Analytics and the Federal Government: From Memos to Mandates
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Analytics and the Federal Government: From Memos to Mandates

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This deck was presented at an internal event with federal analytics leaders. It covers the following topics:...

This deck was presented at an internal event with federal analytics leaders. It covers the following topics:

A brief history of analytics in government
Urgent federal performance mandates
Analytics drivers in federal government
Study on data analytics in federal agencies
Deloitte case studies
About Deloitte Analytics and the Deloitte Analytics Institute

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  • No not at all. In fact the first known mention of “business intelligence” is neither from a Gartner analyst in the 1980s nor a 1950s IBM research paper as most contend, but from a book published in 1865. In this book, the authors describe a how a financier by the name of Sir Henry Furnese provided “business intelligence” to the government, King Charles that is, in the 1600s. Throughout Europe, Furnese compiled and maintained a meticulous record of battles and conquests and was rewarded handsomely by the king for this “business intelligence.” And just as it does today, the lure of government contracts was overwhelming tempting, leading Furnese ultimately to fabricate intelligence. Over 1500 years earlier the Ostracon found in Elephantine Egypt records a part of Quirinius' census investigating (yes you guessed it) income tax returns. Also during that period in Egypt, “Nilometers” measured the rise of the river, scribe-officials forecasted the size of the harvest, and estimated the government future revenue; they allotted appropriations in advance to governmental departments, supervised industry and trade, and in some measure achieved, almost at the outset of history, a planned economy regulated by the state and based on analytics. But it wasn’t until the 1880s when the US government realized that the 1890 census would take 13 years to complete that manual tabulation had reach its end of days (Florida notwithstanding). Enter inventor Herman Hollerith, who inspired by holes punched in railway tickets devised a way to tabulate information in a machine readable form. As a result the 1890 census was completed months ahead of schedule and under budget. Hollerith’s company merged with others to form the Computing Tabulating Recording Corporation…which you know better today as International Business Machines. Of course mechanical tabulation evolved into electronic tabulation then computers in the 1950s. And the rest is, well, recent history.So, the notion of business intelligence or analytics isn’t the dominion of the businenss world or even novel to government organizations. Rather its roots are founded in and inspired by government.
  • Today however, the US government has realized that it has allowed itself to become technological laggards compared to private industry, resulting in billions of dollars of waste and fraud, and the incalculable expense of under-performing and inefficient programs.
  • Accompanying the president’s memorandum to the 7000 members of the Senior Executive Service was a 13 page memo from the country’s Chief Performance Officer, outlining the performance strategy.
  • The country’s Chief Performance Officer’s memo detailed six key performance strategies.
  • The country’s Chief Performance Officer’s memo detailed six key performance strategies.
  • As a result, the 2010 Government Performance and Results Modernization Act (GPRMA) bill was introduced and passed last month. All agencies need to be in compliance by Feb 6, 2012. Analytics software is helping federal agencies find errors and flag potential waste, fraud and abuse before payments are made. The opportunity for savings is huge. The Office of Management and Budget estimates agencies lost $98 billion in improper payments in fiscal 2009. "That is such an un- acceptable, high number of improper payments at a time when we have an extremely tight budgetary environment," says OMB Controller Danny Werfel. "We have called on agencies to not only tighten their belts but to use more innovative ways . . . to improve the efficiency of government.“To get ahead of the curve, some agencies are turning to predictive analytics software to sift through reams of data and identify payments that warrant additional scrutiny. The software is being applied to benefits programs, grants and contracting, among other areas."The use of data mining and other business intelligence tools to look across programs and find errors has been powerful . . . and we want to make sure that agencies are investing in those tools and looking for opportunities to leverage them," Werfel says."What agencies are trying to do is create more sophisticated models to identify where potential fraud might be and predict where it might happen before it happens," says Dan Vesset, program vice president for business analytics at market research firm IDC. "It is a hot area."Former CIO @ the EPA, Molly O'Neill says agencies can gain more from predictive analytics than reducing improper payments. The software also can help agencies model scenarios and forecast future needs for funding and resources. "What we really need on the planning side is predictability," she says. "Then we can scale up and scale down based on indicators."
