The document discusses establishing a business analytics competency center (BACC) to help organizations better utilize analytics. It notes that effective analytics requires more than just technology and emphasizes the importance of aligning business and IT perspectives. A BACC can serve as a central hub to develop analytics infrastructure, promote collaboration, and ensure analytics efforts are in line with business priorities. The goal of a BACC is to facilitate a strategic, enterprise-wide approach to analytics through joint ownership between business and IT.

1. Business Analytics
Competency Centre:
A Strategic
Differentiator
© BSG. All rights reserved.
Steven Ing
Associate Consultant, BSG Africa
12 February 2015

2. Industry trends
• Definition of digital insurance strategies.
• Customer centricity and improving the customer experience,
including compliance requirements.
• Business analytics and information intelligence.
• Channel development and integration.
• Legacy modernisation, to support faster time-to-market with new
products and services and greater flexibility.
• Assessing opportunities from emerging and potentially disruptive
technology innovation, such as sensors in short-term vehicle
insurance, wearable technology, etc.
• Managing innovation.
• Modernisation of business processes to support new business
models.
• Regulatory change and compliance is increasing.

3. § To excel, you need to:
§ Treat your data as a strategic asset
§ Harness that data to your advantage
§ Look forward, not only backwards
§ Keep asking “what if?”
Confident leadership is
driven by accurate data and
decisions based on it Tom Davenport
Author and Distinguished
Professor at Babson
College

4. It requires an enterprise strategy
to coordinate and align key
dimensions, most notably people
§ The challenges:
§ Growth in available information
§ Competing priorities
§ Information silos
§ Business unit alignment
§ Direction and leadership
INFORMATION
PRIORITIES?
ALIGNMENT?

5. § To succeed, organisations need more than
§ Technology
§ A data warehouse
§ Analytical talent
§ They need
§ Enterprise wide approach, sound collaboration between business
and IT, alignment with business strategy, change management…
Solution:
Develop a strategy to address
organisational alignment

6. Most information management
practices tend to be ad hoc…
§ And follow a “Project” mentality
§ Start and end date with a narrow business focus
§ Repeat standard processes – no “re-use”
§ Sub-optimal use of skills
§ Not enough data exploitation
§ Potentially adding more silos
§ Allow information to get outdated
§ Unclear project ownership
Typical environment ?

7. Leading information management
practices support the biz strategy…
§ And follow a “Program” Mentality
§ Ensure buy-in from business and IT
§ Re-use standard processes (leading practices)
§ Leverage skills and promote ongoing learning as business
requirements change
§ Objective analysis – identify questions that have
not been answered
§ Reduce complexity – one version of the truth
§ Ensure necessary changes are done on time
Target environment ?

8. An enterprise center of excellence
should lead the effort…
§ Major objectives
§ Change from a project to a program mentality
§ Change from a tactical to a strategic approach
§ Provide business and IT with shared-ownership of
the enterprise information environment
The journey towards the target ?

9. An executive vision to use data
as a strategic asset is critical
§ Focus on key organisational dimensions
§ Human Capital
§ Internal Information Processes
§ Technical Infrastructure
§ Organisational Culture
§ Continuous alignment with business objectives
§ Supported by an enterprise BA Center of Excellence
Developing the target environment

10. Use a framework as a guide
Maturity Model
Culture
Individual
Departmental
Enterprise
Optimise
Innovate
People Process
Infrastructure
Maturity
Businessvalue
Campaign
management /
optimisation
Cash
management /
optimisation
Workforce
Planning and
managementIT
performance
management
Scorecarding and
dashboarding
Activity based
management
Budgeting
and
planning
Legal
reporting
Regulatory
compliance
Asset liability
management
Fraud
management
Operational,
market and
credit risk
Segmentation
and profiling
Customer
profitability and
lifetime value
Acquisition
and retention
Cross-sell,
up-sell and
event triggers
Risk
intelligence
Customer
intelligence
Operational
intelligence
Financial
intelligence

11. The difference between BI and BA
Historical business information to
improve business decision
Gain insight, reveal patterns, anomalies,
relationships to take precise and accurate
actions and decisions
INFORMATIONMANAGEMENT ANALYTICS REPORTING
?

12. What happened?
Standard
reports
How many, how often, where?
Ad hoc
reports
Where exactly is the problem?
Query drill
down
Why is this happening?
Statistical
Analysis
What if these trends continue?
Forecast
What will happen next? Predict
What is the best that can happen?
What actions are needed?
Alerts
Raw
data
Clean
data
OptimiseCompetitive Advantage
Degree of Intelligence
What is Business Analytics?

13. Centers of
Excellence

14. An internal strategic team of experts with
a specific focus on facilitating and
promoting the use of analytics to achieve
business objectives across the enterprise
§ A central point for
§ developing and evolving the Business Analytics infrastructure
§ promoting collaboration and leading practices
§ driving growth, cost reduction, and profitability
What is a Business Analytics CoE?

15. A BA CoE must be sponsored by
the executive team!
§ Additionally
§ Includes IT, business domain and analytic expertise
§ Has well defined charter, responsibilities, and processes
§ Collaborates with ALL appropriate stakeholders
§ Focuses on making analytics a repeatable process
Key characteristics of a BA CoE

16. Enterprise BA CoE functions
Enterprise
PM Strategy
Promotion
of PM within
enterprise
Governance
& Policies
Alignment with
Business Priorities
Technology
Requirements
& Standards
Data Quality
Standards
Copyright ® 2011, SAS Institute Inc. All rights reserved.

17. Best practice BA environment
BA Governance Model Supported by a Business Intelligence Competency Center
Best Practice Architecture
Business
Requirements
EDW Enhancements Continuous and strong connection

18. BACC Organisation
© BSG. All rights reserved.

19. The goal of the BA CoE
§ Alignment
§ Joint ownership
§ Focus on business
priorities
§ Different Perspectives
§ Competing Priorities
Most current Environments Desired Environment
Align business and IT perspectives

20. Summary
• Effective use of analytics
requires more than just
technology
• Align business & IT
perspectives is key
• Assess capabilities and
develop roadmap
• Establish a CoE to support your
effort
© BSG. All rights reserved.

21. Questions

22. JohannesburgCape Town
Laura Greaves
Business Development
+27 11 215 6666
laura.greaves@bsg.co.za
Oxford Terrace
3 Ninth Street
Houghton Estate
2198
www.bsg.co.za // @bsgafrica
Laura Greaves
Business Development
+27 11 215 6666
laura.greaves@bsg.co.za
Stonehill Place
22 Riebeek Street
Cape Town
8001
www.bsg.co.za // @bsgafrica
Steven Ing
Associate Consultant
+27 11 215 6666
steven.ing@bsg.co.za