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Using Analytics to Create Your Own Upturn
 

Using Analytics to Create Your Own Upturn

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Slides from the Dublin Chamber Business Briefing, kindly sponsored by Accenture

Slides from the Dublin Chamber Business Briefing, kindly sponsored by Accenture

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    Using Analytics to Create Your Own Upturn Using Analytics to Create Your Own Upturn Presentation Transcript

    • Dublin Chamber of Commerce; Using Analytics to Create your own Upturn Paul Pierotti 22 March 2011Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
    • Analytics – A Definition “The intelligent use of information to improve investment decisions, operational performance and customer outcomes”Copyright © 2011 Accenture All Rights Reserved. Copyright © 2009 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 2
    • Questions?• We have a broad and deep understanding of our customer base today and what we want it to be tomorrow• This is communicated consistently across our organisation…• …and drives our customer experience / decisionsCopyright © 2011 Accenture All Rights Reserved. Copyright © 2009 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 3
    • Analytics Function Questions?• Our Analytics function is a good place for Career Progression• Our Analytics function has an appropriate scale• I would be happy for our Analytics function to present to our Board• Analytics is embedded in our business processes• We make the necessary investment in Analytics• There is a clear governance structure for managing our Analytics• I would be confident that business users of Analytics have an appropriate understanding of how it worksCopyright © 2011 Accenture All Rights Reserved. Copyright © 2009 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 4
    • Accenture’s Dublin Analytic Innovation Centre Dublin Analytics Lab Pillar 1 Pillar 2 Pillar 3 Client Services Innovation Engine Client Showcase Asset Development Managed Project Service Delivery Market Asset Capability Development Experience Data & BI Services Analytical Data, Model, Live-Service Services Method & Tool Experience Research Bureau Services Skills Development Client Insight Experience Key services to the R & D capability Client market place / driving new market demonstration and clients assets / offerings interaction suiteCopyright © 2010 Accenture All Rights Reserved. Copyright © 2009 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 5
    • Business and Technology changes offer new opportunitiesto innovate through AnalyticsWhat has Changed? So What? Now What?Business Context• Global multi-speed recovery• New waves of growth Innovation Opportunity• Greater volatility 1. Measure what matters, while what• Different questions matters is changing 2. Next Practice not Best Practice 3. Innovate through Decision Process ReengineeringTechnology and Data Context• Technology mega-trends• Data driven innovationsCopyright © 2011 Accenture All Rights Reserved. 6
    • Business and Technology changes offer new opportunitiesto innovate through AnalyticsWhat has Changed? So What? Now What?Business Context• Global multi-speed recovery• New waves of growth Innovation Opportunity• Greater volatility 1. Measure what matters, while what• Different questions matters is changing 2. Next Practice not Best Practice 3. Innovate through Decision Process ReengineeringTechnology and Data Context• Technology mega-trends• Data driven innovationsCopyright © 2011 Accenture All Rights Reserved. 7
    • Business ContextOrganisations are asking different questions What are the key drivers How do we become more agile to of value and risk now? sense and exploit opportunities? How should we be using scenario How to we organise planning to inform our analytics portfolio value resources to options? optimally serve the business? We have access to more data than ever but lack How do I structure and actionable align accountability and insight? decision rights optimally across the organisation? What are the right external How to leverage non triggers to dynamically re- traditional sources of allocate resources? data to innovate to solve problems differently?Copyright © 2011 Accenture All Rights Reserved. 8
    • Business ContextWith greater volatility and complexity there is a need toimprove to compete Analytics Definition Changing the Questions Analytical Competitor Optimisation “What’s the best that can happen?” Now What? Predictive Modeling “What will happen next?” Predictive Analytics Competitive Advantage Forecasting/extrapolation “What if these trends continue?” So What? Statistical analysis “Why is this happening?” Alerts “What actions are needed?” Query/drill down “What exactly is the problem?” Descriptive What? Ad hoc reports “How many, how often, where?” Analytics Standard Reports “What happened?” Sophistication of IntelligenceSource: Competing on Analytics: The New Science of Winning (Davenport / Harris)Copyright © 2011 Accenture All Rights Reserved. 9
    • Technology and Data ContextThe Data Explosion offers challenges and opportunitiesData Volume Growth . . . . . . and its Changing Nature • 80% of business is conducted on unstructured information - Gartner • 85% of all data stored is held in an unstructured format - Butler Group • Unstructured data doubles every three months - Gartner Group • 54% of knowledge workers lose productivity from inadequate information access – Economist Intelligence Unit• 15 billion intelligent, connected • Despite all the money spent on devices by the year 2015 decision support systems, 40% of• In 2013, the Internet will be nearly major business decisions are not four times larger than it is in 2009 - based not on data and facts, but on Cisco “gut instinct” – Accenture ResearchCopyright © 2011 Accenture All Rights Reserved. 10
    • Technology and Data ContextStarting from the types of data available can yieldinteresting innovation opportunitiesWhat would you do if you could…• Read what people are writing?• Hear what people are saying?• Monitor activities on media?• See things from the sky (geospatial data)?• Determine where people are (location services)?• Monitor movement (people, vehicles)?• Understand feelings/sentiment (customer, employee)?Copyright © 2011 Accenture All Rights Reserved. Copyright © 2009 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 11