  • As a result, the 2010 Government Performance and Results Modernization Act (GPRMA) bill was introduced and passed last month. All agencies need to be in compliance by Feb 6, 2012. Analytics software is helping federal agencies find errors and flag potential waste, fraud and abuse before payments are made. The opportunity for savings is huge. The Office of Management and Budget estimates agencies lost $98 billion in improper payments in fiscal 2009. "That is such an un- acceptable, high number of improper payments at a time when we have an extremely tight budgetary environment," says OMB Controller Danny Werfel. "We have called on agencies to not only tighten their belts but to use more innovative ways . . . to improve the efficiency of government.“To get ahead of the curve, some agencies are turning to predictive analytics software to sift through reams of data and identify payments that warrant additional scrutiny. The software is being applied to benefits programs, grants and contracting, among other areas."The use of data mining and other business intelligence tools to look across programs and find errors has been powerful . . . and we want to make sure that agencies are investing in those tools and looking for opportunities to leverage them," Werfel says."What agencies are trying to do is create more sophisticated models to identify where potential fraud might be and predict where it might happen before it happens," says Dan Vesset, program vice president for business analytics at market research firm IDC. "It is a hot area."Former CIO @ the EPA, Molly O'Neill says agencies can gain more from predictive analytics than reducing improper payments. The software also can help agencies model scenarios and forecast future needs for funding and resources. "What we really need on the planning side is predictability," she says. "Then we can scale up and scale down based on indicators."
  • Business intelligence software is one of the key technologies in the construction of an electronic government, according to the Gartner. The Gartner places a high value on business intelligence software because many other technologies that are key to e-government fall short in analysis and reporting. Business intelligence can enhance technologies already in use, such as enterprise resource planning, customer relationship management, supply chain management and electronic commerce.Other performance and accountability acts compliance-enabled by analytics: Government Performance and Results Act of 1993 (GPRA), Government Management Reform Act of 1994 (GMRA), Federal Manager’s Financial Integrity Act of 1982 (FMFIA), Federal Financial Management Improvement Act of 1996 
  • Hi, this is Doug Laney in Chicago. I lead eminence and marketing for the Deloitte Analytics Institute and the Deloitte Analytics initiative. By now, most of you have heard or seen a bit about the initiative, but I wanted to take a few moments to provide an overview, discuss what it means to you and how you can get involved, and address any questions. First it’s important to acknowledge that business analytics isn’t a new competency for the firm. In the US alone, about $1B of revenue is attributable to analytics related work. Furthermore we’re recognized in the marketplace, particularly by Gartner, as one of top two leaders in business analytics consulting capability. And by other analyst firms as #1. All of you of course are living and breathing this, and moreover, exemplify it, so it comes as no surprise. However, last year US Consulting decided the time was ripe to make a major push around business analytics, raising our game in terms of offerings, capabilities, selling, recruiting, training, methods, solution development, eminence, marketing, influencer outreach, and alliances. To coordinate and drive this analytics “bold play” the Deloitte Analytics Institute was formed.
  • Very soon thereafter our other services lines recognized the value of enhanced analytics capabilities in improving our ability to deliver financial and tax advisory work and more intelligent and expanded auditing capabilities, along with driving analytics deeply into our cross-functional offerings – leading to the expansion of the analytics “bold play” into a full-blown integrated market offering (or IMO). And more recently our global member firms have invested in the institute to accelerate our efforts and expand our coordinated efforts world wide. In some cases, they will adopt and adapt the content and tools we’re creating, and in other cases our global brethren will participate in their development. The good news is that if we’re successful (and we will be) the opportunities for us all will be tremendous. We’ve already begun to see some of these fruits, and my institute colleague David Steier will share some of these with us in a moment. What this means for us the marketplace is significant. As a coordinated, global, cross-functional analytics entity, we dramatically improve our ability to pursue multi-national clients and deliver pan-global analytic solutions while improving our pursuit and delivery capabilities right here at home as well.
