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BEING BETTER BY BEING DIFFERENT
SUNZ | FEBRUARY 2013 | WELLINGTON
EVAN STUBBS
Copyright © 2012, SAS Institute Inc. All rights reserved.
THINGS HAVE CHANGED
THINGS ARE GOING TO KEEP CHANGING
THE ANSWER ISN’T BEING SMARTER
THE ANSWER IS BEING DIFFERENT
FOR YOUR CONSIDERATION …
Copyright © 2012, SAS Institute Inc. All rights reserved.
VOLUME
VELOCITY
VARIETY
VALUE
BIG DATA IS HERE AND IT’s game-
changing
Other supply drivers include attrition (-), immigration (+), and re-employing previously unemployed deep analytical talent (+).
SOURCE: US Bureau of Labor Statistics; US Census; Dun & Bradstreet; company interviews; McKinsey Global Institute analysis
1
THE GROWING SKILLS GAP
Growing Gap in Analytics Talent is Driving the Democratization of Analytics
Demand for deep analytical talent in the United States could be 50 to 60 percent greater than its projected supply by 2018.
SUPPLY AND DEMAND OF DEEP ANALYTICAL TALENT BY 2018
TH
OU
SA
ND
PE
OP
LE
140 - 190 440 - 490
150
180 30 300
50 - 60% gap
relative to
2018 supply
2018 projected
demand
Talent gap 2018 supply Others 1 Graduates with
deep analytical
talent
2008
employment
BEING BETTER
BUSINESS ANALYTICS IS A DISCIPLINE
DRIVES
DIFFERENTIATION
SIMPLIFIES
COMPLEXITY
REDUCES
UNCERTAINTY
DRIVES
INNOVATION
MITIGATES RISK
IMPROVES
OUTCOMES
BEST PRACTICE LEARN IT, LIVE IT COMPETITIVE
ADVANTAGE
COST
EFFICIENCIES
FIRST MOVER
ADVANTAGES
CAPITAL
OPTIMISATION
GLOBAL
EFFICIENCIES
MAGNIFIERS INHIBITORS
DRIVING ECONOMIES OF SCALE
Year 2004 2005 2006 2007 2008 2009 2010
Statisticians 2 3 5 6 7 5 5
Models 8 50 90 180 270 390 610
BEING DIFFERENT
Copyright © 2012, SAS Institute Inc. All rights reserved.
BE BOLD. BE DIFFERENT.
THERE’S MORE THAN ONE WAY TO INNOVATE
YOU DON’T KNOW WHAT YOU DON’T KNOW
WITHOUT PEOPLE, EVERYTHING’S IMPOSSIBLE
TRANSFORMATION CHANGE HAPPENS OVER TIME
Great things come not
from taking one
groundbreaking step
but from a million small
ones.
The only difference
between a sandcastle
and the pyramids is
time and commitment.
Copyright © 2012, SAS Institute Inc. All rights reserved.
STUBBS ORGANISATIONAL MATURITY - THE ANALYTICAL CULTURE
LEVEL 5: COMPETITIVE DIFFERENTIATION
LEVEL 4: FUNCTIONAL INNOVATION
LEVEL 3: VALUE CHAINS AND OUTCOMES
LEVEL 2: ACTIVITIES AND ALGORITHMS
LEVEL 1: DAZED AND CONFUSED
ValueFocus SolutionFocus GoalFocus DeliverableFocus
Nolinkagebetweendecisionsandoutcomesorvalue
Gettingtherightdataistheanswer
Unsurewhattheansweris/runsthebusinessusingpredominantlygut-feel
Treadingwaterand“businessasusual”isthedeliverableandKPIsaregenerallylargelyundefined
Stakeholdersatisfaction/generatinginsight
Fitforpurposetoolsaretheanswer
Analyticsisaboutalgorithmsandfunctions
ModelsandreportsarethetargetdeliverableandKPIsarestructuredtosuit
Initiativeorproject-basedvaluecreation
Repeatableprocessesandoperationalanalyticsistheanswer
Businessanalyticsisaboutestablishinginsight-drivenend-to-endvaluechains
TangibleandintangiblereturnoninvestmentisthetargetdeliverableandKPIsarestructuredtosuit
Departmental/lineofbusinessefficiencyandvaluecreation
Creatingandre-usingcompetenciesacrossmultiplebusinessproblemistheanswer
Businessanalyticsisaboutdrivingcontinuousimprovement
Departmental/lineofbusinesstransformationisthetargetdeliverableandKPIsarestructuredtosuit
Enterprise-widevaluecreation
Changemanagementandmanagedinnovationistheanswer
Businessanalyticsisaboutdrivingcompetitivedifferentiationanddisruptiveinnovation
Enterprise-wideevolutionaryanddisruptiveinnovationisthetargetdeliverableandKPIsarestructuredtosuit
BEING DIFFERENT LOSING BY BEING GOOD
“DOING
EVERYTHING RIGHT
CAN LEAVE A
SUCCESSFUL
ORGANISATION
SUSCEPTIBLE TO
ATTACK FROM A
DISRUPTIVE
INNOVATOR THAT
CHANGES THE
GAME WITH A
SIMPLE,
ACCESSIBLE, OR
AFFORDABLE
SOLUTION”
- CHRISTENSEN
Big Data INNOVATION
EVOLUTION
REVOLUTION
Copyright © 2012, SAS Institute Inc. All rights reserved.