how to take a first step to advanced analytics
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1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
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How to Take a First Step toAdvanced Analytics
Lisa Kart
@Kart_Lisa
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The First Step to Advanced Analytics Often Feels Like Crossing a Chasm
BIAdvanced Analytics
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But It Doesn't Require Vast Resources
BIAdvanced Analytics
First Win
Evangelist
Ingenuity
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1. What is advanced analytics and data science?
2. How do we take that first step?
3. What are the new skills and tools required?
Key Issues
6 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
1. What is advanced analytics and data science?
2. How do we take that first step?
3. What are the new skills and tools required?
Key Issues
7 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
All 4 Types of Analytics Capabilities Ultimately Use Data to Drive Insights and Better Decisions
Human Input
Data DecisionPredictive
What Will Happen?
Diagnostic
Why Did It Happen?
Descriptive
What Happened?
Prescriptive
What Should I Do?
Analysis
Action
Decision Automation
Decision Support
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Advanced Analytics Uses Sophisticated Math to Give Deeper Insights to Improve Decisions
Sophisticated quantitative methods (e.g., data mining, prediction, simulation and optimization) to produce insights that traditional approaches to BI — such as query and reporting —are unlikely to discover.A
dv
an
ced
An
aly
tic
s
Human Input
Data DecisionPredictive
What Will Happen?
Diagnostic
Why Did It Happen?
Descriptive
What Happened?
Prescriptive
What Should I Do?
Analysis
Action
Decision Automation
Decision Support
9 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Predictive Analytics Use Cases
... customer churn
... sales revenue
... equipment failure
…market volatility
... response to a marketing offer
... fraudulent claims
... cybersecurity breaches
... workforce attrition
... freight cost
… credit risk
Organizations want to predict …
Predictive
Models
Common Techniques:
Regression
Decision trees
Neural nets
Ensemble models
10 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Prescriptive Analytics Use Cases
Organizations want to …
Decision
Models
Common Techniques:
Optimization
Linear programming
Constraint programming
Decision management
... assign optimal price
... find the best route
... schedule resources
... give customers the best next offer
... allocate limited resources
… optimize marketing mix
... acquire a company
… select a site for a power plant
… decide where to drill for oil
11 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Build vs. Buy vs. Outsource
BUILD BUY
OUTSOURCE
via workbenches packaged apps
service providers
1. Requires in-house skills
2. Analytics is differentiator
3. Agility & control are key
1. Best ease-of-use
2. Often "good enough"
3. Best time-to-solution
4. Little differentiation
1. In-house skills not avail
2. Packaged apps not avail
3. Give up IP for sake of speed
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1. What is advanced analytics and data science?
2. How do we take that first step?
3. What are the new skills and tools required?
Key Issues
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Marketing HR
Risk
Lots of Data
Logistics
"Signals" in the Noise
Finance
CRM
Operational Tactical Strategic
Complex
Find the Low Hanging Fruit to Make Better Predictions and Decisions
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• Large North American bank
• Improve credit line increases
• Hired a service provider to do POC as "gain share":
– Low upfront risk, cost
• Wildly successful
• Internal advanced analytics COE
You Can Operate in Stealth Mode
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You Don't Need a Lot of Resources
• 100 year old manufacturing company
• 2 data science interns
• Exploration of the data
• Found 13 factors to drivelower cost and higherprocess efficiency
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You Do Need to Convince Your Toughest Skeptics
• U.S. trucking & logistics company
• Optimizing routingand scheduling
• Dispatchers weren't bought into the solution
• "Dispatch game"
• "Dispatch Analysts"
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1. What is advanced analytics and data science?
2. How do we take that first step?
3. What are the new skills and tools required?
Key Issues
18 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
From "Magic Quadrant for Advanced Analytics Platforms," 19 February 2015, (G00270612)
New Tools: Advanced Analytics Platforms Are Evolving
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Data Discovery
Advanced Analytics
Feature Identification
Rigorous Trending and Clustering
Apply Patterns to the Future
Prescriptive Actions
Rapid and Intuitive Data Understanding
Hypotheses Generation
Business User Collaboration and Interpretation
SAS RapidMiner Alpine
Tableau Qlik Tibco Advizor Alteryx
BeyondCoreIBM
Data Discovery and Predictive Analytics OfferingsAre Complementary
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The Rise of Citizen Data Scientists
Tools are getting easier to use
Expert data scientists will remain rare
IBM Watson AnalyticsMicrosoft Azure Machine Learning
SAS Visual Statistics SAP
Angoss
Alpine
Ayasdi
Emcien
BeyondCore
Citizen data scientists are well positioned to "drive" data-driven culture
Domain expertise
They can be recruited in-house as well as from many "adjacent" disciplines
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Three Core Skill Areas Are Needed
Data Science
ITSkills
BusinessSkills
Ask Good Questions
Decision Making
Transparent Versus"Black Box"
Which Analytics to Choose?
Data Exploration
High- PerformanceComputing
Build, Buy, Outsource
Feature Engineering
Know the Constraints
Data Governance
Deployment
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Reporting Relationship of AA/DS Teams
2
Other
Strategic Planning
CDO
CIO
CMO
CFO / Finance
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Gather with your allies and make a plan to tackle 1 to 2 business problems, POCs:
– Choose high impact, high visibility problems
– Limited resources, under the radar, external experts
Evangelize and get buy-in:
– Identify the stakeholders in your organization that need to be convinced of the value of advanced analytics
After that first win (or two), decide if (when) you want to build the skills and tools internally
Recommendations for Finding Your First Win
24 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research
• How to Take a First Step to Advanced AnalyticsLisa Kart (G00276728)
• Advancing Business With Advanced AnalyticsAlexander Linden and Others (G00277713)
• Extend Your Portfolio of Analytics CapabilitiesLisa Kart and Others (G00254653)
• Predicts 2015: A Step Change in the Industrialization of Advanced AnalyticsAlexander Linden and Others (G00270560)
• Magic Quadrant for Advanced Analytics PlatformsGareth Herschel and Others (G00270612)
• Machine Learning Drives Digital BusinessAlexander Linden and Others (G00263964)
CONFIDENTIAL AND PROPRIETARY
© 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
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