Key strategies for business analytics success.

1. © 2017 IBM Corporation
Introduction to Analytics Center of Excellence
Key Strategies for Business Analytics Success
JULIE A. SEVERANCE
Global Strategy & Initiatives Leader
IBM Data & Analytics Strategy & Initiatives

2. © 2017 IBM Corporation2
 The Opportunities and the Challenges
 The 5 Keys to Business Analytics Success
 The Path Forward
Topics

3. © 2017 IBM Corporation3
There is an opportunity for CEO’s today to sharpen their
organization’s digital strategy
of CEOs are actively
pursuing opportunities to play a new or different
role in their ecosystems
Torchbearer CEOs
are more involved in
adopting new
revenue models
Most Torchbearer
CEOs want to be
market pioneers
CEOs see rapid digitization of business and are
worried about outsiders invading their space
Source: IBM Institute for Business Value Global C-Suite Study https://www-935.ibm.com/services/c-suite/study/

4. © 2017 IBM Corporation4
Torchbearer CEOs are committed to using advanced analytics
capabilities to engage customers more powerfully
64%
50%
Customer feedback
66%
50%
Predictive analytics
more
28%
more
32%
Exploring new trends
Market Follower CEOsTorchbearer CEOs
Source: IBM Institute for Business Value Global C-Suite Study https://www-935.ibm.com/services/c-suite/study/

5. © 2017 IBM Corporation5
Use of cognitive technologies in particular is set to increase
dramatically over the coming years
“The importance of cognitive computing
is that it not only gets at the way people think, but
also how they are feeling.
It is a combination of the emotional
and the rational.”
Ken Chenault, Chairman and CEO, American Express, United States
CEOs who believe cognitive computing
will revolutionize business in 3 to 5 years
CEOs who currently use cognitive computing
to identify and explore new trends
227%
The transformational impact of cognitive computing
more
11%
36%
Source: IBM Institute for Business Value Global C-Suite Study https://www-935.ibm.com/services/c-suite/study/

6. © 2017 IBM Corporation6 #ibmwow ibm.com/wow
Still organizational obstacles, not data or financial concerns, are
the top challenges and concerns for moving forward
Skills, lack of data governance, and internal organizational resistance are
the top three challenges perceived by the organizations
Source: IBM Institute for Business Value Cognitive Computing Survey (Q24) 2015 Cross- Industry data

7. © 2017 IBM Corporation7
Top challenges that many organizations face….
Silos
people, data,
knowledge, projects
Rising
Demand
Cultural
Change Lack of Executive sponsorship,
alignment
Lack of skills, adoption, agile
self-service
Rapidly changing
environment
Data
volume, quality, access,
definitions

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…with various causes for silos
 Plan vs. Actual Silos
• D/W not integrated with planning data?
• Different points of ownership
• BUT essential for optimizing performance
Sales
Marketing
Finance
Spreadsheets
Personal DBs
D/W Planning
Scorecard
 Personal Silos
• Need for speed & flexibility
• Adjust & link numbers
• Performance issues? Lack of training? IT bottleneck?
 Functional & Divisional Silos
• Organically grown
• Departmental solutions
• Mergers & acquisitions

9. © 2017 IBM Corporation9
...and a growing set of analytics capabilities & technology
REPORT MODEL PREDICTCOLLABORATEPLANANALYZE
Forecast Visualize Decide Govern
Discover Score SurveyMine Simulate
Desktop Mobile Office SaaS Real-time
Data Warehouse Content Management Stream ComputingHadoop System
Infrastructure: Systems, Storage, and Cloud
Information Integration

10. © 2017 IBM Corporation10
Topics
 The Opportunities and the Challenges
 The 5 Keys to Business Analytics Success
 The Path Forward

11. © 2017 IBM Corporation11
 Analytics Strategy that aligns with business priorities across the enterprise
 Proven Value driving a culture of analytics-based decision making
 Skilled People adopting analytics to gain better business insight
 Shared Processes that balance agility, efficiency, scalability, and compliance
 Common Technology with capabilities that are easy, fast, and trusted
Address challenges and accelerate the journey with a well
defined strategy

12. © 2017 IBM Corporation12
First, measure your organizations Analytics Quotient

13. © 2017 IBM Corporation13
ALIGNED
Collaboration across business
objectives
High
FOCUSED
Clear understanding of
what’s important
PREDICTIVE
Able to anticipate, look forward
and set expectations
AWARE
Alert, observant, informed
and perceptive
AGILE
Highly responsive to
changing priorities
Characteristics of a High AQ Organization

