How to sustain analytics capabilities in an organization

Copyright © 2012, SAS Institute Inc. All rights reserved.

ANALYTICS MANAGEMENT SERIESPRESENTED BY SAS CANADA


WHY? GROWTH IN ANALYTICAL ENVIRONMENTS

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Complex to develop, support, sustain and manage

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Challenging to realize maximum value from investment


SERIES OVERVIEW ANALYTICS MANAGEMENT SERIES

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Designed to suggest paths towards effective decision-making in order to help sustain and grow analytical capabilities

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Thought leaders who actively manage complex analytical environments will share their best practices and engage in discussion by responding to your questions at the end of the presentation

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Chat functionality is enabled and being monitored

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Webinars are recorded and will be made available on the SAS Canada Community (http://sascanada.ning.com) ‘On Demand’

http://sascanada.ning.com/


UPCOMING WEBINARS

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June 30th

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‘How an Internal Consulting Unit Can Support Enterprise Analytics’

(Eugene Wen, VP & Chief Statistician, WSIB)

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July 15th

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‘The New Business Intelligence’

(Bernard Blais, Senior Manager, SAS Global Technology Practice)

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August 26th

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‘Hosting SAS in the Cloud’

(Robert Tee, Manager, SAS Consulting)

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September 23rd

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‘Training Analysts to Meet Today’s Demanding Business Requirements’

(Marje Fecht, Senior Partner, Prowerk Consulting)


WELCOME EPISODE 1: SUSTAINING ANALYTICAL CAPABILITIES WITHIN AN ORGANIZATION

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Daymond Ling, Senior Director, Modelling & Analytics (CIBC)


1.

Deliver value

2.

Analytics Process and Maturity

3.

Elements of Analytics Capability

4.

People

5.

Culture

6.

Organization

Agenda


Organizations want better performance.

Organizations need to have problems identified and solved.

Organizations don’t want analytics for its own sake.

Sustainability is all about continuous value delivery.

Analytics done right creates value. It is an enabler.

1. Deliver Value


Drive Results

Governance

Origination

Vetting

Prioritization

DeployDeployAnalyticsAnalyticsTopicsTopics

Discovery

Framework

Analysis

Knowledge Management

Action

Communication

Recommendation

Implementation


Relevance

Origination

Where ideas come from

Stay connected

Vetting / Prioritization

Answer what you know, find out what you don’t

Alignment to strategy

Prioritization

Origination

Sources of questions arise from all major divisions of an organization. Understand major issues facing organization to solve important problems is crucial to focus and value.

Mechanism to continuously stay connected to collect and inventory the questions / answers


Key issues of an organization evolve slowly. Use available knowledge to answer questions where possible.

New discovery projects aligned to strategy and have significant potential payback. Vet, prioritize, and stream strategic, tactical

and operational

work.

Advanced analytics discovery results in improved processes and corporate knowledge. As knowledge is gained, they form the corpus of knowledge that the organization should maintain and leverage.

Do The Right WorkDo The Right Work

TopicsTopics


Different Workstreams

# of Projects Impact of workEffort of work

Strategic

Tactical

OperationalDif

fere

nt

Str

eam

Dif

fere

nt

Str

eam

Strategic Tactical Operational

Nature of work Fuzzy Bounded Precisely defined

Subject Area Many Single area Single process

Questions Many Several Single

Approach Investigate Probe Diagnose & tune

Example New way of doing business Grow a line of business A well defined Fraud Detection model within a particular system

Dif

fere

nt

Valu

eD

iffe

ren

t V

alu

e

Engagement spectrumEngagement spectrum


Analytics

Framework

Business issues

Analytic approach

Analysis

Quantitative analysis

Iterative discovery process


Corporate knowledge

Framework

The business framework deals with the “what”. It describes the issues, the set of questions and considerations, the relevant business metrics, what the desired outcome look like, and success criteria if applicable.

The analytical framework is about the “how”. It translates the business framework into mathematical formulation and technical analysis processes that effectively answer the business framework concisely, accurately, and efficiently.

Analysis

Broad range of activities from simple reporting, in-depth drill-down, mapping process flows and metrics, predictive analytics, up to systems simulation and mathematical optimization of systems.

Analysis is only successful if the business framework is relevant and correct.


Manage the corpus of corporate knowledge to ensure it is easily retrievable

Do The Work Right Do The Work Right

AnalyticsAnalytics


Deploy

Communication

Business insights

Recommendation

Action plan

Implementation

Change management

Post change review

Communication

Share findings with stakeholders and partners

What’s working, what’s not working

Recommendation

Craft action plans

What to start, what to stop

Implementation

Delivering against action plan

Monitor actual results against expectation to realize benefits

No action creates no (immediate) value?

