2. (Business) Analytics
Analytics is defined as the scientific process of
transforming data into insight for making
better decisions. (Informs)
3. Deming Cycle
The four phases in the Plan-Do-Check-Act
Cycle involve:
• Plan: Identifying and analyzing the
problem.
• Do: Developing and testing a potential
solution.
• Check: Measuring how effective the
test solution was, and analyzing
whether it could be improved in any
way.
• Act: Implementing the improved
solution fully.
4. Innovation
An innovation is the implementation of a new or significantly improved product (good
or service), or process, a new marketing method, or a new organizational method in
business practices, workplace organization or external relations.
Oslo Manual, 2005
5. Product Innovation
Introduction of a good or service that is new or significantly improved with
respect to its characteristics or intended uses.
This includes significant improvements in technical specifications,
components and materials, incorporated software, user friendliness or other
functional characteristics.
Product innovations can utilize new knowledge or technologies, or can be
based on new uses or combinations of existing knowledge or technologies.
6. Process Innovation
Implementation of a new or significantly improved production or delivery
method.
This includes significant changes in techniques, equipment and/or software.
Process innovations can be intended to decrease unit costs of production or
delivery, to increase quality, or to produce or deliver new or significantly
improved products.
7. Marketing Innovation
Implementation of a new marketing method involving significant changes in
product design or packaging, product placement, product promotion or
pricing.
Marketing innovations are aimed at better addressing customer needs,
opening up new markets, or newly positioning a firm’s product on the market,
with the objective of increasing the firm’s sales.
8. Organizational Innovation
Implementation of a new organizational method in the firm’s business
practices, workplace organization or external relations.
Organizational innovations can be intended to increase a firm’s performance
by reducing administrative costs or transaction costs, improving workplace
satisfaction (and thus labor productivity), gaining access to non-tradable
assets (such as non-codified external knowledge) or reducing costs of supplies.
12. From ERP and CRM to Analytics
Over the past years, organizations of all sizes have been utilizing Enterprise
Resource Planning (ERP) and Customer Relationship Management (CRM)
systems with the goal of
• integrate and automate processes
• reduce total business costs
• improve customer relationships
Getting more value from ERP and CRM Analytics
13. Top 10 Strategic
TechnologyAreas for 2009
1.Virtualization
2. Business Intelligence
3. Cloud Computing
4. Green IT
5. Unified Communications
6. Social Software and Social Net
working
7.Web-Oriented Architecture
8. Enterprise Mashups
9. Specialized Systems
10. Servers – Beyond Blades
Top 10 Strategic
TechnologyAreas for 2010
1. Cloud Computing
2. Advanced Analytics
3. Client Computing
4. IT for Green
5. Reshaping the Data Center
6. Social Computing
7. Security - Activity Monitoring
8. Flash Memory
9.Virtualization forAvailability
10. Mobile Application
15. The role of Analytics
Raw Data -> Aggregated Data -> Contextual Intelligence ->
Analytical Insights (reporting vs. prediction) -> Decisions
16. Why Analytics
For a global apparel manufacturer, developing advanced analytics capabilities
is essential to achieving its growth strategy.
Accenture, global management consulting
17. Analytics Categories
Descriptive analytics
• Prepares and analyzes historical data
• Identifies patterns from samples for reporting of trends
Predictive analytics
• Predicts future probabilities and trends
• Finds relationships in data that may not be readily apparent with
descriptive analysis
Prescriptive analytics
• Evaluates and determines new ways to operate
• Targets business objectives
• Balances all constraints
18. AnalyticsTools
• Simulation Giving you the ability to try out approaches and test ideas for
improvement
• Optimization Narrowing your choices to the very best when there are virtually
innumerable feasible options and comparing them is difficult
• Probability and Statistics Helping you measure risk, mine data to find valuable
connections and insights, test conclusions, and make reliable forecasts
• Data Mining Reveal New Insights in Existing Data to Improve Performance
• InformationTechnology Manage data and operations
19. AnalyticsTools
• Data Modeling
• Data Mining
• Visualization
• Time series analysis
• Prepare and analyzes historical data
• Identify patterns from samples for
reporting of trends
Descriptive Analytics
20. AnalyticsTools
• Predictive Modeling
• Statistics
• Regression methods
• Artificial Neural Networks
• Predicts future probabilities and
trends
• Finds relationships in data that may
not be readily apparent with
descriptive analysis
Predictive Analytics
22. Five SignsYou Could Benefit from Analytics
• You face complex decisions.
• You're having problems with processes.
• You're troubled by risk.
• Your organization is not making the most of its data.
• You need to beat stiff competition.
Why Analytics Now for Business?
The short answer is that the use of data and data analysis to drive business decisions cannot be ignored any more – not if a business wants to be successful. Contributing factors include the growing availability of business data to analyze, the high velocity and complexity of needed business decisions, technological improvements in data collection and analysis, and increased global competition. All these factors have driven the need and desire for business to base decision-making on more than gut feel. Businesses large and small are embracing the movement, and, according to Gartner, high performing businesses are five times more likely to embrace analytics than low performers.
Why Analytics Now for Business?
The short answer is that the use of data and data analysis to drive business decisions cannot be ignored any more – not if a business wants to be successful. Contributing factors include the growing availability of business data to analyze, the high velocity and complexity of needed business decisions, technological improvements in data collection and analysis, and increased global competition. All these factors have driven the need and desire for business to base decision-making on more than gut feel. Businesses large and small are embracing the movement, and, according to Gartner, high performing businesses are five times more likely to embrace analytics than low performers.
You face complex decisions. Are you faced with more decision factors than you can get your arms around? Do your key operational computer systems lack intelligence? Analytics professionals can analyze complex situations and build intelligence into key systems, revealing the best options. But before you act, talk with an analytics professional to confirm that taking an analytics approach will pay dividends.
You're having problems with processes. One or more of your processes is broken or needs to work a lot better. Many small, day-to-day decisions are not being made well, and it's having an impact on your bottom line. Analytics can help improve these processes and their outcomes dramatically.
You're troubled by risk. Do you want to limit or reduce risk? Assessing the risk of a new project or contract can be tricky. Analytics can help you quantify risk, which is key to controlling it. Analytics can also assist you in planning how best to balance risk against the gains you expect.
Your organization is not making the most of its data. Do you track information about your organization or customers and have data that is begging to be used for decision making? Analytics professionals specialize in working with data – extracting the most valuable information from what's currently collected, and showing what additional data you could collect to increase the value even further.
You need to beat stiff competition. Many leading companies are already using analytics to gain competitive advantage. Can you afford not to? An analytics professional can help you stay on top with the latest methods – and open up important new sources of advantage.