john f.carter, charles schwab presentation at cdao winter 2017

Charles Schwab Confidential for internal purposes only

Driving Value as a Data and Analytics Leader

John Carter SVP, Analytics & Business Insight January 2017

Charles Schwab Confidential for internal purposes only Chief Data & Analytics Officer Conference - John Carter Presentation

Data, analytics & technology is exploding!

Weblogs

Speech/Text

Artificial Intelligence

Big Data

Python and R

Hadoop & Spark

Machine Learning

Social Data Feeds Real-Time Decisions

Pattern Recognition

Cognitive Computing

In-Memory DB

January 2017 1


Companies are investing in big data….

..for greater insights and faster decisions

Chief Data & Analytics Officer Conference - John Carter Presentation

*Source: NVP Big Data Executive Survey

January 2017 2

0.0% 10.0% 20.0% 30.0% 40.0%

Greater business insights

Faster time-to-answer

Faster speed-to-market

Greater analytics capabilties

Create a data-driven culture

Business Drivers of Big Data

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

$1B+ $500M+ $100M+

Big Data Investment Last 5 Years Big Data Investment Last 5 Years


Executives are expecting much more from analytics….

Big Expectations for Big Data in 2016 -

Splice Machine

Big Data Predictions…Companies want to

personalize cross-channel experiences

based on real time information and not day

old data….

How companies are using big data and

analytics | McKinsey & Company

McKinsey & Company

Just how do major organizations

use data and analytics to inform strategic

and operational decisions?

Ten Ways Big Data Is Revolutionizing Marketing And

Sales - Forbes

Forbes

May 9, 2016 - Customer Value Analytics (CVA) based on

Big Data is making it ... A Forrester study found that 44%

B2Cmarketers are using big data and analytics to ...

January 2017 3

http://www.splicemachine.com/big-expectations-for-big-data-in-2016/




http://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/how-companies-are-using-big-data-and-analytics

http://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/how-companies-are-using-big-data-and-analytics

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0ahUKEwjEiK-y4KjOAhUO8mMKHdFxApUQFghVMAI&url=http://www.forbes.com/sites/louiscolumbus/2016/05/09/ten-ways-big-data-is-revolutionizing-marketing-and-sales/&usg=AFQjCNF82mmdMoUlniHvHfscb1tf1FnKug








Yet, many analytical investments are NOT driving business value or outcomes!

• Accenture research shows that 1/3 of companies are now using analytics aggressively across the enterprise. Yet, for many, the ROI is elusive.

— Only 22 percent of companies are “very satisfied” with the outcomes of their analytics investment

• Actionable insight to drive business often appears to be the missing link between data and business outcome

– According to Forrester, 74% of firms say they want to be “data-driven,” but only 29% are successful at connecting analytics to action

January 2017 4


What should analytics leaders do to drive business value?

Chief Data & Analytics Officer Conference - John Carter Presentation January 2017 5


Consultative Process

Actionable Insights

Implementation & Action

Measurement Closed Loop Continual Improvement

An analytical framework is needed to drive business value

Chief Data & Analytics Officer Conference - John Carter Presentation January 2017 6


Analytical initiatives require executive support and should support business objectives


Attract New Clients

Expand Client Relationships

Retain Existing Clients

Increase Client Loyalty

Map prospect shopping journeys using advanced analytics in order to target prospects more effectively

Improve Operational

Efficiency

Enable reps to have the “right” conversations at the “right” time using real-time machine learning capabilities

Create new attrition models leveraging big data analytics

Leverage text mining and social listening to identify the underlying drivers of Net Promoter Scores

Develop self-service reporting tools to provide sales leaders

with easy to access information to grow business

Business Objectives Analytics Initiatives (examples)

January 2017 7



Business objectives should be vetted before work begins

• What decision will be made?

• How will it impact business?

• How will it be implemented?

• What is the expected ROI?

• By when is this needed?

• How does this project rate vs. other

priorities?


January 2017 8


Image source: Teradata

• Select the right combination of data, tools and people to meet objectives

• Leverage known insights

• Look for new ways to solve problems

1

Create actionable insights to drive business decisions

Image source: Teradata 2 • Develop relevant insights

• Involve business partners and tell stories

• Create recommendations

• Deliver insights quickly

Actionable Insights

January 2017 9


Assemble the right people to create a culture focused upon innovation and business outcomes

Motivated by Business Impact +

Organizational Change

Business Acumen

Selling Ability

Technical/ Analytical Skills

Intellectual Curiosity

Communication Skills

Sense of Urgency

Collaboration

Actionable Insights

January 2017 10


Business Intelligence Traditional Analytics Enterprise Analytics

WHAT ACTION SHOULD BE

TAKEN?

WHO IS ACCOUNTABLE?

WHAT ACTION WAS TAKEN?

WHAT WAS THE OUTCOME?

Enterprise Analytics is a key to success

ANALYTICS IS EMBEDDED IN THE BUSINESS WITH

CLEAR OWNERS + ACCOUNTIBILITIES


January 2017 11


Impactful analytics changes what people do and is achieved through cross-functional collaboration & partnerships

Technology

Teams

Data

Organization

Front-line

Sales

Client

Experience

Strategy Finance

Marketing External Partners


Legal / Compliance

January 2017 12


Analytical projects should be measured based on levels of impact

Level 1 – Tactical

Delivered operational reports, ad-hoc reports and data extracts

Level 2 – Insights & Measurement

Created new analytic insights or performance reporting that will guide strategy,

monitor important trends, or measure performance

Level 3 – Business Opportunities

Resulted in recommendations for business improvement, or

uncovered and presented tangible (measurable) opportunities

Level 4 – Business Decisions

Drove or enabled decisions and improvements that

are moving forward or already implemented

Level

of

Imp

act


Measurement

Level 5 – Business Impact

Project implemented, measurement in

place and meaningful ROI achieved

January 2017 13


Valu

e

Lo

w

Med

ium

H

igh

Investment

Low Medium High

Resist the temptation to build everything at once!

All or Nothing Approach

• Takes too long

• Costs too much

• Delays Value Creation


Closed Loop Continuous Improvement

Phased Investment

Approach

• Start Small

• Show Value

• Build More

January 2017 14


In summary, top 10 takeaways…

1. Gain executive support and align projects to top initiatives

2. Select and prioritize projects based on expected business

outcomes

3. Ensure end-to-end implementation of analytics including

measurement and feedback

4. Involve and gain support of stakeholders in all phases of the

analytical project

5. Hire, develop and motivate your team

January 2017 15


In summary, top 10 takeaways…

6. Invest in data and analytics matching investments with tangible business

outcomes

7. Leverage self-service capabilities to empower business partners while

retaining analytical resources for higher impact projects

8. Sacrifice “perfect” analytics for speed-to-insights and ease of implementation

9. Have the courage to push back on low impact work

10. Communicate insights and accomplishments throughout all levels of the

organization

January 2017 16


Thank you

[email protected]