Analytics: A Blueprint for Value - Executive Overview
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Analytics: A Blueprint for Value - Executive Overview

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This 2013 IBM Institute for Business Value study surveyed 900 business and IT executives from 70 countries, asking more than 50 questions. The questions were designed to reveal how to translate ...

This 2013 IBM Institute for Business Value study surveyed 900 business and IT executives from 70 countries, asking more than 50 questions. The questions were designed to reveal how to translate high-level concepts associated with delivering exceptional business value through analytics into actions that can truly deliver value. Read or download this executive summary, which includes links to the full study and an exclusive podcast with one of the lead researchers.

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    Analytics: A Blueprint for Value - Executive Overview Analytics: A Blueprint for Value - Executive Overview Presentation Transcript

    • IBM Institute for Business Value October 29, 2013 Analytics: A blueprint for value Converting big data and analytics insights into results ©2013 IBM Corporation
    • Table of contents Table of contents 1 2 Recommendations: Creating an analytic blueprint 4 | Key findings: Nine levers to value creation 3 2 About the research Getting started: Accelerating value from analytic investments ©2013 IBM Corporation
    • Table of contents Table of contents 1 2 Recommendations: Creating an analytic blueprint 4 | Key findings: Nine levers to value creation 3 3 About the research Getting started: Accelerating value from analytic investments ©2013 IBM Corporation
    • About the research Understanding how to create value from data has been the focus of IBM’s analytics studies for 5 years Analytics: The new path to value Analytics: The widening divide Analytics: The real world use of big data 2009 2010 2011 2012 2013 Defining analytics as a strategic asset Operationalizing analytics in sophisticated organizations Mastering analytic competencies Fundamentals of big data Extracting value from data and analytics The intelligent enterprise and Breaking away with BAO 4 | ©2013 IBM Corporation Analytics: A blueprint for value
    • Key findings: Leaders To identify best practices, we examined the actions taken by those creating the most value from analytics Leaders create value as they: Identifying Leaders  Act strategically and tactically on data  Improves business performance with analytics  Create a competitive advantage from insights  Realize a return on investment within a year Demographics of Leaders   Represent 19 percent of total valid respondents Evenly divided between North America, Asia Pacific, Latin America and Europe/Middle East/ Africa Most have more than 10,000 employees Majority are mature companies that have been in business more than 25 years   Leaders were defined based on their self-reported performance within their industry and market. n=830 Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 5 | ©2013 IBM Corporation
    • Table of contents Table of contents 1 2 Recommendations: Creating an analytic blueprint 4 | Key findings: Nine levers to value creation 3 6 About the research Getting started: Accelerating value from analytic investments ©2013 IBM Corporation
    • Key findings: Value creation levers We identified three levels of influence on value creation among the most differentiating analytic capabilities 1 2 3 Establishes the foundation for using big data and analytics to differentiate performance Enable Basis for big data and analytics Drive Needed to realize value Amplify Boosts value creation The absence of these levers inhibit the organization’s ability to create value Focus on these levers will boost an organization’s ability to create value from data analytics Type of influence each lever has on value creation. Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 7 | ©2013 IBM Corporation
    • Key findings: Value creation levers Understanding how levers influence value is key to realizing value from analytics investments Enable Basis for big data and analytics Source of Value Measurement Platform Actions and decisions that generate value Evaluating impact on business outcomes Integrated capabilities delivered by hardware and software Culture Data Trust Availability and use of data and analytics Data management practices Organizational confidence Sponsorship Funding Expertise Executive support and involvement Financial rigor in analytics funding process Development and access to skills and capabilities Drive Needed to realize value Amplify Boosts value creation Analytic levers – or sets of capabilities – defined and aligned by the influence they exert on value creation. Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 8 | ©2013 IBM Corporation
    • Key findings: Enable levers Big data and analytics is enabled by a clear understanding of value creation and a strong platform Enable Basis for big data and analytics Key findings Source of Value Measurement Platform Ensure alignment between analytic focus and value creation Measure impact and model the future Integrate hardware and software to manage big data Leaders …  Use predictive analytics  Analyze a variety of data  Implement hardware capable of handling big data  Analyze streaming data Leaders …  Align investments to value outcomes  Focus on revenue opportunities  Accelerate the speed of analytics  Generate innovative ideas Leaders …  Define success metrics in advance  Model future outcomes  Anticipate future events and outcomes  Measure actual results Culture Data Trust Sponsorship Funding Expertise Drive Amplify Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 9 | ©2013 IBM Corporation
    • Key findings: Drive levers Leaders remove doubt and create an environment where data is a priority Source of Value Measurement Platform Culture Data Trust Make decisions based on facts Enable Create confidence with governance and security Create trustworthy relationships Drive Needed to realize value Key findings Leaders …  Ensure data and analytics needed to make decisions are available  Distribute data and analytics to those who need it  Make majority of decisions based on facts Amplify Sponsorship Leaders …  Trust in the data and analytics available  Adopt rigid privacy and security standards  Implement a strong governance infrastructure Funding Leaders …  Believe others will do a competent job  Establish a high degree of trust  Rely on business and data analysts Expertise Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 10 | ©2013 IBM Corporation
