Analytically transformed organizations were three times more likely than Aspirational ones to indicate they substantially outperform their industry peers

Top-performing organizations use analytics five times more than lower performers

Highlights from the 2012 IBM Study, Analytics: Analytics: The New Path To Value – 3000 executives around the globe – IBM and Sloan Management Review Survey

From: Davenport and Harris –Figure 3-1

Spearman’s Rho =0.272 (Error: 0.094 for one tailed test)

Analytics Pays…These results are closely seen in the latest IBM – MIT Sloan Management Review survey

Analytics is a strategic source of competitiveness, because,

- Hard to duplicate (Because the mix of strategic metric, segments, and business assets is yours) – Capital One – Information strategy where testing and experimentation is very hard to duplicate, and Barclay’s – share of wallet

- It is unique (unique to your products, segments, and assets – Harrah’s loyalty and frequency strategies)

- Adaptable to many situations (Expertise in the processes of ranking, grouping, association, and likelihood calculations, and defining right measurements are usable across any organizational process – Sprint applied it to HR having perfected it in marketing)

- Be always one step ahead of competition – Because it builds on already existing best practices – Ex: De-averaging to one’s own strategic metric and will keep the competition away – Capital One

- Renewing with new opportunities– By the time competition saw how Progressive insurance is using analytics for better segmentation such as older motorcycle drivers and how it connected to companion products, Progressive moved to exploit other consumer opportunities

Impact of Analytics – Perceptions of Executives – Five Stages of Analytical Maturity – Big Data

Use Cases

Sam, Nethra Sambamoorthi

Key Messages In the Trenches – The Messages from Recent Surveys by Industry Stalwarts

• Prof. Davenport in association with Deloitte released recently 2013 Analytics Advantage Survey results for which they conducted a mix of more than 100 online surveys and “deep dive” interviews with senior executives at 35 companies in North America, the United Kingdom, and Asia

– While organizations realize the importance of analytics,– Nearly half of them do not see that as a competitive advantage– Do not support with a strong thought leader and a centralized platform

to serve the departments– Lack centralized data management in coordination with analytics

requirements– Lack right tools

Highlights from the IBM Study, Analytics: The Real World Use of Big Data

The presentation by IBM Executive

http://www.youtube.com/watch?v=jBpP4IKrJFs

As with any author, IBM adds another V; in this case it is Veracity bringing out the challenges of big data and how privacy is becoming an important factor.

2012 IBM Survey of 1,100 Executives From 96 Countries, 26 Industries Around the Work In Association With Said Business School, Oxford University, specifically talks about real world uses of big data opportunity

PWC Study on Big DataCustomer engagement: Reaping the rewards of digital outreach

For a full report of the survey click here

Digital and smart platforms are critical component of big data in customer engagement

Source: http://www-935.ibm.com/services/us/gbs/thoughtleadership/ibv-big-data-at-work.html

http://www.youtube.com/watch?feature=player_detailpage&v=H7NLECdBnps

An Example Big data application viewed from IBM Platform

Perspective using customer service as the application area

Use Cases of Big Data – A Total of 25 Plus Cases

• Talent Analytics– 160 MM employees can be searched and ranked based on the 160MM

resumes or profiles that are available in LinkedIn. Extensive analysis of their blogs, postings, resumes is a big data treasure trove. Linkedin makes it easier but only on the basis of what is posted in the linked in

• How Big Data Keeps Cable TV Watchers Hooked?• How Netflix uses big data?• How Facebook uses big data?• How Google/Yahoo/MSN/AOL use big data?• Where Do BIG data Come In Here? The Beginning of

A Quest... • 20+ Examples of Big Data Applications

• Use Analytics to Build a Distinctive Capability– Analytic competitors are in all industries– Distinctive capability is achieved by managing the strategic metric that is specific by

products/services, segments, budget, and competition.– Can distinctive capability itself be sharpened with analytics?

• What Makes an Analytical Competitor? – AKA primary attributes of analytical competitor– Four pillars of analytical competition

• Support of a strategic and distinctive capability• Enterprise level approach to and management of analytics• Senior management commitment• Large-scale ambition

• We will further expand these into how different processes are managed and what attributes are exhibited by analytically competitive companies over various stages of analytical maturity level

Business Intelligence and Analytics

Figure 1-2 : Davenport and Harris

Com

petiti

ve A

dvan

tage

Degree of Intelligence

What happened?

How many, how often, where

What exactly is the problem?

