Just the facts ma'am dynamics webinar - 11 4 2013 v2

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@Halo_BI #HolisticBI

“Just the Facts, Ma’am”:What Makes Data-Driven Organizations

Better?

Ray Major, CEO

Halo Business Intelligence

What makes them better?• Leverage data to:

– Create better products

– Increase user experiences

– Improve fraud detection

– Maximize Marketing campaigns

– Anticipate supply/demand conditions in different markets

– Risk mitigation

– Have better dialog with customers

Agenda

• Humans need for Data

• What does it mean to be data driven

• How companies benefit from being data driven

• 5 Steps to becoming data driven

Why Now?

Source: Cast Away, 20th Century Fox 2000

Why do we need to use data to drive

decisions anyway?

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Decisions drive business

500 Number of decisions made

by an employee per day

X 100 workers

= 50,000 decisions per day

X 200 work days per year

= 10,000,000 decisions per year

Decisions require Human Intelligence

Why do we need to be data driven?Where you have been Where you are going

When something goes wrong When you reach your target

Benefits of being data driven

Drive STRATEGY and direction of the organizationProvide FOCUS for: the organization, department,

or individualHelp make

DECISIONS

PERFORMANCECHANGE and evolve with the organization

The problem with Business Intelligence

8 out of 10 2 out of 31 out of 12Not achieving desired goals Have achieved anticipated ROI Need to improve

analytic capabilities

WHAT DOES IT MEAN TO BE DATA

DRIVEN

Being Data Driven

Data concentrated

in the hands of a

few individuals

Data used by

small groups of

people or

departments

Data integrated

into day-to-day

corporate

operations and

decision making

Data utilized by

corporate

ecosystem of

suppliers, vendors

distributors and

customers

DATA-DRIVEN MATURITY“Not” data driven Data Driven

“Siloed” “Enterprise”“Departmental” “Ecosystem”

Data-driven Decision Management

is an approach to business governance that

focuses on gathering data and analyzing it

to guide corporate decisions at all levels

within an organization.

Attributes of Data-Driven Companies

• Believe companies, not employees own the data.

• Shared data should be used by as many

employees as possible

• Make data collection a primary activity across

departments

• Have buy in from the top

HOW COMPANIES BENEFIT

FROM BEING DATA DRIVEN

Where do Data Driven Organizations see benefits?

Increased

Productivity

Cost Reduction Faster Decision

Making

Program

Improvements

Improved Financial

Performance

Siloed Users

Enterprise-wide

Source: Harvard Business Review 2012

Data Driven Cultures

Mandate the use of analytics

7% 87%

0% 100%

Use the right metrics

12% 80%

Promote Decision-making transparency

59%23%

0% 100%

Data-Driven Decision Making

Reporting Analysis

Dashboarding

Real Time

Monitoring

Predictive

Modeling

Innovation

Analytics Role in Decision Making

Siloed Users

Enterprise-wide

Source: Harvard Business Review 2012

Benefits of being Data-Drivenyear over year increase in:

• 34% operating cash flow.

• 42% operating profit.

• 41% organic revenue.

nearly 4 times the industry average

Source: Aberdeen, 2011

• 40% sales pipeline.

nearly triple the industry average

• 20% return on mkting investment

more than double the industry average

• 94% customer retention

• 96% employee retention

Tying data

to GoalsCorporate Goals

Data Sources

Tying data

Data Sources Data Sources

Have you solved the

problem?

Or exacerbated it?

Tying data

Data Sources Data Sources

Have you solved the

problem?

Or exacerbated it?

Tying data

to metricsCorporate Goals

Critical Success Factors

Corporate KPIs and KRI’s

Business Processes

Data Sources

Business Level Metrics (PI’s and RI’s)

Improve customer service

Increase customer retention rate

• Faster problem solving

• More Information online

• Less Phone wait

Monthly customer churn rate

• Target 24 hrs for resolution

• 20% per month for 5 months

• 2 minute average wait time

• Calculation from the CRM

• Requires an inventory and plan

• Intercept Phone System data

Corporate Goals

Business Processes

Data Sources

Business Level Metrics (PI’s and RI’s)

Build a raft suitable

to get over the reef

Get off the Island

• Braid 4 25 foot ropes per day for 30 days

• Collect 10 coconuts per day

120 lengths of 25 foot ropes

Collect 100 coconuts

• Braid one before lunch one

after, two in the evening

• Collect 10 coconuts per day for

10 days

• Local vines

• Coconut trees

Corporate Goals

Business Processes

Data Sources

5 STEPS TO BECOMING DATA DRIVEN

Parts of the following section of the presentation draw from:

The Intelligent Company: Five Steps to Success with Evidence-Based Management,

Bernard Marr, 2010

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STEP 1: Define Objectives and Information Needs

Which road do I take? She asked

His response was a question:

Where do you want to go?

I don’t know,” Alice Answered,

“Then,” said the cat, “It really doesn’t matter.”

Lewis Carroll’s Alice in Wonderland

1. What Goal are we trying to achieve?

2. What do we need to know to achieve this Goal?

3. How will we acquire the knowledge?

4. Who are the stakeholders?

5. What do they need to know?

Define Objectives and Information Needs

Balanced Scorecard Robert Kaplan (Harvard Business School), David Norton 1996

Strategic Framework

Financial: Increase shareholders

Internal Business

Processes:How value is created

and sustained

Customer:The differentiating value

proposition

Learning /

Growth: Role of intangibles:

People, systems, culture

Revenue Growth Strategy

Productivity Strategy

Revenue from new customers

Increased Share of Wallet

Become Industry Cost Leader

Maximize use of existing Assets

Increase Quality

Rapid purchase process

Appropriate Selection

Increase product options

Outstanding Customer Rel.