    • Key findings: Amplify levers A common vision, pooled funding and expertise amplify the ability to generate value from data and analytics Enable Source of Value Measurement Platform Drive Culture Data Trust Sponsorship Funding Expertise Establish a common vision to guide actions and deliver value Create value with rigor and collaboration Increase knowledge-sharing opportunities Amplify Boosts value creation Key findings Leaders …  Advocate for the use of data and analytics  Collaborate to define a business-driven enterprise strategy  Implement enterprise standards, metrics and methodologies Leaders …  Implement a metricsbased funding process  Require quantifiable business case  Pool funding for roadmap and resources Leaders …  Share analytics subject matter experts  Co-locate business analytics talent  Increase knowledge sharing  Formalize a career path for analytics talent Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 11 | ©2013 IBM Corporation
    • Table of contents Table of contents 1 2 Recommendations: Creating an analytic blueprint 4 | Key findings: Nine levers to value creation 3 12 About the research Getting started: Accelerating value from analytic investments ©2013 IBM Corporation
    • Recommendations These levers create an analytics blueprint that defines the business-driven requirements within a familiar framework Enable Drive Amplify Source of Value Measurement Platform Culture Data Trust Sponsorship Funding Expertise Strategy Technology Organization Sponsorship Expertise Culture Source of Value Data Measurement Funding Platform Trust Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 13 | ©2013 IBM Corporation
    • Recommendations Organizations can develop a business-driven blueprint by following three key sets of recommendations Strategy Technology Organization Accelerate analytics with a results based program Instill a sense of purpose. Establish a business-driven agenda for analytics that enables executive ownership, aligns to enterprise strategy and business goals, and defines new business capabilities. Enrich the core analytics platform and capabilities Architect for the future. Enable the agenda with shared analytical expertise, new technologies, and a simplified and flexible platform. Drive change with analytics as a core competency Enable the organization to act. Create a data driven culture built on relationships to generate business value. Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 14 | ©2013 IBM Corporation
    • Recommendations Analytics need executive ownership, business goals alignment and prioritized funding Strategy Sponsorship Source of Value Funding Accelerate analytics with a results based program Instill a sense of purpose • Establish the strategic intent of data and analytics investments • Use measureable business outcomes to transition from executive strategy to line-of-business actions • Convey an enterprise-wide sense of ownership through communication and endorsement • Explore the growth opportunities that abound in the still-emerging digital marketplace • Focus on opportunities for operational innovation • Determine the business capabilities needed to create value • Invest the time to develop value-based business cases • Allocate funding to maximize growth and efficiency • Prioritize funding based on alignment to business outcomes Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 15 | ©2013 IBM Corporation
    • Recommendations Analytics need shared analytical expertise, new technologies, and a simplified and flexible platform Technology Expertise Data Platform Enrich the core analytics platform and capabilities Architect for the future • Supplement business knowledge with analytics knowledge • Establish a formal career path for analytics professionals • Use partners to supplement skills gaps • Govern data with rigor • Improve data quality, accessibility and availability • Capture a variety of big data sources • Simplify and modernize existing platform • Increase reusability in application development and maintenance • Pilot new technologies that enable business capabilities Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 16 | ©2013 IBM Corporation
    • Recommendations Analytics needs a data-driven culture built on relationships and evaluated on outcomes Organization Culture Measurement Trust Drive change with analytics as a core competency Enable the organization to act • Streamline the data cycle to deliver more timely and relevant insights • Automate key portions of the analytics cycle • Actively endorse the power and benefits of data • Create a feedback loop based on the outcomes • Identify and define the specific key performance indicators (KPIs) • Evaluate the investments' impact to value creation • Recognize trust is a key ingredients to value creation through analytics • Invest time to create trustworthy relationships • Transform roles to share responsibilities and outcomes Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 17 | ©2013 IBM Corporation
    • Table of contents Table of contents 1 2 Recommendations: Creating an analytic blueprint 4 | Key findings: Nine levers to value creation 3 18 About the research Getting started: Accelerating value from analytic investments ©2013 IBM Corporation
    • Call to action Developing an analytics blueprint is the first step to converting data and analytic insights into results Strategy Technology Organization Instill a sense of purpose  Is there a common agenda for analytics among leaders?  Are your investments aligned to value delivery?  Does the funding structure support cross-silo initiatives? Architect for the future  Are data and analytics skills nurtured within your organization?  Are data management practices strong enough to instill confidence?  Is the analytic infrastructure architected for today’s challenges? Enable the organization to act  Are data and analytics part of your decision making processes?  Can your define the impact from analytics investments?  Is the level of trust sufficient to rely on others for data and analytics? Source: Analytics: A blueprint for value – Converting big data and analytics into results, IBM Institute for Business Value © 2013 IBM 19 | ©2013 IBM Corporation
    • Download the complete study, and continue the conversation with us on Twitter ibm.co/9levers Join the social conversation using #ibmanalytics and #ibmibv and follow @IBMIBV @IBMbigdata and @IBManalytics Get the IBM Institute for Business Value app from your tablet’s app store to keep up-todate with the latest studies Listen to a podcast about this study with one of the lead researchers 20 | ©2013 IBM Corporation