2017 MITX Data Summit: Cinny Little, Forrester Research

C I N N Y L I T T L ESenior Analyst, Forrester Research

@CinnyLittle

# M I T X D A T A

WHY YOU NEED A

DATA-DRIVEN

INSIGHTS CENTER

OF EXCELLENCE

NOW

© 2017 FORRESTER. REPRODUCTION PROHIBITED.

© 2017 FORRESTER. REPRODUCTION PROHIBITED.

Why You Need An Insights Center Of Excellence Now

Cinny Little, Senior Analyst

June 14, 2017

We work with business and

technology leaders to develop

customer-obsessed strategies

that drive growth.

4© 2017 FORRESTER. REPRODUCTION PROHIBITED.


Agenda

› Insights-driven businesses are eating your lunch

› An insights center of excellence (COE) will help you advance

› The 5 success factors for a successful insights COE


Agenda





Empowered customers are reshaping corporate strategies and technology agendas


Consumers want what they want,

Where and when they want it.


Retail closings will increase; Amazon’s getting physical

Source: Mary Meeker, Internet Trends Code Conference, May 31, 2017, Kleiner Perkins. Data sources: Credit Suisse, Amazon.


Customer context is critical – and multidimensional

Source: Business Insider, 2016. Image source: ibeacon.com

ABOUT 1/3 OF TOP 100 RETAILERS USE BEACONS IN STORES


Source: Mary Meeker, Internet Trends Code Conference, May 31, 2017, Kleiner Perkins.

Customers want easier access to online support


… Digital and offline are integrating in many

interesting ways


If there’s a value gap, customers will leave you

Source: “Combine Digital Measurements For Intelligent Engagement” Forrester report


Customer obsession is driven by four principles

Source: “The Operating Model For Customer Obsession” Forrester report

Customer-

obsessed

principles


Why care? Because insights-driven businesses will grow revenue ~8 times faster than global GDP

Source: “The Insights-Driven Business” Forrester report


Insights are in every part of the organization

Source: Digital Insights Are The New Currency Of Business Forrester report

e.g., supply chain, finance, HR, operations . . .

https://www.forrester.com/report/Digital+Insights+Are+The+New+Currency+Of+Business/-/E-RES119109


What is “insights-driven”?

Using data . . .

To deliver insights . . .

To optimize the customer

experiences that matter most to

business outcomes


We must see what we do through customers’ eyes…

› Airline example

Traveler’s timeline

Examples

of traveler’s

possible

info or

action

needs

Source: “Why eBusiness Pros Need A Five-Year Plan” Forrester report


But in organizations, we see and do things in silos

Source: “Why eBusiness Pros Need A Five-Year Plan” Forrester report

But an airline’s teams (and

budgets), data, systems, and

processes – are in

organizational silos


There’s a tidal wave of data


And a fundamental problem: not enough actions

of business decisions are made using

quantitative information and analysis …

vs “gut feeling” or opinion

Source: Forrester Data Global Business Technographics Marketing Survey, 2015

49%


CMOs’ use of analytics is lower than 5 years ago

Source: The CMO Survey, Feb 2017. Base is 338 US marketers, ~95% VP-level or above


Turn to an

insights

center of

excellence.


Agenda





A COE is an operating model that…

• Drives business outcomes – even when COE team does not

own the budget for actions

• Drives visibility and accountability for data & insights

• Partners with business stakeholders as expert consultants

• Must speed up the firm’s progress in insights actions

A COE is not …

• Necessarily an org that’s called a “COE”

• Not a specific org chart; it’s a way of working

• A team of order-takers

• A specific room, or place

Source: “Q&A: What You Need To Know About The Insights Center Of Excellence” Forrester report

What is an insights COE? What is a COE not?


“As [firms] transform their business by using data

for insights and actions, the primary focus must be

on data as an enabler of decision-making, not on

the technologies used to collect and organize that

data.”- Agency executive

Source: “Q&A: The Top Seven Questions About The Insights Center Of Excellence” Forrester report


What insights pro’s say about leading the charge on driving an outcomes focus

What works:

› Lead the conversation about

“what problem are we trying to

solve?” – and get an answer

› “Use the same language” (as

the stakeholder)

Source: Quotations from executives interviewed for “Q&A: The Top Seven Questions About The Insights Center Of Excellence” Forrester report

Typical failure factors:

› “Big data [any data] is nothing

without the question it’s trying

to answer”

