Business Analytics Competency Centre:

A Strategic Differentiator

© BSG. All rights reserved.

Steven Ing Associate Consultant, BSG Africa

12 February 2015

Industry trends •  Definition of digital insurance strategies. •  Customer centricity and improving the customer experience,

including compliance requirements. •  Business analytics and information intelligence. •  Channel development and integration. •  Legacy modernisation, to support faster time-to-market with new

products and services and greater flexibility. •  Assessing opportunities from emerging and potentially disruptive

technology innovation, such as sensors in short-term vehicle insurance, wearable technology, etc.

•  Managing innovation. •  Modernisation of business processes to support new business

models. •  Regulatory change and compliance is increasing.

Business Analytics

§  To excel, you need to: §  Treat your data as a strategic asset §  Harness that data to your advantage §  Look forward, not only backwards §  Keep asking “what if?”

Confident leadership is driven by accurate data and decisions based on it

Tom Davenport Author and Distinguished Professor at Babson College

It requires an enterprise strategy to coordinate and align key dimensions, most notably people

§  The challenges: §  Growth in available information §  Competing priorities §  Information silos §  Business unit alignment §  Direction and leadership

INFORMATION  

PRIORITIES?  

ALIGNMEN

T?  

§  To succeed, organisations need more than §  Technology §  A data warehouse §  Analytical talent

§  They need §  Enterprise wide approach, sound collaboration between business

and IT, alignment with business strategy, change management…

Solution: Develop a strategy to address organisational alignment

Most information management practices tend to be ad hoc…

§  And follow a “Project” mentality §  Start and end date with a narrow business focus §  Repeat standard processes – no “re-use” §  Sub-optimal use of skills §  Not enough data exploitation §  Potentially adding more silos §  Allow information to get outdated §  Unclear project ownership

Typical environment ?

Leading information management practices support the biz strategy…

§  And follow a “Program” Mentality §  Ensure buy-in from business and IT §  Re-use standard processes (leading practices) §  Leverage skills and promote ongoing learning as business

requirements change §  Objective analysis – identify questions that have

not been answered §  Reduce complexity – one version of the truth §  Ensure necessary changes are done on time

Target environment ?

An enterprise center of excellence should lead the effort…

§  Major objectives §  Change from a project to a program mentality §  Change from a tactical to a strategic approach §  Provide business and IT with shared-ownership of

the enterprise information environment

The journey towards the target ?

An executive vision to use data as a strategic asset is critical

§  Focus on key organisational dimensions §  Human Capital §  Internal Information Processes §  Technical Infrastructure §  Organisational Culture

§  Continuous alignment with business objectives §  Supported by an enterprise BA Center of Excellence

Developing the target environment

Use a framework as a guide

Maturity Model

Culture

Individual

Departmental

Enterprise

Optimise

Innovate

People Process

Infrastructure

Maturity

Busi

ness

val

ue

Campaign management / optimisation

Cash management / optimisation

Workforce Planning and management IT

performance management

Scorecarding and dashboarding

Activity based management

Budgeting and

planning

Legal reporting

Regulatory compliance

Asset liability management

Fraud management

Operational, market and credit risk

Segmentation and profiling

Customer profitability and lifetime value

Acquisition and retention

Cross-sell, up-sell and

event triggers

Risk intelligence

Customer intelligence

Operational intelligence

Financial intelligence

The difference between BI and BA

Historical business information to improve business decision

Gain insight, reveal patterns, anomalies, relationships to take precise and accurate

actions and decisions

INFORMATION MANAGEMENT ANALYTICS REPORTING

?

What happened?

Standard reports

How many, how often, where? Ad hoc reports

Where exactly is the problem? Query drill

down

Why is this happening? Statistical Analysis

What if these trends continue? Forecast

What will happen next? Predict

What is the best that can happen?

What actions are needed? Alerts

Raw data

Clean data

Optimise Competitive Advantage

Degree of Intelligence

What is Business Analytics?

Centers of Excellence

An internal strategic team of experts with a specific focus on facilitating and promoting the use of analytics to achieve business objectives across the enterprise

§  A central point for §  developing and evolving the Business Analytics infrastructure §  promoting collaboration and leading practices §  driving growth, cost reduction, and profitability

What is a Business Analytics CoE?

A BA CoE must be sponsored by the executive team!

§  Additionally §  Includes IT, business domain and analytic expertise §  Has well defined charter, responsibilities, and processes §  Collaborates with ALL appropriate stakeholders §  Focuses on making analytics a repeatable process

Key characteristics of a BA CoE

Enterprise BA CoE functions

Enterprise PM Strategy

Promotion of PM within enterprise

Governance & Policies

Alignment with Business Priorities

Technology Requirements & Standards

Data Quality Standards

Copyright ® 2011, SAS Institute Inc. All rights reserved.

Best practice BA environment

BA Governance Model Supported by a Business Intelligence Competency Center

Best Practice Architecture Business

Requirements EDW Enhancements Continuous and strong connection

BACC Organisation

© BSG. All rights reserved.

The goal of the BA CoE

§  Alignment §  Joint ownership §  Focus on business

priorities

§  Different Perspectives §  Competing Priorities

Most current Environments Desired Environment

Align business and IT perspectives

Summary

•  Effective use of analytics requires more than just technology

•  Align business & IT perspectives is key

•  Assess capabilities and develop roadmap

•  Establish a CoE to support your effort

© BSG. All rights reserved.

Questions

Johannesburg Cape Town

Laura Greaves Business Development +27 11 215 6666 laura.greaves@bsg.co.za Oxford Terrace 3 Ninth Street Houghton Estate 2198 www.bsg.co.za // @bsgafrica

Laura Greaves Business Development +27 11 215 6666 laura.greaves@bsg.co.za Stonehill Place 22 Riebeek Street Cape Town 8001 www.bsg.co.za // @bsgafrica

Steven Ing Associate Consultant

+27 11 215 6666 steven.ing@bsg.co.za