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2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013
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2013 12-05 data-driven innovation - fitzgerald analytics workshop at gilbane 2013

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Great Ideas Need the Right Metrics to Flourish; Building the Analytics You Need to Monetize Your Innovation …

Great Ideas Need the Right Metrics to Flourish; Building the Analytics You Need to Monetize Your Innovation
Thursday, December, 5: 1:00 p.m. - 4:00 p.m.
In the digital era, great ideas, innovations, and business models need to be implemented well, turned into profitable operations that scale well and adapt to new information as they grow. This isn't easy, but it is often the difference between great ideas that succeed and those that fail.

For digital innovators, Analytics and data-driven decision-making have become key determinants of success. "If you can measure it, you can manage it." The right metrics often make the difference between monetizing innovation and under-performance.

Yet identifying these "metrics that matter" isn't easy—the right metrics vary widely based on your business model—nor is it easy to build the required capabilities and collecting the necessary data. Fortunately there is a way to make it easier, and this presentation will share a better way to tackle the challenge.

In this workshop, author and analytics veteran Jaime Fitzgerald will share his battle-tested method that addresses this challenge. During two decades working with data, Mr. Fitzgerald created a new method that makes it easier to define the metrics you really need to monetize your innovative ideas, business models, and initiatives. In addition to defining the "metrics that matter," Mr. Fitzgerald's methodology defines the analytic methods and data sources you need to generate these key performance indicators, and how they will be used to enhance key business decisions, essential processes, and business model evolution.

