Loras College 2016 Business Analytics Symposium Keynote

Creating a Transformational ImpactRich Clayton ‘87

Loras Regent Vice President, Oracle Corporation

@richardmclayton

"By 2018, one third of the top 20 market share leaders will be significantly disrupted by new competitors that use the 3rd

platform to create new services and business models.”- IDC Predictions 2014

[people driving analytic transformation is key]

“To be ‘Ubered’ has become a catchphrase that goes beyond transportation.”Financial Times

Don’t be UberedToday you must run twice as fast as your competition

• The threats are greater• Irrespective of size / industry• Innovation is a must

Digital Disruption is Everywhere

[using data to accelerate innovation isn’t new]

20002000 2005 20102005 2010 20152015

Amazon(Books)

Apple(Music)

Lending Club(P2P Finance)

Airbnb(Lodging)

Michelin(Fleet)

Tesla(Automotive)

Stratasys(3-D Print)

Uber(Transport)

Analytics is Well Worn Trail

[but still a ton of opportunity]

6% more profitable

5% more productive

Transformation Requires a Strategy

ASSESSSTARTING

POINT

DEVELOPANALYTICMISSION

PLANYOUR

JOURNEY

“The object of your mission is to explore the Missouri river, & such principal stream of it, as, by its course & communication with the waters of the Pacific Ocean, whether the Columbia, Oregon, Colorado and/or other river may offer the most direct & practicable water communication across this continent, for the purposes of commerce.”

Thomas Jefferson [broad and ambitious]

Develop Your Mission

Around-the-clockAvailability

Consumer Expectations

Real-time Fulfillment

Flawless Engagement

Personalized Service

Information any time, Anywhere

Business Model

Insight

Speed to Market

Employee Expectations

New Markets

AnalyticOpportunitiesSpan EveryFunction

Pendleton & SonsStorefront Sensors Driving Growth

Dynamic merchandisingNew revenue streamsPersonalized offers

Developing Your Analytic Mission

[start with the why]

SIMPLIFY OPTIMIZE INNOVATE

Starting with Simplifying Information Access

• Self-service Reporting• Centralize data assets• Eliminate spreadsheets• Centralize assumptions• Access to Customer Data

• Lack of performance visibility• Inefficient planning process• Reporting is time consuming• Insufficient IT resources

Optimizing Existing Processes

• Order to Cash• Hire to Retire• Procure to Pay• Record to Report

• Embed insights into process• Establish process benchmarks• Find new process signals

Innovating Your Business Model

• Explore New Data• Automate Next Best Offer• Create Data Asset

• Customer Experience• Crowd-sourced Design• Pricing Strategy• Recruiting

Land O’ LakesPrecision AgricultureHigher Margins; Greater Yield

Analytics @The Edge

AssessStarting

Point

[start with your people]

People

Data

Decision Processes

Technology

[and there is no shortage of data]

Data Literacy Key to Advancement

“Data modeling, simulation, and other digital tools are reshaping how we innovate.” And that has changed the skills needed by our employees.

To meet this challenge, P&G created a baseline digital-skills inventory that’s tailored to every level of advancement in the organization.”

Bob McDonaldCEO

One Analysts Point of View

[time to develop your own]

Several Evaluation Frameworks

[just pick one]

Take a Multi-dimensional Approach to Assessment

[example framework]

Recognize Data Quality is Never Perfect

23

28

29

43

51

Quality, reliability or comprehensiveness of data

Lack of effective systems to gather and analyze data

Lack of skills required to interpret data

Lack of widespread understanding of what data is used for

Concern over confidential corporate information

[but not a reason to delay]

Data is Among Top Intangible Assets

[just ask Facebook]

Six Ways to Value Your Data

Executives on Decision Processes

Good decisions were too infrequent

28% Quality of strategic decisions was good

60% Bad decisions just as frequent as good ones

12%[good analysis + good judgement ≠ good decision]

Top Five Most Common Biasesin Management Decision Processes

[what biases do you bring to decisions?]

Process 6x More Important Than Analytical Detail in Measuring Decision Effectiveness

Technology Considerations

• Consistent view of operating performance• Independence from IT analyst• Ease of generating new scenarios • Visually see and share the signals• Mobile access to key performance indicators• Quickly mashup new sources with existing• Predictive analytic capabilities

[these are just the basics]

Plan Your Journey Core CompetenciesOrganizational Design Social Responsibility Explore All Data Invest in Platform

Build Diversity in Analytic Skills

Storytelling

Scenario Analysis

Analytic Process Design

Data Modeling

Predictive Analytics

Data Visualization

Data Wrangling

Text Analysis

Become a Better Storyteller

[picture is worth a 1000 words]

turn it upside down

learn todistill

thinkinfographic

Diversity in DiscoveryDr. Steven Shapiro

University of Pittsburgh Medical Center

Integrating genomic and clinical information across 140 breast cancer patients

Two modes of research working in tandem

Challenging pattern recognition biases

And Yet We Do This….

When This is Possible…

Optimizing Supply Chain and Labor in RetailBeverage Temperatures By StoreOver Time

Form a Data Club

RulesThe first rule of data club:You don’t admit to being in data club

The second rule of data club:You don’t admit to being in data club

The third rule of data club:no spreadsheets

Digital Ethics on Data Governance

“By 2018, 50 percent of business ethics violations will occur through improper use of big data analytics.”

[so what’s your plan]

General MillsData 4 Good Data Science CompetitionPartnered with Generation NextIdentify opportunity gaps for students of color in MSP

Contribute to Social Causes

Explore All Data Possibilities

External Data Your Data

ERP HCM

CRMSocialMedia

Machinedata

Web logs

• New relationships• Behavior patterns• Predictive outcomes

GovernmentSources

Sensor data

MobileGeo-Location

Replay Edison’s Invention Factory

Form a Data Lab

#1 Encourage analytic creativity

#2 Scale to support a large portfolio of data projects

#3 Connect to the Data Lab to commercialize

Empower your innovators

Formalize your invention process

Start with the data

Connect the people

Connect the data

Connect the infrastructure

Create a culture of well-managed data projects

Welcome a broadened team

Support any type of analysis on any data

Get a Good Wagon

[this is the technology bit]

Two Speeds for Analytic Excellence

Fast for InnovationSlow for Scale

Cloud

Personal Data Mashups

Enriched Data Model

Visual Analytics

Mobile and Wearables

On-Premises

Enterprise Data

Controlled Data Model

Robust Reporting

Desktop Dashboards

Consumer ExperienceAdmin &Upgrade

Inspire Others to Follow in your Tracks

Q & A