Creating a Culture of Analytics Gebhard F. Rainer Hyatt Hotels Corporation
Oct 30, 2014
Creating a Culture of Analytics
Gebhard F. Rainer
Hyatt Hotels Corporation
Evolution of Information
• Stone Age• Cave drawings record experiences, beliefs and
learnings
• Ancient Egyptians, Romans, Greeks, Chinese
• Alphabets are developed, stone templates, papyrus and carvings are used to record, scripts are written to preserve information
Evolution of Information
• Middle Ages• Churches become powerful because of knowledge
and education. Libraries are established.
• 19th / 20th Century / Industrial Age• Invention of Morse Code, telegraphic age• Radio signals, telex, telephone, computers,
internet………
Evolution of Information
• Today• IBM, WellPoint, and Memorial Sloan Kettering use
Watson to give doctors treatment options in seconds. Streaming analytics process 5 million messages of market data per second to speed up trading decisions.
90%Of the World’s Data
2 Years Has Been Created in the Last
The World is Making a Digital Copy of Itself
22×2011-2016
12.5Billion2020
1.3BillionToday
Smart Device Growth Data Production Increase
Thoughts Things Processes
Big Data Creates Many New Opportunities
A Few Examples…
US HEALTH CARE
$300 B
“In a big data world, a competitor that fails to sufficiently develop its capabilities will be left behind.”
Increase industry value per year by
US RETAIL
60+%
Increase net margin by
MANUFACTURING
–50%
Decrease dev., assembly costs by
GLOBAL PERSONAL LOCATION DATA
$100 B
Increase service provider revenue by
EUROPE PUBLIC SECTOR ADMIN
€250 B
Increase industry value per year by
MEDIA/ENTERTAINMENTViewers / advertising effectiveness
COMMUNICATIONSLocation-based advertising
EDUCATION &RESEARCHExperiment sensor analysis
CONSUMER PACKAGED GOODSSentiment analysis of what’s hot, problems
HEALTH CAREPatient sensors, monitoring, EHRsQuality of care
LIFE SCIENCESClinical trialsGenomics
HIGH TECHNOLOGY / INDUSTRIAL MFG.Mfg qualityWarranty analysis
OIL & GASReserve Capacity estimation,Drilling exploration sensor analysis
FINANCIALSERVICESRisk & portfolio analysis
AUTOMOTIVEAuto sensors reporting location, problems
RETAILConsumer sentimentOptimized sales & marketing
LAW ENFORCEMENT & DEFENSEThreat analysis - social media monitoring, photo analysis
TRAVEL &TRANSPORTATIONSensor analysis for optimal traffic flowsCustomer sentiment
UTILITIESSmart Meter analysis
Impacting Every Industry
ON-LINE SERVICES / SOCIAL MEDIAPeople & career matchingWeb-site optimization
Use Data
12%
Executives who feel they understand the impact data
will have on their organizations
Produce Data
Implications of Data Explosion
METRICS METHODS SKILLS
Even CFO’s Are Getting More Comfortable
of CFOs estimate that over half of their enterprise transactions will be deliveredthrough the cloud
53%
Source: Van Decker, John, “Top 10 Findings From Gartner's Financial Executives International CFO Technology Study”, May 16, 2012, p. 13.]
Talent crunch is real
What skills does a data scientist have to have to be successful and facilitate a culture of analytics?
• Understand the business• Be able to analyze social and unstructured data• Design and test predictive models• Know math and statistics• Cross the lines between social sciences,
business and mathematics• Tell stories using data
A Picture is Worth a Thousand Words
“20 billion neurons of the brain are devoted to analyzing visual information to provide a pattern-finding mechanism that is a fundamental component in much of our cognitive activity.”Colin WareAuthor, Information Visualization
A Picture is Worth a Thousand Numbers
There’s no question that visualization has become a critical capability for organizations of virtually every shape and size. Easy-to-use software makes complex data accessible and understandable for almost any business user.
From discovery and visual exploration to pattern and relationship identification, today’s visualization tools easily affirm the adage that a picture is worth a thousand words, or in this case, numbers.
My personal evolution in analytics
• Have been in this industry for 35 years
• When I started, we used big brown paper ledgers, to record inventories, consumption and costs, then manually calculated KPRs
• The most important tool was a pencil and an eraser
• My first computer at work was a floppy disk drive with 64k of memory
• We used a spreadsheet application called “Symphony”
My personal evolution in analytics
• For many years it was “spreadsheet hell” and job security came through knowledge and safe guarding of hundreds of spreadsheets and links for consolidation
• Accounting “ruled” because they were the only ones using them!
• In early 2000, when I first came to Chicago, we decided to make a radical change.
• We wanted to have a consolidation, budgeting and forecasting system, all integrated, with a Business Analytics Portal, allowing information to be distributed in a uniform, accurate, timely and meaningful way.
A Culture of Analytics
Does your business support a culture that asks the right kind of questions to solve business problems?
Why is Culture important?
Why is Culture important?
Mind-set change• Analytics is as good as the data is
– clean data is key • I have to have a mind-set to look
beyond the numbers and statistics
• I need to ask every time – why, how, when and where?
• “It’s all in the presentation” – I need to have a uniform view of data throughout the enterprise
Behavioral change • Make the analytical approach
part of your daily routine• Rely on solid information and
analysis before you make a “gut decision”
• Focus on proactive changes from learnings coming out of analytics, don’t waste time on “crying over the past”.
It’s all in the Presentation
Analytics at Hyatt
• Our CEO is data driven and supports the company in evolving it’s analytical capability.
• Multiple platforms, multiple tools and multiple data sources – we now have the capability to realize the power of analytics to support our strategy.
• Cross-functional, cross-departmental and a global analytics approach – the world is flat!!
Leadership must be data driven, Executives drive culture and behavior within the organization.
Analytics at Hyatt
• We decided to go with Hyperion Financial Management and Hyperion Planning as our platform.
• We decided to implement a 24 month rolling forecast.
• We wanted to introduce scorecards to have tangible metrics to measure success.
• We were still two private companies, operating with very different philosophies and focus.
It’s a journey, not a sprint and it takes some bold decisions to effect change in the organization.
Mind-set change• It took us 10 years to make a
quantum shift in mindset and become a data driven organization.
• Why is that important for a Hospitality Company??
• Shouldn’t we be more service driven than data driven??
Analyze, think, decide – make mistakes and learn from them fast, don’t hesitate to try and fail – success comes through learning from failures.
Analytics – Personalized and Personal
• We believe in Preference as a differentiator.
• To become the most preferred brand in our industry, we must create emotional and memorable experiences for our customers and employees.
• Being able to make use of data analytics, enables us to create personalized experiences for customers and employees.
The best minds of my generation are thinking about how to make people click ads. That sucks!
Jeff Hammerbacher Cloudera Founder
Business Analytics Infrastructure
Being able to deliver relevant Information from multiple data sources in a timely and accurate manner
Geographic Structure
Functional Departments
Creating a Culture of Analytics
Creating a Culture of Analytics
The Road Ahead………
It’s a long way to go….
• Stay focused• Prioritize and choose
areas of meaningful impact
• Continuously challenge, question and test predictability models
Q & A