From information to intelligence


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Buildiing analytics into how you manage your business

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  • Data is exploding – primarily driven by Digitization and Connectivity
  • The trends that are driving the explosion of data are accelerating and converging – according to an IBM estimate over 90% of the data in the world today was created in the last 2 years
  • This explosion of data has not necessarily translated into results for a majority of people as our ability to deal with all this data has not improved.
  • Analytics is the science and system that helps us make sense of all this data. It helps us find patterns in the data, derive insights from it and recommend actions to be taken to translate those insights into business outcomes
  • While the underlying concepts are not new and have existed for many years in different forms such as Business Intelligence, Data Mining, and OLAP – an increase in the new sources of data combined with our ability to correlate these data in real time have dramatically improved the usefulness of the insights we get from the data – leading to truly analytics driven organizations
  • There are several market leaders who have built their differentiated value proposition based on how they have used data to drive better products and services
  • RBS Analytics Adoption ModelRBS IP     Reference Architecture     Agile Analytics     Hybrid Delivery     As- a- Service model
  • Building a smarter organization
  • From information to intelligence

    1. 1. © Right Brain Systems LLC.Srini KoushikPresident and CEORight Brain Systems LLC.Twitter Handle - @skoushikRBS on Analyticsinnovation – agility - executionRight Brain Systems LLC.Building Smarter Organizationswith Analytics
    2. 2. © Right Brain Systems LLC.BigDataStorage Capacity is growingat an annual growth rate of23%Computing Capacity isgrowing at an annual growthrate of 54%60% of the world’s populationused cell phones in 201012% of cell phones are smartphones and this number isgrowing at 20% a yearOver 30 million networksensor nodes in 2010 growingat 30% a year30 billion pieces of contentshared on Facebook everymonth13 hours of content isuploaded on YouTubeevery minuteLower barriers to connectivitydrives integration of islandsof dataSource – Big Data – The next frontier for innovation,competition and productivityMcKinsey Global Institute, May 2011Digitization and Connectivity drives Big Data
    3. 3. © Right Brain Systems LLC.Consumerization Universal Access Internet of ThingsCloud Computing Social Business Big DataThe pace of change is accelerating and convergingCurrent trends help drive more data3
    4. 4. © Right Brain Systems LLC.“What information consumes is rather obvious: itconsumes the attention of its recipients. Hence awealth of information creates a poverty ofattention, and a need to allocate that attentionefficiently among the overabundance ofinformation sources that might consume it.”- Herbert Simon“Avoidable failures are common and persistent, not tomention demoralizing and frustrating across many fields –from medicine to finance, business to government. Andthe reason is increasingly evident: the volume andcomplexity of what we know has exceeded our individualability to deliver its benefits correctly, safely, or reliably. “Dr. Atul Gawande, The Checklist ManifestoHuman ability to deal with complexityhas not changedMachine learning while useful has itsdisadvantages. Example, automatedhedge fund tradesSuccess requires the effectiveblending of human intuition anddecision making with businessintelligence and machine learningCan humans keep up?
    5. 5. © Right Brain Systems LLC.What is Analytics?4/17/2013 5These patterns lead to business insights which can betranslated into specific actions to drive meaningfulbusiness outcomes.Analytics is the discovery and communicationof meaningful patterns in data.
    6. 6. © Right Brain Systems LLC.How did we get to Analytics?4/17/2013 6• Linear programming• Regression analysis• Markov chain MonteCarlo methods• SimulationsAvailability of differenttypes of dataDigitization & StorageEasy and inexpensiveaccess to any dataCloud and ConnectivityVisualize and act anytime,anywhere using mobiledevicesPervasive Access• Enterprise Data• Federated Data• Public/Syndicated Data• Structured data• Semi-structured data• Unstructured dataComputing CapabilityAbility to quicklyorganize and process alot of data• Provide insights andactions in real-time• Deliver them to the wherethey can be used• Access them from anydevice+ + +Business Intelligence can answer questions such as: what happened; how many, how often, where did it happen; whereexactly is the problem; what actions are needed.Business analytics answers the questions: why is this happening; what if these trends continue; what will happen next(predict) and what is the best that can happen (optimize).
