Beyond Dashboards 15 September, 2016

Silicon Valley@soody

http://www.slideshare.net/ssood/foresight-analytics

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Insights-driven businesses will generate $1.2 trillion in 2020

Forrester Research, 2016

3© 2016 Forrester Research, Inc. Reproduction Prohibited

Insights-driven businesses are faster than large companies

2015 2016 2017 2018 2019 2020$0

$250

$500

$750

$1,000

$1,250 Revenue (billions)

Public

Startup

Global GDP will grow only 3.5% annually.

27% CAGR

40% CAGR

Source: Forrester, Morningstar, PitchBook, and The Economist Intelligence Unit

Reports&

Analysis

Visualisation&

Interpretation

WriteData/Business

“Story” Insights

Led by Data Analyst or Scientist

SME owner, Machine Learning and Natural Language GenerationFusion of data science, business knowledge & creativity for maximium ROI

Data Aggregation Operationalise

Detect & ExtractPatterns andRelationships

Generate Insights &

Story

ProcessApplication

IoT

Data Aggregation or

Data Set

Traditional Analytics: Slow & Expensive80% of time sifting through data

System of Insight (SoI)

SoI: Fast & Cost Effective80% of time in decision making with client

New Sources of Information (Big data) : Social Media + Internet of Things Innovations

7,919 40,204

2,003,254,102 51 Gridded Data Sources

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CCTV

7

https://nodexl.codeplex.com/

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Sherman and Young (2016), When Financial Reporting Still Falls Short,Harvard Business Review, July-August

Sood (2015), Truth, Lies and Brand Trust The Deceit Algorithm,http://datafication.com.au/

New Analytical Tools Can Help

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http://www.analyzewords.com

Actionable Insights

1. What now ?

2. So what ?

3. Now what ?

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Companies are reimagining Business Processes with Algorithms and there is “evidence of significant, even exponential, business gains in customer’s customer engagement, cost & revenue performance”

Wilson, H., Alter A. and Shukla, P. (2016), Companies Are Reimagining Business Processes with Algorithms, Harvard Business Review, February, https://hbr.org/2016/02/companies-are-reimagining-business-processes-with-algorithms

Better customer experiences . . .. . . and half the inventory-carrying costs of other online fashion retailers.

Forrester, 2016

Systems of Insight

Automated pattern extraction

Outlier detection

Correlation

Time series

Analytics integration with process, app or IoT

https://ubereats.com/melbourne/

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outlier-detection “allow detecting a significant fraction of fraudulent cases…different in nature from historical fraud…resulting in a novel fraud pattern”

Baesens, B., Vlasselaer, V., and Verbeke, W., 2015, Fraud Analytics Using Descriptive, Predictive, and Social Network Techniques: A Guide to Data Science for Fraud Detection, Wiley

The ANZ Heavy Traffic Index comprises flows of vehicles weighing more than 3.5 tonnes (primarily trucks) on 11 selected roads around NZ. It is contemporaneous with GDP growth.

The ANZ Light Traffic Index is made up of light or total traffic flows (primarily cars and vans) on 10 selected roads around the country. It gives a six month lead on GDP growth in normal circumstances (but cannot predict sudden adverse events such as the Global Financial Crisis).

http://www.anz.co.nz/about-us/economic-markets-research/truckometer/

Systems of Insight

• Helps move away from “crisis levels” in talent

• Traditional 5 step analytics process reduced to 2 step from data to action

• Reimagine business processes through “machine engineering”

• Minimise messy data issues and data preparation time

Next Step

Start using Systems of Insight and innovative data sourcesVs

Just dashboards