proven. results. faster. university of tennessee © bradley, miles and pannell business analytics...
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PROVEN. RESULTS. FASTER.
University of Tennessee© Bradley, Miles and Pannell
Business Analytics Strategic
Approaches
Session Objectives
To review the definition of business analytics
To introduce five approaches to business analytics
Analytics Strategic Approaches 2
Blindfolded Men Describe Elephant
It’s a Snake It’s a
Spear
It’s a Bridge
It’s a Tree Trunk
It’s a Blanket
It’s a Python
Analytics Strategic Approaches 4
Blindfolded Men Describe Elephant
It’s Data Warehousin
gIt’s SAS Softwar
e
It’s Statistic
s
It’s Mathematical Models
It’s 6 Sigma
all over again!
It’s Executive Dashboar
ds
Business Analytics
It’s Computer Science
Analytics Strategic Approaches 5
Davenport – Competing on Analytics
“The extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions”.
Re-quoted from Competing on Analytics
Enterprise Analytics. Thomas Davenport. Pearson Publishing. 2013. Page 9.
Analytics Strategic Approaches 6
TQM (1980’s)
Fact-based decision making. In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history.
Six Sigma (1990’s)
Features that set Six Sigma apart from previous quality improvement initiatives include:
A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.
An increased emphasis on strong and passionate management leadership and support.
A special infrastructure of "Champions", "Master Black Belts", "Black Belts", "Green Belts", etc. to lead and implement the Six Sigma approach.
A clear commitment to making decisions on the basis of verifiable data and statistical methods, rather than assumptions and guesswork.
Been There …… Done That?
Analytics Strategic Approaches 7
Differences We See
Big Data Real-Time use of data Selling data Decision-Based data
Analytics Strategic Approaches 8
Allen’s Definition of Business Analytics
Utilizing Data to Increase Shareholder Value
Data = Big and Small Internal and External Structured and Non-structured Traditional and “New” “Free” and Purchased
Analytics Strategic Approaches 11
Allen’s Definition of Business Analytics
Utilizing Data to Increase Shareholder Value
Utilizing = Determine Business Needs Capture and Store Ensure Quality Access and Format Analyze and Summarize Gain Insight and Produce Action and …….. ‘Sell’ It
Analytics Strategic Approaches 12
PROVEN. RESULTS. FASTER.
Types of Questions and Analytics
Descriptive Predictive Prescriptive
Questions What happened?What’s happening?What actions are needed?What exactly is the problem?What actions are needed?
Why is this happening?What will happen next?Why will it happen?
What should I do?Why should I do it?What’s the best that can happen?What if we try this?
Enablers • Ad hoc Reports• Dashboards• Data Warehousing• Alerts
• Data Mining• Text Mining• Web/Media Mining• Forecasting
• Optimization• Simulation• Decision Modeling• Randomized Testing
Outcomes Well defined business problems and opportunities
Accurate projections of the future states and conditions
Best possible business decisions and transactions
Possible Strategies for Business Analytics
1. Competing ON Analytics Analytics is THE key competitive advantage Target Result – Sustainable competitive advantage
2. Competing WITH Analytics Focus on one business process Target result – Incremental profits
3. Improving With Analytics Culture of analytics Target result – Continuous improvement
4. Revenue Through Analytics “Sell” data as a secondary product Improved margins or market share
5. Persevering Through Analytics Do what the competition does The price of entry
Analytics Strategic Approaches 14
Which Strategy?
Our Mission:CareerBuilder's mission is to empower employment. We are striving to organize all the world's human capital data and make it meaningful for society
Analytics Strategic Approaches 15
Analytics Practices…Who’s Doing What?
51%
19%
12%
8%
5%4%
1%Improving with Analytics (Incrementalists)
Competing with Analytics (Internists)
Revenue through Analytics (Industrialists)
Competing on Analytics (In-tensivists)
Persevering though Analyt-ics (Idlers)
Are you kidding me…I have no idea!
Other
N=95 firms
Analytics Strategic Approaches 16
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