Business Analytics making sense of your business data

Transcription

1 Business Analytics making sense of your business data August 5, 2014 Darwin Braunagel

2 W hy are we here today? Today s Objectives W hy is it important for your business future How your business can gain a competitive advantage through the use of business analytics W hat is business analytics W here to begin

3 Hmmm Accurate Data?

4 Business Analytics what does it mean?

5 Today s Buzz Words how they relate Big Data Data Visualization Business Intelligence Business Analytics

6 Big Data what is it?

7 Big Data

8 Big Data a closer look

9 Data Visualization Visualization is the graphical presentation of information, with the goal of providing the viewer with a qualitative understanding of the information contents. ~Matthew Ward, W PI CS Department

10 Data Visualization Spreadsheet Visualization Graphical Visualization

11 Business Intelligence or Business Analytics Business Analytics (BA) is a close cousin of Business Intelligence (BI). Both are meant to help companies make better decisions by analyzing business data. The difference is in their methods and the general direction of their analysis. Business Intelligence: the most common form, concentrates on data from the present and the immediate past Business Analytics: continuous investigation of past business performance to gain insight and drive business planning

12 W ho uses Business Analytics? Top 10 CIO Business & Technology Priorities in 2013 Business Priorities Ranking Technology Priorities Ranking Increasing enterprise growth 1 Analytics and business intelligence Delivering operational results 2 Mobile technologies 2 Reducing enterprise costs 3 Attracting and retaining new customers Improving IT applications and infrastructure Creating new products and services (innovation) 4 Cloud computing (SaaS, IaaS, PaaS) Collaboration technologies (workflow) 5 Legacy modernization 5 6 IT management 6 Improving efficiency 7 CRM 7 Attracting and retaining the workforce Implementing analytics and big data Expanding into new markets and geographies 8 Virtualization 8 9 Security 9 10 ERP Applications Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. For more information, info@gartner.com or visit gartner.com

13 W hy does Business Analytics matter? Leveraging data and analytics ranks among the most important technology initiative in the coming year Top 5 Technology Initiatives Critical or High Priority Improve the use of data and analytics to improve business decisions and outcomes 72% Identify new ways IT can better support business/ marketing objectives 66% Improve IT project delivery performance 56% Develop new skills to better support emerging technologies and business innovation 52% Reorganize or retrain IT to better align with business outcomes and drive innovation 50% CIO Magazine January 2014

14 W hy does Business Analytics matter? AnalyticsZone by IBM (analyticszone.com)

15 Analytics W hy does can Business help Analytics matter? Analytics can help: Predict business performance Provides insight to business activities Provides timely and reliable information Make informed decisions

16 Traditional vs. Informational Traditional Information Management Information Management Big Data Style Requirements based To p -down design Defining truth Integration and reuse Technology consolidation Data warehouses and content management Competence centers Enterprise-wide Gartner March 2014 Opportunity oriented Bottom-up experimentation Establishing trust Immediate use Tool proliferation World of Hadoop Better business Domain focus (marketing and ops, among others

17 Business Analytics for Energy Market Drivers for Energy Sector Market Drivers Big Data Complexity Technology Innovation Green Consumer Power Business Analytics Smart Meters Customer Choice Improved Analytics Smart Grid CLV Customer Lifetime Value

18 Business Analytics for Energy Business Drivers for Energy Firstly, map business drivers across 4 axes: Increase Revenue Improve Governance (risk, compliance, etc.) Improve Operational Excellence Reduce Costs

19 Business Analytics for Energy Business Drivers for Energy Departmental Focus N ext, identify where departments have their primary focus: Increase Revenue Planning Commodity Trading Compliance Production Improve Governance (risk, compliance, etc.) Finance Up/ Mid/ Down Stream Ops Improve Operational Excellence Human Resources Workforce Planning Reduce Costs

20 W here to Begin 1. Identify --- investigate your company s key performance drivers, waste creators, execution indicators and cash/ people/ products impacts. 2. Establish Key Performance Indicators (KPIs) --- publish, measure, train, hire, compensate on these performance drivers. 3. Visualize --- implement real-time, intuitive dashboards for daily use. 4. Measure & Analyze --- deliver data by user characteristics (finance, manufacturing, sales, service, etc.), provide customizable properties, including drill down, historical data, etc. 5. Act --- be disciplined, drive business decisions with facts, and take action.

21 1. Identify Start small, then move to continually develop additional KPIs W hat are your top business challenges W hat tools are needed W hat staff skills are needed How will this impact your business Remember - keep it simple in order to involve all employees Share the information

22 2. Establish KPIs What they are: Quantifiable/ measurable and actionable Measure factors that are critical to the success of the organization Tied to business goals and targets Limited to 5-8 key metrics Applied consistently throughout the company What they are not: Metrics that are vague or unclear Nice-to-know s or metrics that are not actionable Reports (e.g. top search engines, top keywords) Exhaustive set of metrics Refutable

23 3. Visualize dashboard

24 3. Visualize questions you can ask yourself Full Stack Outcome Optimization Predictive Analytics Forecasting What outcome create value? What will happen next? What if these trends continue? Vendors Statistical models Alerts Why is this happening? What actions are needed? Query/ drill down Ad hoc reports Where exactly is the problem? What happens when A & B are paired? Niche Summary Reports What happened? Reporti ng Degrees of Intelligence Analytics

25 4. Measure & Analyze -what s important to you and your staff

26 4. Measure Ask what & Analyze if? -asking the next question:

27 5. Act Establish a sense of urgency Form a guidance coalition Create a vision Communicate the vision Empower others to act Plan for and create short-term wins Consolidate improvement and produce more change opportunities

28 Key Takeaways Analytics Success = Integration of data from across the organizational silos. Defined quantifiable, acceptable Key Performance Indicators. KPI benchmarking against Ethanol Industry s accepted standards. Opportunity improvement through adoption of best practices. Business analytics goes beyond analyzing data, it generates what if scenarios and suggest actions. W ide adoption is the greatest measure of success. Dashboards are not enough to improve performance. Know the score of your business in real-time. "You can't manage what you don't measure." How are you measuring your organization's performance? Organizations admit that they have the issue with the data quality.

29 Resources Making Advanced Analytics Work for You A practical guide to capitalizing on big data by Dominic Barton & David Court

30 Resources Competing on Analytics: The N ew Science of W inning by Thomas H. Davenport & Jeanne G. Harris

31 Q uestions? This presentation is presented with the understanding that the information contained does not constitute legal, accounting or other professional advice. It is not intended to be responsive to any individual situation or concerns, as the contents of this presentation are intended for general informational purposes only. Viewers are urged not to act upon the information contained in this presentation without first consulting competent legal, accounting or other professional advice regarding implications of a particular factual situation. Questions and additional information can be submitted to your Eide Bailly representative, or to the presenter of this session.

32 feel free to contact me Darwin Braunagel / technology