Five Most Expensive Analytics Mistakes CxC by mrhoffman

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+ Bonus most expensive analytics mistake at end

The Five Most

Expensive

Analytics

Mistakes

Copyright Client X Client www.clientxclient.com [email protected] 908.350.3012

mailto:[email protected]

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1.The Who Knew?

The Five Most Expensive Analytics Mistakes

Someone starts a new project, you have a new hire, your

company launches another innovation initiative and

smart people, inquisitive people start asking questions,

researching… But haven’t most of these questions been

asked (and answered) before? “Who Knew” burns

dollars, time, resources, enthusiasm and consumes high

value resources on low or negative value discovery.

• Knowledge Management

• Publish and promote “Knowns”

• Tag expert content and experts

• Onboarding, video and annual

classes on “about us”

• Big Data Search *.best practices

• Require “Givens” for collaboration

• Research fatigue

• False “new” findings

• Added cost per new initiative

• Frustration, embarrassment

• Wheel spinning conclusions

• Cry Wolf – Innovation Syndrome

SYMPTOMS SOLUTIONS



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2. Share the PainThe no/low value report sent to broad audience multiplies company cost for each person opening in addition to production and administration costs. ..

• Monitor/poll analytics usage

• Publish and subscribe model

• Analytics inventory

• Analytics information audit

• Outcome to audience linkage

• Analytics to audience topology

• Map strategy > decisions> analytics

• Make sortable, searchable

• Monthly, quarterly reports not

sortable by ‘impact’ or

highlighted

• ‘Too much work to find what

might be meaningful’

• Report, research analytics

deafness

• “Does anybody look at this?”

SYMPTOMS SOLUTIONS




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3. What, Me Worry

The question not asked. The report not requested because of queue, fear, not knowing the process, not wanting to sound stupid, inability to articulate question, perceived lack of data or capability, ‘not my job to ask…

• Lower cost per question

• BI, Data Science 411/SWAT Service

• Enterprise BI search

• Recommendation engines

• Enhanced reality decision

simulation

• Show your work, estimate your

outcome disciplines and culture

• Cannibalization of successful

profitable business, customers

• Spike in customer service contacts

• Silent customer/partner defections

• Profit, reputation, security loss

• Unintentional consequences

• ” We should have known”

SYMPTOMS SOLUTIONS




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4. Thanks for NothingThe in-actionable findings report that highlights some interesting attributes and correlations that don’t lead to ‘do something.’ ‘don’t do something’. Many visualization and stale dashboard solutions. Obsolete report designs that do not connect to current strategy, environment or business

• Clearly delineate enterprise

strategy & constraints

• Company specific ontology

• Require ROI estimates for every

conclusion

• Publish, emphasize specific

company goals, measures

• Huge $ opportunity not in our

strategy

• Results measured to late after

full launch

• Findings highlight only things

outside your control (CYA-not)

• Recommendations without

business case

SYMPTOMS SOLUTIONS




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5. Fire Starter The report or query that returns a partial answer or

incomplete answer that ‘sets off alarm’ but may be an

outlier variable or totally unrelated to company

actions… or maybe is actionable or preventable but

managers are now in a panic or frozen in doubt

• Holistic analytics database design

• Enforce analytics delivery

standards – ‘show your work’

• Centralized and decentralized BI

• Simulation and ‘What If’ analytics

tools and methods

• Enforce a “before you send”

checklist

• “$12B opportunity” without

conditions, criteria, case

• “Danger” “Failure”

• Alarm publisher – Alerts with no

recourse, no connection to

cause or remedy

• Intriguing visualizations, no

findings, recommendations

SYMPTOMS SOLUTIONS




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BONUS: Superman II“Big Data,” “Neural, Organic, Self Optimizing, Real

Time, Omniscient, Watson, Data Science3…” the next,

new, shiny, must-have technology solution that

promises grandiose changes due to ‘enlightenment’

knowingly omitting that analytics is a cost – there is

no inherent payback. Payback, ROI requires action.

• Get management’s top 3, “If I knew

x” questions

• Start with “analytics costs X” now

what outcomes affect for Y return?

• Make list of outcome target areas

• Weave analytics into culture

• Establish performance baseline

• Stories and simulations make

analytics approachable

• “We’ll know better when it’s

installed”

• It/they don’t understand our

business

• Findings contradict my ‘gut’

• Findings contradict management?

• They obviously didn’t consider…

• It’s really a IT, lab, experimental

exercise

• See 1-5 above

SYMPTOMS SOLUTIONS




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1. The Who Knew

2. Share the Pain

3. What, Me Worry

4. Thanks for Nothing

5. Fire Starter

+Bonus most expensive report type




Internet of Things & Digitization Monetized

Michael R Hoffman revenue growth and innovationconsultant for technology aggressive companies from start-ups to Fortune 100.

Hoffman’s Client x Client delivers leadership advisory for analytics strategy and culture transformation, customer strategy and customer analytics.

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CALL 908.350.3012 email [email protected]

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Five Most Expensive Analytics Mistakes CxC by mrhoffman