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The Analytics CoE: Positioning your Business Analytics Program for Success

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This Loras College Business Analytics Symposium breakout session presentation by Kiran Garimella, Ph.D., president and founder of XBITALIGN, explored the analytics center of excellence (CoE).

A business analytics program is more than the application of data science and Big Data technology to data. Success should be measured not only by the valuable insights the program delivers, but also by how well it is sustained and how much the ‘analytics mindset’ becomes part of the company’s DNA. The journey is not only from data to information, but also from information to knowledge, and from knowledge to intelligence. The foundation for making this happen is a well-structured Analytics Center of Excellence (CoE).

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The Analytics CoE: Positioning your Business Analytics Program for Success

  1. 1. The Analytics COE Positioning Your Analytics Program for Success Kiran Garimella Principal Consultant, XBITALIGN Excellence in Business & IT Alignment (c) XBITALIGN
  2. 2. Overview A business analytics program is more than the application of data science and Big Data technology to data. Success should be measured not only by the valuable insights the program delivers, but also by how well it is sustained and how much the ‘analytics mindset’ becomes part of the company’s DNA. The journey is not only from data to information, but also from information to knowledge, and from knowledge to intelligence. The foundation for making this happen is a well-structured Analytics Center of Excellence (CoE). (c) XBITALIGN(c) XBITALIGN 22 Business Analytics Program = (Big) Data + Technology + (Data) Science + ??? Business Analytics Program = Setup + Analysis -> Insight + then what ??? Business Analytics Program = A few expert data scientists OR part of the Corporate DNA? The spectrum of COEs: Do it for them versus enable them to do it
  3. 3. (c) XBITALIGN 3 The Main Thing It isn’t about technology, but what’s in it for the decision-makers. My stakeholder – ex-Vice Chairman of GE – said to me: “20 years ago, my MIS department would put in front of me, every morning, a reliable report about revenue and other metrics from various regions based on products and services. It looks like that’s not possible anymore.” If you can’t help decision-makers make better decisions faster while minimizing risk, you have done nothing.
  4. 4. (c) XBITALIGN 4 OWL BAM BI CAF Portals BPEL WYMIWYR CMS Web 2.0 BPEL Cloud Social Complex Event Processing ICE PLM PPM SAAS Agile Big Data AnalyticsHadoop python scala BPM d3js wsdl Mobile What we give them: CTAs (Collage of Terrifying Acronyms) R Data Science
  5. 5. (c) XBITALIGN 5 What your users care about Process Cycle Time Throughput Yield Bottlenecks Wait-times Defects per million opportunities Latency Process Variance Inventory Turns SLA Violations False Demand Triggers Return Rate Percentage Rework Cost of Poor QualityUnnecessary Motion Excess Processing Economic Value AddTransportation Waste Process Variance Process Capability Process Capacity Excess Transactions Root Cause Voice of the Customer Run Chart Reduction of Waste Overall Equipment EffectivenessKey Performance Indicators Baseline Conditions Compliance Customer Satisfaction Customer Satisfaction
  6. 6. The Ecosystem of Analytics  Strategies & Strategic Objectives  Products  Services  Projects (c) XBITALIGN 66 Providers PayersPharmacists Clinicians Device Suppliers Employers Patients (& Families) R&D Academia Professional Bodies Regulators Big Pharma  Business Capabilities  Technical Capabilities  IT Applications  IT Services
  7. 7. The Taxonomy of Analytics (c) XBITALIGN 7 Insight Knowledge Information Data Competitive Advantage Transformation Standardization, Simplification IT 7 Foundation Value
  8. 8. (c) XBITALIGN 8 Raw data generation Extraction Collection Cleansing Analyzing Packaging/ (Information) Consuming Decisioning The Lifecycle of Data
  9. 9. (c) XBITALIGN 9 The Analytic Landscape
  10. 10. Key Elements of a COE (c) XBITALIGN 10 People TechnologyProcess LearningGoverning Sustaining Enabling Communicating Tooling IntegrationBuilding Improving
  11. 11. Maturing a COE (c) XBITALIGN 11
  12. 12. Example of a COE Roadmap (c) XBITALIGN 12 Rationale & Business Case Assessment, Analysis, & Prioritization COE Organization Model COE Governance Model Competency Model & Action Plan Training Plan COE Roadmap
  13. 13. (c) XBITALIGN 13 Enterprise Architecture Technical Architecture Applications Technical Infrastructure Services Business Architecture Information Process Performance Execution Solution Development Project Management Program Management Operations Operations: Transition & Deployment Release Management Operations: Monitor & Control Business Alignment Strategy Change Management Governance Enablement Knowledge Management & Education Personal & Team Effectiveness Continuous Improvement Business Structure Business Model Ecosystem Organization Enterprise Capabilities Alignment Framework for Centers of Excellence