14. © 2017 IBM Corporation14
STEP 1:
Novice
STEP 2:
Builder
STEP 4:
Master
STEP 3:
Leader
Manual, slow, error prone,
cumbersome, fragmented
Data quality concerns
Automated, instant, accurate,
seamless, converged
Data governance is in place
n = 5748 Organizations
IBM Study of AQ respondents
Where are most on their AQ Journey?
5%
65%
9%
21%

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97%
56%
6%
0%
of Masters
of Leaders
of Builders
of Novices
…. Percent of High AQ Organizations that have
an Analytics Center of Excellence ‘ACE’
AQ journey and it’s link to Centers of Excellence

16. © 2017 IBM Corporation16
Second, develop an ‘ACE’ strategy based on a Vision & Principles
ACE
Capabilities provided by common technology
Alignment of analytics across the enterprise
Excellence realizing & growing value with data analytics
Enabled with skills to gain insight
Communities of shared expertise, organized for success
Empowered with self-service
Agility for a rapidly changing environment
Culture of data analytics based decision making
Adoption of analytics by all types of users

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Aligning across the enterprise with Analytics Capabilities
How are we doing? Why? What should we do?

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Journey to Analytics Culture & Maturity
Novice
•Inflexible
•Spreadsheets
•Extracts
•Manual Intervention
•Static Reports
•No governance
Builder
•Departmental
•Task automation
•Silo KPIs, metrics
•Some standards
•Some self-service
•Emerging CoEs
•Minimal governance
Leader
•Cross-functional
•Applied and predictive
analytics
•Aligned data, KPIs,
metrics
•Trusted information
•Common processes
•Full self-service
•Aligned CoEs
•Formalized leadership
Master
•Enterprise aligned
•Enabling data analytics
strategy through
execution
•Highly collaborative
•Data Analytics-driven
culture
•Strong data analytics
program & governance
•360 degree insights
•C-Level Leadership
(CDO/CAO appointed)

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MasteringLeadingBuilding
Strategy Roadmaps to Analytics Culture & Maturity
Maturity varies across functions
depending on need

20. © 2017 IBM Corporation20
Value Lifecycle Drives Strategy to Execution
ACE
Value
Lifecycle
Define Value
Explore Vision, Plan Strategy
Implement Value
Analytics roadmap
Realize & Grow Value
Deliver & Deploy Solutions
Shared practices & methods
Operate, Optimize, Adopt, Extend
Capabilities, Skills, Shared services

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Review business
plans & strategy
Understand industry
dynamics
Understand evolving
technology
Identify potential
opportunities
Explore Analytics Vision
Plan Analytics Strategy
Assess analytics
aligned to business
strategy
Assess people,
process &
organization impact
Assess technology
impact
Define strategic plan
(high level business
case)
Defining Analytics Vision & Strategy
+ +
+ +
=
=
Define Value Analytics roadmap

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Aligning Business priorities with Data requirements
Performance
Decision Areas
Data
Information
Performance Drivers & KPIs – Which drivers of value are most
important? How would you measure performance of those
drivers?
Decision Areas - What decisions impact those drivers? What
analysis would provide the best insights for this decision?
Information Supply Chain – What information is needed for
effective analysis in those decision areas?
Data Sources – What data is relevant? What is available? What is
the quality? What is missing?

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Strategic &
Financial Goals
Cross-functional view of
"Decision Areas"
with enterprise metrics
Information
Supply Chain
An Enterprise Framework for Business Alignment
Sample of DecisionSpeed ® Framework from BI International

24. © 2017 IBM Corporation24
Priorities based on Value – Efficiency & Effectiveness
Heat map of Value
Performance drivers
Decision Areas
Direct Impact Indirect Impact
Technology foundation
efficiency & capability
Business Efficiency & Effectiveness
High
High
Low
Low

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Analytics Roadmap
• Business-led priorities with highest value and quick-wins
• Assessed via "Alignment Framework“ (business, IT, data)
• Repeatable process that grows analytics maturity
Prioritized analytics roadmap
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15
Infrastructure
Data Analysis & Data Modeling
Data Mart Design & Construction
Skills
Staffing & Training
Business Analytics Initiatives
Function Decision Area Priority
02. Marketing 02.04. Pricing 1
01. Finance 01.02. Driver Variance 1
01. Finance 01.01. Income Statement 2
06. Operations 06.01. Purchasing and Procurement 3
06. Operations 06.03. Inventory Management 3
01. Finance 01.03. Operational Plan Variance 4
06. Operations 06.02. Production and Capacity 4
02. Marketing 02.05. Demand Generation Strat
03. Sales 03.01. Sales Results Strat
Program for Business Analytics
ACTIVITIES TIME PEROIDS
Evaluation

