getting the most out of your company in the age of analytics

Getting the Most Out of Your Company in the Age of Analytics

About Us

2

MorganFranklin Consulting optimizes performance by translating business strategy into executable solutions that include a mix of business process improvement and technology.

MorganFranklin is positioned

between those who provide pure

strategy consulting and those who

provide staff augmentation to

support day-to-day operations.

We convert strategies into realistic

plans and roll up our sleeves to

implement the changes needed to

help clients improve or transform

their businesses. We turn “business

as usual” into better business.

© MorganFranklin Corporation. All Rights Reserved.

Advances in data creation, capture, and storage is creating a “data tsunami”; those companies that can take advantages of data analytics will be the winners

3© MorganFranklin Corporation. All Rights Reserved.

Data-driven organizations incorporate data analysis into strategic and tactical decisions on a daily basis, at the direction of senior leadership

What is a data-driven

organization?

Data-driven organizations achieve higher levels of productivity and profitability by promoting a culture of analytics and deploying advanced analytics tools

Why should I care?

Develop a centralized analytics capability – a shared Analytics Hub – that houses tools and knowledge that allow a business to drive improved financial and operational results

How do I contribute to building a data

driven organization?

Having the right technology is “table stakes” for data analytics

To truly parlay that technology companies must have executive sponsorship, provide incentives, and openly share data


1. Active senior executive support for data-driven initiatives

• Sponsor people, process and technology programs that advance analytics objectives

• Advocate for and champion data-enabled decision making

2. Sharing of data across business and functional units throughout the enterprise

• No longer expect IT and Finance to handle all data collection, data quality and data queries

• Data collection emerges as a primary task for every business and functional unit

3. Alignment of incentives with desired behavior throughout the organization

• Reward employees for using data analysis to guide the decision-making process

• Create a culture of respect for measuring, testing, evaluating, and questioning quantitative figures

Data-driven organizations

incorporate impactful analytics

into daily decisions and view this

as a shared responsibility across

functions and levels

Executive Sponsorship

Sharing of Data

Incentives


Business analytics has

become one of the top three

finance initiatives in 2013.

CFOs see enhanced

capabilities in this space as

a way to facilitate and expedite

decision-making – keys to

improving productivity.1

1 John E. Van Decker, “Survey Analysis: CFO’s Top Imperatives From the 2013 Gartner FEI CFO Technology Study,” Gartner (2013)

Progression along the analytics maturity spectrum means shifting from looking backwards at what happened to driving actions and decisions

Predictive and prescriptive analytics provide better insights, improving profitability and productivity

2 “Research Note: Analytics Pay Back $10.66 For Every Dollar Spent,” Nucleus Research (2011)3 Andrew McAffee and Erik Brynjolfsson, “Big Data: The Management Revolution,” Harvard Business Review (2012)

• Provide more detailed and timely information on customers, what they buy and why

• Allow managers to accelerate sales cycles and identify new opportunities for cross selling

• Organizations realize a return of more than $10 for every $1 invested in advanced analytics capabilities.2

Revenue Generation

• Provide insights into a company’s optimal product mix given current and anticipated conditions in the market

• A 2012 study found that industry leaders experienced 5% higher productivity and 6% higher profitability than their competitors by leveraging data-driven decision making.3

Gross Margin Management

• Allow for better inventory management reducing the cost of storing inventory for long periods of time

• Reduce manual processes and costs• Provide for better control and visibility of expenses

Expense Reduction


Shared Services traditionally focus on reducing costs, but shared services for analytics gives providers the ability to deliver both cost and revenue benefits to the enterprise


An Analytics Hub combines the traditional benefits of a SSC with additional value through advanced decision support and analytics


Analytics Subject Matter Experts and Data Scientists to work with the business and design analytics models

Predictive and prescriptive analytics models and processes to govern how to use and modify them

Foundational analytics applications and processes

Enterprise-wide financial and operational data storage and supporting hardware and network infrastructure

An Analytics Hub supports the ability to turn information into insight without redundant and excessive investment in people, processes and technology

• The Analytics Hub contains a single instance of the required infrastructure, applications, processes, subject matter experts, and data scientists

• All enterprise financial and operational data is stored in infrastructure maintained by the Analytics Hub

• The business provides requirements for analytical models, consults with SMEs and data scientists, and is able to view information in intuitive dashboard formats

• SMEs and Data Scientists create analytical models and design the data structure and governance processes

Business & Functional Units

Business Users

Business Users

Business Users

Analytics Hub

Data Warehouse Cross-enterprise Financial and

Operational Data

Analytics Application

Dashboards / Reports

SMEs

Data Scientists

Fin

an

cia

l an

d O

pe

ratio

na

l Da

ta

Analytics Models


SMEs

Business Application



In order to successfully implement an Analytics Hub, the following four factors must be part of the related implementation and monitoring plan

The coordination of people, processes and technology throughout the organization necessitates senior leadership buy-in and support

Senior Executive Sponsorship

Aligning analytics with strategic objectives supports meaningful, actionable data-driven insights

Alignment with Enterprise Strategy

Establishing an Analytics Hub centralizes data strategy and management, establishes close partnerships between business units and dedicated members of the Analytics Hub, and sends a strong signal that the organization is invested in advanced analytics

Data-driven Culture

Collective talent residing in an Analytics Hub are well-equipped to create a centralized information management plan consistent with governance, risk and compliance standards to effectively capture, integrate, and produce analytics insights

Information Management Plan

Critical Success Factors Analytics Hub: Conditions of Satisfaction


An organization should follow three main steps to develop its Analytics Hub

The journey to becoming a data-driven organization begins with assessing current capabilities, closing gaps to deliver results and defining a blueprint for continuous improvement.

Assess current analytics capabilities

Examine tools, technology, information and data management across business units and functional areas

Identify pockets of expertise

Baseline the organization’s capabilities against the Analytics Maturity Model

Close the gaps and deliver results

Document the gaps between capabilities and Analytics Hub strategy and group into implementable initiatives

Start delivering quick wins Outline initiatives, which

should include project charters and be prioritized based on business value, ROI and other factors

Define a blueprint for continuous improvement

Implement Analytics Hub initiatives

Consider an agile approach to implementation to quickly deliver results and allow for realization of benefits

Be aware and take advantage of analytics advancements and opportunities for additional value


Advanced analytics yields benefits that provide a competitive advantage to an enterprise

Shared services must continue to evolve through the development of an Analytics Hub to capitalize on these opportunities and use data as a strategic asset

An Analytics Hub delivers the standard cost reduction benefits associated with shared services, while also providing insights that will drive top line growth

Predictive and prescriptive analytics are exploratory, uncovering new insights and opportunities for innovation


Questions & Answers

getting the most out of your company in the age of analytics

Technology

advantages of data analytics

data analysis

data queries data collection

big data

data quality

data scientists

data creation

data tsunami