Embracing Analytics for the Future
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The document discusses how analytics and data can help organizations improve performance and address common reasons why analytics projects fail. It provides examples of how a Swedish bank called Handelsbanken successfully uses an empowering culture and personalized service to remain highly profitable. The document advocates that organizations build cultures allowing sustainable performance, empower people, and communicate strategies clearly. It also discusses how tools like data visualization and storytelling can help internal auditors gain insights from big data and improve auditing.
Embracing Analytics for the Future
- 1. 11 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted Embracing Analytics for the Future Sharala Axryd, Founder and CEO of The Center of Applied Data Science
- 2. 22 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted
- 3. 33 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted Self- Disruption is the NEW REALITY
- 4. 44 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted Why human oversight will be essential to the next generation of automated data analytics Human Led, AI Driven
- 5. 55 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted How Digital Are You? A Study of HANDELSBANKEN, a Swedish bank, one of the most profitable banks in the world Lack of Skills 30% of big data project failures stem from inability to embed big data analytics into workplace culture Ambitious Intentions Companies often counterproductively overreach to become data driven Poor Communications C-Suite fails to effectively communicate crucial strategies, leading to project failures and money wastage Leadership Troubles C-Suites underestimate their involvement to carve out problem statements Why 85% of Big Data Projects Fail* *Digital News Asia –https://www.digitalnewsasia.com/insights/why-85- big-data-projects-fail • For traditional businesses, leaderships should build and shape organizational culture that will allow for long-term sustainable performance. • Why analytics are important – it’s not setting up a BI team, it’s not just going digital, there’s a whole lot of process behind it. This is why 85% of analytics projects fail. • Organizations to need to empower people in greater degrees to unlock capabilities and strong culture. • How to unlock? And that’s the question that becomes the bigger question of how do I go digital?
- 6. 66 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted What is the Strategy? A Study of HANDELSBANKEN, a Swedish bank, one of the most profitable banks in the world Performing better than average for every single year for the past 10-15 years. Even with the 2000 crash, still performing with high profitability. A very unique strategy – ability to empower people. To give personalized service. Every individual will be treated differently based on financial needs. How do you handle the risk? The risk comes with decentralization in decisions, carefully designed organization.
- 7. 77 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted Adopt the Right Culture A Study of HANDELSBANKEN, a Swedish bank, one of the most profitable banks in the world Culture is what guides decisions in the absence of policy • Handalsbanken’s natural assumption is that I trust first. • When your natural assumption is trust first, then you don’t have to have incentive plan or KPI, then they will do the right thing by the business. • They start with the assumption that people want to work and want to do the right thing. Adapt strategy + digital without disrupting but substituting and also complementing businesses
- 8. 88 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted The Next Frontier in Data Analytics The Future of Internal Audit is Today Internal auditors should embrace technology and begin using sophisticated tools to reap the benefits of embedding technology within an internal audit function. Such benefits include: Automating manual processes Allowing for full population analysis and testing to reduce sampling bias and “needle in the haystack” exception identification Supporting continuous and complete coverage without a need to sample Helping to identify outliers, patterns, and trends not otherwise identifiable through more traditional audit procedures such as human review and analysis Freeing up valuable internal audit resources for value- added activities such as investigation, root cause analysis, and remediation support
- 9. 99 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted So Where should Auditors start? Data Visualization • The art of presenting data visually and artistically as opposed to traditional reporting. • It is the process of converting raw data into some visual form. • Helps by shifting the cognitive load coupled with the understanding of Big Data, to the human perceptual system through graphics and visuals. • Helps auditors gain better insights, draw better conclusions and ultimately improve the audit process. Data Storytelling • Just as stories depict human experiences, data stories, which consist of data and analysis, describe business decisions and their consequences. • The process of explaining data analyses in layman’s terms using a combination of data, visuals, and narrative. • Uses effective, relatable stories to convey the information in those numbers to the people who need that information
- 10. 1010 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted “People hear statistics, But they feel stories.” Brent Dykes Director of Data Strategy Domo, a cloud software company
- 11. 1111 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted
- 12. 1212 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted PI 2018702181™
- 13. 1313 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted We need to understand the business goals ‒ What are your strategic KPIs ‒ What are the challenges you are facing as a business ‒ How can data and analytics support delivering these objectives We explore the data and analytic capability we have to deliver these insights ‒ Do we have the data ‒ Can we get the data ‒ How sophisticated do we need to be with the analytics We consider do we have the people to deliver this capability ‒ Can we train our people ‒ How do we augment capability with external resource ‒ Are we leveraging skills across the organization Finally, we look at the tools ‒ Do these align with our business goals ‒ Are they complimentary with the skills and talent we haveWhat does it mean to be data-driven? Advanced Analytics: A Powerful Edge As innovation triggers an explosion of options, expertise becomes paramount
- 14. 1414 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted CADS Approach Analytics Framework Data Management Is data available? Diagnostic Analytics Why did it happen? ValuetoBusiness Source : Adapted from Gartner’s Analytics Ascendancy Model Difficulty Descriptive Analytics What happened? Predictive Analytics What will happen? Prescriptive Analytics How can we make it happen? Hindsight Identify Revenue Shortfall Insight Revenue Shortfall caused by shortage of key inventory Insight Forecast future supply and demand of inventory Foresight Optimize pricing Visualize your Data Get Hindsight Insight Foresight Make Fact Based Decisions Collect data Maintain dataValidate data Store data
- 15. 1515 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” — Alvin Toffler, American Writer, Futurist, Businessman
- 16. 1616 Copyright © 2019 CADS and/or its affiliates. All rights reserved. | CADS Confidential – Internal/Restricted/Highly Restricted Thank You