Presenter: Konrad Kopczynski, Director, Fitzgerald Analytics

Author:
Jaime Fitzgerald, Founder & Managing Partner, Fitzgerald Analytics

Published in: Business, Technology
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  • 1. Great Ideas Need the Right Metrics to Flourish Building the Analytics you Need to Monetize your Innovation Gilbane Conference 2013 December 5th, 2013 Architects of Fact-Based Decisions™
  • 2. Table of Contents 1. Introduction 2. The Challenge of Monetizing Innovation 3. The Data to Dollars™ Approach 4. Examples + live cases (will be presented live) Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 2
  • 3. Introduction: Jaime Fitzgerald Specialist in the process of turning Data into Results. 17+ years advising clients in Financial Services, Retail, and Public Sector. Created the Data to Dollars Value Chain™ framework & methodology, used by my team at Fitzgerald Analytics to serve our clients. Now “open-sourcing” the methodology via: • The Book • Online learning resources • Training seminars on data-monetization • Customized training + consulting Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 3
  • 4. Our Mission Make the invisible visible. Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 4
  • 5. Introduction: Fitzgerald Analytics What we do: Why we do it: 1 Build New Analytic Capabilities 2 Improve Analytic Processes Hundreds of Millions of New Profits for Clients (Concrete + Documented) 3 Build Analytic Teams 100% Client Loyalty Measure Intangibles Staff Loyalty: Named a Best Firm to Work for 4 Years in a Row 4 5 Turn Data into Dollars™ Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5
  • 6. Table of Contents 1. Introduction 2. The Challenge of Monetizing Innovation 3. The Data to Dollars™ Approach 4. Examples + live cases (will be presented live) Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 6
  • 7. Innovation Fantasy: The Best Ideas Will Win = Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 7
  • 8. Innovation Reality: Execution Matters a Lot VS VS VS Early Car Companies VS *Other Examples: Tesla vs other Electric Car companies JetBlue vs Delta Express Segway vs Bicycle Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 8
  • 9. Why do innovative ideals fail to blossom? Never Tried Too Complex of an Idea Tried and Failed Uncharted Territory Didn’t Resonate with Clients Wrong Team Didn’t Capitalize on Opportunities Product Never Worked as Intended Unfortunate Timing Unexpected Changes Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 9
  • 10. What types of changes can Innovation Prompt? Upgrade Existing Product Create New Product Adjust Target Market Operational Efficiency Product Design Create New Market Remove Barrier to Entry Revive Old Product Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 10
  • 11. Table of Contents 1. Introduction 2. The Challenge of Monetizing Innovation 3. The Data to Dollars™ Approach 4. Examples + live cases (will be presented live) Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 11
  • 12. Application of The Data to Dollars™ Approach to Innovation Using Analytics to enable Innovation. What do these mean? Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 12
  • 13. What is Innovation? Google’s Definition: The action or process of Innovating. Innovating: Making changes in something established, especially by introducing new methods ideas or products. Ok, but how do we succeed? Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 13
  • 14. Lets look at some examples Elon Musk on Innovation Takeaways: 1. Break concepts down into their parts 2. Solicit Negative Feedback (or iterate) Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 14
  • 15. “Google Reveals its 9 Principles of Innovation” – Fast Company 1. Innovation Comes from Anywhere 2. Focus on the User 3. Aim to Be 10 Times Better Breaking Down Ideas 4. Bet on Technical Insights 5. Ship and Iterate 6. Give Employees 20% Time Get Negative Feedback 7. Default to Open Processes Measure Impact ID Success .. 8. Fail Well ID Failure 9. Have a Mission that Matters Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 15
  • 16. “A Simple Tool You Need to Manage Innovation” – Harvard Business Review Takeaways: 1. Innovation is a PROCESS you CAN and SHOULD manage. 2. Keys to managing innovation 1. Awareness of how “ambitious” each innovation initiative is 2. Allocate Resources intentionally and optimally across the portfolio of initiatives Have a Mission that Matters Profile each Innovation: - Source of impact? - -- KPIs? - -- Definition of Success? Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 16
  • 17. “The Discipline of Innovation” – Peter Drucker Innovation comes from the systematic analysis of 7 types of opportunities: 1. Unexpected Occurrences 2. Incongruities 3. Process Needs 4. Industry and Market Changes 5. Demographic Changes Analysis Drives Recognition of + Exploitation of Opportunities to Innovate 6. Changes in Perception 7. New Knowledge Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 17
  • 18. What does it take to innovate more successfully? A few sources of perspective from the recommended reading… Peter Drucker: Observation  Analysis  Awareness of Opportunity  Response Nagyi and Tuff in HBR: Understand your Business Model  Tailor Innovation Approach to your Business Model & Strategy Google in Fast Company: Various “rules”. Theme of Ambition and Breadth of Approach. Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 18
  • 19. Key Themes on Innovation 1. Manage the Process of Innovation 2. Set Goals 3. Seek Causal Clarity (ie. Pay attention to the technical) 4. Iterate Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 19
  • 20. What is Analytics? Google Definition: the systematic computational analysis of data or statistics. Ok, but what do we do? Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 20
  • 21. What is Analytics? Analytics is a Process Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 21
  • 22. The Data to Dollars™ Stack Plan: Decisions, Actions, and Results Made better by the right Insights Created by the right Analysis Which depends on access to the right Data And selection of the right Tools, Platforms, Technology, People, and Processes Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved Act: 22
  • 23. The Stack is Also a Value Chain… Plan: Decisions, Actions, and Results Dollars Made better by the right Insights To Created by the right Analysis Which depends on access to the right Data And selection of the right Tools, Platforms, Technology, People, and Processes Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved Data Act: 23
