Key Strategies for Business Analytics Program Success

1. The Path Forward
Getting Started with Analytics Quotient
Key Strategies for Business Analytics Success

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04/28/16https://ibm.box.com/s/jbnvwh34byc2iowisytlewq0q00cmf2o
Let’s get started…

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Analytics Quotient ‘AQ’

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AWARE
Alert, observant,
informed and
perceptive
FOCUSED
Clear understanding of what’s
important
AGILE
Highly responsive to
changing priorities
PREDICTIVE
Able to anticipate, look forward
and set expectations
ALIGNED
Collaboration across
organization objectives
Higher AQ Organizations Outperform

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Sales
Marketing
Customer
Service
Finance
IT
Operations
Product
Development
Human
Resources
Manage risk, regulation &
compliance
Grow, retain and
satisfy customers
Transform financial
processes
Increase operational
efficiency
Higher AQ
Empower All People, Support All Decisions

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STEP 1:
Novice
STEP 2:
Builder
STEP 4:
Master
STEP 3:
Leader
Manual, slow, error prone,
cumbersome, fragmented
Data quality concerns
Automated, instant, accurate,
seamless, converged
Data governance is in place
n = 5748 Organizations
IBM Study of AQ respondents
Where are most on their AQ Journey?
5%
65%
9%
21%

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Some of their Top Challenges impacting AQ

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97%
56%
6%
0%
of Masters
of Leaders
of Builders
of Novices
…. Percent of successful High AQ Organizations
that have an Analytics Center of Excellence ‘ACE’
Link to ’ACE’ Analytics Centers of Excellence

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It starts with taking our brief, 15 question AQ Quiz,
designed to assess and measure the maturity of your
current analytics footprint.
We recommend having a number of people participate
in the quiz to get a broad representation.
An AQ Maturity Score will be calculated for each
individual taking the quiz.
All individual scores need to be aggregated to learn
the organization-wide AQ Maturity Score of either,
Novice, Builder, Leader or Master.
What are the steps to get started?
Start by Measuring AQ

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STAGE 1:
Novice
•Inflexible
•Spreadsheets
•Extracts
•Manual Intervention
•Static Reports
•No governance
Builder
STAGE 2:
•Departmental
•Task automation
•Silo KPIs, metrics
•Some standards
•Some self-service
•Emerging CoEs
•Minimal governance
STAGE 3:
Leader
STAGE 4:
Master
•Enterprise aligned
•Enabling strategy through
execution
•Highly collaborative
•360 degree insights
•Analytics-driven culture
•Strong analytics program
and governance
•C-Level Leadership
(CDO/CAO appointed)
Manual, slow, error prone, cumbersome,
fragmented data quality concerns
Automated, instant, accurate, seamless,
converged Data governance is in place
Timely decision-making capabilities
Organization readiness and capacity to leverage analytics across critical roles and processes
Mastery of information
VP Lead C-Suite Driven
•Cross-functional
•Applied analytics
•Aligned KPIs, metrics
•Trusted information
•Common standard
•Formal governance
•Full self-service
•Aligned CoEs,
•Formal Leadership
DepartmentalIndividual
What does the AQ score mean?
Maps to one of four stages of maturity

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Business Alignment Strategy
Corporate objectives tied to functional objectives
Is your analytics strategy linked to your business strategy?
PEOPLE & PROCESS
Organizational/Behavioural Strategy
Organizational approach tying strategy to execution
What analytics resources, skills and processes are needed?
Technology Strategy
Technology infrastructure/capabilities
What analytics capabilities are needed to meet needs?TECHNOLOGY
STRATEGY & VALUE
How to raise AQ to the next stage?
Address Key Strategy Perspectives

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• Analytics Vision
• Enterprise Alignment
Framework
• Analytics Value
Roadmap to AQ
maturity
• Organizational Models
• Operational Framework
• Governance
• Implementation Methods
• Shared best practices
and Use Cases
• Communication &
Success Metrics
• Training programs and
curriculum
• Technology strategy and roadmap
STRATEGY & VALUE PEOPLE & PROCESS
TECHNOLOGY
Implement an ‘ACE’ framework
Organize, align and enable strategies

