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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
The Democratization of AnalyticsEvan Stubbs
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Today’s key points
More than ever, analytics is strategic and valuable
The role of the analyst is changing
Everyone being able to do analytics is a good thing* As long as it’s appropriately
managed
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Statisticians are sexy now
“I keep saying the sexy job in the next ten years will be statisticians. People think I'm joking, but who would've guessed that computer engineers would've been the sexy job of the 1990s?”
- Hal Varian
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
The line it is drawnThe curse it is castThe slow one nowWill later be fastAs the present nowWill later be pastThe order isRapidly fadin'.And the first one nowWill later be lastFor the times they are a-changin'.
- Bob Dylan
The world is closing inDid you ever thinkThat we could be so close, like brothersThe future's in the airI can feel it everywhereBlowing with the wind of change
- The Scorpions
Photo: Christian Holmér
The winds ofchange …
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
The power of change
Change is eternal
Change is inevitable
Change is constant
We need to grow with this change
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Analytics is becoming a team sport.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
What is business analytics?
Source: Defining Business Analytics and Its Impact on Organizational Decision-MakingComputerworld Customer Survey
When provided with the IDC definition of business analytics software, less than one-third of respondents (32%) rated themselves as extremely or very familiar with the product category, and only 10% rated themselves extremely familiar.
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
A simple definition …
Analytics:“ … any data-driven process which provides insight.”
Business Analytics:“ … leverages all forms of analytics to achieve business outcomes … through requiring:
Business relevancy Actionable insight Performance
management and value measurement”
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Democratisation:Giving Access to All
Establish focused interfaces to support varying skills levels
Increase automation and “system smarts”
Extend model development to all parts of the organisation
Preserve model and process transparency
Ensure analytical quality control
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
The perception of business analytics is changing …
Level 3:Competitive
Differentiation
Level 2:Value Chain
Level 1:Activities and Algorithms
Level 3:
• Analytics is about competitive differentiation
• Creating and re-using competencies is the answer
• The deliverable is sustainable competitive advantage
Level 2:
• Analytics is about value creation
• Processes are the answer• The deliverable is the
tangible and intangible return
Level 1:
• Analytics is about algorithms
• Tools are the answer• The deliverable is the
model
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
But teams still face common challenges!
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Inevitably, teams need to create value
The External Value Chain:Value Creation
The Internal Value Chain:Optimizing Execution
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Activities and algorithms
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Value creation for the organization
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
And finally, the creation of sustainable competitive advantage
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Every tool has its place …
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
The way things were
Advanced analytics is the domain of the specialist
Roles are based on technical knowledge
Analytics and reporting are different
Insight is the goal
Information Consumer
BI Specialist
Statistician
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
The way things are moving …
Active Decision-Maker
Creator
Mentor
Everyone applies advanced analytics
Roles are based on competency and experience
Business analytics is about all analytics
Outcomes are the goal
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Why is this a good thing?
It reinforces competitive advantage
It focuses on creating value
It increases the importance of knowledge within the organisation
It more effectively manages risk
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
SAS Rapid Predictive Modeler
Part of Enterprise Miner
Accessible through Enterprise Guide and the SAS Add-in for MS Office 4.3 (Excel only)
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Enabling everyone to deliver advanced insight
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Canada Post:Analytically-based competitive advantage
Established an analytics Center of Excellence
Established competencies
Went from 6 months of history to 30
Cut time to insight from 30 minutes to 15 seconds
Maintained profitability and revenue growth
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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.
Bank of America:Highly scalable analytics
Manage risk
Reduced run-time from 96 hours to 4
Cut processing time by 90%
Reduced scoring time from 3 hours to 10 minutes
Increased accuracy of loss forecasting
Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.