  • As in anything, focus is important. And a focus on what’s important…is even more important. So from a pursuit and delivery standpoint, we’re aligning with key market trends ranging from the technical ones on burgeoning data volumes, velocity and variety, to the ever-present business drivers of growth, profitability, compliance and risk. But more than that we also include some issues on the edge, ones where we can get an edge on some of our stodgier competitors. These include the ability to help our clients recognize and leverage new (and often faint) signals—particularly those coming from outside their organization. And second to drive analytic capabilities deeper into business processes – way beyond your father’s BI tool.
  • When we going to market we’re heeding the advice of the analyst firms and our clients, who have long recognized our advantage is the convergence of our global footprint, wide ranging functional capabilities, and deep industry experience.At our first Deloitte Analytics Symposium held a couple months ago, I had the pleasure of interviewing dozens of our clients to hear them rant about the great work you all have been doing and the reputation this has manifested. I’ll share with you a couple: Gregg Pellett, TD Ameritrade: “Getting smart is half the battle, and implementation is the other half. Having the right ideas but not being able to push them through the organization makes us struggle and fall down….We’ve got a lot, we just need to use it. Deloitte is the guiding force providing the roadmap for where we need to go. Analytics is something that came out of some other work [Deloitte was helping us with].” Mark Ferman, Chesapeake Energy : “Deloitte has that broad spectrum and an independent view. We get info to make decisions on a daily basis and can track profitability to make real time decisions. Everyone has all the data they need, but it’s filtering it and getting it to the right folks that make those decisions is key.” Scott Reidel – AMP Australia: “Deloitte has been agile and flexible in working with a startup company like us, and Deloitte’s analytics practice has that startup mentality too. They’ve helped us gain better insights but also refine our offering over time. Analytics is becoming a large part of many organizations…getting leadership involved is important. It’s not just about the software, you need people and leadership to make it happen. With Deloitte analytics we’re segmenting the market not on 3-4 variables like our competitors, but on 300-400, so we were able to grab parts of the market that were underserviced, where our brand resonated, and where there were good growth opportunities.” –Tonya Cornilieus, ESPN : “Deloitte is smart, aggressive, and knows how to take something complex to a business leader and make it accessible.”
  • To put some structure on and expand our analytics delivery model, we’ve identified four types of engagements – each with a different means to sell them and each with a slightly different mode of client relationship. Putting this continuum to work we believe can also ensure the sustainability of our relationship with clients. In the light blue, you’ll see our large scale engagement in which we drive and staff an end-to-end analytic solution. Leading up to this ideally is an advisory project where we’re perhaps doing some strategy, architecture, situational analysis and/or planning. And following a transformational engagement, ideally we want to be in a position to help sustain the effort in an ongoing manner, including outsourced and managed services. And since third-party data is becoming a big part of today’s analytic ecosystem for most organizations, we’re working to develop pre-defined offerings with data providers to integrated analytic offerings such as scoring or pricing models.
  • Finally, it’s important to understand the analytics continuum as we see it and are expressing it to the market. We’re already providing a host of services to thousands of clients. But many of these services and the solutions they represent can be enhanced with analytics. From a financial audit to an ERP implementation, we need to give our delivery and selling teams the tools to express the value of analytics as an add-on. Then the cycle moves into the information management realm where governance, architecture and data integration are key. Next there’s Performance Optimization, which represents more of the traditional BI style reporting and slicing/dicing capabilities directed at human decision-makers. And finally, we have the Analytic Insights segment which expresses the value of forward-looking analytic capabilities in the form of truly advanced analytic capabilities. But it’s important to recognize that this cycle has no beginning in end. One of our mantras in the institute is “Start where you are.” Particularly in today’s economy we don’t ever want to ask a client to start over or scrap everything they’ve done.