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People – Communities of Users
Casual Business Users
Executives, Managers, Individual Contributors
Business “Power Users”
In each functional area:
Analysts, Information Workers, Fin/Ops Planners,
etc.
Center(s) of Excellence (CoEs)
IT, Finance, Corporate, Advanced Analytics…
Architects, Modelers, Data Scientists, Project Managers,
Developers, Trainers, etc.
Finance
Sales
Marketing
IT
Human
Resources
Operations
R & D
Customer
Service

27. © 2017 IBM Corporation27
Common ACE Formations – Organizing People for Success
CIO
Portfolio
CRMSCM
CoEApps
COO
CoE
ServiceMarketingSales
Sales
FP&A
Finance Marketing
Ops Ops
CoE
Corporate CoE
Division CDivision BDivision A
CoE shared service in IT
CoE shared service in Business
Virtual CoE Formation by Function
Federated CoE Formation
CoE CoE CoE

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Agile Processes that drive Analytics Adoption

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Analytics
Capabilities
Information
Foundation
Self-Service
User Experience
REPORT MODEL PREDICTCOLLABORATEPLANANALYZE
Forecast Visualize Decide Govern
Discover Score SurveyMine Simulate
Desktop Mobile Office SaaS Real-time
Data Warehouse Content Management Stream ComputingHadoop System
Infrastructure: Systems, Storage, and Cloud
Information Integration
Technology Foundation for Capabilities, Operation, & Integration
 User experience designed for ease-of-use and effective self-service
 Integrated analytics & information foundation, extensible for innovation
 Architected for agility, efficiency, speed, scalability, availability, security
 Capabilities aligned with analytics strategy & roadmap
Easy
Fast
Trusted

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Analytics Leadership
 Analytics Culture
 Alignment
 Communication
 Stewardship
 Governance
o Priorities
o Standards
o Accountability
Emergence of Chief Data / Analytics Officer
Finance
R & D
Operations
HR
IT
Customer
Service
Marketing
Sales

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Business: Agility, Effectiveness, Efficiency
 Better alignment with business strategy
 Greater agility responding to changing business environment
 More business ownership, enabled with deeper analytics skills
 Improved confidence in data and analytics capabilities
IT: Efficiency, Value delivered, Trust foundation
 IT investments delivering business value with business buy-in
 Improved responsiveness to business, reduced IT backlog
 Improved trust in the data, compliance, audit, governance, mitigate risks
 Standardization, improved productivity, lower TCO
ACE Benefits

32. © 2017 IBM Corporation32
Case Study - IBM Blue Insight Delivers 5yr 25M$ Savings
People - 30% Technology – 50% Common Processes – 20%
 Hardware reduction
̶ Systems are right sized to maximize
utilization
 SW license reduction
̶ Share all SW environments reduces
costs of underutilized licenses
 Reduced facilities expenses
̶ Electric, real estate, network, heating/
cooling
 Reduce SW licensing due to tooling
standardization
̶ Reduce purchases and SW
maintenance costs
 Reduction in non value add operations of
silo’d systems
̶ Installations, updates, operations
monitoring
 Elimination of silo’d tool evaluations
 Reduced solution design using analytics
service as a component architecture
service
 Common tooling skills provides common
practitioner “language” and workforce
flexibility
 Improved analyst efficiency due to reuse of
models and reports
 Common boarding process
̶ Reduces adopter time to board and
create value
 Common lifecycle processes
̶ Common communications, code
promotions and upgrades, etc.
 Common consulting practice Solution and
architecture assessments to assist in
service integration
 Standardized problem reporting, root cause
analysis and help desk
Soft savings
10’s of $M already
 What business value has been produced
using our services
 Channel segmentation of sales
opportunities
 - WW Cash management
 - Commodity purchase
optimization
 - Etc.
 Cost take out
̶ Hardware
̶ Software
̶ Operations costs
̶ Help desk
̶ Maintenance
̶ Monitoring
 Reduced operations personnel
 Reduced 3rd party licensing
 Cost avoidance
 Each new project solution
requiring analytics is saving
~ 250K in HW, SW and Ops
savings
 Establishment of a WW Analytics strategy
 Reduced technical and
business team solution churn
 Improved resource flexibility
Value Generation
100’s of $M already
Hard savings
$25M over 5 years

