There are two commonly recognized modes to fund an internal data analytics team. Determining funding is an essential step in how organizations can get started with advanced analytics.
“Pay-to-play” model
In this funding model, the analytical work is funded by a project either as a fixed project fee or as a fraction of the project financial benefit. “Pay-to-play” makes it easier for the functional leaders to be involved with analytics solutions without a major financial commitment. It also promotes a higher level of project engagement from the business owners, which helps ensure that the analytics tools and solution address the correct business case and take into account the relevant business processes. This model is commonly present in organizations in the early stages of their analytics journey. As your analytics team begins to develop more interest in big data science projects within your organization, you should gain access to more data sources and institutional knowledge, which can be folded into your analytics strategy and used to propose even more impactful projects.
Cost center
In this model the analytics team is considered a core capability and its funding is not directly connected to the individual analytics projects. This model underlines the strategic importance of analytics and allows the team to undertake foundational projects or explore high-risk, high-reward opportunities. This model may be more prevalent in organizations with higher levels of analytical maturity rather than those who are just beginning to improve their analytics capabilities.