    7. 7. © Right Brain Systems LLC.Uses advanced analytics toidentify and propose the“Next Best Offer” based onCustomer browsing andbuying patternsUses Cinematch,an advancedanalytics engine to make movierecommendations based onrental patternsPioneered the use of customersegmentation and profitabilityanalysis to target and acquiremost profitable customers Uses web analytics andcustomer loyalty program datato target and drive businessthrough its most profitablecustomersSource – Competing on Analytics – The new science ofWinning. – Thomas H. Davenport and Jeanne G. HarrisHarvard Business School Press, 2007Today’s market leaders have “cracked the code”7
    8. 8. © Right Brain Systems LLC.The RBS Approach to Agile Analytics4/17/2013 8
    9. 9. © Right Brain Systems LLC.RBS on Analytics4/17/2013 9We want to build Smarter Organizations that deliver meaningful businessresults through secure, seamless context-aware experiences in a data drivenworldOur approach to Analytics is focused onbuilding the organizational capability thatcan sense changes, understand them,respond to them through business actionsand refine these actions continuously todeliver better business results
    10. 10. © Right Brain Systems LLC.ACTIONS:What do we do?DATA & INFORMATIONMANAGEMENT• Understanding the dataecosystem – Structured,Semi-structured andUnstructured data• Creating and maintainingdata as an assetBUSINESSINTELLIGENCE• Aggregation ofInformation – primarilyfrom Structured datawithin the enterprise• Historical view aimedat enabling businessplanning and improvingbusiness performanceBUSINESSANALYTICS• Correlation acrossinternal and externaldata sources• Identify patterns andcausal relationships inhistorical and real-timedataANALYTICS DRIVENORGANIZATION• Predict / optimizebusiness decisions• Translate insights intoactions throughoperations• Experiment,implement, measureand improveDATAWhat data?INFORMATION:What happened?INSIGHTS:Why did it happen?BETTERBUSINESSOUTCOMES• Ability to sense andunderstand changesin marketplace• Rapid decisionsdriven byInformation• Enabledifferentiated andseamless contextaware experiencesBuilding a Smarter Organization10
    11. 11. © Right Brain Systems LLC.The RBS approach for building an analytics drivenorganization focuses on five key domains:• A data foundation that provides an enterprise view of data, its types,sources, latency and how it is understood and used (metadata) in theorganization• An Information Design that describes how users will visualize, access,utilize and act on the insights generated• Analytics Capabilities which includes the foundational practices, skillsand approaches for driving agility into the organization• An Analytics Operational Framework that helps establish where and howanalytics can be used within the enterprise and• Active Business Ownership from Operational leaders within thecompany who understand and use the insights generated to makeinformed decisionsBuilding an analytics driven organization takes more than good technologyBuilding an Analytics Driven Organization012345DataFoundationInformationDesign andVisualizationAnalyticsCapabilitiesAnalyticsOperationalFrameworkActive BusinessSponsorship
    12. 12. © Right Brain Systems LLC.Building the Data FoundationThe Data Foundation defines:1. How data is organized andused in the Enterprise(Semantics)2. How data is persistentlystored and accessed(Structure) and3. How data is managed andunderstood (access, inquiry,replicated, updated etc.)Real-time and Batch Queries (OLTP andOLAP)Real-time queriesData Warehouse, Data marts andOperational Data StoresReal-time In-memory DatabasesEnterprise Data GovernanceCustomer Financial Functional(HR, IT, Marketing, Enterprise Risk Managementetc.)Operational(Product, Sales, Service, Fraud Detection, Operationsetc.)Metadata, Data Modeling, Master Data ManagementEnterpriseApplicationIntegration (EAI)ExtractTransform& Load(ETL)Unstructured Data Loads(pattern matching, stopword filtering, backwardpointers etc.)Real-time IntegrationStructured DataOperational data from internaland external data sourcesUnstructured DataDigital data (audio, video),text data (from socialnetworks) etc.Semi-Structured and Real-time DataData from real-timesensors, high volumetransactions etc.Source: Enterprise Data (Internal), Federated Data (External), Syndicated Data (External)Volumes: Streams, High Volume, Low VolumeLatency: What is the latency of the data – real-time, near real-time or batched
    13. 13. © Right Brain Systems LLC.Information Design13User SpecificInformationContextInformationVisualizationandInteraction• What role do they play –consume content or createcontent?• What are theirpreferences?• What are the capabilitiesof the device they areusing?• What is the context of theinteraction?• Where is the interactionhappening?• What is the nature of theinteraction? –support, transactional etc.• What are the constraints? –Device capabilities, Locationawareness, Networkcapabilities etc.• How do we represent theinformation being consumed?• How does the system acceptinputs from the user?• What does the interaction looklike if there is no humaninvolved?• What are the requirements fordata access? – Fire andForget, Request/Response, Complex Event Processing etc.
