Creating a Culture of Analytics

Gebhard F. Rainer

Hyatt Hotels Corporation

Evolution of Information

• Stone Age• Cave drawings record experiences, beliefs and

learnings

• Ancient Egyptians, Romans, Greeks, Chinese

• Alphabets are developed, stone templates, papyrus and carvings are used to record, scripts are written to preserve information

Evolution of Information

• Middle Ages• Churches become powerful because of knowledge

and education. Libraries are established.

• 19th / 20th Century / Industrial Age• Invention of Morse Code, telegraphic age• Radio signals, telex, telephone, computers,

internet………

Evolution of Information

• Today• IBM, WellPoint, and Memorial Sloan Kettering use

Watson to give doctors treatment options in seconds. Streaming analytics process 5 million messages of market data per second to speed up trading decisions.

90%Of the World’s Data

2 Years Has Been Created in the Last

The World is Making a Digital Copy of Itself

22×2011-2016

12.5Billion2020

1.3BillionToday

Smart Device Growth Data Production Increase

Thoughts Things Processes

Big Data Creates Many New Opportunities

A Few Examples…

US HEALTH CARE

$300 B

“In a big data world, a competitor that fails to sufficiently develop its capabilities will be left behind.”

Increase industry value per year by

US RETAIL

60+%

Increase net margin by

MANUFACTURING

–50%

Decrease dev., assembly costs by

GLOBAL PERSONAL LOCATION DATA

$100 B

Increase service provider revenue by

EUROPE PUBLIC SECTOR ADMIN

€250 B

Increase industry value per year by

MEDIA/ENTERTAINMENTViewers / advertising effectiveness

COMMUNICATIONSLocation-based advertising

EDUCATION &RESEARCHExperiment sensor analysis

CONSUMER PACKAGED GOODSSentiment analysis of what’s hot, problems

HEALTH CAREPatient sensors, monitoring, EHRsQuality of care

LIFE SCIENCESClinical trialsGenomics

HIGH TECHNOLOGY / INDUSTRIAL MFG.Mfg qualityWarranty analysis

OIL & GASReserve Capacity estimation,Drilling exploration sensor analysis

FINANCIALSERVICESRisk & portfolio analysis

AUTOMOTIVEAuto sensors reporting location, problems

RETAILConsumer sentimentOptimized sales & marketing

LAW ENFORCEMENT & DEFENSEThreat analysis - social media monitoring, photo analysis

TRAVEL &TRANSPORTATIONSensor analysis for optimal traffic flowsCustomer sentiment

UTILITIESSmart Meter analysis

Impacting Every Industry

ON-LINE SERVICES / SOCIAL MEDIAPeople & career matchingWeb-site optimization

Use Data

12%

Executives who feel they understand the impact data

will have on their organizations

Produce Data

Implications of Data Explosion

METRICS METHODS SKILLS

Even CFO’s Are Getting More Comfortable

of CFOs estimate that over half of their enterprise transactions will be deliveredthrough the cloud

53%

Source: Van Decker, John, “Top 10 Findings From Gartner's Financial Executives International CFO Technology Study”, May 16, 2012, p. 13.]

Talent crunch is real

What skills does a data scientist have to have to be successful and facilitate a culture of analytics?

• Understand the business• Be able to analyze social and unstructured data• Design and test predictive models• Know math and statistics• Cross the lines between social sciences,

business and mathematics• Tell stories using data

A Picture is Worth a Thousand Words

“20 billion neurons of the brain are devoted to analyzing visual information to provide a pattern-finding mechanism that is a fundamental component in much of our cognitive activity.”Colin WareAuthor, Information Visualization

A Picture is Worth a Thousand Numbers

There’s no question that visualization has become a critical capability for organizations of virtually every shape and size. Easy-to-use software makes complex data accessible and understandable for almost any business user.

From discovery and visual exploration to pattern and relationship identification, today’s visualization tools easily affirm the adage that a picture is worth a thousand words, or in this case, numbers.

My personal evolution in analytics

• Have been in this industry for 35 years

• When I started, we used big brown paper ledgers, to record inventories, consumption and costs, then manually calculated KPRs

• The most important tool was a pencil and an eraser

• My first computer at work was a floppy disk drive with 64k of memory

• We used a spreadsheet application called “Symphony”

My personal evolution in analytics

• For many years it was “spreadsheet hell” and job security came through knowledge and safe guarding of hundreds of spreadsheets and links for consolidation

• Accounting “ruled” because they were the only ones using them!

• In early 2000, when I first came to Chicago, we decided to make a radical change.

• We wanted to have a consolidation, budgeting and forecasting system, all integrated, with a Business Analytics Portal, allowing information to be distributed in a uniform, accurate, timely and meaningful way.

A Culture of Analytics

Does your business support a culture that asks the right kind of questions to solve business problems?

Why is Culture important?

Why is Culture important?

Mind-set change• Analytics is as good as the data is

– clean data is key • I have to have a mind-set to look

beyond the numbers and statistics

• I need to ask every time – why, how, when and where?

• “It’s all in the presentation” – I need to have a uniform view of data throughout the enterprise

Behavioral change • Make the analytical approach

part of your daily routine• Rely on solid information and

analysis before you make a “gut decision”

• Focus on proactive changes from learnings coming out of analytics, don’t waste time on “crying over the past”.

It’s all in the Presentation

Analytics at Hyatt

• Our CEO is data driven and supports the company in evolving it’s analytical capability.

• Multiple platforms, multiple tools and multiple data sources – we now have the capability to realize the power of analytics to support our strategy.

• Cross-functional, cross-departmental and a global analytics approach – the world is flat!!

Leadership must be data driven, Executives drive culture and behavior within the organization.

Analytics at Hyatt

• We decided to go with Hyperion Financial Management and Hyperion Planning as our platform.

• We decided to implement a 24 month rolling forecast.

• We wanted to introduce scorecards to have tangible metrics to measure success.

• We were still two private companies, operating with very different philosophies and focus.

It’s a journey, not a sprint and it takes some bold decisions to effect change in the organization.

Mind-set change• It took us 10 years to make a

quantum shift in mindset and become a data driven organization.

• Why is that important for a Hospitality Company??

• Shouldn’t we be more service driven than data driven??

Analyze, think, decide – make mistakes and learn from them fast, don’t hesitate to try and fail – success comes through learning from failures.

Analytics – Personalized and Personal

• We believe in Preference as a differentiator.

• To become the most preferred brand in our industry, we must create emotional and memorable experiences for our customers and employees.

• Being able to make use of data analytics, enables us to create personalized experiences for customers and employees.

The best minds of my generation are thinking about how to make people click ads. That sucks!

Jeff Hammerbacher Cloudera Founder

Business Analytics Infrastructure

Being able to deliver relevant Information from multiple data sources in a timely and accurate manner

Geographic Structure

Functional Departments

Creating a Culture of Analytics

Creating a Culture of Analytics

The Road Ahead………

It’s a long way to go….

• Stay focused• Prioritize and choose

areas of meaningful impact

• Continuously challenge, question and test predictability models

Q & A