Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.
-
Upload
walter-hart -
Category
Documents
-
view
215 -
download
0
Transcript of Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.
![Page 1: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/1.jpg)
Business Analytics, Part IIntroduction
Presented by Scott KoeglerEditor, ec-bp.org
![Page 3: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/3.jpg)
Business Analytics
• Business Analytics• What is it?• Where did it come from?• What is it supposed to do?
![Page 4: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/4.jpg)
BI – A Starting Point
• Business Intelligence (BI) • Discovering what happened• Look at past events• Typical of ERP reports
![Page 5: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/5.jpg)
BI & BA
• What differentiates BA from BI?• Looking forward• Trend moving to predictions• Predictive analysis
![Page 6: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/6.jpg)
BA & Data
• Data is the key to BA• Lots of data• Real-time or near-time• Widest collection
of data
![Page 7: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/7.jpg)
Challenges
• Data?• Access?• Reporting?• Outcomes?
![Page 8: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/8.jpg)
Why Is BA a Hot Topic?
• Optimization is the new growth
• Expansion was the best way to grow• Now too expensive• Difficult to open new
markets
![Page 9: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/9.jpg)
Not About the Tools
• Tools do exist• Know the desired
outcomes
![Page 10: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/10.jpg)
Outcomes
• Outcomes define the project• Stakeholders must drive the quest• Business in / technology out
![Page 11: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/11.jpg)
How Far to Reach
• Not far-reaching• Best to start
with smaller goals• Tactical goals first
![Page 12: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/12.jpg)
Possibly Too Limited
• Analytics are not in a box• Think of analytics as part
of the holistic environment• Tactical goals are part of
the overall plan
![Page 13: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/13.jpg)
Leakage
• Organizational process leakage• The key findings may be
lost along the way
![Page 14: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/14.jpg)
Focus on the Delta
• Difference between:• Current situation• What is possible
![Page 15: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/15.jpg)
Close the Gap
• The Gap is the difference between what is and what is possible• Don’t worry about closing
the gap completely• Incremental improvements
do count
![Page 16: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/16.jpg)
80/20 Rule Applies
• Determine the most important changes
• Monitor progress• Evaluate the results
![Page 17: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/17.jpg)
Good Enough
• Good enough is good enough
![Page 18: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/18.jpg)
It’s a Process
• BA is not “buy and push the button”
• Every implementation is different
• Tools for custom outcomes
![Page 19: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/19.jpg)
Processes
• Create numerical results• Implement in meaningful ways• Integrate outcome to technology• Integrate • Monitor and fine-tune
![Page 20: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/20.jpg)
Refine & Evaluate
• Continuous loop• Measure the Gap• Fix what doesn’t work• Measure the Gap• …
![Page 21: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/21.jpg)
Categories of Analytics
• Descriptive Analytics• Prepares and analyzes
historical data• Identifies patterns from
samples for reporting of trends
![Page 22: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/22.jpg)
Categories of Analytics
• Predictive Analytics• Predicts future
probabilities and trends
• Finds relationships in data not readily apparent with traditional analysis
![Page 23: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/23.jpg)
Categories of Analytics
• Prescriptive Analytics• Evaluates and
determines new ways to operate
• Targets business objectives and balances all constraints
![Page 24: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/24.jpg)
Limits to Predictions
• Long-term projections are difficult• 5- to10-year projections• Changes are difficult to
predict
![Page 25: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/25.jpg)
Barriers to Achievement
• Massive amounts of data• Need for real-time access• Traditional data in
transactional systems• Requires optimized
computing platforms• Disk drives can’t keep up
![Page 26: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/26.jpg)
Combination of Changes
• De-normalized databases• Removes multiple tables• Flat data file
• Optimized data structures• Optimized computing
![Page 27: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/27.jpg)
What About ROI?• ROI is not always immediately obvious• Results of analytics may be available only
after years of following the prescription• Requires long-term efforts
![Page 28: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/28.jpg)
Returns Defined
• Viable Business Analytics• Results based on the business• Define the desired results• Agree on definition of success
![Page 29: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/29.jpg)
Recommendations
• BA initiatives are different• Commonality is in the approach• Treat BA as any project• Generally longer term
• Iterative process• Constant updates
![Page 30: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/30.jpg)
Recommendations
• Monitor progress• Focus on outcomes• Review validity• Revise data collections
![Page 31: Business Analytics, Part I Introduction Presented by Scott Koegler Editor, ec-bp.org.](https://reader030.fdocuments.in/reader030/viewer/2022032523/56649d895503460f94a6ec31/html5/thumbnails/31.jpg)
Analytics Everywhere
• Increasingly used• Volume of data collected driving use• Optimization of business = growth• Look for opportunities
• Data collection• Future outcomes• Uncertainty