  • 24. The Data to Dollars Value Chain™ 1. Data  New Data Source Acquisition 2. Analysis 3. Dollars  Decisions Analysis Insight  Actions  Data Discovery  Financial Impact  Data Quality  New Data  Data Governance  New Opportunities Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved Navigation Tips: 1. Set Clear Goals and translate into concrete plans 2. Stay Agile (loop back often) 3. Keep Oriented (“line of sight” / “why am I doing this?) 24
  • 25. From new idea to results: 5 key steps 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 25
  • 26. Monetizing New Ideas Is Iterative… 2 1 3 Business Model / Business Case Idea v1.0 2 1 3 2 1 Idea v3.0 5 5 5 Implementation Results Market Response Implementation 3 Business Model / Business Case 5 Market Response Implementation Business Model / Business Case Idea v2.0 5 Results 5 Market Response Results The Lab Retire Idea Reflect Observe Incubate Etc.. Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 26
  • 27. The Role of Metrics 1 The market response is where value is unlocked from the implementation of great ideas…. 2 1 Idea 3 Business Model / Business Case 2 3 5 Implementation 5 Market Response Results So that we can implement in a way that generates the optimal response To monetize optimally, we need to be clear about the drivers of results in the marketplace Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 27
  • 28. Applying Data to Dollars™ Techniques and Methods Answering the question: how do I get from each step to the next? 2 1 Idea 3 Business Model / Business Case From Idea to Business Model 1. Causal Modeling 2. System Modeling 3. KPI Definition 4. Measurement + Analysis Plan 5 Implementation From Business Model to Implementation 1. People 2. Processes 3. Tools 4. Measurement 5. Decisions 5 Market Response Results From Implementation to Market Response 1. Response measurement 2. Root cause analysis 3. Improvement Opportunities 4. Emergent Questions There are multiple techniques in each of the categories above. In the rest of the workshop we will be looking at each of them and how they relate to monetizing your innovative ideas. Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 28
  • 29. Key concepts in the D2D™ Goal Setting Methodology Concept: Meaning: 1. Causal clarity Cause Effect 2. Causal model  Precise definition of cause + effect  Easy to explain  “What drives results?” Price Revenue Txns 3. Point of opportunity  Based on causal clarity  An opportunity for improvement (decision, business process)  Impacts drivers of results Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 29
  • 30. Table of Contents 1. Introduction 2. The Challenge of Monetizing Innovation 3. The Data to Dollars™ Approach 4. Examples + live cases (will be presented live) Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 30
  • 31. Delos Living: The Idea Delos’ central aim is to create and transform buildings to meet the highest standards of healthy living, marshaling the most promising medical research and advancements in architecture, technology, and design. 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 31
  • 32. Delos Living: Business Model / Causal Model (from a building owners perspective) Analysis Drives Recognition of + Exploitation of Opportunities to Innovate Additional $’s per SQFT in Rent Additional Revenue from WELL™ Revenue Cost of Well™ installation in $/SQFT Base $/ SQFT (Rent or Sale) Profit Overhead Your opportunity Other Expenses Marketing 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 32
  • 33. Delos Living: From the perspective of the occupant Space Comfort Air Quality Health Happiness Security Standard Buy Cost Fixed WELL™ Premium Cost Challenge / Opportunity REcurring Potential Solution 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 33
  • 34. Delos Living: Implementation - Key Drivers of Purchase Decisions Additional $’s A per SQFT in Rent Cost of Well™ 1 installation in $/SQFT Additional Revenue from WELL™ Revenue Base $/ SQFT (Rent or Sale) Arbitrage opportunity Prove that WELL™ makes a difference. Profit Overhead Other Expenses Challenge / Opportunity Celebrity endorsements + Share of Mind Marketing Potential Solution 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 34
  • 35. Delos Living: Market Response Delos Living News Reel 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 35
  • 36. Delos Living: Results 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 36
  • 37. Tesla Motors: The Idea Create the best Car: an Electric Car that is not just a viable alternative to existing vehicles but is actually in all ways better. 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 37
  • 38. Tesla Motors: Business Model / Causal Model # of Cars Sold Revenue Price of Car Gross Profit COGS Profit New Technology Development Other Expenses Battery Technology Overhead Marketing 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 38
  • 39. Tesla Motors: Challenges & Opportunities Legend: # of Cars Sold Challenge / Opportunity Revenue Potential Solution Price of Car COGS Gross Profit Battery Technology Profit New Technology Development Other Expenses Design Marketing the Value Prop Overhead Marketing 2 1 Idea 3 Business Model / Business Case 4 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 39
  • 40. Tesla Motors: Implementation - Key Drivers of Purchase Decisions Batteries are notoriously bad stores of energy and charging stations are rare and slow. 2 Range B Brand new electric power train + a vast network of “Supercharging Stations” that can charge in an hour Design Customer Decision Criteria Handling Design Challenge / Opportunity Cost A Potential Solution Excellence in Operational Efficiency 2 1 Idea Price Point Matters to be profitable and to ensure sales 1 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 40
  • 41. Tesla Motors: Market Response “TESLA Model S Takes The Tops Spot In Consumer Reports Car Owner-Satisfaction Survey” 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 41
  • 42. Tesla Motors: Results Tesla’s Model S “outsold all models from other luxury brands Porsche, Volvo, Lincoln, Land Rover and Jaguar during the first half of the year in” California – USA Today 2 1 Idea 3 Business Model / Business Case 5 Implementation Great Ideas Need the Right Metrics to Flourish |© 2013 Fitzgerald Analytics, Inc. All Rights Reserved 5 Market Response Results 42

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