decision to a simple mathematical equation. This is especially true for enterprise-critical software, such as Organizational Management Analytics solutions that need to align with dynamically changing requirements and respond to unanticipated new challenges over a long period of time.

The decision on implementing true enterprise-wide Organizational Management Analytics must address the needs of today while also building in the tools to address dynamic change and unknowable factors.

1- Sustained growth is critical for survival and competitive success – but it’s hard to manage. 

2- Merger and acquisition (M&A) strategies can fundamentally transform enterprise capabilities – but M&A programs require effective integration to succeed.

3- Re-organization is now a continuous factor for success in today’s globally competitive landscape – but it’s critical to evolve proactively without undue disruption or loss of productivity.

4- Monitoring your organizational health is crucial to survival – but visualizing key organizational analytics across multiple business units can be challenging.

This need to “see into the future” is a critical factor when considering a build-vs-buy decision on organizational analytics solutions.  Typically, the decision to create a custom solution with in-house resources rests on how narrowly the scope can be defined and whether the proper skills are available.  In addition, the decision needs to consider whether the skills, resources, and commitments are available in-house to support and extend the home-grown solution over the long term.

When it comes to Organizational Analytics, the in-house development approach falls short on all these key criteria.  Developing a one-off analytics solution for such an inherently dynamic challenge is destined to become obsolete from the moment that it’s launched. It would be something like building your own exercise treadmill when the real need is for a long-term exercise and health program. Many companies have already started using best-of-breed, out-of-the-box organizational management analytics solutions such as Nakisa’s HANELLY to provide a continuously accurate understanding of organizational health and functioning, along with the analytics and modeling capacity to manage change and align resources with overall business strategies.

By leveraging flexible cloud-based deployment options with a holistic end-to-end approach, HANELLY seamlessly integrates structure, people, process, strategy, and technology as tightly connected elements working in collaboration to create alignment and maintain the optimum culture.  The result is a comprehensive understanding of the whole organization, combined with the tools to drill-down and manage any specific areas that need to be changed, fine-tuned, combined or re-organized. Instead of building a soon-to-be-obsolete, one-off in-house solution, these companies are investing in a constantly updated and always evolving holistic approach that is built by experts and backed by a deep reservoir of organizational management knowledge. 

The cloud based deployment and optimized user interface means HANELLY analytics and tools are always available and can be accessed from anywhere by the executives and managers who need a clear understanding of organizational functioning. The commitment of the Nakisa HANELLY team to constantly staying ahead of the curve on new analytics and organizational requirements means you never have to hassle with bringing back your in-house development team to tweak, fix and over-haul your home-grown software. The HANELLY approach gives companies access to an always-up-to-date comprehensive set of organizational analytics and change management solutions. These core capabilities are backed by Nakisa’s HANELLY Business Services that provide deep expertise, coaching and best-practices assistance to assure success for both the predictable and the unexpected challenges.

In today’s organizations, change is inevitable but effectively managing it is a choice.

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