  • Last I wanted to quickly share some of the resources available and ways to get involved with Deloitte Analytics. We of course now have a public presence on Deloitte.com. There is also now an internal site for the Integrated Market Offering which is a great launching pad for you. And there’s the KX site which has detailed information and tools for selling and delivery. For now, there’s also a separate Global Analytics site, but we expect some consolidation over the coming months. There are many ways to get involved ranging from participating in our social media forums on Twitter and LinkedIn. Please do follow our Twitter feed and suggest Tweets to me. And also I encourage you to become active on our Real Analytics group which now has over 1500 members. For those looking for training, in collaboration with Indiana University’s Kelley School of Management, we’ve produced and have started delivering a certificate program in business analytics. And of course, since I lead the eminence function, I’d be remiss if I didn’t encourage you to join our DASB or submit abstracts for articles you’d like to write. Finally, for those looking for part time involvement, there are frequently volunteer opportunities with me and my counterparts leading the institute’s sales, enablement and solutions functions. Well that just about scratches the surface. I’m now happy to take any questions.

Analytics and the Federal Government: From Memos to Mandates Analytics and the Federal Government: From Memos to Mandates Presentation Transcript

  • Analytics and the federalgovernmentFrom memos to mandatesBob DaltonApril 4, 2011
  • Agenda• A brief history of analytics in government• Urgent federal performance mandates• Analytics drivers in federal government• Study on data analytics in federal agencies• Deloitte case studies• About Deloitte Analytics and the Deloitte Analytics Institute• Q&A1 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Business analytics and government: An oxymoron?2 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Fast forward to today―As the most senior managers in the federal government, you know how essentialthe work you and your colleagues do is to the nation. You also are aware whathappens when your best efforts are thwarted by outdated technologies andoutmoded ways of doing business. You understand the consequences ofaccepting billions of dollars in waste as the cost of doing business and allowingobsolete or under-performing programs to continue year after year.‖President Obama in a memorandum to members of the Senior Executive Service,September 14, 20103 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Accountability flowing down hillMEMORANDUM FOR THE SENIOR EXECUTIVE SERVICEFROM: Jeffrey D. Zients, Federal Chief Performance Officer and Deputy Director forManagement, Office of Management and BudgetDATE: September 14, 2010SUBJECT: The Accountable Government Initiative — an Update on Our PerformanceManagement AgendaWe face extraordinary challenges — from growing our economy to transforming our energy supply,improving our children’s education, safeguarding our Nation and restoring its fiscal health. There is adistinct role for government in addressing these challenges, but the American people have doubts aboutthe government’s capacity to do so effectively and efficiently. According to the Pew Research Center,about two-thirds of Americans believe that ―when something is run by government it is usually inefficientand wasteful.‖At the outset of his Administration, the President made it clear that we needed to make government workbetter, faster, and more efficiently; these goals are central to the Accountable Government Initiative. Full memo text: http://www.whitehouse.gov/sites/default/files/omb/memoranda/2010/AccountableGovernmentInitiative_09142010.pdf4 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Accountable government initiative memo keyperformance strategies1. Driving agency top priorities – Agency focus on the implementation and execution required to improve outcomes and deliver results – Clear service standards and defined metrics posted on a ―customer service dashboard‖ – Fostering a culture of performance evaluation – OMB funding of $100M for agencies demonstrating how their FY 2012 priorities are subject to evaluation2. Cutting waste – Ensuring a high return on all spending – Ending ineffective programs3. Reforming contracting – Reduce high-risk contracts (i.e., no-bid, Time and Expenses) – Strategic sourcing – Equipment standardization – Government-wide blanket purchase agreements5 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Accountable government initiative memo keyperformance strategies (cont.)4. Closing the IT gap – Emulate the private sector – Improve poor management of technology investments – Using the ―IT Dashboard‖ to monitor performance of all federal IT projects – Financial system modernization projects – New framework for IT procurement and management – Lightweight solutions, including cloud computing – Data center consolidation – Enhancing cyber security and monitoring5. Promoting accountability and innovation