Making analytics work for you
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The document discusses how companies can fully harness the power of data analytics. It provides two key insights: 1) Companies must choose the right data, build predictive models, and transform capabilities. 2) They should develop business-relevant analytics, embed analytics in simple tools, and develop big data skills. The insights emphasize upgrading managerial analytics skills so decision-making is data-driven. Acting on these insights can help Indian managers lead a successful digital transformation.
Making analytics work for you
- 1. MAKING ADVANCED ANALYTICS WORK FOR YOU INSIGHTS BY - KUNAL BHATTACHARYA
- 2. INTRODUCTION Big data could transform the way companies do business. According to research by Andrew McAfee and Erik Brynjolfsson, of MIT, companies that inject big data and analytics into their operations show productivity rates and profitability that are 5% to 6% higher than those of their peers. Yet, most companies are unsure how to proceed. While companies such as Google, Netflix and Amazon continue to scale greater heights, many companies are yet to understand where to start and whether to start investing in analytics at all. In the following slides, I will share my insights about how to fully harness the power of data and analytics.
- 3. DIGITAL Take every decision based on what the data says about the past and indicates about the future. TRADITIONAL Use some kind of data (as per availability) to understand the past and then decide what you feel is the best.
- 4. INSIGHT - 1 INSIGHT - 2 MANAGERIAL RELEVANCE
- 5. INSIGHT - 1 Fully exploiting the power of data and analytics requires three mutually supportive capabilities: I. Choose the right data II. Build models that predict and optimize business problems. III. Transform the company's capabilities
- 6. CHOOSE THE RIGHT DATA With bigger and better data enabling companies to have both panoramic and granular views of their business environment, the companies need to up their game and find deliberate and creative ways to identify usable data to improve operations, customer experiences and strategy.
- 7. BUILD MODELS THAT PREDICT & OPTIMIZE BUSINESS PROBLEMS The most effective approach to building a model rarely starts with the data; instead it originates with identifying the business opportunity and determining how the model can improve performance.Data are essential, but performance improvements and competitive advantage arise from analytics models that allow managers to predict and optimize outcomes. Hmm, so how should we price our products for more profit?
- 8. TRANSFORM THE COMPANY'S CAPABILITIES Senior executives have to undertake thoughtful organisational change to make sure the managers understand and trust big-data models. That will help align the company's decision-making into a data-driven process wherein analytics can be exploited successfully to provide a clear blueprint for realizing business goals.
- 9. Transforming organisational capabilities is not a joke! How do I do that?
- 10. INSIGHT - 2 Three areas of action can help transform the companies' big data and analytics capabilities: I. Develop business relevant analytics that can be put to use II. Embed analytics into simple tools for the front lines III. Develop capabilities to exploit big data
- 11. DEVELOP BUSINESS RELEVANT ANALYTICS THAT CAN BE USED Big data and analytics implementations must be in sync with the company's data-to-day processes and decision-making norms. It must be ensured that the analytics and associated tools complement the existing decision making processes.
- 12. EMBED ANALYTICS INTO SIMPLE TOOLS FOR FRONTLINE MANAGERS Managers need transparent methods for using the new models and algorithms on a daily basis. They are not expected to handle terabytes of data and apply modelling techniques; instead, all those complex processing need to be handled by the developers and analyst teams and the resulting data driven insights, with simple visual interfaces, need to be provided to the managers.
- 13. DEVELOP CAPABILITIES TO EXPLOIT BIG DATA Even with simple and usable models, most organizations will need to upgrade their analytical skills and literacy. Managers have to undergo “field and forum” analytics trainings, whereby they participate in real-world, analytics- based workplace decisions that allow them to learn by doing. Only then will they be able to make a part of their daily operations.
- 14. These insights are of immense relevance to managers in India. The first actionable insight from the above points is that the managers need to upgrade their own analytics skill sets to able to act on the second actionable insight - transitioning the company's decision making process into a data-driven, analytics based process. These insights can serve as the framework for the managers to engineer the transition to big data and analytics and provide them with a comprehensive list of "what to do" and "how to do". They also need to make sure that data is analysed as per the business need and not the other way round. In a nutshell, by acting on the aforementioned insights, managers in India can lead the digital transformation of their companies with utmost success. MANAGERIAL RELEVANCE
- 15. TO CONCLUDE The era of big data is evolving rapidly, and most companies should act now. But rather than undertaking massive overhauls of their companies, executives should concentrate on targeted efforts to source data, build models, and transform the organizational culture. Such efforts will play a part in maintaining flexibility. That nimbleness is essential, given that the information itself—along with the technology for managing and analyzing it— will continue to grow and change, yielding a constant stream of opportunities.
- 16. THANK YOU