simplifying advanced analytics to empower business managers
TRANSCRIPT
Simplifying Advanced Analytics to Empower Business Managers
The Fifth Elephant 2012, Bangalore
27th July, 2012
@ 2012 BRIDGEi2i Analytics Solutions Pvt. Ltd. All rights reserved
I am lucky to be a part of an Analytics Solutions Company in the era of Big Data
• Analytics journey in a business
• Analytics adoption in businesses • Role of Advanced Analytics Apps
Topics we are going to discuss today… So you can decide when to escape
What is the link between a HURRICANE and POP-TARTS?
Research conducted by Wal-Mart on customer buying patterns before a hurricane
The SURPRISE item - Strawberry Pop-Tarts.
"They are preserved until you open them, the whole family can eat them, and they taste good," Dan Phillips, Wal-Mart's VP, Information Systems division.
Bottled Water Flashlights
Chainsaw Mop
Generators
Tarps
OBVIOUS items purchased
Source: CNN
iNFORMATION iNSIGHTS iMPACT
Analytics - The new Mantra of business
The analytics journey
iNFORMATION is growing
Human generated iNFORMATION Big Data
“Big data” refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyse.” - Mckinsey
4 B people using mobile phones in 2010
30 B pieces of content shared on Facebook every month
30 M Network sensor nodes present across transport, auto and other sectors
Increasing Diversity and Volume of Data lead to emergence of Big Data and challenge of how to manage it
Machine generated iNFORMATION
Data is BIG Data is HOT
Total Lifetime Grosses Worldwide: $110,206,216
Data is valuable if it is leveraged to derive iNSIGHTS
iNFORMATION is data+
iNSIGHTS – what?
Hmmm… I wonder what iNSIGHTS can iNFORMATION provide?
I now know what I never knew
I can now personalize I can see more money
WHO WILL BUY?
HOW SHOULD I
REACH HER? HOW OFTEN?
WHAT WILL SHE BUY
NOW? NEXT? HOW MUCH?
WHEN WILL SHE
BUY? HOW OFTEN?
Illustrative iNSIGHTS for a Marketing Manager
Helps me take informed decisions
Mitigate
risk
Maximize
revenue,
margins
Reduce cost
Increase
agility &
performance
The Analytics iMPACT
Analytics iMPACT needs to measurable & sustainable
More Customer
More Revenue from Customer
Add Customer at a Lower Cost
Competing on analytics
Illustrative iMPACT for the Marketing Manager
Converting iNFORMATION to iNSIGHTS has potential to deliver significant iMPACT
potential annual value to US health care $300 B
€250 B potential annual value to Europe’s public sector administration
60% potential increase in retailers’ operating margins possible with big data
Source: Mckinsey
At the heart of Netflix's business is a complex analytics engine which is portrayed as simple tool customers which provides movie recommendation based on customers' choices and feedback – to optimize both the customer's taste and Netflix's inventory.
2006: Revenue $ 1 B 1999: Revenue $5 M
Successful analytics adoption has demonstrated iMPACT
Netflix example
Right Movie
Right People
Better Revenue
Complex analytics made easy better adoption
…but adoption of analytics in business continues to be a challenge
BIG DATA growing prominence, Lack of Analytics will evolve as the “Achilles Heel”
1
33 36
17 13
None Using for 1 Using for 2 Using for 3 Using 4 above
70% uses analytics for 2 and fewer functions
The 6 areas or functions are Sales, Marketing, Customer service, Product/service pricing, Product/service delivery and New product/service development
Source: Accenture
What enables successful analytics adoption?
People Data Scientists |Business Manager
iNFORMATION: Who can ask the right questions and get the right iNFORMATION
iNSIGHTS: Derive actionable iNSIGHTS from iNFORMATION
iMPACT: Effectively implement iNSIGHTS to deliver business iMPACT
iNFORMATION Access
Internal – integrated access to multiple sources
Hidden - hidden in the system due unwillingness of stakeholders to share
External - purchased from third-party or available in public domain
Tools and Techniques
That can help individuals and organizations to integrate, analyze, visualize, and consume
Policies
Policies to data protection - privacy, security, intellectual property, and liability
Test, Solve and Institutionalize Analytics
Source: Mckinsey
Projected need for 1.5 million additional managers and analysts in the United States who can ask the right questions and consume the results of the analysis of Big Data effectively.
Source: Mckinsey
The need is for: Simple to use app which has ability to perform complex Analytics to enable business manager derive actionable iNSIGHTS
With growing demand for managers with analytical skills, the gap in analytics tools need to be filled quickly
The GAP – Advanced Analytics Apps
Data scientist
Robust Analytics Tools
User Needs Complex Simple
ANALYTICS TOOLS and APPLICATIONS
Business managers
Simple desktop applications
Business managers with analytics needs
---
Will business friendly Apps emerge in analytics as tablets did in personal computing?
PERSONAL COMPUTING & HANDHELD DEVICES
Features of an advanced analytics app
Fact-based discussions
Data-driven decisions
Actionable iNSIGHTS
Embedded predictive analytics
Machine intelligence based decisions
Interactive visualization
Available
Accessible anywhere
Sharing & collaboration
Easy to use
Simple, intuitive interface
Fast results No learning curve No deep statistical
knowledge needed
Affordable
Pay per use Shared
infrastructure
Cloud based pre-packaged advanced analytics based solutions
Survey Data = NSIGHTS +
Word cloud Theme cloud
Comment on areas of improvement
High Attrition Group –1-3 years vintage
Our baby-steps in the journey
Survey Data
ANALYZE Data
VISUALIZE Data
Derive INSIGHTS
SHARE Findings
The Evolution of Analytics will continue
Surviving on
Analytics
The Science of Survival
The Present
The Evolution
COMPETING
on Analytics
The Science of Winning
THANK YOU
E-Mail – [email protected]
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