    • Technology and Data ContextThere are also key technology megatrends to consider Trend Implications to ConsiderData Explosion • Information overload tends to impede decision making • Signal vs. noise • Rapidly changing data ecosystem => a data intelligence capability • Real time data tied to physical location => speed and complexity of customerMobility interaction • Integration with key business processes incorporating workflow and collaboration to enable right-time resource allocation decisionsCloud • Virtual access and processing of data at lower cost => more fully exploit available data • Use and lose (more data than storage capacity) – data and analytics appliances • Ability to influence the individual real-time during the decision making processDigital • Rise of sentiment and social network related data will change the way consumer info is obtained and used • Increase in unstructured data (voice, video, geo spatial) is changing the wayEmerging companies will need to capture, process and exploit informationTechnologies • Improvements in User Interfaces will fundamentally transform the interaction with dataCopyright © 2011 Accenture All Rights Reserved. 12
    • High performers are investing in analytic capabilities to create their own upturn Accenture research has compared companies across industries and found that companies that have invested in advanced analytics capabilities significantly outperform the market. Analytical Capability is an integrated framework employing people, process, and technology to utilise actionable insights to drive different performance outcomes. Market Performance Research Findings 2002 – 2009250% Analytical Shakers* Companies that invest heavily S&P 500 Index in advanced analytical220% capabilities outperform the190% S&P 500 on average by 64%160%130% Companies that invest heavily100% in developing analytical skills and adopting an analytical70% mindset recover quicker from economic downturns. Source: Accenture research40% 2002 2003 2004 2005 2006 2007 2008 2009 Copyright © 2011 Accenture All Rights Reserved. 13
    • Business and Technology changes are opening up newopportunities for innovating around analytic capabilitiesWhat has Changed? So What? Now What?Business ContextGlobal multi-speed recoveryNew waves of growthGreater volatility Innovation OpportunityDifferent questions 1. Measure what matters, while what matters is changing 2. Next Practice not Best Practice 3. Innovate through Decision Process ReengineeringTechnology and Data ContextTechnology mega-trendsData driven innovationsCopyright © 2011 Accenture All Rights Reserved. 14
    • Innovation OpportunityMeasure what matters when what matters is changing “Not everything that can be counted counts, and not everything that counts can be counted” - Albert Einstein. . . More things can be counted than ever before but are we measuring whatmatters when what matters is changing?Copyright © 2010 Accenture All Rights Reserved. 15
    • Innovation Opportunity Next Practice not Best Practice Case Common Practice 0 1 2 3 4 5 Next Practice Example Voluminous; inaccurate, Role-based, relevant, actionable X X X X X inconsistent XData X Managed in Silos Enterprise asset One size internally focused Flexible with external influence Limited external content X XX Exploring, sensing, & exploiting X XX XMethods Short term focus to Management process & forums management processes X X X for strategic & tactical decisions XX XX Primarily functionally focused Closed loop, multi-functional, XX X performance driven XX X X Historic perspective to X XX X X Dynamic resource allocation XX forecasting Holistic, integrated flexible Functionally silo’d applications X X X X XX X analytic ecosystemTech Build, Test, Deploy, Own Spawn, Use, Benefit, Lose Tool & capability managed Business outcome managed Project based analytics in Cross functional analyticOrganisation X X X X People & functional pockets XX X services portfolio Speed to actionable insight Reactive analytic events X XX X XX X (“burden of proof”) Deep & specialised skills Basic & variable skills X X X XX XX optimally sourced & structured Dedicated resources focused onLeadership &Governance Stand alone analytic X XX XX XX high value analytics capabilities Simple, ad-hoc analysis Scenario planning as a dynamic X X X XX XX capability “Analysis paralysis” Integrated capabilities managed X X X X XX X as an enterprise asset Copyright2011 Accenture All Rights Reserved. Copyright © X = Assessment from interviews © 2009 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 16
    • Innovation OpportunityInnovate through Decision Process ReengineeringDefinition of Decision Process Reengineering Weekly Monthly Quarterly“... the fundamental rethinking and radical Forecast Business Health redesign of cognitive processes in Adjustment Review Check organisations, that result in the selection of a course of action, to allocate resources or to 1 choose to do nothing, to achieve dramatic Performance Questions on Insight improvements in business performance” Monitoring Key Metrics Generation Marketing Supply HR Manufact- Finance1. Strategy1 Chain uring• Focus on the key questions to manage business performance Analytics COE2. Process2 Core Analytics• Embedded analytical processes to generate Functional Analytics and validate key insights Cross Functional Analytics3. Execution3• Determine interventions to execute and Technology Enablers resources to allocate Statistical BI and Root Cause Models4. Value Realisation4 Packaged Analysis Tools Optimisation Workbench• Measures the quality of the decision and Tools the root cause of a course correction 4 3 2 Value Insight Execution Realisation ValidationCopyright © 2011 Accenture All Rights Reserved. 17
    • Leaders need to set an exampleCopyright © 2011 Accenture All Rights Reserved. 18
    • In conclusion… "Anything invented after youre thirty-five is against the natural order of things" Douglas Adams www.thewildernessdowntown.comCopyright © 2011 Accenture All Rights Reserved. 19
    • QuestionsCopyright © 2011 Accenture All Rights Reserved. 20
    • Contact Paul Pierotti paul.pierotti@accenture.com 086 809 4075Copyright © 2011 Accenture All Rights Reserved. 21