ongoing lecture Advanced Analytics

1. Beyond Dashboards
15 September, 2016
Silicon Valley
@soody
http://www.slideshare.net/ssood/foresight-analytics

2. 2
Insights-driven businesses will
generate $1.2 trillion in 2020
Forrester Research, 2016

3. 3© 2016 Forrester Research, Inc. Reproduction Prohibited
Insights-driven businesses are faster than large companies
$0
$250
$500
$750
$1,000
$1,250
2015 2016 2017 2018 2019 2020
Revenue (billions)
Public
Startup
Global GDP will grow
only 3.5% annually.
27% CAGR
40% CAGR
Source: Forrester, Morningstar, PitchBook, and The Economist Intelligence Unit

4. Reports
&
Analysis
Visualisation
&
Interpretation
Write
Data/Business
“Story”
Insights
Led by Data Analyst or Scientist
SME owner, Machine Learning and Natural Language Generation
Fusion of data science, business knowledge & creativity for maximium ROI
Data
Aggregation Operationalise
Detect & Extract
Patterns and
Relationships
Generate Insights
&
Story
Process
Application
IoT
Data
Aggregation or
Data Set
Traditional Analytics: Slow & Expensive
80% of time sifting through data
System of Insight (SoI)
SoI: Fast & Cost Effective
80% of time in decision making with client

5. New Sources of Information (Big data) : Social Media + Internet of Things  Innovations
7,919 40,204
2,003,254,102 51
Gridded Data Sources

6. CCTV
6

7. 7
https://nodexl.codeplex.com/

8. 8
Sherman and Young (2016), When Financial Reporting Still Falls Short,
Harvard Business Review, July-August
Sood (2015), Truth, Lies and Brand Trust The Deceit Algorithm,
http://datafication.com.au/
New Analytical Tools Can Help

9. 9
http://www.analyzewords.com

10. Actionable Insights
1. What now ?
2. So what ?
3. Now what ?

11. 11
Companies are reimagining Business
Processes with Algorithms and there is
“evidence of significant, even exponential,
business gains in customer’s customer
engagement, cost & revenue performance”
Wilson, H., Alter A. and Shukla, P. (2016), Companies Are Reimagining Business Processes
with Algorithms, Harvard Business Review, February, https://hbr.org/2016/02/companies-
are-reimagining-business-processes-with-algorithms

12. Better customer experiences . . .
. . . and half the inventory-carrying costs
of other online fashion retailers.
Forrester, 2016

13. Systems of Insight
 Automated pattern extraction
 Outlier detection
 Correlation
 Time series
 Analytics integration with process, app or IoT
https://ubereats.com/melbourne/

14. 14
outlier-detection “allow detecting a significant fraction
of fraudulent cases…different in nature from historical
fraud…resulting in a novel fraud pattern”
Baesens, B., Vlasselaer, V., and Verbeke, W., 2015, Fraud Analytics Using Descriptive, Predictive,
and Social Network Techniques: A Guide to Data Science for Fraud Detection, Wiley

15. The ANZ Heavy Traffic Index comprises
flows of vehicles weighing more than 3.5
tonnes (primarily trucks) on 11 selected
roads around NZ. It is contemporaneous
with GDP growth.
The ANZ Light Traffic Index is made up of
light or total traffic flows (primarily cars and
vans) on 10 selected roads around the
country. It gives a six month lead on GDP
growth in normal circumstances (but cannot
predict sudden adverse events such as the
Global Financial Crisis).
http://www.anz.co.nz/about-us/economic-markets-research/truckometer/

16. Systems of Insight
• Helps move away from “crisis levels” in talent
• Traditional 5 step analytics process reduced to 2 step from data to action
• Reimagine business processes through “machine engineering”
• Minimise messy data issues and data preparation time

17. Next Step
Start using Systems of Insight and innovative data sources
Vs
Just dashboards