Inappropriate work?

Analysis paralysis / fulfill curiosity?

Work incomplete / incorrect?

Controversial findings?

Organizational willingness to act?

Lack of funding / capability gap

No action creates no (immediate) value?

Inappropriate work?

Analysis paralysis / fulfill curiosity?

Work incomplete / incorrect?

Controversial findings?

Organizational willingness to act?

Lack of funding / capability gap

Insight into ActionInsight into Action

DeployDeploy


2. Analytics process

Domain knowledge Don’t care

Understand processes Don’t care

Know what data is relevant Leave out important data

Know how data relate to process Data are just numbers

Solve right problem Solve wrong problem

Flawless and efficient Wrong technique done wrong

Articulate findings Can’t relate to domain or process

Solutions Talk math

Generating insight is more than doing mathGenerating insight is more than doing math

Domain

Process

Data

Analytics

Story


Analytics Maturity

Data

Management

Data

ManagementAdvanced Analytics:

Statistics & Optimization

Advanced Analytics:

Statistics & OptimizationBusiness

Analytics

Business

AnalyticsReporting and

Trending

Reporting and

Trending

Master Data Management

360 view

Dashboard

Standard reports

Report specification

Opportunity sizing

Root cause analysis

Problem solving

Explanatory effects

Prediction

Time series analysis

Optimal decision under competing conditions or constraints

Reporting software

SQL

Entity relationship

Warehouse

Hadoop

Reporting software

Data Visualization

Statistics

Time series

Optimization

Simulation

Typ

e o

f w

ork

Typ

e o

f w

ork

Meth

od

Meth

od

Where are you, where do you want to beWhere are you, where do you want to be


Analytics Maturity

Demand is uneven across this spectrum.

Enable the organization to run efficiently now.

Lead the organization on the Art of the Possible.

Demand is uneven across this spectrum.

Enable the organization to run efficiently now.

Lead the organization on the Art of the Possible.

Current and Now

Future and Possible

Lead The WayLead The Way


3. Capability

PeoplePeople

ToolsTools ProcessProcessDataData + +

Analytics is an intellectually intensive knowledge discovery process.

It is human thought enabled

and amplified

by powerful machine learning techniques and tools.

Quality of outcome is predominantly determined by the pilot, not

the machineQuality of outcome is predominantly determined by the pilot, not

the machine

SynergySynergy


Synergy

PeoplePeople

ToolsTools ProcessProcessDataData + +

The view of “dump data into the machine and answers pop out”

is an incomplete portrayal of the analytics process.

People bring experience, creativity and judgment to the discovery journey. People decide the direction and make decisions along the way.

Tools handle well specified (very powerful) computational tasks.

They discover nuggets of information, pieces of the puzzle, but it can’t “know”.

World class analytics requires firing on all four cylinders.

✘

People exercise intuition and judgment, machine crunch numbersPeople exercise intuition and judgment, machine crunch numbers


4. People

AnalyticsAnalytics PeoplePeople ProcessProcess ToolsTools DataData+ + +

Business Driver

Business Driver

Analytics Engine

Analytics Engine

Origination


Framework

Analysis

Communicate

Change

Business Change Agent

Know business issues well

Know what are important

Know where analytics can be used

Know what’s possible conceptually

Communicate business impact

Craft and drive change management

Technical Excellence

Has business domain knowledge

Understands business processes

Knows how to structure analytics

Technical expert in advanced analytics

Present technical finding in business terms

Assess success of process changes

Two complementary skills

Technical Excellence and Business SavvyTechnical Excellence and Business Savvy


Talent Attribute

Quantitative skills

Problem solver

Keen learner

Objectivity

Communication

Team player

PASSIONPASSION

Large scale analytics is a team sportLarge scale analytics is a team sport


5. Culture

Clarity of purpose Unclear objectives, impossible tasks

Involve Dictate

Work is valued Ignored or lack implementation

Open to explore Rigid project management

Open to experimentation Mistakes not allowed

Supportive team Working alone

Learning & SolvingLearning & Solving


6. Organization

Domain Expertise

Familiarity with business and processes

Familiarity with systems and data

Ease of mobilization

Quality of work

Speed of delivery

Cost

Knowledge management


Large Organization

Analytics Centre of Excellence

Distributed Analytics Function

Centralized Analytics

Analytics islands

Analytics individuals

Scale MattersScale Matters


Engage. Just Do It. Start Now. Don’t Wait. Learn & adjust along the way.Start Now. Don’t Wait. Learn & adjust along the way.


Thank You

You can find me (Daymond Ling) on Linkedin

How to sustain analytics capabilities in an organization

Data & Analytics

Transcript of How to sustain analytics capabilities in an organization