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Buildiing analytics into how you manage your business
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© Right Brain Systems LLC.
Srini KoushikPresident and CEORight Brain Systems LLC.Twitter Handle - @skoushik
RBS on Analytics
innovation – agility - executionRight Brain Systems LLC.
Building Smarter Organizations with Analytics
© Right Brain Systems LLC.
Big Data
Storage Capacity is growing at an annual growth rate of
23%
Computing Capacity is growing at an annual growth
rate of 54%
60% of the world’s population used cell phones in 2010
12% of cell phones are smart phones and this number is
growing at 20% a year
Over 30 million network sensor nodes in 2010 growing
at 30% a year
30 billion pieces of content shared on Facebook every
month
13 hours of content is uploaded on YouTube
every minuteLower barriers to connectivity drives integration of islands
of data
Source – Big Data – The next frontier for innovation, competition and productivityMcKinsey Global Institute, May 2011
Digitization and Connectivity drives Big Data
© Right Brain Systems LLC.
Consumerization Universal Access Internet of Things
Cloud Computing Social Business Big Data
The pace of change is accelerating and converging
Current trends help drive more data
3
© Right Brain Systems LLC.
“What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention, and a need to allocate that attention efficiently among the overabundance of information sources that might consume it.”
- Herbert Simon
“Avoidable failures are common and persistent, not to mention demoralizing and frustrating across many fields – from medicine to finance, business to government. And the reason is increasingly evident: the volume and complexity of what we know has exceeded our individual ability to deliver its benefits correctly, safely, or reliably. “
Dr. Atul Gawande, The Checklist Manifesto
Human ability to deal with complexity has not changed
Machine learning while useful has its disadvantages. Example, automated hedge fund trades
Success requires the effective blending of human intuition and decision making with business intelligence and machine learning
Can humans keep up?
© Right Brain Systems LLC.
What is Analytics?
04/12/2023 5
These patterns lead to business insights which can be translated into specific actions to drive meaningful
business outcomes.
Analytics is the discovery and communication of meaningful patterns in data.
© Right Brain Systems LLC.
How did we get to Analytics?
04/12/2023 6
• Linear programming• Regression analysis• Markov chain Monte
Carlo methods• Simulations
Availability of different types of data
Digitization & Storage
Easy and inexpensive access to any data
Cloud and Connectivity
Visualize and act anytime, anywhere using mobile
devices
Pervasive Access
• Enterprise Data• Federated Data• Public/Syndicated Data
• Structured data• Semi-structured data• Unstructured data
Computing Capability
Ability to quickly organize and process a lot of data
• Provide insights and actions in real-time
• Deliver them to the where they can be used
• Access them from any device
+ + +
Business Intelligence can answer questions such as: what happened; how many, how often, where did it happen; where exactly is the problem; what actions are needed.
Business analytics answers the questions: why is this happening; what if these trends continue; what will happen next (predict) and what is the best that can happen (optimize).
© Right Brain Systems LLC.
Uses advanced analytics to identify and propose the
“Next Best Offer” based on Customer browsing and
buying patterns
Uses Cinematch,an advanced analytics engine to make movie
recommendations based on rental patterns
Pioneered the use of customer segmentation and profitability analysis to target and acquire
most profitable customers Uses web analytics and customer loyalty program data
to target and drive business through its most profitable
customers
Source – Competing on Analytics – The new science of Winning. – Thomas H. Davenport and Jeanne G. HarrisHarvard Business School Press, 2007
Today’s market leaders have “cracked the code”
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© Right Brain Systems LLC.
The RBS Approach to Agile Analytics
04/12/2023 8
© Right Brain Systems LLC.04/12/2023 9
RBS on Analytics
We want to build Smarter Organizations that deliver meaningful business results through secure, seamless context-aware experiences in a data driven
world
Our approach to Analytics is focused on building the organizational capability that can sense changes, understand them, respond to
them through business actions and refine these actions continuously to deliver better
business results
© Right Brain Systems LLC.
ACTIONS:What do we do?
