A Business Analytics Success Guide for the C-suite Tim Suther BA - PowerPoint PPT Presentation

A Business Analytics Success Guide for the C-suite Tim Suther BA 1982

M ACRO - ECONOMICS P UBLIC POLICY UNCERTAINTY F ICKLE , INDEPENDENT (& LOUD ) CUSTOMERS C ONVERGENCE N EW BUSINESS MODELS

F ASTER & MORE CONCURRENT INNOVATION S HORTER PRODUCT LIFECYCLES & COMPANY LIFESPANS

$15 TRILLION WORLDWIDE SYSTEMS INEFFICIENCIES $ 8 TRILLION CORPORATE HOLDINGS OF DATA & INTANGIBLES $ 3 TRILLION OPEN DATA POTENTIAL

C OMPANIES WITH THE BEST ANALYTICS ARE 2X LIKELY TO BE TOP QUARTILE PERFORMERS B AIN

W HAT SHOULD C- LEVEL EXECS DO ABOUT B USINESS ANALYTICS ?

Disruption Theory Aggregation Theory Lower profitability customers Most profitable customers are are swayed by lower priced swayed by a superior "good enough" options customer experience New entrant grows upstream, Customer relationship owner ultimately taking most squeezes the supply chain, profitable customers too harvesting most of the profits

B UILD A GREAT CONSUMER EXPERIENCE I NTRODUCE ORGANIC WAYS TO ENGAGE WITH THE BUSINESS O NLY THEN DIAL UP ADVERTISING B UILD A BUSINESS AROUND THIS E COSYSTEM

M OST POPULAR MEDIA COMPANY OWNS NO CONTENT L ARGEST TAXI COMPANY OWNS NO TAXIS L ARGEST ROOM PROVIDER OWNS NO PROPERTY L ARGEST MOVIE COMPANY OWNS NO THEATERS M OST VALUABLE RETAILER OWNS NO INVENTORY

ALMOST $1 MILLION WORTH OF APPLICATIONS INCLUDED FOR FREE V IDEO CONFERENCING GPS D IGITAL VOICE RECORDER D IGITAL WATCH C AMERA M EDICAL LIBRARY V IDEO PLAYER V IDEO CAMERA M USIC PLAYER V IDEOGAME CONSOLE

High Reward Low Reward Low Risk Low Risk (primary focus) High Reward Low Reward High Risk High Risk (secondary focus)

High payback analytics uses Transform Performance Transform human Reinvent Create new customer Management resources operations products experience • Key Performance • Reduce attrition • Up to the second • Customer journey • Design data capture Indicator dashboard data-informed mapping into product • Optimize recruiting operating decisions • Attribute results • Remember me. • Big research • Analyze employee • Decrease exception Personalize me. • Increase • ”You are here” feedback processing Anticipate me. collaboration & benchmarks • Customize learning • Reduce financial & • Tune to regional or transparency • Provide insights to • Push down decision equipment risk segment needs • Update faster customers & rights • Customer/partner partners • Incorporate new self-service data • Faster, more efficient process

K NOW ANALYTICS ’ ROLE & PURPOSE FOR YOUR FIRM Y OU MUST BE ENGAGED

A NY SUFFICIENTLY ADVANCED TECHNOLOGY IS INDISTINGUISHABLE FROM MAGIC

D ON ’ T COUNT ON THE ANSWER MAGICALLY APPEARING U NDIRECTED DISCOVERY WILL LIKELY FAIL

C OMPUTERS ARE USELESS . T HEY CAN ONLY GIVE YOU ANSWERS .

C HALLENGE ASSUMPTIONS E XPLORE THE CONTRARIAN CASE A SK SECOND ORDER QUESTIONS

T HREE KINDS OF LIES : LIES , DAMNED LIES & STATISTICS

B EWARE CONFUSING CORRELATION WITH CAUSATION

B EWARE BAD DATA P OOR DATA QUALITY COSTS $3 TRILLION / YR .

B EWARE ANALYTICS USED TO SUPPORT ( NOT ILLUMINATE )

B E THE CHANGE YOU WISH TO SEE IN THE WORLD

M AKE ONE PERSON ACCOUNTABLE

D EFINITION OF INSANITY : D OING THE SAME THING OVER AND OVER AND EXPECTING DIFFERENT RESULTS

R EIMAGINE DECISION - MAKING H IERARCHICAL DECISION - MAKINGFAILS IN A REAL - TIME WORLD R EIMAGINE INCENTIVES NIMITOMS R EIMAGINE PROCESS O RGANIZINGAROUND CUSTOMER OUTCOMESIMPROVES MARKETPLACE AGILITY

I T T HE “I” MATTERS MORE THAN THE “T”

T ECHNOLOGY IS NOT THE HARD PART B RINGING PEOPLE ALONG IN THE ORGANIZATION IS

A BUSINESS MODEL & STRONG PLAN ARE FOUNDATIONAL C LEAR , COMPELLING & SUSTAINING P URPOSE & V ISION D EVELOP YOUR TEAM : FOCUS ON LEARNING H OW TO FRAME QUESTIONS H OW TO BUILD HYPOTHESES H OW TO CONDUCT EXPERIMENTS H OW TO INTERPRET RESULTS T RUST IS CRITICAL W ITH CUSTOMERS W ITH EMPLOYEES I TERATE & IMPROVE

“T ECHNOLOGY ALONE IS NOT ENOUGH . I T ’ S TECHNOLOGY MARRIED WITH THE LIBERAL ARTS , MARRIED WITH THE HUMANITIES , THAT YIELDS US THE RESULTS THAT MAKE OUR HEARTS SING .”

Everything in the world is normal when you’re born Inventions before 30 are incredibly exciting. With luck you can make a career out of them Inventions after 30 are against the natural order of things and the beginning of the end of civilization as we know it …until they’ve been around for about ten years when they gradually turn out to be alright really

L EAD WITH STRATEGY & PURPOSE PEOPLE & PROCESS … THEN TECHNOLOGY E NGAGE , ITERATE & IMPROVE

C HANGE IS HARD AT THE BEGINNING M ESSY IN THE MIDDLE G ORGEOUS AT THE END

Q & A