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.