DATA & INFORMATION MANAGEMENT
• Understanding the data ecosystem – Structured, Semi-structured and Unstructured data
• Creating and maintaining data as an asset
BUSINESS INTELLIGENCE
• Aggregation of Information – primarily from Structured data within the enterprise
• Historical view aimed at enabling business planning and improving business performance
BUSINESS ANALYTICS
• Correlation across internal and external data sources
• Identify patterns and causal relationships in historical and real-time data
ANALYTICS DRIVEN ORGANIZATION
• Predict / optimize business decisions
• Translate insights into actions through operations
• Experiment, implement, measure and improve
DATAWhat data?
INFORMATION:What happened?
INSIGHTS:Why did it happen? BETTER
BUSINESS OUTCOMES
• Ability to sense and understand changes in marketplace
• Rapid decisions driven by Information
• Enable differentiated and seamless context aware experiences
Building a Smarter Organization
10
© Right Brain Systems LLC.
The RBS approach for building an analytics driven organization focuses on five key domains:
• A data foundation that provides an enterprise view of data, its types, sources, latency and how it is understood and used (metadata) in the organization
• An Information Design that describes how users will visualize, access, utilize and act on the insights generated
• Analytics Capabilities which includes the foundational practices, skills and approaches for driving agility into the organization
• An Analytics Operational Framework that helps establish where and how analytics can be used within the enterprise and
• Active Business Ownership from Operational leaders within the company who understand and use the insights generated to make informed decisions
Building an analytics driven organization takes more than good technology
Building an Analytics Driven Organization
Data Foundation
Information Design and Visualization
Analytics CapabilitiesAnalytics Operational Framework
Active Business Sponsorship
012345
© Right Brain Systems LLC.
Building the Data Foundation
The Data Foundation defines:1. How data is organized and
used in the Enterprise (Semantics)
2. How data is persistently stored and accessed (Structure) and
3. How data is managed and understood (access, inquiry, replicated, updated etc.)
Real-time and Batch Queries (OLTP and OLAP)
Real-time queries
Data Warehouse, Data marts and Operational Data Stores
Real-time In-memory Databases
Enterprise Data Governance
Customer Financial Functional(HR, IT, Marketing,
Enterprise Risk Management etc.)
Operational (Product, Sales, Service,
Fraud Detection, Operations etc.)
Metadata, Data Modeling, Master Data Management
Enterprise Application
Integration (EAI)
Extract Transform
& Load (ETL)
Unstructured Data Loads(pattern matching, stop word filtering, backward
pointers etc.)
Real-time Integration
Structured DataOperational data from internal
and external data sources
Unstructured DataDigital data (audio, video),
text data (from social networks) etc.
Semi-Structured and Real-time Data
Data from real-time sensors, high volume
transactions etc.
Source: Enterprise Data (Internal), Federated Data (External), Syndicated Data (External)Volumes: Streams, High Volume, Low VolumeLatency: What is the latency of the data – real-time, near real-time or batched
© Right Brain Systems LLC.
Information Design
13
User Specific Information
Context Information
Visualization and Interaction
• What role do they play – consume content or create content?
• What are their preferences?
• What are the capabilities of the device they are using?
• What is the context of the interaction?
• Where is the interaction happening?
• What is the nature of the interaction? – support, transactional etc.
• What are the constraints? – Device capabilities, Location awareness, Network capabilities etc.
• How do we represent the information being consumed?
• How does the system accept inputs from the user?
• What does the interaction look like if there is no human involved?
• What are the requirements for data access? – Fire and Forget, Request/Response, Complex Event Processing etc.
© Right Brain Systems LLC.04/12/2023 14
Analytics Capabilities - Governance
Understand Data Domains Information Classification Model Governance Model
Information Privacy, Security, Regulatory and Compliance Rules and Guidelines
Enterprise Risk Management
Confidential
Privileged
Public
Customer
Finance
Product/Pricing
Operational
Operational
Personal Information – Name, Address, SSN, Credit Car # etc.Financial Performance Data etc.
