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Simplify Your Analytics Strategy

2015-06-16 06:03:21

Narendra Mulani

June 15, 2015

While the interests in analytics and resulting benefits are increasing by the

day, some businesses are challenged by the complexity and confusion that

analytics can generate. Companies can get stuck trying to analyze all that s

possible and all that they could do through analytics, when they should be

taking that next step of recognizing what s important and what they should be

doing for their customers, stakeholders, and employees. Discovering real

business opportunities and achieving desired outcomes can be elusive.

To overcome this, companies should pursue a simpler path to uncovering the

insight in their data and making insight-driven decisions that add value.

Following are steps that we have seen work in a number of companies to simplify

their analytics strategy and generate insight that leads to real outcomes:

Accelerate the data: Fast data = fast insight = fast outcomes. Liberate and

accelerate data by creating a data supply chain built on a hybrid technology

environment a data service platform combined with emerging big data

technologies. Such an environment enables businesses to move, manage, and

mobilize the ever-increasing amount of data across the organization for

consumption faster than previously possible. Real-time delivery of analytics

speeds up the execution velocity and improves the service quality of an

organization. For example, a U.S. bank adopted such a technology environment to

more efficiently manage increasing data volumes for its customer analytics

projects. As a result, the firm experienced improved processing time by several

hours, generating quicker insights and a faster reaction time.

Delegate the work to your analytics technologies. Uncovering data insights

doesn t have to be difficult. Here are ways to delegate the work to your

analytics technologies:

Next-Gen Business Intelligence (BI) and data visualization. At its core,

next-gen business intelligence is bringing data and analytics to life to help

companies improve and optimize their decision-making and organizational

performance. BI does this by turning an organization s data into an asset by

having the right data, at the right time and place (mobile, laptop, etc), and

displayed in the right visual form (heat map, charts, etc) for each individual

decision-maker, so they can use it to reach their desired outcome. When the

data is presented to decision-makers in such a visually appealing and useful

way, they are enabled to chase and explore data-driven opportunities more

confidently.

For example, a financial services company applied BI and data visualization to

see the different buckets of risk across its entire loan portfolio. After

analyzing its key data and displaying the results via visualizations, the firm

identified the areas in the U.S. where there were high delinquency rates,

explored tranches based on lenders, loan purposes, and loan channels, and

viewed bank loan portfolios. Users were also able to interact with the results

and query the data based on their needs select different date ranges, FICO

scores, compare lenders and loan types, etc. Due to the flexibility and data

exploration capabilities of the interactive BI and visualization solution,

insight-driven decisions could be made and actions could be pursued that would

benefit the business.

Data discovery. Data discovery can take place alongside outcome-specific data

projects. Through the use of data discovery techniques, companies can test and

play with their data to uncover data patterns that aren t clearly evident. When

more insights and patterns are discovered, more opportunities to drive value

for the business can be found. For instance, a resources company was able to

predict which pipelines are most risky from both physical and atypical threats

through data discovery techniques. Due to the insights gained, the firm was

able to prioritize where they should invest funds for counter-failure measures

and maintenance repairs.

Analytics applications. Applications can simplify advanced analytics as they

put the power of analytics easily and elegantly into the hands of the business

user to make data-driven business decisions. They can also be

industry-specific, flexible, and tailored to meet the needs of the individual

users across organizations from marketing to finance, and levels from C-suite

to middle management. For example, an advanced analytics app can help a store

manager optimize his inventory and a CMO could use an app to optimize the

company s global marketing spend.

Machine learning and cognitive computing. Machine learning is an evolution of

analytics that removes much of the human element from the data modeling process

to produce predictions of customer behavior and enterprise performance. As

described in the Intelligent Enterprise trend in the Accenture Technology

Vision 2015 report: With an influx of big data, and advances in processing

power, data science and cognitive technology, software intelligence is helping

machines make even better-informed decisions. As an example, a retailer

combined data from multiple sales channels (mobile, store, online, and more) in

near real-time and used machine learning to improve its ability to make more

personalized recommendations to customers. With this data-driven approach, the

company was able to target customers more effectively and boost its revenues.

Recognize that each path to data insight is unique. The path to insight doesn t

come in one single form. There are many different elements in play, and they

are always changing business goals, technologies, data types, data sources,

and then some are in a state of flux. Another main component of a company s

analytics journey depends on the company s culture itself: is it more

conservative or willing to take chances? Does it have a plethora of existing

data and analytics technologies to work with, or is it just starting out with

its first analytics project? No matter what combination of culture and

technology exists for a business, each path to analytics insight should be

individually paved with an outcome-driven mindset.

To do this, companies can take two approaches depending on the nature of the

business problem. First, for a known problem with a known solution such as

customer segmentation and propensity modeling for targeted marketing campaigns

the company could take a hypothesis-based approach by starting with the

outcome (e.g. cross-sell/up-sell to existing customers), pilot and test the

solution with a control group and then scale broadly across the customer base.

Second, for a known problem area, fraud for example, but with an unknown

solution, the company could take a discovery-based approach to look for

patterns in the data to find interesting correlations that may be predictive

for instance, a bank found that the speed at which fields were filled out on

its online forms was highly correlated with fraudulent behavior. Of note, when

determining which problem to address, companies should first focus on the one

that can offer the highest value, then it can choose a hypothesis-based or

discovery-based approach based on the degree of institutional knowledge it has

to solve that kind of problem.

Once insights are uncovered, the next step is for the business, of course, to

make the data-driven decisions that place action behind the data. It is

possible to uncover the business opportunities in your data and increase data

equity, simply.

Narendra Mulani is the senior managing director of Accenture Analytics.