33. © 2017 IBM Corporation33
 The Opportunities and the Challenges
 The 5 Keys to Business Analytics Success
 The Path Forward
Topics

34. © 2017 IBM Corporation34
What is your current maturity? Where do you need to be?
• Have an analytics vision across the
enterprise?
• Communicating 'art-of-the-possible"
with analytics?
• Analytics aligned with business
strategy?
• Using analytics to drive x-functional
alignment & execution?
• Have an analytics roadmap?
• Measuring business & IT value for
analytics?
• Organized effectively for success with
analytics?
• Building and growing analytical skills?
• Driving more self-service and user
adoption in the business?
• Effective governance for analytics
program?
• Sharing and managing analytics
proven practices?
• Standardized analytics methods and
processes?
• Strong partnership between IT & the
business?
• Have shared analytics services?
• Fast, scalable, reliable, secure
environment?
• Responsive to rapidly changing
requirements?
• Technology roadmap of analytics
capabilities needed?
• Technology & deployment options
considered (big data, mobile, cloud)?
• Driving higher IT efficiency & ROI for
analytics?
Novice Builder Leader Master
Gaps?

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Graduated Approach to Analytics Culture & Maturity
Novice
• Inflexible
• Spreadsheets
• Extracts
• Manual Intervention
• Static Reports
• No governance
Builder
• Departmental
• Task automation
• Silo KPIs, metrics
• Some standards
• Some self-service
• Emerging CoEs
• Minimal governance
Leader
• Cross-functional
• Applied analytics
• Aligned data, KPIs, metrics
• Trusted information
• Common processes
• Full self-service
• Aligned CoEs
• Formalized leadership
Master
•Data Analytics culture
•Data Analytics-enabled
strategy
•Enterprise aligned
•Highly collaborative
•360 degree insights
•C-level leadership –
CDO/CAO Appointed
Prove
Scale
Align

36. © 2017 IBM Corporation36
ACE Processes – PROVE
Demonstrate value to begin building the foundation for analytics excellence
Gaining broader support and interest
in the value of analytics
Providing the user community with
value-added development services of
information assets
Providing a technology foundation that
is cost-effective, responsive, scalable &
extensible

37. © 2017 IBM Corporation37
ACE Processes – SCALE
Scale & expand analytics with guidance, education & shared practices
Providing users with advice
and guidance to foster self-
sufficiency
Enabling people with
skills for self-service
Providing expertise to
answer questions &
resolve problems
Sharing practices,
methods, & standards for
efficiency and agility

38. © 2017 IBM Corporation38
ACE Processes – ALIGN
Align analytics across the enterprise with cross-functional governance and
stewardship
Aligning with business for
analytics priorities & roadmap
Aligning with data
governance for trusted
information
Aligning with IT governance for
compliance & lower risk

39. © 2017 IBM Corporation39
Acknowledge the need, urgency, willingness for change
(executive sponsorship)
Interlock Business & IT, Build a guiding team
Develop a Strategic plan through Organizational Readiness
Think strategically,
but act tactically in steps that add immediate value
Measure success & recognize value of improvement
Proven Practices to get started…

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…with ACE Elements developed over time…
Organization
Organizational formation
Leadership & Governance
Operational processes
Data & analytics stewards
Communication programs
Analytics Shared Services
Administration, On-boarding, Operational Support
Data Integration, architecture, MDM
Shared Infrastructure / Private Cloud / SaaS / Mobile
Strategy
Vision evangelism
Maturity assessments
Alignment Framework
Business case (Value)
Roadmap process
Program charter
Skills Development
Training programs & curriculum
Self-paced courses & libraries
Certifications of expertise
Strategy
Value
People
Process
Technology
Practices, Standards & Methods
Best practices & assets validation
Standards & methods repository
Data definition glossary
Services Portfolio
Advisory services
Community development services
Project Management services
User Help Desk support

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…driven by an ACE Charter
ACE Program Priorities
Go Forward Plan
Analytics Program Mission
Program Value, Benefits, Outcomes
Program Scope
Organization Model
Operational Framework
Governance Process
Analytics Roadmap process
Roles & Responsibilities
Measures of Success
Investment & Funding Model
Communication Program

42. © 2017 IBM Corporation42
Thank you
• 5 Keys to Business Analytics Success Book: Proven practice strategy
• The Performance Manager Book: Book for performance mapping best practices
• IBM Analytics Quotient Slides/ Workbook: Quiz/strategy mapping exercise
• IBM Analytics ACE Service Offerings: Consulting service offerings
Resources to help you get started…

43. © 2017 IBM Corporation43
Thank you