Kaushik’s 10/90 Rule
In 2006, Avinash Kaushik introduced a concept he called the ‘10/90 rule’, a principle suggesting that for every $10 spent on tools and technology, $90 should be allocated to the people and processes using them. Originally created in the context of web analytics, this rule has spread to more types of analytics and remains more relevant than ever. This principle emphasizes that technology alone cannot drive success; the real value comes from skilled professionals who can interpret and act on the data.
TDWI’s 2023 State of Analytics Statistics
39% of respondents report that their organizations have well-established funding processes for analytics.
While half of the organizations are hiring more people for analytics, only 16% report having all the resources they need. This highlights the critical need to invest in skilled personnel to effectively deploy and utilize analytics tools
37% of organizations have a company-wide data infrastructure that can handle user growth.
42% of organizations provide access to analytics tools to more than 40% of their personnel, leaving a large portion of employees without the necessary tools.
Only 9% of companies use a full range of advanced analytics techniques, while 𝟏𝟒% still rely primarily on spreadsheets.
15% of enterprises check models for accuracy and ethical considerations before deployment
Salesforce’s 2023 State of Data and Analytics Report Statistics
41% of line-of-business leaders say their data strategy has only partial or no alignment with business objectives
Only 32% of analytics and IT leaders track the value of data monetization. This raises the issue of whether the majority of teams can effectively quantify the ROI of data initiatives for business stakeholders in the first place.
In today's data-driven world, the true heroes are the analysts who turn overwhelming amounts of information into actionable insights. With 147 zettabytes of data expected to be generated in 2024 alone, investing in analysts with big brains is more crucial than ever. These analysts bring curiosity, critical thinking, and a nuanced understanding that machines alone can't replicate. They dig deep into the data, ask the right questions, and uncover patterns that drive strategic decisions and innovation. While AI continues to evolve and automate many processes, the human touch remains indispensable. Analysts will increasingly work alongside AI, using their unique skills to interpret complex results, provide context, and make judgments that AI cannot. It's this synergy between human expertise and advanced technology that will lead to the most impactful insights and advancements.
References:
TDWI - 2023 State of Analytics Report by James Kobielus : https://www.alteryx.com/wp-content/uploads/tdwi_2023_state-of-analytics_alteryx-custom_web.pdf
Salesforce - 2023 State of Data and Analytics Report: https://www.salesforce.com/resources/research-reports/state-of-data-analytics/
Avinash Kaushik’s Rule: https://www.kaushik.net/avinash/the-10-90-rule-for-magnificient-web-analytics-success/
Statista - Amount of data created, consumed, and stored 2010-2020, with forecasts to 2025: https://www.statista.com/statistics/871513/worldwide-data-created/