› “We ‘count stuff’ without

connecting anything to

outcomes”


COE mandate: Visibility of and accountability for more actions with business impact

What works:

Source: Quotations from executives interviewed for “Q&A: The Top Seven Questions About The Insights Center Of Excellence Forrester report

Typical failure factors:

› “’Sophisticated’ data models

that the business can’t

operationalize”

› “Inconsistency of data” (btw

teams or individuals)

› Not accepting the “dogged

reality of iteration and rework”

› An “order taker” approach

›Mirror the metrics / outcomes

framework around something

that’s already used (GSK

example)


A COE governs the balance between

1. A holistic view of the customer

2. Customer views by silo such as product area, operational area, region


The COE / LOB balance will seesaw back & forth

Source: “Q&A: The Top Seven Questions About The Insights Center Of Excellence” Forrester report

LOBs

COE

“There’s a paradox with COEs. In the COE, we’re centralizing what we know

about our data, tools, and customer experiences, but we must be experts in

enabling the business and connecting to the culture of how it makes decisions.”

-- ConnectiveDX executive


Insights COEs use a hub and spoke org approach

Source: “Q&A: What You Need To Know About The Insights Center Of Excellence” Forrester report. LOB = line of business, operational area, or region

Optimal approach:

Insights COE team that

serves multiple LOBs.

Other approaches can

work:

If team members have

shared formal

performance objectives


Mix of team members

in the “global” hub

and team members in

the regions / brands/

LOBs

A COE may roll up to a

CIO, CMO, CDO (data

or digital)

A COE can include a

combo of insights

types (e.g., research,

digital, campaigns…)

Multiple approaches to COEs can work


Scotiabank’s

customer insights and

analytics CoE reports

up to a co-head of

information

technology (IT)*

Wells Fargo’s data

and analytics team

reports to the chief

data officer, who

reports to the CIO.**

Fidelity organizes its

customer data and

analytics CoE under a

senior vice president.

Serves both the

personal and

workplace investing

LOBs.*** Sources: * Forrester interview with CI & Analytics head, 2016; **Source: Bryan Yurcan,

“Wells Fargo CDO Charles Thomas Talks Data & Diplomacy,” Bank Systems and

Technology, September 10, 2014; *** Personal knowledge / LinkedIn / Fidelity website

Examples of COEs – financial services


Agenda





1. Form a governance team to lead the way

› Name a hands-on governance leader for the COE

› Build a steering group whose members have concrete

accountabilities for business outcomes

› Include line of business and operational leaders

› Create and execute a communication plan (“internal marketing”) to

create visibility

Source: “The Customer Insights Center Of Excellence” Forrester report


2. Focus on IT / Business alignment and business buy-in

Source: The State Of Customer Analytics 2016 Forrester report

LEGACY ORG DYNAMICS MEAN THAT YOU MUST OWN >50% OF THE EFFORT

The top 5 challenges of

adopting customer analytics

https://www.forrester.com/report/The+State+Of+Customer+Analytics+2016/-/E-RES129380


3. Gain traction with pilots and quick wins

Source: “Pick A Powerful Pilot To Propagate Customer Analytics” Forrester report

USE WHAT YOU HAVE NOW: DATA, PEOPLE, TECHNOLOGY


Retail bank example: pilot prioritization

Source: “Pick A Powerful Pilot To Propagate Customer Analytics” Forrester report. Morningstar Bank, working with Rise Interactive


4. Do internal marketing

› Be clever. And scrappy.

› Tell clear and effective insights-based stories

• Specific, customer- and outcomes-based

• Draw the connections between “we had this data, got this insight, and make

this recommendation” (or took this action)

› Ask for the order!


5. Manage your skills portfolio

› You need a balance of data, technology, analytics, and consulting

skills

› Accept the “dogged reality of iteration and rework” – enjoy it!

› Stop delivering stuff that no one uses (reports, dashboards …)

› Early on, leading the change to insights-driven inevitably requires

you to own >50% of effort

› Boost your progress by partnering with service providers


Summary: The 5 success factors for an insights COE

1. Form and use a governance team

2. Focus on tactics that grow IT / business alignment and

stakeholder buy-in

3. Gain traction with pilots and quick win projects

4. Trumpet the results with internal marketing

5. Pay attention to and manage your skills portfolio

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Thank you© 2017 FORRESTER. REPRODUCTION PROHIBITED.

Cinny Little

+1 617-613-6313

[email protected]