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ACE
Capabilities provided by common technology
Alignment of analytics across the enterprise
Excellence realizing & growing value with data & analytics
Enabled with skills to gain insight
Communities of shared expertise, organized for success
Empowered with self-service
Agility for a rapidly changing environment
Culture of data & analytics based decision making
Adoption of analytics by all types of users
Vision and Principles of ‘ACE’
Organize, align and enable strategies

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Most Importantly
Strong Executive Sponsorship

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04/28/16https://ibm.box.com/s/ctur9ux1yfekqe9ng1fmfwrbvzi397aj
Introducing a High AQ Organization…

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16
Novice
• Rely on
spreadsheets with
information gaps
• The rear view is our
only view
• Manual, slow, error
prone,cumbersome,
fragmented, data
quality concerns
Builder Leader Master
• View into
current
results and
a little of
what’s
driving
them
• Results are shared
with other teams
within the Finance
department
1%
• Top-down goal SVP Finance,
SVP Transformation
• Insights flow freely across
divisions and departments.
• Allocate resources, minimize
risk and maximize outcomes
with equal ease and speed
• Automated, instant, accurate,
seamless, converged
• Data governance in place
13%
85%
1%0%
• VP of Brands sets the strategy
• Finance brand's metrics map to
other departments metrics
• Look forward (predictive) as as
much as you review the past
10%
60%
30%
IBM Finance GOAL GOAL GOAL GOALIBM Finance IBM Finance IBM Finance
How Finance Started their Journey
First Measuring AQ

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Services Portfolio
BA Business Use Cases
BA Product Education
Finance Analytics Portal
Analytics as a Service
Talent Development
Analytics/Cognitive Academy
Education Community - By Role
CFO Ambassadors
Finance Customer
Advocate Group
Organization
FLAG
Finance Customer Advocates/IT
Finance COE
Methods, Practices & Standards
Chevron Model – Data to Decisions
Chevron Model/Serious Game
Business Analytics Use Cases
Blue Insight Shared Services - Centralized Cloud (BACC BT/IT
managed)= Cognos, SPSS, TM1, Watson Analytics, etc.) capabilities
Finance Leading adopter - over 20,000 named users
CIO Lab partnerships with new capabilities
Finance Analytics Portal (FAP) on solutions
Analytics Principles & Vision – Call to Action
Analytics Roadmap to AQ maturity
ACE Enablement Framework
Finance Leadership
Advocacy Group
(FLAG)
Analytics/Cognitive
Academy
Strategy & Value
People & Process
Technology
Business
Insight
Operational
Efficiency
Manage
Risk
Finance COE/IT
Analytics as A
Service (AaaS)
CFO Analytics
Ambassadors
Education By Roles
Finance Leadership Driven Strategy
Call to Action to Raise AQ
Blue Insight Cloud

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Senior Finance VP/Director members from geo brands,
Finance COE, Finance IT, Finance Customer Advocates.
Drive culture change - educate, enable and evangelize
Set the agenda & prioritize investments on AQ Framework
(Strategy/Value, People/Process & Technology)
Ensure optimal leverage of resources, tools and strategy in
satisfying financial systems requirements.
Analyze and manage portfolio, drive common systems and
standards,optimize time to value, leverage reuse
Business
Prioritization
Benefits
Realization
Communication
Culture
&
Education
Finance Leadership driven Strategy
tied to Business Value
Finance Leadership Advocacy Group Council

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IBM Finance
Analytics
Challenge
Contest
IBM Finance Education Communities -
Analytics/Cognitive Academy
IBM Finance
Analytics
Serious Game
IBM Finance Data to Business Insight Chevron Model/
Skills development by role
1 2
Finance invested in People skills/talent
Enabling Processes to deliver capabilities
IBM One Finance –
Lunch & Learn
IBM Finance Analytics
Portal Hub
CFO
Ambassadors