through open government – President’s Memorandum on Transparency and Open Government – Accountability for results by inviting public scrutiny – Publicizing performance data, including agency goals, measures, and spending – Web sites: PaymentAccuracy.gov, Recovery.gov, USASpending.gov, Data.gov6. Attracting and motivating top talent – Updating 60-year-old personnel system to reduce 140-day average hiring process – Engage and retain top talent; leadership training6 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Performance: More than a memo, it’s the law• 2010 Government Performance and Results Modernization Act (GPRMA) – To modernize and refine the requirements of the Government Performance and Results Act of 1993, to require quarterly performance reviews of federal policy and management priorities, to establish Chief Operating Officers, Performance Improvement Officers, and the Performance Improvement Council, and for other purposes.• 1124. Performance Improvement Officers and the Performance Improvement Council – Chief Operating Officer, Performance Improvement Officer – Performance Improvement Council• 306. Agency Strategic Plans – Mission, outcome-oriented goals – Alignment with federal priorities – Resource requirements, processes – Collaboration with other agencies – Evaluation methods – Four-year plan (minimum) – Available on a public Web site7 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Performance: More than a memo, it’s the law (cont.)• 115. federal Government and agency performance plans – Establish balanced set of performance indicators – Results comparisons versus performance goals – Data accuracy and reliability plan – Validate measured values and data sources• 1125. Elimination of unnecessary agency reporting – Analyzed list of all reports – Eliminate duplicative or outdated reports8 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Other federal acts benefitting from analytics Privacy Act Government E-Government Act Federal AgencyFreedom of Performance Data MiningInformation Act and Results Act Reporting Act 1966 1968 1974 1978 1993 2001 2002 2004 2007 2011 Omnibus Crime PATRIOT Act Government Control and Safe Performance Streets Act Foreign Intelligence Intelligence Reform and Results Surveillance Act and Terrorism Modernization Prevention Act Act (GPRMA)9 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Analytics throughout the federal government• Drive performance, productivity, and results• Improve visibility throughout organization• Enhance budget management and cost control• Identify fraud, abuse, and waste• Prioritize programs and initiatives• Manage programs and initiatives• Share information and collaborate among agencies• Enhance services and communication with citizens• Comply with regulatory guidelines and mandates10 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Beyond reporting: From hindsight to insight to foresight• Availability of increased data volume, velocity, and variety – From traffic cameras to e-mails to public data• Demand for sharper insights – E.g., war on terrorism• High performers that outperform peers, even in the public sector, are more likely to value fact-based decision making• Balance security controls and limits with transparency and accountability• Institutionalizing the analytical approach• Redesign interagency processes around a single version of the truth11 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Identifying opportunities for analytics WHO — Stakeholders • Executives, line managers and staff, program office, inspectors, auditors, customer service • Policy makers and information consumers in agencies other than the agency that collected, produced the data • Agency customers and the public, including private business WHAT — Information • Operations and analysis of operational performance • Transactions • Mission data and metrics • Resources • Workforce • Customer service WHY — Objectives • Effective, efficient operations • Quality customer support and service • Oversight, transparency, and accountability • Response to procedural mandates • Safety and security12 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Government business council study: Data analysis inFederal agencies, 2011 Data Importance to Agency Mission Changing Importance of Data (Percentage of respondents, n=317) (Percentage of respondents, n=313) It is becoming significantly 55% more important 3% 14% It is becoming somewhat 26% more important It is not changing 15% 83% It is becoming somewhat less 3% important Very Important Moderately Important Minimally important It is becoming significantly 2% 97 percent say data is less important 81 percent say important to their agency’s data is becoming mission more important13 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Government business council study: Data analysis inFederal agencies, 2011 (cont.) Reasons for Agency Data Collection (Percentage of respondents, n=307) Comply with mandates (e.g., program evaluation) 76% Improve internal processes 71% Strategic analysis 65% Inter/intraagency collaboration 47% External publication — sharing