Managing demand for Smarter Analytics

Transcription

1 Managing demand for Smarter Analytics Kieran Earnshaw Associate Partner Business Analytics and Optimisation A/NZ May 2012

2 Table of Contents The analytics advantage in today s marketplace Analytics narrative is setting a new expectation within business Business priorities and implications How IT must transform to manage business expectation

3 MIT Sloan Management Review and IBM partnered to explore how organisations operationalise analytics IBM Institute for Business Value and MIT Sloan Management Review partnership Second year of knowledge partnership Surveyed 4,500 executives, managers and analysts Respondents represent more than 30 industries in more than 120 countries Interviews with executives from leading analytic organisations Interviews with IBM and MIT thought leaders Analysis by IBM and MIT SMR team

4 Through segmentation, we examined how analytics can create a performance and competitive advantage

5 The ability to create competitive advantage using analytics surged dramatically in 12 months

6 Early adopters outpaced rivals in gaining competitive advantage by expanding their use of analytics

7 Transformed organisations master three competencies for sustainable competitive advantage Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright Massachusetts Institute of Technology 2011.

8 Table of Contents The analytics advantage in today s marketplace Analytics narrative is setting a new expectation within business Business priorities and implications How IT must transform to manage business expectation

9 Analytics narrative is creating a strong expectation within lines of business The Economist The Data Deluge, Feb McKinsey Global Institute Big Data: The next frontier for innovation, competition and productivity in the age of big data. information is transforming traditional businesses business decisions will increasingly be made on the basis of computer algorithms our research suggests we are on the cusp of a tremendous wave of innovation the means to extract insight from data are markedly improved big data is now relevant for leaders across every sector

10 Analytics transformation narrative is generating increased business demand We need a big data strategy Can I implement an appliance, load my data and run analytics to provide new insights Why can t I have all my data in-memory and ask any question? How do I leverage Big Data to improve business outcomes? We need an information management strategy Why can t my IT function provide the right information / right place / right time? I cannot believe how much is costs to get a single view of customer!

11 Avoiding the trough of disillusionment

12 Table of Contents The analytics advantage in today s marketplace Analytics narrative is setting high levels of expectation within business Business priorities and implications How IT can transform to manage business expectation

13 Managing business demand and market expectation is becoming a big challenge for CIO s Grow, retain and satisfy customers Increase operational efficiency Transform financial processes Manage risk, fraud and regulatory compliance Churn management Segmentation & Direct Marketing Propensity to buy / Next Best Action Channel optimisation Customer on-boarding Claims optimisation Rolling plan, forecast and budgeting Financial close process automation Real-time corporate dashboards Corporate governance Liquidity analysis Credit Risk / Anti-Money Laundering

14 Organisations lacking IM maturity and an agreed IM agenda will fail to leverage the opportunity Forecasting, Budgeting & Planning Liquidity Analysis Anti-money Laundering Customer Segmentation & Applications

15 Table of Contents The analytics advantage in today s marketplace Analytics narrative is setting high levels of expectation within business Business priorities and implications How IT can transform to manage business expectation

16 Assess business demand and priorities Collate the business priorities Identify the analytic / information based business initiatives Grow and retain customers Transform the customer online channels Transform financial processes Manage risk, fraud & regulatory compliance Customer segmentation and campaign management Call-centre customer routing & next best offer Liquidity Management Group business initiatives into analytics / information based projects Data foot-print / overlap of each initiative Operational system scope Rate the complexity of the data requirements

17 Determine strategy and gain consensus and funding Define the implementation options Assess implications of each option Present the business case An enterprise data foundation Line-of-business specific information foundation An ad-hoc approach Organisational readiness Ability to meet business budget and time constraints Ability to govern information Technical delivery time line and cost implications Alignment to corporate strategy Ability to deliver immediate and strategic requirements Project roadmap Cost and funding scenarios

18 The core components for an Enterprise or LoB approach and expertise, methodology and operating model Steering Group The Delivery Engine Data Governance Project Delivery Business / IT Architecture & Accelerators Enterprise / LoB Business Case & Roadmap

19 Summary Analytics is driving competitive advantage The analytics narrative is generating expectation that needs to be harnessed Business demand for Smarter Analytic solutions is growing Organisations implementing an agreed IM agenda will be best placed to achieve competitive advantage through a Smarter Analytics approach

20