ANALYTIC

S
Rise of Analytics In
Organizations.
 OUR TEAM

DIVYA PILLAI NIDHUMITRA D THULASI SANAT KUMAR SURIYA

CB.BU.P2MBA200 CB.BU.P2MBA20088 KUMAR K N CB.BU.P2MBA20112 SUDHISH S
41 CB.BU.P2MBA201 CB.BU.P2MBA201
42 39

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 Table Of Contents
 Definition And Advantages Of Analysis
 Analysis For Business Innovation.
 Resurgence In Competitive Gain from Analytics
 Analytical Innovators At a High-Water Mark
 Navigating Data- Driven Innovation
 Sharing Data Accelerates Innovation
 Data Governance Liberates
 Business Analytics and Intelligence
 History and Evolution
 Domain and Perspectives
 Business Analytic Framework
 Core, Purpose and Application

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 Definition & Advantages Of Analytics.
According to Oxford definition on Analytics “ Analytics is a systematic computational analysis of data or statistics".

Advantages Of Analytics-

 Analytics helps to describe, predict, and improve business data for business performance.

 It is used for the discovery, interpretation, and communication of meaningful patterns in data.

 Analytics helps in decision making, improve day-to-day operations and support the kinds of innovation that lead
to strategic advantage and growth.

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 Analytics For Business Innovation
Past data -
 2013-2015 was that period when the organization realized they are not getting the benefits of Analytics or not
getting any competitive gain.
 The companies using this analytics in gathering data and comparing it within the organization’s previous records.

Present data –

 According to MIT Sloan Management Review’s seventh annual data and analytics survey conducted during 2016,
it reveals a sharp rise in no of companies using analytics after 2015.
 After 2015 organization realized the method to use of analytics. They started embedding it to every part of
organization right from human resource, operations, marketing to analysing the best performing and worst
performing areas.

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Resurgence In Competitive Gain From
Analytics
10000.00%

68
64
59 60 60
In Percent

50

35

0.00%
20 10 2 01 1 20 12 201 3 20 14 2 01 5 2 016

Years

5
Continued…

ORGANIZATIONS TURN DATA INTO STRATEGIC INSIGHTS

10000.00%

9000.00%
75 77 77
8000.00% 73
70
7000.00%
56 55 56
6000.00%
Percentage

52 Series 1
49
5000.00% Series 2

4000.00%

3000.00%

2000.00%

1000.00%

0.00%
2012 2013 2014 2015 2016

Years

Series 1 - Percent of respondents reporting a somewhat or significant increase in access to useful data over the past
year
Series 2 - Percent of respondents who are somewhat or very effective at using insights to guide future strategy
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ANALYTICAL INNOVATORS AT A HIGH-
WATER MARK
• An organization’s analytical maturity in terms of its ability to innovate with data and to gain a competitive
advantage from analytics.
• Three Levels of ANALYTICS MATURITY

ANALYTICAL ANALYTICAL ANALYTICALLY

INNOVATORS PRACTITIONERS CHALLENGE

●
make data driven decisions ●
adequate access to data ●
struggle with data access THE NUMBER OF ANALYTICAL INNOVATORS
JUMPED FOR THE FIRST TIME :
The share of organizations that qualify as Analytical
Innovators rose from 10% to 17%.

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 Navigating Data-Driven Innovation
• Analytical Innovators use data and analytics both to innovate incrementally in existing products,
services, and processes and to create all-new products, services, and business models.

Wahoo
Fitness

Targeting Sports,
customers, fitness
instead everyone products

Digital
Apps connected
campaigns for
fitness devices
new product
Analytics fosters many ways to Innovate:
Innovation with data is becoming a common
Transactional data practice in a wide variety of ways
GPS bike
& geography
information computers

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 Beyond incremental improvement
• Bridgestone (Tire manufacturer), Moody
- revamping business model with Data- driven innovations discovering new level of
customer & new opportunities.
• Preventive maintenance
• Predictive Analysis

FUNCTIONAL AREAS THAT EXCEL WITH DATA

• Use analytics for innovation
– new products, services and processes or improving existing process

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 Sharing data accelerates Innovation
• The ability to innovate with data is clearly tied to having effective data-sharing
practices
80% of these organizations report sharing data
compared with 53% of other organizations.
• Competitors’ willingness to share what they
regard as proprietary information, even with
guarantees that their data will be anonymized
SHARING DATA HELPS
and protected, varies by industry. ORGANIZATIONS
INNOVATE Organizations with a high ability
to innovate share data the most

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Sharing data accelerates Innovation

• “Within company – Each division has its own data silos”

In Bridgestone • Moody- start to breakdown & build enterprise analytics - where we can get
all data together – we can do lot of more advanced analytics modelling

• Wahoo - information about the online behavior of consumers,

including ad impressions that they are exposed to.
Wahoo fitness • Combining multiple data sources, provides insights from social
media

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 Data Governance Liberates
• Data governance encourages data sharing by controlling what can and
cannot be shared.
• Integrating data from multiple sources
• Preventive maintenance in the public
sector
• Security events

GOVERNANCE CAN LIBERATE

Organizations that share data and innovate say governance helps.

