Getting the Most Out of Your Company in the Age of Analytics
About Us
2
MorganFranklin Consulting optimizes performance by translating business strategy into executable solutions that include a mix of business process improvement and technology.
MorganFranklin is positioned
between those who provide pure
strategy consulting and those who
provide staff augmentation to
support day-to-day operations.
We convert strategies into realistic
plans and roll up our sleeves to
implement the changes needed to
help clients improve or transform
their businesses. We turn “business
as usual” into better business.
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Advances in data creation, capture, and storage is creating a “data tsunami”; those companies that can take advantages of data analytics will be the winners
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Data-driven organizations incorporate data analysis into strategic and tactical decisions on a daily basis, at the direction of senior leadership
What is a data-driven
organization?
Data-driven organizations achieve higher levels of productivity and profitability by promoting a culture of analytics and deploying advanced analytics tools
Why should I care?
Develop a centralized analytics capability – a shared Analytics Hub – that houses tools and knowledge that allow a business to drive improved financial and operational results
How do I contribute to building a data
driven organization?
Having the right technology is “table stakes” for data analytics
To truly parlay that technology companies must have executive sponsorship, provide incentives, and openly share data
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1. Active senior executive support for data-driven initiatives
• Sponsor people, process and technology programs that advance analytics objectives
• Advocate for and champion data-enabled decision making
2. Sharing of data across business and functional units throughout the enterprise
• No longer expect IT and Finance to handle all data collection, data quality and data queries
• Data collection emerges as a primary task for every business and functional unit
3. Alignment of incentives with desired behavior throughout the organization
• Reward employees for using data analysis to guide the decision-making process
• Create a culture of respect for measuring, testing, evaluating, and questioning quantitative figures
Data-driven organizations
incorporate impactful analytics
into daily decisions and view this
as a shared responsibility across
functions and levels
Executive Sponsorship
Sharing of Data
Incentives
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Business analytics has
become one of the top three
finance initiatives in 2013.
CFOs see enhanced
capabilities in this space as
a way to facilitate and expedite
decision-making – keys to
improving productivity.1
1 John E. Van Decker, “Survey Analysis: CFO’s Top Imperatives From the 2013 Gartner FEI CFO Technology Study,” Gartner (2013)
Progression along the analytics maturity spectrum means shifting from looking backwards at what happened to driving actions and decisions
Predictive and prescriptive analytics provide better insights, improving profitability and productivity
2 “Research Note: Analytics Pay Back $10.66 For Every Dollar Spent,” Nucleus Research (2011)3 Andrew McAffee and Erik Brynjolfsson, “Big Data: The Management Revolution,” Harvard Business Review (2012)
• Provide more detailed and timely information on customers, what they buy and why
• Allow managers to accelerate sales cycles and identify new opportunities for cross selling
• Organizations realize a return of more than $10 for every $1 invested in advanced analytics capabilities.2
Revenue Generation
• Provide insights into a company’s optimal product mix given current and anticipated conditions in the market
• A 2012 study found that industry leaders experienced 5% higher productivity and 6% higher profitability than their competitors by leveraging data-driven decision making.3
Gross Margin Management
• Allow for better inventory management reducing the cost of storing inventory for long periods of time
• Reduce manual processes and costs• Provide for better control and visibility of expenses
Expense Reduction
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Shared Services traditionally focus on reducing costs, but shared services for analytics gives providers the ability to deliver both cost and revenue benefits to the enterprise
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An Analytics Hub combines the traditional benefits of a SSC with additional value through advanced decision support and analytics
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Analytics Subject Matter Experts and Data Scientists to work with the business and design analytics models
Predictive and prescriptive analytics models and processes to govern how to use and modify them
Foundational analytics applications and processes
Enterprise-wide financial and operational data storage and supporting hardware and network infrastructure
An Analytics Hub supports the ability to turn information into insight without redundant and excessive investment in people, processes and technology
• The Analytics Hub contains a single instance of the required infrastructure, applications, processes, subject matter experts, and data scientists
• All enterprise financial and operational data is stored in infrastructure maintained by the Analytics Hub
• The business provides requirements for analytical models, consults with SMEs and data scientists, and is able to view information in intuitive dashboard formats
• SMEs and Data Scientists create analytical models and design the data structure and governance processes
Business & Functional Units
Business Users
Business Users
Business Users
Analytics Hub
Data Warehouse Cross-enterprise Financial and
Operational Data
Analytics Application
Dashboards / Reports
SMEs
Data Scientists
Fin
an
cia
l an
d O
pe
ratio
na
l Da
ta
Analytics Models
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SMEs
Business Application
Business Application
Business Application
In order to successfully implement an Analytics Hub, the following four factors must be part of the related implementation and monitoring plan
The coordination of people, processes and technology throughout the organization necessitates senior leadership buy-in and support
Senior Executive Sponsorship
Aligning analytics with strategic objectives supports meaningful, actionable data-driven insights
Alignment with Enterprise Strategy
Establishing an Analytics Hub centralizes data strategy and management, establishes close partnerships between business units and dedicated members of the Analytics Hub, and sends a strong signal that the organization is invested in advanced analytics
Data-driven Culture
Collective talent residing in an Analytics Hub are well-equipped to create a centralized information management plan consistent with governance, risk and compliance standards to effectively capture, integrate, and produce analytics insights
Information Management Plan
Critical Success Factors Analytics Hub: Conditions of Satisfaction
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An organization should follow three main steps to develop its Analytics Hub
The journey to becoming a data-driven organization begins with assessing current capabilities, closing gaps to deliver results and defining a blueprint for continuous improvement.
Assess current analytics capabilities
Examine tools, technology, information and data management across business units and functional areas
Identify pockets of expertise
Baseline the organization’s capabilities against the Analytics Maturity Model
Close the gaps and deliver results
Document the gaps between capabilities and Analytics Hub strategy and group into implementable initiatives
Start delivering quick wins Outline initiatives, which
should include project charters and be prioritized based on business value, ROI and other factors
Define a blueprint for continuous improvement
Implement Analytics Hub initiatives
Consider an agile approach to implementation to quickly deliver results and allow for realization of benefits
Be aware and take advantage of analytics advancements and opportunities for additional value
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Advanced analytics yields benefits that provide a competitive advantage to an enterprise
Shared services must continue to evolve through the development of an Analytics Hub to capitalize on these opportunities and use data as a strategic asset
An Analytics Hub delivers the standard cost reduction benefits associated with shared services, while also providing insights that will drive top line growth
Predictive and prescriptive analytics are exploratory, uncovering new insights and opportunities for innovation
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Questions & Answers