Becoming Data Driven 101: Planning for Success
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1 Becoming Data Driven 101: Planning for Success Tom Davenport, Babson College Bill Franks, Teradata August 5, 2015 SPONSORED BY
2 Featured Speakers Tom Davenport is the President s Distinguished Professor of IT and Management at Babson College. He is also the co-founder of the International Institute for Analytics, a Fellow of the MIT Center for Digital Business, and a Senior Advisor to Deloitte Analytics. He teaches analytics and big data in executive programs at Babson, Harvard Business School, MIT Sloan School, and Boston University. His most recent book is Big Work. Bill Franks is the Chief Analytics Officer for Teradata and author of the books Taming The Big Data Tidal Wave and The Analytics Revolution. Franks is a faculty member of the International Institute for Analytics, and an active speaker who has presented at dozens of events in recent years. His blog, Analytics Matters, addresses the transformation required to make analytics a core component of business decisions. 2
3 3 What does it mean to be data driven?
4 Varieties of Data Driven Data-driven organizations Data-driven supply chain Data-driven culture Data-driven executives Data-driven strategy Data-driven programming Data-driven marketing Data-driven decision making Data-driven design The Data-driven life Data-driven industries 4
5 What Does it Mean to Be a Data-Driven Organization? Data and analytics drive most aspects of the company! Most decisions and actions based on data and analytics Business processes digitized and create data as they operate Data is consistent throughout organization and of high quality Data heavily used in operations and in customer offerings Data-driven organizations don t have perfect data But it s governed well, and is good enough for widespread use 5
6 6 Can you share some of the benefits of being a data-driven organization?
7 Benefits of Being Data Driven Customer Insight Gathering and analyzing data from all customer transactions Demographics What you buy What you look at online Examples of data-driven customer insights A billion dollar loyalty database at Caesars Data-driven customer relationships at RBC 7
8 Benefits of Being Data Driven Operational Efficiency Using data and analytics to deliver dramatic improvements in operational performance Supply chain Manufacturing Service and sales processes Examples of data-driven operational efficiency New metrics and optimized manufacturing operations at McCain Foods Using sensors in POS devices at NCR to identify likely failures before they happen Shorter waits, less blood use at Cleveland Clinic Data-driven operations at Uber, AirbNb 8
9 Benefits of Being Data Driven Better Financial Management Optimize use of financial resources and understand what drives performance Risk analysis Testing capital investments Predictive performance management Examples of data-driven financial management Real-time, one-version-of-the-truth financial decisions at Boeing Assessing service-based profitability at TD Bank Usage-based insurance 9
10 Benefits of Being Data Driven Creation of New Products and Services Offering products and services based on data and analytics Online companies Traditional industrial firms New business units Examples of data-driven products and services Precision agriculture services at Monsanto Predictive maintenance services at GE Aircraft and Energy People You May Know and others at LinkedIn New business units at JPMC, Barclays 10
11 What are the key choices an organization needs to make when becoming data driven? Can you provide some real-world examples? 11
12 Key Choices in Being Data Driven Internal or Offense or Infrastructure Transactional Descriptive Human or external defense? or business or behavioral analytics or automated focus? applications? data? predictive and decisions? prescriptive? 12
13 13 Can you explain the various levels of data-driven organizations?
14 Three Stages of Data-Driven Organizations Organizations progress through defined stages of being data driven Doesn t work to strive for the highest stages without achieving the lowest But useful to know the purpose of completing the initial stages Not just for their own sake Data-Driven Strategy and Competition Data products and services Operational and pervasive data-driven decisions Management of structured and unstructured data Enterprise focus on data and analytics Data-Driven Competencies Advanced analytics usage Evidence-based culture Big data exploration and pilots Executive engagement in data initiatives Foundation Transaction systems Data warehouse Structured data reporting Basic governance 14
15 Foundation Stage Good transaction systems to provide data ERP, CRM for example A place to store the data for analysis typically a warehouse or mart Some ability to do descriptive analytics on the data Reports, scorecards/dashboards, queries A governance structure for key data For integration, common data Foundation Transaction systems Data warehouse Structured data reporting Basic governance 15
16 Data-Driven Competencies Stage Widespread use of predictive and prescriptive analytics A culture that emphasizes analytical decisions Some exploration and analysis of unstructured big data Clickstream, social media, text Executives on board Aware of the potential, engaged in the execution Data-Driven Competencies Advanced analytics usage Evidence-based culture Big data exploration and pilots Executive engagement in data initiatives Foundation Transaction systems Data warehouse Structured data reporting Basic governance 16
17 Data-Driven Strategy and Competition Stage Some development of data and analytics-based products and services for customers Analytics and automation embedded within systems and processes Widespread use and integration of both structured and unstructured data Experiments with Hadoop, data discovery, and data lakes Enterprise roles and responsibilities for data and analytics CDO, CAO Data-Driven Strategy and Competition Data products and services Operational and pervasive data-driven decisions Management of structured and unstructured data Enterprise focus on data and analytics Data-Driven Competencies Advanced analytics usage Evidence-based culture Big data exploration and pilots Executive engagement in data initiatives Foundation Transaction systems Data warehouse Structured data reporting Basic governance 17
18 Data-Driven Strategy and Competition Who Does It? Financial Services Firms Wells Fargo Capital One Citi JPMC RBC Toronto Dominion Online Businesses Data driven from birth Google ebay LinkedIn Facebook Retailers Walmart Target Williams-Sonoma Macy s Tesco Flowers.com 18
19 Questions & Answers {and don t forget to download the complimentary white paper} 19
20 SPONSORED BY 20
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