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Smart machines create more time for
innovative thinking…
• Smart machines - take on tasks that traditionally required a human have captured the popular
imagination. But the immediate benefits from smarter machines are not in human replacement

ANALYTICS ENABLES TASK AUTOMATION

AND AUGMENTATION : Organizations
increasingly automate and augment, but new
tasks for people may be the result.

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 Analytics and Business Intelligence

• Top chief information officers prioritise business analytics as their number one approach for achieving higher
success ratio.

• Higher Priority Categories Such as mobile technology, cloud computing & social networking has been ranked 2 nd,
4th & 8th position respectively.

• IDC Reports BA Software market grew by 13.8% to $32B In 2011 & predicted in to be $50.7B by 2016

• Beyond set of ROI Cases, Nuclear research finds an $10.66 payoff for every $1.00 spent on analytics application

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 Business Analytics History

• The Main Motive of Business Analytics is to support Business’s Activities. E.G. : Decision Making.

• The Operations involve

1)Examination
2) Calculation
3) Inference

• Over the Years, The Technology has developed a lot in the area of business analytics. It is actually helping human
in every field and taking half of the burden.

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 Evolution
• 1940 – Computerized, fully automated. Anti aircraft fire control system
• 1944 – Manhattan Project
• 1950 – First computerized weather forecast models
• 1956 – The Shortest – path problem which transformed routing and logistics
• 1958 – Fico’s Use of predictive modelling to assess credit risk
• 1973 – Black Scholes Model for optimal stock pricing
• 1979 – Commercial Tool for model based Decision Support System (DSS)
• 1979-2009 – Use of Computers to make decisions. A Variety of tools have been developed to support the Business
Intelligence & Business Analytics

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 Some Dimensions of Analytics
• After examination of literature analytics can be studied along several distinct, albeit[he was making progress]
complementary and dimensions.
• Some of dimensions are -
• Domain
• Orientation
• Technique

DOMAIN
• Domain refers to subject fields in which analytics are been applied.
• Domains & sub-domain include marketing, business strategy and human resources etc.

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 Orientation and Technique
ORIENTATION –
• Orientation denote “Direction of thought”. Also most frequently discussed is Predictive Analysis.
• Other orientation taxonomic
• Sense of situation
• Mate Prediction
• Mate evaluation
• Mate Decisions
TECHNIQUE -
• Analytics task is performed & viewed from multiple perspectives.
• Technique can be differentiated based on specific mechanisms such as
• Data Mining
• Audio Mining

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 Core of Business Analytics

• Business analytics consider views that are broadly applicable. Instead of those concern specific application and
domains
• What is analytics?
• Purpose of Analytics
• An element of business analytic definition is “Tweaking”
• First tweak contain introduction of “evidence”
• Second tweak contain “Decision making”

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Core Perspectives on Evidence-Based Problem
Solving
These definitional blocks forms the basis of the framework
Movement
Transformation Process
Capability Set
Activity Set
Decision Paradigm

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 Applications of BAF
Categorized into two types:
• Specialized
Uses special tools and analytics
Formulates insights with a predictive model
Have specific activities of analyzing patterns, identifying trends, and discovering anomalies.
• Collaborative
Broader approach
Collective approach towards excellence
Practices include techniques for integrating data and insights distributed across the organization.

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 Purpose of Business Analytics
• Find Meaning in the data

• Tactical Advantage

• Support Tactical and Organizational goals

• Better decision outcomes

• Better Organizational performance

• Knowledge production

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 Conclusion
• Many functional areas within organization increasingly look to data and analytics as a source of knowledge.
• Many functional areas report increases in influence within their respective organizations as a result of their use of
analytics.
• Having strong governance practices that enable data sharing, both within the enterprise and across enterprises, may
be critical to innovation that relies on integrated data sets.
• Data sharing requires many parts of an organization to work together, sometimes in tandem with other
organizations.
• Cultural norms that encourage managers to use these mechanisms are also necessary.
• The cultural norms for data sharing will vary depending on whether company is in a more or less heavily regulated
industry.
• Regulations and data governance removes uncertainty about what can be shared, how and by whom.
• Unhealthy organizational behavior about how to adjudicate or manage diverse interpretations may compromise the
value produced from the data.
• Our research indicates a rise in the number of organizations gaining advantage through analytics.
• The analytics may help organizations narrow their strategic focus to where their advantage is strongest.
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THANK
YOU.