data with the public 43% Other 12% “The data we collect helps us prioritize requirements for both tactical and I dont know 1% strategic mission importance.”14 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Government business council study: Data analysis inFederal agencies, 2011 (cont.) Ratings of Data Quality (Percentage of respondents, n=283) Security 30% 58% 11% 1% “Without reliable data we can’t do our jobs.” Accuracy 14% 55% 26% 5% Usefulness 13% 45% 34% 8% Accessibility 12% 37% 34% 17%“Data is collected but can be hard Timeliness 10% 38% 38% 14% to access.” Consistency 8% 36% 42% 14% Outstanding Good Fair Poor15 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Government business council study: Data analysis inFederal agencies, 2011 (cont.) Use of Collected Data Leveraging of Data (Percentage of respondents, n=303) (Percentage of respondents, n=304) ―The data collected by my agency is consistently leveraged for its full potential.‖ 69% Reactive 64% 44% 84 percent see room for improvement to fully leverage data 45% Predictive 60% 23% 7% 16% 17% Data not used 7% “We use projections 10% to help manage risk I don’t know 3% in programs, operation Strongly agree Somewhat Somewhat Strongly agree Disagree Diasagree s, and financials.”16 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Government business council study: Data analysis inFederal agencies, 2011 (cont.) Agency-wide Impediments to Enhancing Data Analysis (Percentage of respondents, n=289) Limited staffing/time 60% Difficulty in consolidating data 57% Lack of in-house skills 45% Cultural resistance to change 43% Processes to manage and use data 41% “Data is scattered across Insufficient system resources 41% multiple sources and is poorly organized so we are Lack of stakeholder involvement 32% not able to find best sources of indeed data.” Not a leadership priority 30% Other 7% None of the above 2%17 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Government business council study: Data analysis inFederal agencies, 2011 (cont.) Important of Improving Data Analysis Capabilities (Percentage of respondents, n=290) 9% 25% 91 people say improving data 66% analysis is important Very Important Moderately Important Minimally important18 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Case studies
  • U.S. Deloitte Analytics strategy The vision Leverage the power of our unmatched global industry and domain knowledge to establish Deloitte as the leading provider of client solutions powered by analytics The mission We will build a $2B business by 2014 and inspire our people and clients by focusing on analytic insights, performance optimization, and information management. We will know if we have succeeded when we: • Seize the competitive market and differentiate Deloitte in the view of clients and analysts • Develop Deloitte Analytics opportunities, solutions, skills, and ability of our people to sell and deliver • Drive substantial value for clients • Grow revenue and profitability The Deloitte Analytics Institute The strategy Empowering Growing our Build capability Accelerating 1 Creating and Driving market partners to sell business analytics Deloitte Analytics Institute 2 capacity to deliver 3 Establish solutions that matter 4 scaling eminence globally Build capability awareness via thought leadership 5 innovation and commercialization Sales Enablement Solutions Eminence Innovation20 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • One U.S. DA Program executed by DAI Define ―DA‖The DAI executes the initiatives of our U.S. Consulting Bold Play and DeloitteAnalytics Integrated Market Offering (IMO) in alignment with our Global DeloitteAnalytics program U.S. Deloitte Analytics Institute (DAI) Global Deloitte Analytics Consulting Bold Play Deloitte Analytics IMO • Primary Objective: • Primary Objective: • Primary Objective: • Accelerate growth of global • Accelerate growth of the U.S. • Respond to real client demand analytics. Provide the framework Consulting Analytics practice in the U.S. by taking to market for analytics so member firms • Focus is on: cross-functional high-value have ―freedom within a frame‖ – Empowering partners to sell solutions in priority industries • Focus is on: analytics • Focus is on: – Single, global point of view – Growing our capacity to deliver – Tailored solutions that meet – Clear, consistent messaging – Creating and scaling solutions client demand – Global framework across – Driving marketplace eminence – Integrated solutions/leveraging analytics value chain – Accelerating innovation the Organization – Tools/approaches – Building capabilities – Connecting experts – Differentiating Deloitte – Facilitating knowledge sharing – Unique value proposition21 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • What is driving business analytics?Five big trends are driving the adoption of new approaches to business analytics. Takentogether they underscore an unforgiving demand for improved performance — and a wake-up call for more disciplined risk management. Data Volumes and Technology Capacity — Global data volumes continue to grow exponentially. Luckily