    14. 14. © Right Brain Systems LLC.Analytics Capabilities - Governance4/17/2013 14Understand Data Domains Information Classification Model Governance ModelInformation Privacy, Security, Regulatory and Compliance Rules and GuidelinesEnterprise Risk ManagementConfidentialPrivilegedPublicCustomerFinanceProduct/PricingOperationalOperationalPersonal Information – Name, Address,SSN, Credit Car # etc.Financial Performance Data etc.Non-identifiable individual dataHistorical dataCustomer interaction dataSyndicated dataPublic dataHistorical data• One Enterprise GovernanceBoard for all confidentialdata, compliance andregulations• Information and IT securitypolicies are driven by theEnterprise Governance Board• Business ownership andstewardship for datadomains and Metadata
    15. 15. © Right Brain Systems LLC.Analytics Capabilities – Core Competencies15DataIntegrationAnalyticModelingAgileDeliveryVisualizationEmbeddingAnalyticsintoOperationsCo-relate outcomes tofacts and events and buildmodels based on patternsdiscovered in theserelationshipsImplementing metrics,decision makingstructures and a closedfeedback loop to takeadvantage of insightsRapid Prototyping,incremental delivery,built-in retrospectives andcontinuous improvementVisualization and User Experiencedesign to present insights ina meaningful way thatresults in the desired actionThe ability to integrate with,ingest, understand all types ofdata from internal and externalsources
    16. 16. © Right Brain Systems LLC.Analytics Capabilities - Agile AnalyticsAnalytics Story MapsUser StoriesAnalytics EpicsAnalytics PersonasAnalytics SolutionsAgile DeliveryRendering and VisualizationData Ecosystem and relationshipsInformation designAnalytics PatternsAccess and IntegrationUse and Implementation
    17. 17. © Right Brain Systems LLC.Analytics Capabilities - Reference ArchitectureVisualization and User InteractionInteraction Model – Fire-and-forger, Request-Response, Complex Event Processing (CEP)Analytics Solutions – Social Analytics, Value Chain Performance Analytics, Customer Interaction Analytics etc.Advanced StatisticalModelingQuantitative Analysis Linear Programming Markov Chain,Monte CarloMethodsRegression Models SimulationReal-time and Batch Queries (OLTP and OLAP) Real-time queriesData Warehouse, Data marts and Operational Data Stores Real-time In-memory DatabasesEnterprise Data GovernanceCustomer Financial Functional(HR, IT, Marketing, Enterprise RiskManagement etc.)Operational(Product, Sales, Service, Fraud Detection,Operations etc.)Master Data Management, Distributed Map ReduceEnterprise ApplicationIntegration (EAI)Extract Transform &Load (ETL)Unstructured Data Loads(pattern matching, stop word filtering,backward pointers etc.)Real-time IntegrationStructured DataOperational data from internal and external datasourcesUnstructured DataDigital data (audio, video), text data (fromsocial networks) etc.Semi-Structured and Real-time DataData from real-time sensors, high volumetransactions etc.
    18. 18. © Right Brain Systems LLC.Analytics Capabilities - Workforce Model• 20% Specialized skills• Data Scientists – Mix of statistical and quantitative skills (Left Brain) and patterndetection/matching skills (Right Brain)• Product Owners – Ability to breakdown complex problems into product features andbacklog that can be delivered incrementally• Visualization and UX Designers – Creative and Design Thinking skills (Right Brain)• 80% Delivery skills – Architects, Developers, Software Quality analysts etc.• Mix of soft skills and technical skills, delivered a 10-20-70 learning model• Formal and informal mentor-apprentice model• Campus relationships with arts and science schools• Industry-Academia interactions to drive new perspectives and to facilitate updates on newtechniques• Job rotations to drive cross-skilling and enforce knowledge management requirements• Retrospectives at all levels of delivery and operations to drive experiential learning• Formal and informal knowledge sharing sessions to drive collective learning• Client-specific relevance maintained through single-point of contact for business-specific details• Use of Social networking tools to establish informal knowledge and experience networksSustainableWorkforceImmersiveLearningExperienceManagement
    19. 19. © Right Brain Systems LLC.Shared Analytics CenterOn SiteAnalytics Capabilities - Hybrid DeliveryAgile Analytics willrequire a hybrid deliverymodel that takes intoaccount the data andprivacy concerns andbalancing with the needfor agility and the scarcityof key skillsPrivate Data Privileged Public DataProduct Owners Data ScientistsVisualization and UX DesignersOperations Monitoring and ReportingAnalytics SolutionsBusiness Stewardship andGovernance
    20. 20. © Right Brain Systems LLC.Managing a smarter business with AnalyticsAnalytics Operational FrameworkWorkforceAnalyticsOperationalAnalyticsCustomerAnalyticsFinancialAnalytics• We help businesses integrate analytics withthe key metrics that are tracked on anorganization’s Balanced Scorecard1• This framework:• Defines and measures key business performancemetrics across all four quadrants of the balancedscorecard• Synthesizes findings and delivers insights to businessleaders• Performs analysis on metrics including variation androot cause analysis• Implements a closed loop feedback mechanism thathelps understand results and refine the insights andactions through agile delivery1 Kaplan, R. S. and D. P. Norton. 1992. The balanced scorecard - Measures that drive performance. Harvard Business Review (January-February): 71-79.
