1. Winning with Analytics: Embedding Analytics
in Organizational Decision Making
Aniket Mitra

2. Strategy: A Byproduct of Competition
Threat of
New Entrants
Bargaining Bargaining
Rivalry among
Power of Power of
Existing
Suppliers Buyers
Competitors
Threat of
Substitute
Products or
Services
The Five Forces That Shape Industry Competition (Michael E. Porter, HBR Jan’08)

3. Strategy: A Byproduct of Competition
Threat of A Strategic
New Entrants Choice: The
Design of Your
Organization
Bargaining Bargaining
Rivalry among
Power of Power of
Existing
Suppliers Buyers
Competitors
Threat of
Substitute
Products or
Services
The Five Forces That Shape Industry Competition (Michael E. Porter, HBR Jan’08)

4. What is Your Organization’s Structure?
Vertical Organization: Horizontal Organization:
Designed for Efficiency Designed for Learning
Functional with
Functional cross-functional Divisional Matrix Horizontal Modular
Structure teams, integrators Structure Structure Structure Structure
Horizontal:
• Shared Tasks, Empowerment
• Relaxed Hierarchy , Few Rules
• Horizontal communication , face-to-face
Dominant • Many teams ,task forces and Decentralized
Structural Vertical:
decision making
• Specialized Tasks
Approach • Strict Hierarchy, Many Rules
• Vertical Communication and Reporting
Systems
• Few Teams ,Task Forces, or integrators
•Centralized decision making
Source: Organization Theory and Design by Richard L Daft

5. What is Your Organization’s Structure?
Organizational
Horizontal Organization:
Vertical Organization:
Decision Designed for Learning
Making:
Designed for Efficiency
A function of
Functional with
Your
Functional cross-functional Divisional Matrix Horizontal Modular
Structure teams, integrators Structure Structure Structure Structure
Organization’s
Structure
Horizontal:
• Shared Tasks, Empowerment
• Relaxed Hierarchy , Few Rules
• Horizontal communication , face-to-face
Dominant • Many teams ,task forces and Decentralized
Structural Vertical:
decision making
• Specialized Tasks
Approach • Strict Hierarchy, Many Rules
• Vertical Communication and Reporting
Systems
• Few Teams ,Task Forces, or integrators
•Centralized decision making
Source: Organization Theory and Design by Richard L Daft

6. Organizational Decision Making
Implement Monitor Uncertainty
Chosen Decision
Alternative Environ
ment
Choose Define
Best 8 1 Decision
Coalition Formation
Search
Alternative 7 2 Problem
Evaluate 6 3 Specify
5 4
Conflict
Alternatives Decision
Objectives Satisficing
Develop
Alternative Diagnose
Solutions Problem
The Carnegie Model
The Rational Approach
Solutions
Participants Problems
Decision Making Process of
Middle Management
Solutions
Solutions
Participants Decision Making Process of Decision Making Process of
Participants
Department A Department B
Problems
The Garbage- Can Model Problems
Source: Organization Theory and Design by Richard L Daft

7. Organizational Decision Making
Implement Monitor Uncertainty
Chosen Decision
Alternative Environ
ment
Choose Define
Best 8 1 Decision
Coalition Formation
Search
Alternative 7 2 Problem
6 Projection
3
Evaluate Specify Cognitive
Conflict
Alternatives 5 4 and ego-
Decision dissonance
defensiveness
Objectives Satisficing
Develop
Alternative Diagnose
Solutions Problem Organizational
Escalation of Manager’s The Carnegie Model
commitment Cognitive Decision
The Rational Approach Structure Making
Frequency and Solutions
Illusion of
representativeness Control
Participants Problems
Decision Making Process of
Middle Management
Solutions
Solutions
Participants Decision Making Process of Decision Making Process of
Participants
Department A Department B
Problems The Garbage- Can Model
Problems
Source: Organization Theory and Design by Richard L Daft

8. Organizational Decision Making
Use of Analytics
reduces the
Implement Monitor Uncertainty
Chosen
Alternative
Decision
Environ
Manager’s
Choose
8 1
ment
Define Cognitive Bias and Coalition Formation
Best Decision Search
Alternative 7 2 Problem enables better
Projection
Evaluate
Alternatives
6
5 4
3 Specify
and ego-
Decision
Decision Making
Cognitive
Conflict
dissonance
defensiveness
Objectives Satisficing
Develop
Alternative Diagnose
Solutions Problem Organizational
Escalation of Manager’s The Carnegie Model
commitment Cognitive Decision
The Rational Approach Structure Making
Frequency and Solutions
Illusion of
representativeness Control
Participants Problems
Decision Making Process of
Middle Management
Solutions
Solutions
Participants Decision Making Process of Decision Making Process of
Participants
Department A Department B
Problems The Garbage- Can Model
Problems
Source: Organization Theory and Design by Richard L Daft

9. Decision Making and Business Analytics-
HBR Survey Results
Decision Making Processes Data in Decision Making
No Visibility 9%
Managers rely on gut feel 37%
Inconsistent Decision Making 14%
Standardization in Functional Areas 22%
No Transparency 43%
Some Standardization 19%
Informal & Corp wide 8% Peers are Data Driven 70%
Formal & Corp wide 27%
What Impacts Decision How is Analytics Used?
Making?
No idea 5%
Internal data
77% Not used 5%
(customers,financial,production)
External Isolated use 15%
58%
Data(suppliers,competitors,econ…
Used in specific functions 28%
Management Judgment 84% Used in various BUs' 36%
Integrated in the organization 11%
Source: Judgement Calls,Analytics,Decision Making and Teams that Do it Right

10. Decision Making and Business Analytics-
HBR Survey Results
How does your use of analytics
compare? Application of Analytics
Don’t know 4% Analytics Centre of Excellence 30%
Well behind 8%
Somewhat behind 22%
Senior management mandate 39%
About the same 32%
Somewhat ahead 26% Embedded in decision making
Well ahead 8% 39%
process
Reliance on data analysts to Impact of Analytics
derive insights
Finding new ways to approach… 43%
Improved Financial Perf 52%
Increased Productivity 53%
1 46%
Program improvements 54%
Faster decision making 55%
Reduced Risks 55%
Cost Reduction 60%
Source: Judgement Calls,Analytics,Decision Making and Teams that Do it Right

11. Key-Ideas
• Decision making has become much more de-centralized (Flatter
organization, more boundary spanning roles, tactical decision making as
important as strategic decision making)
• The key to getting analytics adopted: Backward integration of business
problem to data
• The biggest challenge for adopting analytics: CHANGE
MANAGEMENT!! . To garner support for analytics , start small and build
momentum
• Getting analytics to all parts of the organization requires “embedding it”
• The marketing paradigm is changing. As this occurs, marketing is
becoming more measurable. Similarly, there is a great need to measure the
“fair value of services”
• Analytics can be broadly classified as : Performance analytics, Real-time
analytics, Predictive analytics. As analytics evolves, predictive analytics
is becoming more common

12. Challenges
• Seamless transformation of Data => Information => Knowledge
• In B2B models who bears the ownership of investment in analytics?
• The value chain of talent: B-schools train grads to be generalists and
integrator of functions while schools of exact sciences train grads on
specificity
• Need for healthy Skepticism instead of Cynicism
• Analytics in the boardroom

13. Thank You!!