Timely Distribution

Improve supplier efficency

Knowledge management

Enterprise use of metrics

Reduce errors per 1,000

One-click shopping

8 vs 3 option packages

Invest in Mkt research/ R&D

Reduce wait time to 2 minutes

Ship within 24 hrs.

Supplier Scorecard

Internal training classes

Data-Driven Initiatives

•Strategy/Vision/Mission

•KPI’s. KRI’s, Financials

Executive

Management

•Business Processes

•PI’s Ri’s, machine uptime, customer sat.

Operational Decision

Makers

•Reports and Analytics

•Create Information, raw data needs

Analysts, Controllers,

Report Developers

•Data Gathering/Management

•Accessibility and Usability of data

ETL Developers,

Database specialists

•IT infrastructure

•Data storageIT Professionals

rmatio

BI is a layered and hierarchical discipline•Concerning information requirements:

Underlying layers are subject to layers above

•Concerning information flow

Higher layers are subject to underlying layers

ally O

Who needs what data.Define Objectives and Information Needs

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STEP 2: Collect the Right Information

I never Guess……..

… It is a capital mistake to theorize before one has data.

Insensibly one begins to twist facts to suit theories, instead of

theories to suit facts.

Sir Arthur Conan Doyle

Collecting the right data

•Determine the right data needed to answer the questions

•Is the data in the right format?

•If not, How do we obtain it?

•Existing data sources? CRM, ERP, POS, etc.

•Surveys?

•Big Data?

•Monitoring processes?

•Quantitative vs. Quality data

Collect the Right Information

Indicators

Historic Future

KPIKRI

PIPIPIPI

RIRIRI RI

RI Peri

Crucial,

Pivotal,

Indispensable

Not KEY:

Lesser,

Auxiliary

Collect the Right Information

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STEP 3: Analyze Data, Gain Insights

Data is not information …..

… information is not knowledge,

knowledge is not understanding,

understanding is not wisdom.Clifford Stoll, Astronomer

Data Dumps =/= Data Driven

•Turn the data into relevant insights (wisdom)

•Analyze the data in all ways possible

•Extract relevant information from the data

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Analyze Data, Gain Insights

Human Intelligence Continuum

Researching Absorbing Interacting Reflecting

(Understanding)

Applied Knowledge –

”decisions”

(numbers, facts, figures)

(Interpretation of the data)

(what we know to be true)

Data to information to knowledge to wisdom

6 Smith

Cups of brown sugar

Cups white sugar

Tablespoons cinnamon

Teaspoon lemon zest

Teaspoon salt

Teaspoon nutmeg

10 Tablespoons butter

Granny apples

2 1/2 Cups flourdegrees

Six Sigma (DMAIC)

• Define Customer requirement (or KPI’s etc.)

• Measure Current Performance

• Analyze data – cause and effect

• Improve Process – fix/prevent problems

• Control Improvement to keep on course

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STEP 4: Present and Communicate Information

You can have brilliant ideas …

But if you can’t get them across, your ideas

wont get you anywhere.

Lee Iacocca, CEO, Chrysler Corp.

Data cannot speak for itself.

•Present and communicate the information in a way where the user has exactly what they need

•Pay special attention to determining the most effective way of reporting and visualizing the information.

Present and Communicate Information

•Strategy/Vision/Mission

•KPI’s. KRI’s

Executive

Management

•Business Processes

•PI’s Ri’s

Operational Decision

Makers

•Reports and Analytics

•Create Information

Analysts, Controllers,

Report Developers

•Data Gathering/Management

•Accessibility and Usability of data

ETL Developers,

Database specialists

•IT infrastructure

•Data storageIT Professionals

rmatio

Executive Dashboard

Grids and Graphs

Slice and Dice/ Drilling

Data Aggregation

Data Structures

BI is a layered and hierarchical discipline•Concerning information requirements:

Underlying layers are subject to layers above

•Concerning information flow

Higher layers are subject to underlying layers

ally O

The right information for the right user.Present and Communicate Information

Remember the target audience

• Frame the report with questions (KAQ’s and KPQ’s)

• A picture is worth a 1,000 words. (or numbers)

• BI tools don’t solve problems, People solve

problems.

Remember the Target Audience

• Frame the report with questions (KAQ’s and KPQ’s)

• A picture is worth a 1,000 words. (or numbers)

• BI tools don’t solve problems, People solve

problems.

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STEP 4: Present and Communicate Information

STEP 5: Make Data based decisions

Knowing is not enough;

we must apply.

Willing is not enough;

we must do.Johann von Goethe, author of Faust

Holistic Business Intelligence

Data-Driven

Holism

Technology

Culture

Internal• Executives

• Operational Managers

• Business Analysts

• Information Users

External• Customers

• Suppliers

• Vendors

• Distributors

Mission, Vision

KPI’s, KRI’s

Score Cards

Data Collection

Internal Data Sources

ERP, CRM, POS

Syndicated Data

3rd Party Data

“Big Data”

BI Software

Dashboards

Drill thru

What-if

Predictive

Make Data based decisions

Process People Technology

Cultural Shift, Supported from the Top

More Business Hard Costs More Business Value

BI Cost to Implement vs. BI Value Realized

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Data collection Data Prep Reporting Analytics Distribution Metrics Driven

Cost Benefit

tive t

enefit

What makes Data Driven companies better?

They understand the importance of

empowering the people in their

organizations to make decisions based on

data that is systematically tied to, and

support their corporate goals.

Rights Reserved

Contact Us: For more information, contact:

Ray Major

(888)300-0219

Ray.Major@HaloBI.com

Carmen Wilson

Partner Manager

Carmen.Wilson@halobi.com

Just the facts ma'am dynamics webinar - 11 4 2013 v2

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