How to become an Analytics-driven organization - and why bother? - IBM Smarter Business 2011
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The document discusses the importance of becoming an analytics-driven organization, emphasizing that companies with higher analytics integration achieve better performance and significant cost savings. It highlights the necessity for organizations to adapt to rapidly changing environments by leveraging analytics for informed decision-making across various business functions. Additionally, the text underscores the demand for agility and collaboration in analytics strategies to enhance overall business effectiveness.
How to become an Analytics-driven organization - and why bother? - IBM Smarter Business 2011
- 1. How to become an Analytics driver organization and Why bother ? Juha Teljo Business Intelligence Solution Executive
- 2. Information will be the 'oil of the 21st century.’ Gartner 2010
- 3. O’Reilly:27.4.2011, Got Iphone, Apple is recording your moves
- 4. TomTom Caught Selling Speed Data to Dutch Police PcWorld 28. April 2011 4
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- 6. = Analytics Quotient Realized = Potential The more you infuse analytics into your business, the higher your AQ and the better you and your business will perform
- 7. Analytics Correlates to Performance Organizations that lead in analytics outperform those who are just beginning to adopt analytics Top Performers are more likely to use an analytic approach over intuition* Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010. *within business processes 7
- 8. Driving Better Business Outcomes Across the Enterprise $300 Million From >1% to $200 Million in savings <0.5% increase in & fraud reduction Reduction in product Cash Flow return rates $24 Million 600% increase 40% decline in reduced waste in cross-sell and fraud in homicide campaign rates 8
- 9. ALIGNED Collaboration across business objectives AGILE Highly AWARE responsive to changing Alert, observant, priorities informed and perceptive FOCUSED PREDICTIVE Clear understanding of Able to anticipate, look forward what’s important and set expectations
- 10. Operations Human Resources Product Development IT Customer Service Sales Finance Marketing 10
- 11. Who is leading the way ?
- 12. Must balance new user expectations with need for governance and control I must deliver reliable, lower- I must make cost, secure analytic faster, more proactive solutions decisions that drive (IT) competitive advantage IT and Business Finance I must align I expect resources, lower risk, fast, fun, frictionles set strategy, and govern s access to access to sensitive analytics wherever information I go! (Finance)
- 13. New kind of agility and adaptability is required
- 14. Just as people expect from their social networks “I want to connect and share things with the friends in my life.” “I want to be updated on what’s new in my friends’ lives.” “I want to look back at old times we’ve enjoyed.”
- 15. They also need in their organizations “I need to easily connect with people who are relevant to the decisions I make.” “I need to better understand the perspectives of my colleagues.” “I need to easily access decision history in order to learn, reference and create best-practices.” 1
- 16. Social Networks connect decisions across the organization Strategic • Few decisions made • Financially oriented quarterly, annually • Monitored with scorecards and • Senior audience including CEO, dashboards COO, business/financial • Understood with complex analysts analysis and modeling Tactical • Decision triggers include • Daily, weekly, monthly escalations, reporting decision support periods, product or release • Mid-level management cycles, etc including director, VP level • Processes understood but not formalized Operational • Data complements expertise • Driving 1000s of decisions on • Self service autonomy information now • Take action with • Broad audience of users across exceptions, alerting and operational units collaboration • Highly structured processes, exceptions driving response
- 17. „Expect the Unexpected“ David Axson © Reuters
- 18. „But the budgeting process at mo st companies has to be the mo ineffective st practice in manageme It sucks the nt. energy, time, fun and big dreams o out f an o rganizatio (...) And yet (...) n. companies sink co untless ho into urs writing budgets. What a waste!“ J Welch, 2005 ack Over 35% of all companies report that their budget is out of date within the first quarter.
- 19. Being Predictive pays off ! Predictive Maintenance of production cars • Real-time telemetry from car – 12,000 elements • Run through predictive models in real time • Failures predictions generate – Direction to take car for service – Information for service centre Implemented predictive analytics in warranty claims process Reduced warranty cases from 1.1 to 0.85 per vehicle 5% reduction in warranty cases Annual savings of €30m
- 20. Be Aware - World is changing fast ! Optimize Campaign design Web: Blogs Optimize Product design Message Boards Segment Market Forums, News Change Detractors to Engage Influencers Sense Act IBM Cognos Consumer Monitor Insight External Internal Learn Extract Analyze Build and apply Integrate Predictive Models Sales Surveys Panels Visualize
- 21. ALIGNED Collaboration across business objectives AGILE Highly AWARE responsive to changing Alert, observant, priorities informed and perceptive FOCUSED PREDICTIVE Clear understanding of Able to anticipate, look forward what’s important and set expectations
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