building a smarter organization

AGILITY THROUGH DESIGN

Building Smarter Organizations with Analytics



Trends are accelerating and converging

Dramatically increasing the Volume, Variety and Velocity of data that is captured and stored


“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

It is key to find the right balance between human intuition, analytics and organizational capability

Raising the question – Can humans and organizations keep up?

“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


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 for Business Agility that can sense changes,

understand them, respond to them through business actions and refine these

actions continuously to deliver better business results

Our approach to Analytics


Analytics is a competitive differentiator

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.


… aims to build smarter organization that deliver Agility by Design …

• Innovate at the edges

• Turn data into insights and action

• Use Design Thinking to redefine interactions

• Smaller projects, incremental functions (MVP) and iterative delivery

SENSE

• Rapid prototyping and experimentation

• Assess results and modify experiments

• Self-organizing, rapid-strike teams

• Agile Development

RESPOND

• Horizontal and Full Stack Organizations

• Virtualized Data Services

• Lean Management and Operations

• Adaptive Data Governance

ADAPT

• Speed to market

• Rapidly adapt

• Decisions based on insights

• No backlog that blocks ideas

BUSINESS AGILITY


CUSTOMER OPERATIONAL ANALYTICS

MARKETING SALES SUPPLY CHAIN

FINANCIAL WORKFORCE

CUSTOMER ANALYTICSHelp determine Next Best Action or Next Best Offer

CUSTOMER INTERACTIONANALYTICSImprove Customer Experience and reduce cost of service

SOCIAL ANALYTICSDrive brand loyalty and service recovery actions based on sentiment analysis on social media

CUSTOMER INTELLIGENCEImprove customer share of wallet through target marketing

MARKET INTELLIGENCE

Provide insights into market trends and customer behavior

MARKETING EFFECTIVENESSDrive returns from better marketing spend allocation

PRICING ANALYTICS

Provide price / discount insights for specific sales

SALES FORCE ALLOCATIONDrive sales coverage across addressable segments

SALES EFFECTIVENESS

Enable effectiveness of sales pursuit and conversion

SALES COMPENSATIONDesign and track sales compensation for optimization

PRODUCT SALES PERFORMANCE

Monitor sales performance by product / solution

DEMAND-SUPPLY PLANNINGReduce demand-supply mismatch through better forecasting

INVENTORY OPTIMIZATIONReduce own and channel inventory costs

PROCUREMENT ANALYTICSDrive 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 PROFITABILITYContinuous monitoring and optimizing of customer and product profitability

WORKFORCE OPTIMIZATIONAllocation / matching of workforce for efficient usage

ATTRITION MODELING

Identify attrition propensity based on characteristics & drivers

. . . and meaningful business results across the organization


Smarter Organizations expect more from IT8

• Just-right functionality• Continuous Delivery• Frequent releases

• Lower costs of entry• Scale based on use• Easy to decommission

• Focus on Ease of Use• Emphasize Simplicity• Deliver Quality @ Speed


Many IT teams struggle to meet the needs of Smarter Organizations

9

IT debt continues to increaseGartner estimates Global IT Debt was $500 Billion in 2010 and will grow to $1 Trillion by 2015

The traditional IT model is inadequateCIO’s need to change how they manage the “Business of IT” to deal with today’s challenges

Supply of skills is constrainedThe current workforce model used by IT cannot be scaled to meet today’s increased demand


Our innovative delivery model allows organizations to Think like a Startup …

Digital Portfolio Management Agile Product Lifecycle ManagementCustomer Centricity

IDEATE

PROOF OFCONCEPT

MINIMUMVIABLE

PRODUCT

BETA

GA


Culture

Government & Legal

Business Models, Platforms & Leadership

Markets

Distribution & Processes

Products & Offerings

Relationships & Community

Brand & Experience

© 2014-2015 Causeit, inc.

