The Analytics COE

Positioning Your Analytics Program for Success

Kiran GarimellaPrincipal Consultant, XBITALIGNExcellence in Business & IT Alignment

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Overview

A business analytics program is more than the application of data science and Big Data technology to data. Success should be measured not only by the valuable insights the program delivers, but also by how well it is sustained and how much the ‘analytics mindset’ becomes part of the company’s DNA. The journey is not only from data to information, but also from information to knowledge, and from knowledge to intelligence. The foundation for making this happen is a well-structured Analytics Center of Excellence (CoE).

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Business Analytics Program = (Big) Data + Technology + (Data) Science + ???

Business Analytics Program = Setup + Analysis -> Insight + then what ???

Business Analytics Program = A few expert data scientists OR part of the Corporate DNA?

The spectrum of COEs: Do it for them versus enable them to do it

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The Main Thing

It isn’t about technology, but what’s in it for the decision-makers.

My stakeholder – ex-Vice Chairman of GE – said to me:

“20 years ago, my MIS department would put in front of me, every morning, a reliable report about revenue and other metrics from various regions based on products and services. It looks like that’s not possible anymore.”

If you can’t help decision-makers make better decisions faster while minimizing risk, you have done nothing.

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OWL

BAM

BI

CAFPortals

BPEL

WYMIWYR

CMS

Web 2.0

BPEL

Cloud

Social

Complex Event Processing

ICE

PLMPPM

SAAS

Agile

Big Data

AnalyticsHadoop python

scalaBPM

d3js

wsdl

Mobile

What we give them: CTAs(Collage of Terrifying Acronyms)

R

Data Science

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What your users care about

Process Cycle Time

Throughput Yield

Bottlenecks

Wait-times

Defects per million opportunities

Latency Process VarianceInventory Turns

SLA Violations

False Demand TriggersReturn Rate

Percentage Rework

Cost of Poor QualityUnnecessary Motion

Excess Processing

Economic Value AddTransportation Waste

Process Variance

Process Capability

Process Capacity

Excess Transactions

Root Cause

Voice of the Customer

Run Chart

Reduction of Waste

Overall Equipment EffectivenessKey Performance Indicators

Baseline Conditions

Compliance

Customer Satisfaction

Customer Satisfaction

The Ecosystem of Analytics

Strategies & Strategic Objectives

Products

Services

Projects

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Providers

PayersPharmacists

Clinicians

Device Suppliers

Employers

Patients (& Families)

R&D

Academia

Professional Bodies

Regulators

Big Pharma

Business Capabilities

Technical Capabilities

IT Applications

IT Services

The Taxonomy of Analytics

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Insight

Knowledge

Information

Data

Competitive Advantage

Transformation

Standardization, Simplification

IT

7

Foundation

Value

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Raw data generation

Extraction

Collection

Cleansing

Analyzing

Packaging/ (Information)

Consuming

Decisioning

The Lifecycle of Data

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The Analytic Landscape

Key Elements of a COE

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People

TechnologyProcess

LearningGoverning

Sustaining

Enabling Communicating

Tooling

IntegrationBuilding

Improving

Maturing a COE

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Example of a COE Roadmap

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Rationale & Business Case Assessment, Analysis, & Prioritization COE Organization Model

COE Governance Model Competency Model & Action Plan Training Plan

COE Roadmap

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Enterprise Architecture

Technical Architecture

Applications

Technical

Infrastructure

Services

Business Architecture

Information

Process

Performance

Execution

Solution

Development

Project

Management

Program

Management

Operations

Operations:

Transition &

Deployment

Release

Management

Operations:

Monitor &

Control

Business Alignment

Strategy

Change

Management

Governance

Enablement

Knowledge

Management &

Education

Personal & Team

Effectiveness

Continuous

Improvement

Business Structure

Business Model

Ecosystem

Organization

Enterprise Capabilities Alignment Frameworkfor Centers of Excellence

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Bu

sin

ess

Alig

nm

en

t

Strategy

Change

Management

Governance

Bu

sin

ess

Str

uct

ure

Business

Model

Ecosystem

Organization

ECAF: Business Structure & Alignment

Analytics that relate to strategies and strategic objectives

Strategies and strategic objectives of the analytics COE or function

Analytics that relate to change & innovation, how effectively the company is

dealing with it

Management of change and innovation within the analytics COE or function

Analytics that report on governance and compliance (are we doing the right things,

are we doing them efficiently, and are we realizing the benefits

Governance of the analytics COE or function

Analytics about and for Industry, Economy, Competition, Products, and Services

The model of the analytics COE or function as an ‘internal company’