  14. 14. (c) XBITALIGN 14 BusinessAlignment Strategy Change Management Governance BusinessStructure Business Model Ecosystem Organization ECAF: Business Structure & Alignment Analytics that relate to strategies and strategic objectives Strategies and strategic objectives of the analytics COE or function Analytics that relate to change & innovation, how effectively the company is dealing with it Management of change and innovation within the analytics COE or function Analytics that report on governance and compliance (are we doing the right things, are we doing them efficiently, and are we realizing the benefits Governance of the analytics COE or function Analytics about and for Industry, Economy, Competition, Products, and Services The model of the analytics COE or function as an ‘internal company’ Analytics about Customers, Partners, Suppliers, Regulators, and other bodies that impact the company The management of the ecosystem of the analytics Coe or function Analytics based on Title, Role, Function, LOBs, Locations The RACI view of the analytics COE or function and its engagement model with the rest of the company
  15. 15. ECAF: Enterprise Architecture (c) XBITALIGN 15 TechnicalArchitecture Applications Technical Infrastructure Services BusinessArchitecture Information Process Performance Analytics about various types of applications, external-facing as well as internal Applications that the analytics COE or function uses Analytics about servers, security, performance, etc. Technical infrastructure of the analytics COE or function Analytics about internal services as well as technology services Technical services that are provided by or used by the analytics COE or function Analytics about business rules, policies, usage, effectiveness Management of information used in the analytics COE or function Analytics about business processes, both outside-in (customer-centric and internal) Processes of the analytics COE or function Analytics about performance metrics, from high-level balanced scorecard to lower- level operational metrics Performance (measures, metrics, KPIs) of the analytics COE or function
  16. 16. ECAF: Execution & Operations (c) XBITALIGN 16 Execution Solution Development Project Management Program Management Operations Operations: Transition & Deployment Release Management Operations: Monitor & Control Analytics about development of new solutions, their progress, impact, and value Development of analytic solutions Analytics about projects, their goals, metrics, value Management of analytic projects Analytics about programs, initiatives, value generation, constituent projects Management of analytic programs Analytics about transition and deployment of solutions, people, processes, and technology Transition and deployment of analytic capabilities Analytics about releases of business capabilities or technical capabilities Management of releases of analytic capabilities Analytics about operational control, such as process performance controls, KPIs, etc. Monitor and control of analytics operations
  17. 17. ECAF: Enablement (c) XBITALIGN 17 Enablement Knowledge Management & Education Personal & Team Effectiveness Continuous Improvement Analytics about knowledge management and training in the company Knowledge management and education about analytics Analytics about effectiveness within team and among people Ensuring personal and team effectiveness about adoption and usage of analytics Analytics about continuous improvement initiatives Ensuring continuous improvement of the analytics function
  18. 18. General Observations on Analytics • Data -> Information -> Knowledge -> Insight • Insight also comes from a mass of interconnected knowledge, not only from a dataset • If you torture the data long enough, it’ll confess to anything you want • Do you really want to buy a Ferrari to go get groceries? • Perceptual errors are almost always errors of higher cognition! (Pencil in a glass of water appears bent.) • No amount of training will change perception (a Noble Prize physicist and a peasant will both see a bent pencil in a glass of water) • Humans are poorly equipped to deal with probability, statistics, and consistency in logical thinking • Training can mitigate cognitive errors • Tooling must provide the safety harness and the do the grunt work (c) XBITALIGN 18
  19. 19. Next Steps: Get Started! Use to ECAF framework for COEs to determine: Who you are (culture, stakeholders) Why (drivers) Who you want to be (vision, mission) How (high level: strategies, goals) Where you are (current level of maturity) Focus areas: prioritize (don’t try to boil the ocean) Include some elements to cover people, process, and technology Establish governance (top-down or bootstrap) How (detailed: phases, roadmap, maturation) (c) XBITALIGN 19
  20. 20. ‘ARISE’ Analytics for Business Transformation • Align – Connect goals and strategy for business transformation to tactics • Reframe - Don’t be shackled by the past (“it didn’t work before”) • Innovate - Don’t do the same thing again and expect different results • Seek Help – Don’t try it alone • Execute - To implement strategy effectively, get close to the ground (c) XBITALIGN 20 Adapted from www.forbes.com 20  x x

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