Innovation SpectrumDesign Thinking

VIABILITY(BUSINESS)

FEASIBILITY(TECHNICAL)

DESRABILITY(HUMAN)

Human Centered Design

INNOVATION

Lean Startup

Respect for People

Continuous Improvement

• Create Value for Customers

• Improve adaptability to change

• Drive continuous Innovation

• Create bandwidth

… and execute at enterprise scale …


… through a new model for IT …1. Adaptive Enterprise

Architecture

2. Digital Portfolio Management

3. Innovation and Customer Centricity

4. Platform Thinking

5. Horizontal IT Teams

1. Understand the business

2. Manage IT as a business

3. Be the Change Agent

1. Innovative business system

2. Sustainable Workforce

1. Agile IT

1. Real Lean2. Design Thinking3. Discovery Driven Planning4. Visual Management5. Servant Leadership6. 10-20-70 Learning Model7. Component Design and APIs8. Crowdsourcing

* Agile IT 2012 Right Brain Systems and 2014 NTT i3


… that reimagines and revamps the traditional model for managing IT

COMPANY OUT

VERTICAL SILOS AROUND FUNCTION

EFFICIENCY & COST

IT CENTRIC & PROJECT FOCUSED

CUSTOMER IN

HORIZONTAL ACROSS VALUE CHAIN

THROUGHPUT & VALUE

BUSINESS CENTRIC & CONTINUOUS DELIVERY

APPLICATIONS DATA AND INFORMATION


ACTIONS:Whatdowedo?

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

DATAWhatdata?

INFORMATION:Whathappened?

INSIGHTS:Whydidithappen?

BETTER BUSINESS OUTCOMES

• Ability to sense and understand changes in marketplace

• Rapid decisions driven by Information

• Enable differentiated and seamless context aware experiences

The journey towards a Smarter Organization

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).


Our 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 and Governance model that describes how users will visualize, access, utilize and act on the insights generated

• An Agile IT Model that 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

0

1

2

3

4

5Data Foundation

Information Design

Agile IT ModelAnalytics Operational

Framework

Active Business Sponsorship

Smarter Organization – Our Approach


Data Foundation

The Data Foundation defines:• How data is organized and

used in the Enterprise (Semantics)

• How data is persistently stored and accessed (Structure) and

• How data is managed and understood (access, inquiry, replicated, updated etc.)

Real-time andBatchQueries(OLTP andOLAP)

Real-timequeries

DataWarehouse, DatamartsandOperationalDataStores

Real-timeIn-memory Databases

EnterpriseDataGovernance

Customer Financial Functional(HR,IT,Marketing,Enterprise Risk

Managementetc.)

Operational(Product, Sales,Service,

FraudDetection,Operationsetc.)

Metadata,DataModeling,MasterDataManagement

EnterpriseApplication

Integration(EAI)

ExtractTransform&Load(ETL)

UnstructuredDataLoads(pattern matching,stopwordfiltering, backward

pointersetc.)

Real-timeIntegration

StructuredDataOperational datafrominternal

andexternaldatasources

UnstructuredDataDigital data(audio, video),textdata(fromsocial

networks)etc.

Semi-Structured andReal-timeData

Datafromreal-timesensors, highvolumetransactionsetc.

Source: EnterpriseData(Internal),FederatedData(External),SyndicatedData(External)Volumes: Streams,HighVolume, LowVolumeLatency:Whatisthelatencyofthedata– real-time,near real-timeorbatched


Information Design

UserSpecificInformation

ContextInformation

Visualizationand

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.


Information Governance

UnderstandDataDomains InformationClassificationModel GovernanceModel

InformationPrivacy,Security,RegulatoryandCompliance Rules andGuidelines

EnterpriseRiskManagement

Confidential

Privileged

Public

Customer

Finance

Product/Pricing

Operational

Workforce

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


Agile IT for AnalyticsAgile IT for 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

SharedAnalyticsCenterOnSite

PrivateData Privileged PublicData

ProductOwners DataScientists

VisualizationandUXDesigners

Operations MonitoringandReporting

AnalyticsSolutionsandPlatforms

BusinessStewardshipandGovernance

Acc

ura

cy

Effort

PlatformsEnsembleMethods

Deep LearningMethods


Agile IT - Agile Analytics

UserStoryMaps

UserStories

AnalyticsEpics

Personas

AnalyticsProblems

AgileDelivery

Rendering andVisualizationDataEcosystem andrelationshipsInformation designAnalytics PatternsAccess and IntegrationUseand Implementation


Agile IT – Adaptive Analytics ArchitectureVisualizationandUserInteraction

InteractionModel– Fire-and-forger, Request-Response,ComplexEventProcessing(CEP)

AnalyticsSolutions – SocialAnalytics, ValueChainPerformanceAnalytics, CustomerInteractionAnalytics etc.

AdvancedStatisticalModeling

QuantitativeAnalysis LinearProgramming Markov Chain,MonteCarloMethods

RegressionModels Simulation

OLTP,OLAPand MachineLearning,Ensemble,DeepLearning

DataWarehouse, DatamartsandOperationalDataStores Real-timeIn-memory Databases

EnterpriseDataGovernance

Customer Financial Functional(HR,IT,Marketing,Enterprise Risk

Managementetc.)