Analytics about Customers, Partners, Suppliers, Regulators, and other bodies that

impact the company

The management of the ecosystem of the analytics Coe or function

Analytics based on Title, Role, Function, LOBs, Locations

The RACI view of the analytics COE or function and its engagement model with the

rest of the company

ECAF: Enterprise Architecture

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Tech

nic

al A

rch

ite

ctu

re

Applications

Technical

Infrastructure

Services

Bu

sin

ess

Arc

hit

ect

ure

Information

Process

Performance

Analytics about various types of applications, external-facing as well as internal

Applications that the analytics COE or function uses

Analytics about servers, security, performance, etc.

Technical infrastructure of the analytics COE or function

Analytics about internal services as well as technology services

Technical services that are provided by or used by the analytics COE or function

Analytics about business rules, policies, usage, effectiveness

Management of information used in the analytics COE or function

Analytics about business processes, both outside-in (customer-centric and internal)

Processes of the analytics COE or function

Analytics about performance metrics, from high-level balanced scorecard to lower-

level operational metrics

Performance (measures, metrics, KPIs) of the analytics COE or function

ECAF: Execution & Operations

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Exe

cuti

on

Solution

Development

Project

Management

Program

Management

Op

era

tio

ns

Operations:

Transition &

Deployment

Release

Management

Operations:

Monitor &

Control

Analytics about development of new solutions, their progress, impact, and value

Development of analytic solutions

Analytics about projects, their goals, metrics, value

Management of analytic projects

Analytics about programs, initiatives, value generation, constituent projects

Management of analytic programs

Analytics about transition and deployment of solutions, people, processes, and

technology

Transition and deployment of analytic capabilities

Analytics about releases of business capabilities or technical capabilities

Management of releases of analytic capabilities

Analytics about operational control, such as process performance controls, KPIs,

etc.

Monitor and control of analytics operations

ECAF: Enablement

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Enab

lem

en

t

Knowledge

Management &

Education

Personal & Team

Effectiveness

Continuous

Improvement

Analytics about knowledge management and training in the company

Knowledge management and education about analytics

Analytics about effectiveness within team and among people

Ensuring personal and team effectiveness about adoption and usage of analytics

Analytics about continuous improvement initiatives

Ensuring continuous improvement of the analytics function

General Observations on Analytics

• Data -> Information -> Knowledge -> Insight• Insight also comes from a mass of interconnected knowledge, not

only from a dataset• If you torture the data long enough, it’ll confess to anything you want• Do you really want to buy a Ferrari to go get groceries?• Perceptual errors are almost always errors of higher cognition!

(Pencil in a glass of water appears bent.)• No amount of training will change perception (a Noble Prize physicist

and a peasant will both see a bent pencil in a glass of water)• Humans are poorly equipped to deal with probability, statistics, and

consistency in logical thinking• Training can mitigate cognitive errors• Tooling must provide the safety harness and the do the grunt work

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Next Steps: Get Started!

Use to ECAF framework for COEs to determine:

Who you are (culture, stakeholders)Why (drivers)Who you want to be (vision, mission)How (high level: strategies, goals)Where you are (current level of maturity) Focus areas: prioritize (don’t try to boil the ocean) Include some elements to cover people, process, and

technologyEstablish governance (top-down or bootstrap)How (detailed: phases, roadmap, maturation)

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‘ARISE’Analytics for Business Transformation

• Align – Connect goals and strategy for business transformation to tactics

• Reframe - Don’t be shackled by the past (“it didn’t work before”)

• Innovate - Don’t do the same thing again and expect different results

• Seek Help – Don’t try it alone

• Execute - To implement strategy effectively, get close to the ground

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Adapted from www.forbes.com

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