    21. 21. © Right Brain Systems LLC.Customer Analytics Operational Analytics Financial Analytics Workforce AnalyticsMarketing Sales Supply ChainCUSTOMERANALYTICSHelp determine Next BestAction or Next Best OfferCUSTOMERINTERACTIONANALYTICSImprove CustomerExperience and reduce costof serviceSOCIAL ANALYTICSDrive brand loyalty andservice recovery actionsbased on sentiment analysison social mediaCUSTOMERINTELLIGENCEImprove customer share ofwallet through targetmarketingMARKETINTELLIGENCEProvide insights into markettrends and customerbehaviorMARKETINGEFFECTIVENESSDrive returns from bettermarketing spend allocationPRICING ANALYTICSProvide price / discountinsights for specific salesSALES FORCEALLOCATIONDrive sales coverage acrossaddressable segmentsSALESEFFECTIVENESSEnable effectiveness of salespursuit and conversionSALESCOMPENSATIONDesign and track salescompensation foroptimizationPRODUCT SALESPERFORMANCEMonitor sales performanceby product / solutionDEMAND-SUPPLYPLANNINGReduce demand-supplymismatch through betterforecastingINVENTORYOPTIMIZATIONReduce own and channelinventory costsPROCUREMENTANALYTICSDrive savings from spendforecasting andconsolidationFINANCIALREPORTING &ANALYTICS(Budget and forecasting, P&L/ Balance Sheet review)COMPLIANCE & RISKContinuous monitoring,better audit sampling to testcontrols and enable revenuehedgingCUSTOMERPROFITABILITYContinuous monitoring andoptimizing of customer andproduct profitabilityWORKFORCEOPTIMIZATIONAllocation / matching ofworkforce for efficient usageATTRITIONMODELINGIdentify attrition propensitybased on characteristics &driversExamples of Analytics in a Smarter Business
    22. 22. © Right Brain Systems LLC. 22Determining the “Next Best Action” for a customerAn ExampleBehavioral data (S, F,E)• Transactions• Payment history• Service history• Credit historyDescriptive Data (S, E)• Attributes• Characteristics• Self-declared info• (Geo)demographicsAttitudinal data (U, E, P)• Opinions• Preferences• Needs & Desires• SentimentInteraction data (SS, E)• E-Mail / chat transcripts• Call center notes• Web Click-streams• In person dialoguesS –Structured U – Unstructured SS – Semi Structured F – Federated P – Public E - EnterpriseHistorical AnalysisCorrelation of dataPattern recognitionMCMC MethodsRegression AnalysisPattern MatchingBusiness IntelligenceWhat do our customers saythey want?What are the major life eventsfor the customer?How do customers interactwith the organization?Business AnalyticsWhat is the customer’s Propensity tobuy?What are the indicators of customerretention/attrition?What is the Customer Profitability?What is the Product Profitability?Device data (U, P)• Location• Camera• Microphone• Multi-touch• SensorsUXVisualizationCEPScoringBusiness AnalyticsNext Best ActionNext Best OfferCustomerManagement ActionService Recovery
    23. 23. © Right Brain Systems LLC.4/17/2013 23• Analytics enable businessagility• Building an analytics drivenorganization requires acomprehensive set ofcapabilities• Its a huge waste withoutbusiness and operational buy-in• RBS has the IP and experienceto help you get thereConclusion
    24. 24. © Right Brain Systems LLC.Srini KoushikLinkedin – - @skoushikSlideshare – – http://rightbrainsystems.tumblr.com24