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& Consolidation
New
Technologies
& Tools
Business
Analytics
IT
Infrastructure
Global
Integration
Risk
Management
IBM ONE Global Ledger
IBM ONE Chart of Accounts
IBM Blue Insight Shared Services -
COGNOS / SPSS, WATSON ANLYTICS
Research (STAR)
IBM Continuous Control
Monitoring (CCM)
IBM Virtualization
Cloud Computing
IBM Finance tapped into a shared model of
Technology Tools and Capabilities

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Use Case: WW Spend
Simplify and standardize spending analysis processes by leveraging a single multi-
dimensional cube on a worldwide basis
18+ Spending Cubes
Consolidated
2700+ Users
Solution components:
- IBM® SPSS Modeler, Statistics
- IBM® Cognos TM1
All previous cubes used Essbase
All Spending and Resource data
for all IBM units and geographies
Challenge
Get a holistic view of worldwide spending
Solution
Create single cube for all of spending to enable
management

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Use Case: Mergers & Acquisitions
80+ Acquisitions
benefited from headlights into
execution risks to affect both
deal pricing and integration plan
Solution components:
- IBM® SPSS Modeler, Statistics
- IBM® Cognos BI
- IBM® WebSphere
End-to-End Risk
Management across the
acquisition portfolio
Streamlined tracking and
reporting to identify systemic risk
and address challenges
Challenge
Improve outcomes from mergers & acquisitions
Solution
Use analytics model to create risk profile & address risks
throughout the acquisition lifecycle.
Systematically identifies &mitigates acquisition risk by leveraging complex, disparate
data & analytics

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Challenge
Assess financial risk across many countries
Solution
Scorecard that automates information integration and
financial risk monitoring of key risk indicators
CFO
Empowered
Enabled agile decision making to
seize opportunities and mitigate
impact of risk
CFO to be value integrators
Solution Components
IBM
IBM
IBM DB2
Business Intelligence
Predictive Analytics
Use Case: Country Financial Risk Scorecard
Provides business insights into emerging risks with predictive analytics

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Heat Map with CFRS Risk Scores
<=30% > < >=54%
Risk Score Scale
Use Case: Country Financial Risk Scorecard
Benefits
Key features
 100% Automated
 Consistent across 160+ countries
 Standardized, automated
 ~100 metrics
 16 internal and external sources
 predictive analytics
 from 2006, current, future
PredictiveCurrentHistory
Understand
Risk Drivers
Assess and
Deploy Actions
Monitor Risks /
Business Outcomes
 Speed
 Efficiency
Identify and Predict
Increasing Risk Trends
Business Insight
GM Support
Provides business insights into emerging risks with predictive analytics

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• Becoming a High AQ Organization is a journey not a destination.
• Measure AQ to gauge your potential for analytics. Equipped with an understanding of your AQ
Maturity Model Score, your organization is now empowered to understand and map out a
smarter, collaborative analytics strategy and enablement plan.
• Raise AQ by using all forms of data, infusing analytics everywhere, empowering all people, and
all decision making. To speed up your journey, review your AQ results and implement best
practice recommendation on your analytics deployment approaches.
• Have Strong Executive Sponsorship. Lead vision for analytics, govern, develop talent and
skills, cross collaborate data, metrics and reporting infrastructure and capabilities along with
recommendation on analytics deployment approaches.
• Having a higher AQ is the foundation for a cognitive business.
• Get started on understanding your AQ. Take the AQ Quiz located in the AQ Workbook and start
mapping out your strategies today.
Key Take Away’s

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 Analytics Strategy that aligns with business priorities across the enterprise
 Proven Value driving a culture of analytics-based decision making
 Skilled People adopting analytics to gain better business insight
 Shared Processes that balance agility, efficiency, scalability, and compliance
 Common Technology with capabilities that are easy, fast, and trusted
Key Strategies for Business Analytics Success
https://www.mc-store.com/products/5-keys-to-business-analytics-program-success

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Questions?

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Thank you
JULIE A. SEVERANCE
Global Strategy Leader, AQ & ACE
IBM Data & Analytics Strategy & Initiatives Office