Operational(Product, Sales,Service, FraudDetection,

Operationsetc.)

MasterDataManagement,DistributedMapReduce

Enterprise ApplicationIntegration(EAI)

Extract Transform&Load(ETL)

UnstructuredDataLoads(pattern matching,stopwordfiltering,backward

pointersetc.)

Real-timeIntegration

StructuredDataOperational datafrominternalandexternaldatasources

UnstructuredDataDigital data(audio, video), textdata(fromsocial

networks)etc.

Semi-Structured andReal-timeDataDatafromreal-timesensors, highvolume

transactionsetc.


INTEGRATED INTO THE ECOSYSTEM

CONSUMED AS-A-SERVICE

SCALABLE, SECURE AND EXTENSIBLE

HIGHLY COHESIVE SET OF SERVICES

LOOSELY COUPLED INTERFACES

ENABLED BY OPEN API’S

PROVIDES VALUE TO ALL PARTICIPANTS

Agile IT– Platform Thinking

AGILE ITDELIVERY

Ensemble

HadoopSpark

MachineLearning

Algorithms

RBSAnalyticsPlatform


Agile IT - Workforce Model• 20%Specializedskills

• DataScientists–Mixofstatisticalandquantitativeskills(LeftBrain)andpatterndetection/matchingskills(RightBrain)

• ProductOwners– Abilitytobreakdowncomplexproblemsintoproductfeaturesandbacklogthatcanbedeliveredincrementally

• VisualizationandUXDesigners– CreativeandDesignThinkingskills(RightBrain)

• 50%- IP,FrameworkandPlatformThinking

• 30%Deliveryskills– Architects,Developers,SoftwareQualityanalystsetc.

• Mixofsoftskillsandtechnicalskills,delivereda10-20-70learningmodel

• Formalandinformalmentor-apprenticemodel• Campusrelationshipswithartsandscienceschools

• Industry-Academiainteractionstodrivenewperspectivesandtofacilitateupdatesonnewtechniques

• Jobrotationstodrivecross-skillingandenforceknowledgemanagementrequirements

• Retrospectivesatalllevelsofdeliveryandoperationstodriveexperientiallearning

• Formalandinformalknowledgesharingsessionstodrivecollectivelearning• Contextandrelevancemaintainedthroughsingle-pointofcontactforbusiness-specificdetails

• UseofSocialnetworkingtoolstoestablishinformalknowledgeandexperiencenetworks

SustainableWorkforce

ImmersiveLearning

ExperienceManagement


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.


• Business Agility is a core capability of today’s Smart Organizations

• Smart Organizations are powered by analytics and require a new and comprehensive set of capabilities

• Traditional IT and Service provider models are inadequate to support Smart Organizations

• Our innovative platform enabled delivery model provides Agility, Speed and Quality @ Scale

Conclusion


About the presenterSrini Koushik is President and CEO of Right Brain Systems, a Silicon Valley-based think tank focused on Digital Business and Business Agility . Srini was 30 years of experience as Programmer, Architect, CTO, CIO and P&L owner at Fortune 100 Companies including IBM, HP and Nationwide. Srini was most recently President and CEO of NTT Innovation Institute Inc. (NTT i3) the global R&D lab established by NTT the Japanese Telecom company.

Srini is an Open Group Distinguished Certified Architecture profession leader. He has published several articles, holds three patents, and co-authored a best-selling book, Patterns for e-business, in 2001. He was elected to the IBM Academy of Technology, and was named an IBM Distinguished Engineer in 1996. He was also named an Elite 8 CIO by Insurance and Technology, a Top 25 CIO by Infoworld, a Top 10 All-Star in the financial services industry by TechDecisions, and a Computerworld Premier 100 Technology Leader in 2014.

Srini holds a bachelor’s degree in physics from the University of Madras, a master’s degree in computer science from the University of Bombay, a master’s degree in business administration from Ohio State University, and has completed executive education courses from both the MIT Sloan School of Management and Duke University.

Srini enjoys skydiving, hang gliding and other extreme sports. He is currently working towards his private pilot license. He enjoys traveling and has been to 55 countries and wants to visit the other 140 countries in his lifetime. He lives with his wife, daughter in Monte Sereno, California.


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building a smarter organization

Data & Analytics