Non-identifiable individual dataHistorical dataCustomer interaction data
Syndicated dataPublic dataHistorical data
• One Enterprise Governance Board for all confidential data, compliance and regulations
• Information and IT security policies are driven by the Enterprise Governance Board
• Business ownership and stewardship for data domains and Metadata
© Right Brain Systems LLC.
Analytics Capabilities – Core Competencies
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Data Integration
Analytic Modeling
Agile DeliveryVisualization
Embedding Analytics into
Operations
Co-relate outcomes to facts and events and build models based on patterns discovered in these relationships
Implementing metrics, decision making
structures and a closed feedback loop to take advantage of insights
Rapid Prototyping, incremental delivery, built-in retrospectives and continuous improvement
Visualization and User Experience design to present insights in
a meaningful way that results in the desired action
The ability to integrate with, ingest, understand all types of data from internal and external sources
© Right Brain Systems LLC.
Analytics Capabilities - Agile Analytics
Analytics Story Maps
User Stories
Analytics Epics
Analytics Personas
Analytics Solutions
Agile Delivery
Rendering and VisualizationData Ecosystem and relationshipsInformation design Analytics PatternsAccess and IntegrationUse and Implementation
© Right Brain Systems LLC.
Analytics Capabilities - Reference ArchitectureVisualization and User Interaction
Interaction Model – Fire-and-forger, Request-Response, Complex Event Processing (CEP)
Analytics Solutions – Social Analytics, Value Chain Performance Analytics, Customer Interaction Analytics etc.
Advanced Statistical Modeling
Quantitative Analysis Linear Programming Markov Chain, Monte Carlo Methods
Regression Models Simulation
Real-time and Batch Queries (OLTP and OLAP) Real-time queries
Data Warehouse, Data marts and Operational Data Stores Real-time In-memory Databases
Enterprise Data Governance
Customer Financial Functional(HR, IT, Marketing, Enterprise Risk
Management etc.)
Operational (Product, Sales, Service, Fraud Detection,
Operations etc.)
Master Data Management, Distributed Map Reduce
Enterprise Application Integration (EAI)
Extract Transform & Load (ETL)
Unstructured Data Loads(pattern matching, stop word filtering,
backward pointers etc.)
Real-time Integration
Structured DataOperational data from internal and external data sources
Unstructured DataDigital data (audio, video), text data (from
social networks) etc.
Semi-Structured and Real-time DataData from real-time sensors, high volume
transactions etc.
© Right Brain Systems LLC.
Analytics Capabilities - Workforce Model• 20% Specialized skills
• Data Scientists – Mix of statistical and quantitative skills (Left Brain) and pattern detection/matching skills (Right Brain)
• Product Owners – Ability to breakdown complex problems into product features and backlog that can be delivered incrementally
• Visualization and UX Designers – Creative and Design Thinking skills (Right Brain)• 80% Delivery skills – Architects, Developers, Software Quality analysts etc.
• Mix of soft skills and technical skills, delivered a 10-20-70 learning model• Formal and informal mentor-apprentice model• Campus relationships with arts and science schools• Industry-Academia interactions to drive new perspectives and to facilitate updates on new
techniques• Job rotations to drive cross-skilling and enforce knowledge management requirements
• Retrospectives at all levels of delivery and operations to drive experiential learning• Formal and informal knowledge sharing sessions to drive collective learning• Client-specific relevance maintained through single-point of contact for business-specific details• Use of Social networking tools to establish informal knowledge and experience networks
Sustainable Workforce
Immersive Learning
Experience Management
© Right Brain Systems LLC.
Shared Analytics CenterOn Site
Analytics Capabilities - Hybrid Delivery
Agile Analytics will require a hybrid delivery model that takes into account the data and privacy concerns and balancing with the need for agility and the scarcity of key skills
Private Data Privileged Public Data
Product Owners Data Scientists
Visualization and UX Designers
Operations Monitoring and Reporting
Analytics Solutions
Business Stewardship andGovernance
© Right Brain Systems LLC.
