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Jaime Fitzgerald spoke about the the challenges and importance of applying private sector methods to unlock more social benefits from the world's data.
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Architects of Fact-Based Decisions™
Turning Big Data into Social GoodThe Challenge, The Opportunity
Jaime Fitzgerald December 6, 2011 – Turin, Italy
2Turning Data to DollarsTM : A Practical Approach
Introduction
Jaime Fitzgerald,Founder @ Fitzgerald Analytics
Mission:• Find & unlock opportunitiesvia data, technology, people, + processes.
Principles: “Begin with the End in Mind” (Covey)
“Quality is Free” (McGregor)
Role:
3Turning Data to DollarsTM : A Practical Approach
From Data to Dollars…
Fitzgerald Analytics: Converting Data to Dollars™
Better Data Better Analysis Better Results
“A journey of a thousand miles….”
4Turning Data to DollarsTM : A Practical Approach
The Gap vs. Potential
Let’s discuss the keys to increasing your odds of success…
Best-selling books on Analytics (Competing on Analytics, Supercrunchers, etc.) New efforts (business units, teams, roles, initiatives)
1. So Much “Buzz” about the Potential of Analytics
Selected firms have made analytics a source of competitive advantage It happens every day… just not as broadly as would be ideal
2. When Analytics Works, the Impact is Buzz-Worthy!
Right Focus Right Method Execution Results!1 2 3 4
5Turning Data to DollarsTM : A Practical Approach
Why So Much Untapped Potential?
Long Term Vision
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The #1 Threat to Results … Complexity
We need a way to simplify this complexity without losing the potential
1. Busines
s Models
2. Decisions + Processes
3. Analysis Options
4. Tech Tools, Platfor
ms, Plug-ins,
Deployment
OptionsAnalytic Initiatives
7Turning Data to DollarsTM : A Practical Approach
Other Root Causes of “Analytic Underperformance”
While complexity is the largest impediment to results in analytics, there are several other challenges worth mentioning…
The good news is…
…managing complexity makes all these other problems easier to manage also…
Cross-Functional Collaboration
Communication Challenges
Technology and Data Management Barriers
1
2
3
People: Talent, Skills, Learning, Team Effectiveness
4
8Turning Data to DollarsTM : A Practical Approach
What if Steven Covey Were An Analyst?
9Turning Data to DollarsTM : A Practical Approach
Three Simplifying Concepts
To “begin with the business goal in mind,” I recommend three concepts
1. Point of Opportunity
2. Causal Clarity
3. Causal Model
Term
An opportunity for improvement within YOUR business model
Defined because it impacts key drivers of your results
Clear Definition of key drivers, cause + effect in your business model, business unit, etc.
Easy to Explain to others, preferably visually
A visual representation of “what drives results” in your business model
Create this, and you have achieved “Causal Clarity”
Definition
Cause Effect
PriceRevenue
Transactions
10Turning Data to DollarsTM : A Practical Approach
Causal Models: A Simple “Base Case”
Each business model has an inherent “causal model,” but the “core branches” are similar
Revenue
Cost of Revenue
Operating Costs
Marketing
Overhead
Other
Gross Profit
Other Costs
Net Profit
less
less
Example: Drivers of Net Profit
Your Business Model
Has
11Turning Data to DollarsTM : A Practical Approach
Example: A Point of Opportunity
Here is an opportunity to enhance ROI on Marketing + Sales efforts:
Volume
Price per Transaction
Sales and Marketing
Transactions per Client
# of Clients
X
Point of Opportunity:
“Efficiency of New Client Acquisition”
Key Driver / KPI: Acquisition Cost per New Client
Formula: [spending on new client marketing]/[# New Clients)
12Turning Data to DollarsTM : A Practical Approach
Insights or Information Required
Analysis Methods Required to Create this Information
Required Data
Tools, Platforms, Technology, People, and Processes
Your Point of Opportunity (Decision or Process)
Translates to
Which drives
Allowing definition of
And selection of the right
Planning Your Analysis
Planning starts with the goal, the “point of opportunity”
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Summary of Key Takeaways
We hope you will benefit from the concepts shared today
Executives Leadership Establish “causal clarity” visually so that everyone understands Encourage teams to use this context to prioritize and target effort Expect recommendations to be justified by their impact on key drivers
Business Professionals Identify points of opportunity before investing time in analytic details
Technology Professionals Insist upon understanding the business context and causal logic of requests for analytic systems and effort
1. Begin Your Business Model
2. Define + Agree on the Causal Model
3. Identify Points of Opp.
4. Define the info needed to unlock the opp.
5. Keep analysis as simple as possible…
For AllAttendees
Tips By Role:
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Thank You!
Email [email protected]
Twitter jaimefitzgerald
Phone 1-917-846-3759
Website www.fitzgerald-analytics.com
For more information and comments, you may reach me through the following:
15Turning Data to DollarsTM : A Practical Approach
Let’s Change the World Together (for the better!)
Email [email protected]
Twitter @jaimefitzgerald@fitzanalytics@data2dollars
Phone 1-917-846-3759
www.fitzgerald-analytics.com