What actions are needed?

What is happening? – Integrated knowledge

What if these trends continue?

What will happen next

What is the best that can happen?

Standard reports

Ad-hoc reports

Query/drill down

Alerts

Statistical Analysis

Forecasting/Extrapolation

Predictive Modeling

Optimization

Four Pillars of Analytic Competition

Disti

nctiv

e Ca

pabi

lity

Ente

rpris

e-w

ide

Anal

ytics

Sr. M

anag

emen

t Co

mm

itmen

t

Larg

e-sc

ale

ambi

tion

Figure 2-1 : Davenport and Harris

How the Processes Happen? In various maturity levels

From: Davenport and Harris

Five Stages of Analytical Competition

Stage1 Analytical Competitors

Stage 2Analytical Companies

Stage 3Analytical Aspirations

Stage 4Localized Analytics

Stage 5Analytically Impaired

Figure 2-2 : Davenport and Harris

Elements of BI architecture

Figure 8.1 – Competing on Analytics – The New Science Winning

Five Stages of Analytic Competition and Six Levers

From: Davenport and Harris

Importance of Distinctive Capability and Strategic Metric

• A strategic metric captures the essence of the (1) vision, (2) budget, and (3) distinct products/services (4) the opportunity segment– It is impossible for organizations to create products or services to all

the consumers. They have to be selective to serve sub-populations called value-segment. The metric that connects the segment and the distinctive products and services for growth purposes is the strategic metric.

– A smart organization knows how to differentiate itself in the market place based on distinct products and services and the segment it wants to serve

Think: Can the strategic metric be refined by analytics?

Long List of KPIs – Where is the Beef?“Business Analytics for Managers: Taking Business Intelligence Beyond Reporting”, by Thurland and Laursen, 2010

Key Performance Indicators(KPI) and Key Leverage Indicators(KLI)

KPIs are passive, after the fact output measurements and they are dependent on things to happen. KPIs are lag indicatorsKLI is what you need and KLI is directly related to your strategic metric. You can leverage them to get your strategic metric to raise up or go down. KLI’s lead indicators

Dashboard Input• The dashboard is a quick and visual way of capturing and presenting the current status of the operations/sales/production/logistics in an organization. The

dashboards should stimulate discussions, warn if status, trends, and exceptions have potential negative effect on the key stakeholder measurements. To be effective, dashboards have to satisfy the following best practices.

• There are different layers of dashboards (CEO/board related, Sales/customer engagement, Finance/HR/Production/logistics) and variations of this depending on the vertical and the company

• Dashboards are not just reports of an analytical work nor a SQL output from IT department; it is a one screen shot capturing trends, exceptions, warnings and alerts, opportunities, and reasons and insights for divergence from goals metrics, that would communicate critical aspects of a particular layer in few bullet points on a frequent basis (at least daily).

• Most of the coverage in single screen shot dashboards are visuals of KPIs, Key Performance Indicators

• Well understood KPIs that are critical for the operations are used and full disclosure regarding the data quality, source, and updates.

• There is more value in the time trends of KPIs - use as much as possible

• The current trend is to have Dashboards updated daily if not in real time – now imagine what kind of metrics and how it should not be a long list of unintuitive series of numbers that will kill interest in the dashboard. Gone are the days of quarterly and monthly updates

• Current trend is, also for Dashboard to have space for real time feeds from twitter/facebook and other relevant social network for customer input and challenges.

• Dashboards affords drill downs where we can have more detailed metric specific reports

• Every day summary message has be in bullet points for actions and follow-ups, that is consistently evolving smoothed for randomness

• In summary, dashboard goes beyond analytics at the hand of a top notch analyst’s input to the organization connecting the trends, exceptions, warnings, alerts, opportunities, and distills in few sentences the expected actions and follow-ups for the Sr. Management on a daily basis using KPIs, with some of the input points coming not only from competitive actions, consumer experience, production, logistics, marketing, finance, HR, and facility management, but also weather impacts, health trends, national security, and macro economic trends, so that the management is fully aware of what is going on and how to keep the metrics for the goals under control.

Some reasonable dashboards are- http://www.enterprise-dashboard.com/tag/insurance-marketing-dashboard/

10.2% reduction in production

5.6% in recommendation

Widgets International – Production, Sales, Customer Satisfaction, and Profitability

DRAFT

Graphical Objects For Dashboard Creation

Open the word document

Graphical objects, Their Usability, and How to Draw or What tool to use