9/13/2017. Creating a Data-Driven Decision-Making Culture. Who are we? Who are you?
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1 Creating a Data-Driven Decision-Making Culture Ken Raetz Principal Think Data Insights, LLC Who are we? Data Platform architects Data Storytellers Microsoft SQL Server BI, Power BI Business Consultants We see the pain IT Consultants We know the challenges Data Culture Disrupters Data Wranglers Who are you? 1
2 Agenda Our time today Data Analytics Continuum A History Lesson What s happening today in analytics? Data Storytelling and Data Culture From Poor to Healthy Data Culture Focus on customer studies: Healthcare Supply Chain Finance Personal/Individual Strategy A History Lesson What should? What could? Descriptive Diagnostic Prescriptive Predictive Why? What? Descriptive Analytics Centralized Cloud options Data and on Reporting demand Historical Only Mass Distribution Limited Alignment 2
3 Diagnostic Analytics Centralized Cloud options Data and on Reporting demand Cubes, Drill Down Limited Experts One Reduced Version cost of and the complexity Truth Predictive Analytics Cloud options Forecasting on demand Statistics Driven Data Mining Identify Reduced Outliers cost Patterns Prescriptive Analytics Data-Driven Automated Cloud options Data Integration demand Machine Learning Prescribe Actions 3
4 The opportunity is bigger than you may think $1.6T data dividend available to businesses that embrace data over the next four years How? Diverse data New analytics More people speed Data source: Microsoft and IDC, April 2014 Analytics Market Trends Cloud Data monetization / Product $22.8b by 2020 Traditional BI Spending Declining Modern BI/Analytics Platform Emerging Complex data and data prep Streaming/ real-time data
5 Data Storytelling Data Narrative Know your objective Know your audience Highlight key findings Eliminate fluff Not all graphs alike Simplify Visuals 15 Data Storytelling Know your objective Know your audience Highlight key findings Eliminate fluff Not all graphs alike Simplify 16 Data Storytelling Know your objective Know your audience Highlight key findings Eliminate fluff Not all graphs alike Simplify 17 5
6 What is Data Culture? Data Culture A set of core beliefs and principles that determine how data will be incorporated into key business processes. The degree to which factual information is relied upon for decisionmaking determines the healthiness and maturity of an organization s data culture. 1 Poor Data Culture Assumption-driven decision-making Siloed reporting systems IT holds keys to sophisticated analytics Enterprise Data Warehouse with little self-service access Unreliable and inaccurate figures 1 Changing your data culture Perception Business- Owned IT Insights 20 6
7 Functional Analytics At Work Commitment Teams Cloud Data Quality Data-driven decision-making Focus on innovation with data Leverage cloud for scalability and flexibility Data veracity requires data quality commitment New Data Sources Incorporate all data possible (external and internal) Prototype Short, targeted prototype projects Education Educate organization on analytics 21 Customer Examples Healthcare Sepsis Epidemic $24b Annual spend 75% Up to $88k Per Case Longer patient stay 23 Customer Examples Healthcare Solution Early detection Use data to provide additional predictors of sepsis Arrival data Historic hospital data External data Notify delivery team at point-of-care for at-risk patients Return on Investment? Costs lowered to $3,000 per case Early detection significantly reduces risk of fatality 24 7
8 Customer Examples Healthcare Survival Rate By Hour Undiagnosed 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Customer Examples Supply Chain Demand Planning Lost revenue due to insufficient supply Supplier Performance On-Time Delivery 26 Customer Examples Supply Chain Product Optimization Customer/Geography Planning Optimized Supplier Sourcing Cost-Reducing Logistics Planning Profit-driven inventory 27 8
9 Customer Examples Supply Chain 28 Customer Examples Finance Capital Strategy Customer Segments Streamline Processes Stock Price 29 Customer Examples Finance Manage Risk Identify and limit high risk markets, customers Leverage data in acquisition scenarios Collection strategy for high-risk customers Streamline Processes Reduce cost, increase revenue Use data to identify inefficiencies Model approaches to optimize processes Capital Strategy Data-driven manufacturing Tie capital to KPI/objectives Stock Price Monitor historical/future events Manage key accounts that could affect stock price Customer Segments Optimize target marget acquisition Model-driven customer segmentation Identify new segments 30 9
10 Decentralizing Analytics The team of the future Citizen Data Scientists Data Science Director/Manager Data Storytellers Analytics Consultant 32 Citizen Data Scientist 10
11 Citizen Data Scientist A person who creates or generates models that use advanced diagnostic analytics or predictive and prescriptive capabilities, but whose primary job function is outside the field of statistics and analytics. Gartner Individual/Personal Strategy Identify data opportunities (monetization, productize) Promote culture of Citizen Data Scientist with peers Engage business Learn about data quality Master the art of data storytelling Learn UX principles Learn business MBA, books, videos Learn data science (school, online video) Analytics A New Role Citizen Data Scientist (aka Data Wrangler ) Speaks business and IT Rapid solutions Growing in data science Adheres to standards Support data quality initiatives Trains/mentors others Promotes culture of Data Democratization 36 11
12 Creating a Data-Driven Decision-Making Culture Ken Raetz Principal Think Data Insights, LLC 12
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