Managing a smarter business with Analytics
Analytics Operational Framework
WorkforceAnalytics
Operational Analytics
CustomerAnalytics
Financial Analytics
• We help businesses integrate analytics with the key metrics that are tracked on an organization’s Balanced Scorecard1
• This framework:• Defines and measures key business performance
metrics across all four quadrants of the balanced scorecard
• Synthesizes findings and delivers insights to business leaders
• Performs analysis on metrics including variation and root cause analysis
• Implements a closed loop feedback mechanism that helps understand results and refine the insights and actions through agile delivery
1 Kaplan, R. S. and D. P. Norton. 1992. The balanced scorecard - Measures that drive performance. Harvard Business Review (January-February): 71-79.
© Right Brain Systems LLC.
Customer Analytics Operational Analytics Financial Analytics Workforce Analytics
Marketing Sales Supply Chain
CUSTOMER ANALYTICS
Help determine Next Best Action or Next Best Offer
CUSTOMER INTERACTION ANALYTICS
Improve Customer Experience and reduce cost of service
SOCIAL ANALYTICS
Drive brand loyalty and service recovery actions based on sentiment analysis on social media
CUSTOMER INTELLIGENCE
Improve customer share of wallet through target marketing
MARKET INTELLIGENCE
Provide insights into market trends and customer behavior
MARKETING EFFECTIVENESS
Drive returns from better marketing spend allocation
PRICING ANALYTICS
Provide price / discount insights for specific sales
SALES FORCE ALLOCATION
Drive sales coverage across addressable segments
SALES EFFECTIVENESS
Enable effectiveness of sales pursuit and conversion
SALES COMPENSATION
Design and track sales compensation for optimization
PRODUCT SALES PERFORMANCE
Monitor sales performance by product / solution
DEMAND-SUPPLY PLANNING
Reduce demand-supply mismatch through better forecasting
INVENTORY OPTIMIZATION
Reduce own and channel inventory costs
PROCUREMENT ANALYTICS
Drive savings from spend forecasting and consolidation
FINANCIAL REPORTING & ANALYTICS
(Budget and forecasting, P&L / Balance Sheet review)
COMPLIANCE & RISK
Continuous monitoring, better audit sampling to test controls and enable revenue hedging
CUSTOMER PROFITABILITY
Continuous monitoring and optimizing of customer and product profitability
WORKFORCE OPTIMIZATION
Allocation / matching of workforce for efficient usage
ATTRITION MODELING
Identify attrition propensity based on characteristics & drivers
Examples of Analytics in a Smarter Business
© Right Brain Systems LLC. 22
Determining the “Next Best Action” for a customer
An Example
Behavioral data (S, F,E)• Transactions • Payment history• Service history• Credit history
Descriptive Data (S, E)• Attributes• Characteristics• Self-declared info• (Geo)demographics
Attitudinal data (U, E, P)• Opinions• Preferences• Needs & Desires• Sentiment
Interaction data (SS, E)• E-Mail / chat transcripts• Call center notes • Web Click-streams• In person dialogues
S –Structured U – Unstructured SS – Semi Structured F – Federated P – Public E - Enterprise
Historical AnalysisCorrelation of dataPattern recognition
MCMC MethodsRegression AnalysisPattern Matching
Business Intelligence What do our customers say they want?
What are the major life events for the customer?
How do customers interact with the organization?
Business AnalyticsWhat is the customer’s Propensity to
buy?
What are the indicators of customer retention/attrition?
What is the Customer Profitability?
What is the Product Profitability?
Device data (U, P)• Location• Camera• Microphone• Multi-touch• Sensors
UXVisualization
CEPScoring
Business AnalyticsNext Best Action
Next Best Offer
Customer Management Action
Service Recovery
© Right Brain Systems LLC.04/12/2023 23
• Analytics enable business agility
• Building an analytics driven organization requires a comprehensive set of capabilities
• It's a huge waste without business and operational buy-in
• RBS has the IP and experience to help you get there
Conclusion
© Right Brain Systems LLC.
Srini Koushik
Linkedin – http://www.linkedin.com/in/srinikoushikTwitter - @skoushikSlideshare – http://www.slideshare.net/rightbrainsystemsBlog – http://rightbrainsystems.tumblr.com
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