How Leaders use Data Visualization and Predictive Analytics to Make Better Business Decisions. Top 4 BI Trends 7/30/2014

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1 How Leaders use Data Visualization and Predictive Analytics to Make Better Business Decisions august 12, hashtag: #asae14 #data Top 4 BI Trends Data Visualization Data Discovery Predictive Analytics Big Data

2 The Data Pyramid According to Harvard Business Review, top performing organizations are 5x more likely to use data to make decisions Instinct X Data Thinking is slow. Seeing is FAST. Pattern Recognition Cerebral Cortex Thinking Visual Cortex Seeing

3 Pattern Recognition Pattern Recognition Stephen Few Pattern Recognition Gender in Architecture NCARB By The Numbers NCARB 2014

4 Gender in Architecture data magic value NCARB By The Numbers NCARB 2014 process excellence formula input + process = outcome don t measure initiatives measure their outcomes Gates Foundation Goal: Reduce the deaths from Malaria in Africa Annual Report to Donors Dollars spent per year in Vaccine programs Number of Vaccines applied

5 If a metric does not encourage a change in behavior, it s a bad metric Outcomes explain the past lagging indicators Actionable

6 Find correlation of indicators Determine causation Find leading indicators Predict the future Customer Acquisition Churn (Net Adds) Customer Calls - Complaints Using your data in new ways Look at what you know Look at what you wish you knew See if you already know what you wish you knew Pattern Recognition: Think Outside the Association

7 Patterns in Your Report Data Increasing percentage of new members are students 52% in % in % in 2013 New ESA members Member Students Student Trans Early Professional Individualized Reporting 2012 Jane Smith Student member Looking for changes and trends in broad areas by focusing on what each person does. Requires more manipulation and analysis of data 2013 (still a student)? 2013 (student trans.)? 2013 (Early professional)? 2013 (Presidents Circle)? 2013 (Drop membership)? 2013 (regular mem.)? Outstanding Population Detail Membership Science ANT982 ANT123 ANT204 Births (B) new students Deaths (D) non renewals Immigration (I) new non-student members Emigration (E) members don t renew Insect Stage Membership Stage Egg Students (SM) Larva Student Transition (ST) Pupa Early Professional members (EP) Adult Full Members (M)

8 New members Members in an Ecology Model Rate Mbrship Totals Rate Resigned members 3,750 Predicting Membership (M only) Historical Data Predictive Data 3,700 3,650 Rate 3,600 Members transition to other categories 3,550 3, Analytics are required to succeed Biggest Barriers to Data Analytics? What happened? Why? What will happen? Can I make it happen? Don t know where the data is Don t trust the data (data quality issues) Don t know how to get started Lack of data governance (who is responsible) Don t understand analytics/lack of tools & training Perception that it is expensive and difficult Leadership has not made it a priority

9 Understand our members The Steps to Analytics: It s a Business Initiative! 1. Scope: the Importance of Questions 1. Scope Determine the Business Drivers Ask the Right Questions 2. Collect 360 View: CRM/AMS, Accounting, Google Analytics All of your data! 3. Clean Identify & Correct Duplicate and Missing Data 4. Analyze Data Visualizations, Predictive Analytics, Data Mining 5. Communicate Training, Evaluation, Communication of Results The quality of your answers depends on the quality of your questions.

10 Business Questions The Cost of the Current Situation Do our members use data to make decisions? What is important to our member s customers? What is the profile of our ideal member? How does our data map to our strategic plan? Who are our at-risk members? How do we measure member engagement? How do we price our services and products? Establish a Common Language 2. Collect your Data What is a new member?

11 Data Mart Overview 3. Clean your Data Data Mart 4. Visualize your Data 5. Communicate and Train You can have brilliant ideas, but if you can t get them across, your ideas won t get you anywhere. Lee Iacocca

12 At Risk Dashboard How much does a BI Project Cost? Estimate minimum 1% of annual operating budget $10 million operating budget = $100k for BI year one Ongoing: 25% of year one costs The Steps Best Practices Recognize there is a cost of not using data Business Intelligence is a journey Start small use a phased approach Value the learning and the teamwork Encourage experimentation & discovery

13 Debbie King CEO DSK Solutions Guillermo Ortiz de Zarate Director, IS NCARB Contact us Chris Stelzig Director of Certification Entomological Society of America