today’s analytical computing capacity and analytical tools can meet the challenge. Regulations — Regulators are demanding deeper insight into risk, exposure, and public responsiveness from financial, health care, and many other sectors requiring integrated data across the enterprise. Profitable Growth — The need to remain competitive compels investments in analytics infrastructure and tools to improve insight into financial, economic, environmental, and market information. The goal? More informed and responsive decisions. New Signals — Holistic signal detection from traditional internal and external structured and unstructured data plus voice, e-mails, social networks, sensor-enabled facilities, products, instruments must be integrated and monitored for real-time operational insight and decision making. Hidden Insight — The growing complexity of global business has raised the stakes at all levels of decision making. Facing more information than humans can possibly process, decision makers need more powerful tools for uncovering hidden patterns that may go undetected.22 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Deloitte Analytics: Our key differentiatorOur unique structure and approach to serving clients enables us to merge our leadingindustry, business, and technical expertise across a breadth of services, including strategyand operations, technology, human capital, risk, and financial advisory services • More than 3,400 Analytics Resources, including –2,400 in Americas Global footprint –710 in EMEA and ability to –350 in APAC execute Broad• Public Sector Deep sector • Technology functional• Life Sciences and Health care knowledge capabilities • Strategy and Ops• Financial Services • Financial Advisory• Consumer Bus and • Human Capital (including Transportation actuarial and insurance• Manufacturing services)• Technology, Media, and • Risk Telecomm• Energy and Resources23 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Deloitte Analytics: Our delivery model Advisory Transformation Managed Subscription Analytics Analytics Analytics AnalyticsWhat is it? Use of analytics Design and implement Outsource analytics Subscription-based to support business enterprise solutions services and platform analytics w/analytical operations and strategy scoring and resultsProject size $1M to $4M $4M to $50M Highly variable based on Highly variable based on scope and duration scope and durationExample • Analytics strategy • Supply chain analytics • Physician targeting • Incentive compofferings and • Pricing and profitability • Customer analytics • Life science managed • Physician targetingsolutions • Customer analytics • Product life cycle market analytics • Benchmarking • FCPA analytics analytics • Safety analytics • Underwriting/claims • Benchmarking analytics • Workforce analytics • Clinical development • Risk/Fraud • Performance • Finance analytics optimizer • Litigation spend Management strategy • Tax analytics • Recurring underwriting • Pricing and claims modelingWorld-class World-class advisory and technology capabilities:capabilities • Global analytics capability, including more than 3,400 • Leader in management consulting people • Leader in business consulting • Global analytics practice more than $1B with ~25% • Leader in pricing growth in 2010 • Leader in CRM • Double-digit growth in global technology business in a • Leader in risk down economy • Leader in forensic and dispute24 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Deloitte Analytics: Our vision The process of delivering analytics business results is one of continuous improvement. Starting anywhere in the analytics cycle, an organization can immediately begin to address its specific needs25 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • Deloitte Analytics resources and participation Learn about Deloitte Analytics Get Involved with Deloitte Analytics • Deloitte Analytics on Deloitte.com • Social Media • Deloitte Analytics IMO on Deloittenet – LinkedIn (Real Analytics group) • Deloitte Analytics Institute on KX – Twitter (@DeloitteBA) – Overview/Leadership – Real Analytic Insights site (TBD) – Pursuit COE/Sales material – Certificate program in BA – Indiana/Kelley School certificate program in BA – Share advanced analytics or other reusable BA solutions – Eminence/publications – Arrange to publish articles and/or join the Deloitte – Deloitte Analytics Symposium proceedings Analytics Speakers Bureau • Global Deloitte Analytics Site – Volunteer opportunities with the DAI (deloitteanalytics@deloitte.com)26 Analytics and the Federal Government — From memos to mandates Copyright © 2011 Deloitte Development LLC. All rights reserved.
  • About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its networkof member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detaileddescription of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please seewww.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain servicesmay not be available to attest clients under the rules and regulations of public accounting.Copyright © 2011 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited