Unplanned analytics-led transformation

UNPLANNEDANALYTICS-LEDTRANSFORMATION

AVOID BECOMING IRRELEVANT

FAST FACTS:

• Since 2000, 52% of the names on the Fortune 500 list are gone, either as a result of mergers, acquisitions or bankruptcies.

• Only 5 percent of the companies are leaders in proactively adjusting to digital disruption while 30% of organizations don’t want to change at all.

• In 1960, the average age of a company on the S&P 500 was 60 years old. By 2020, the average age will be 12.

THE FORTUNE 500 LIST IS NOW IRRELEVANT

Copyright © 2017 Accenture All rights reserved.

FOCUS ON ANALYTICS

Data Analytics Adopters Brave Obstacles (Vincent Ryan), CFO Magazine, March 3, 2017

“When the insight from data analytics suggests different findings to the commonly held views,

there is a tendency to reject the analytics and use them selectively when it supports the views”,

one respondent said about her organization.

Systems/technology

Time constraints

Talent/skills

Corporate culture

Training

Finance processes

Organization structure

Data governance

Leadership support

None

34.6%

27.7%

27.0%

24.5%

23.9%

22.6%

22.6%

20.8%

16.4%

15.1%

What obstacles prevent your finance function

from having a highly effective data analytics

program?

Notes: Multiple responses allowed.

Yes

No

Don't know

What obstacles prevent your finance function

currently seen as having a highly effective data

analytics program?

43.2%

43.7%

13.1%

The least-valuable uses of data analytics

can be “time wasted gathering data that

wasn’t ultimately necessary or relevant,” as

one respondent indicated, or “getting bogged

down in the details of the data and taking too

long to make a decision based on data,”

according to another.

When asked what the least valuable use of

data analytics seen in their organization, one

executive cited as useless the “’old school’

operations reports that analyze and report

historical performance and trends.” Other

examples included annual planning and

recreating legacy reports.


ADOPT HIGH PERFORMING TRAITS

* According to Accenture research in partnership with MIT

INVESTMENT TODAYHigh performers make better and

more informed decisions

High performers are almost four times

as likely to report receiving a

significant ROI from analytics

INCREASING INVESTMENT TOMORROW

SMARTER INVESTMENT OVERALL

59 percent of high performers invest more than

one-quarter of their total technology expenditure

in analytics, versus only 17 percent of low

performers.

53 percent of high performers plan to significantly

increase their analytics investment over the next

three years.

Compared to 9 percent of low performers, further

widening the gap between high and low performers.

More than twice as many high performers are

spending more on analytics, including making

greater investments in human capital through

training, investments in people and the use of

consultants (82 percent vs. 40 percent).

94% 48%

92% 24%

vs

vs

59% 17%vs

82% 40%vs

53% 9%vs

High Performers Low PerformersCopyright © 2017 Accenture All rights reserved.

ADOPT HIGH PERFORMING TRAITS

Low performersGather data, lack analytics talent

High performersFocus on insights to actions

Only one in five invest at a high level in

analytics and only one in 10 expect this to

increase significantly in the next three

years

Less than half manage talent from end-to-

end; just over half use a multi-faceted

approach; few are willing to acquire talent

Only one in five use seven or more types of

data in their analyses; less than half use

advanced analytical techniques

One third or fewer embed analytics into the

decision process and struggle with

decision-making

The majority invest considerably in their

analytical capability and this is expected to

significantly increase over the next three

years

Nearly all manage talent from end-to- end and

four out of five source talent using a multi-

faceted approach; more than twice as many

high performers are willing to acquire talent

compared to low performers

The majority use seven or more types of data

in analyses; four out of five use advanced

analytical techniques

Four out of five embed analytics into the

decision process

90%OR MORE

High performing organizations are

satisfied with the contribution

analytics has made to shaping

strategic direction, addressing

growth opportunities, informing

critical decisions and managing

risk, compared with 39% low

performers (on average).


FOCUS ON VALUE CREATION WITH UNPLANNED ANALYTICS

NEW MODEL

Bring together different data sources to gain new insights

Use analytics pinpoint emerging opportunities and turn data into breakthrough business value

Develop analytics mindset and encourage high performers to “show” with data

Create visibility to spending patterns to inform policies that better focus future invest

OLD MODEL

Working towards step-change in

Silos without Focus

Use Invests poorly tracked,

managed, and controlled

Internal Mindset &

Cultural Inertia

Investments governed

by archaic tech & bus

spending cycles

Lack of Innovation

Poor Investments

Failed Talent Model

Flawed Tech Strategy


Use Case

Focused

Rapid &

Flexible

Self

Service

Advanced

Visualization

IT DRIVEN BUSINESS DRIVEN

ADOPT THE UNPLANNED ANALYTICSAPPROACH

Data

Focused

Scheduled

Reports

Formal

Plan

Tabular

Output


Use Case

Focused

Rapid &

Flexible

Self

Service

Advanced

Visualization

Leveraging Accenture Strategy team built set of

KPIs indicative of high performing organizations

Leveraging Accenture Digital team built

user based design dashboard for each

technology stack

UNPLANNED ANALYTICSRELIES ON THE FASTT METHODOLOGY


ANALYZEFIND SOLVE TRANSFORM

Adopt the FASTT methodology to initiate closed

loop from identifying opportunity through tracking

the fix

TRACK

FASTT ANALYTICS METHODOLOGY

FIND –ANALYZE –SOLVE – TRACK-TRANSFORM


TRACK THE FIX

User Based

Hypothesis

Accenture

App Store

Business

Intelligence

ANALYZEFIND SOLVE TRANSFORM

Data Science

Find patterns, early

indicators and root

cause of the problem

Organizational

Fix

Process Fix

Technology Fix

Data Driven

Culture

New Better

Services

Get the Data

Team requests specific data

elements from customer

For example, team requests Vendor Name,

Invoice Amount, Payment Date and Payment

Discount Date

Visualize

Team ingests data and then

visualizes to diagnose gap

For example, App identifies that 20% of Vendors

are being paid less than 3 days late of Payment

Discount Date

Present the Data

Team presents to business

community for feedback and

confirmation

For example, the 3 day late equates to 20MM in lost

discounts and team would like to take 6 weeks to

find root cause

FINDFASTT METHODOLOGY


User Based

Hypothesis

Accenture

App Store

Business

Intelligence

FIND

What is it?

Team can use existing hypothesis, Accenture based ‘Apps’ or existing Business Intelligence solutions that highlight opportunity area to explore

What is the point?

The goal of this phase is to highlight gaps and associated value that can then be analyzed for root cause

ANALYZE

Data Science

Find patterns, early

indicators and root

cause of the problem

What is it?

Team leverages Data Insight team to apply existing/custom models to data set finding patterns and associated coefficients to the hypothesis

What is the point?

The goal of this phase is to identify root causes and early indicators or patterns associated with the Problem

Profile the Data

Team requests additional data and

begins iterating on segmenting data

into clusters

For example, team clusters all Vendors with

highest propensity of no discount

Predict the Pattern

Team uses statistical models to find

patterns associated with cluster

For example, cluster illustrates pattern of review

delay with dollar amounts >1MM within last 5

days of month

Present the Findings

Team presents to business community

for feedback and confirmation

For example, Data Insights team builds proposal that

creates process eliminating scheduled payments last 5

days of month

ANALYZEFASTT METHODOLOGY


Execute Solution

Team passes design of solution

and then executes the fix

For example, business team writes global

policy on accept/decline payment times– which

is implemented in Procurement system

workflow

Leave Behind Tracker

Team builds App based tracker

For example, team uses ‘Problem’ design from first

phase to build Procurement Discount App where

business can monitor discounts on monthly basis

Iterate UNPLANNED

Team initiates next area of

UNPLANNED Analytics

For example, team requests additional procurement data

needed to identify fraudulent behavior

SOLVE THEN TRACKFASTT METHODOLOGY


SOLVE

Organizational

Fix

Process Fix

Technology Fix

What is it?

Data Insight team passes solution to associated Org/Process/Technology group, fixing root cause and leaving behind the ability to track progress

What is the point?

The goal is to fix the root cause proving overall fix via Tracker

TRANSFORM

Data

Driven

Culture New Better

Services

What is it?

The organization begins to see a cultural transformation towards quantitative analysis superseding that of qualitative experience led.

What is the point?

Through iterations of FASTT the company will shift towards data as its competitive differentiator and realize the ability to offer new and better services.

Data Driven Culture

Data driven analysis is federated to all parts of the business

For example, business team begins internal analysis of cash flow based on linear regression

that accounts for seasonality and vender relationship coefficients

New Better Services

Organization builds internal portal on preferred vendor pricing

For example, based on predicting prices and quantities needed, organization builds web based

portal internally to suggest vendor and timing based on analytic

TRANSFORMFASTT METHODOLOGY


A top strategic priority for business leaders is to get the organization running in a more cost-efficient way and redirect resources to growth.

The FASTT methodology for unplanned analytics allows:

• Creating unprecedented spend

visibility at a forensic level

• Budgeting from zero each year

removes unnecessary cost and

creates a detailed forecast.

• Matrixed responsibility drives

positive tension and negotiations

to create an ownership mindset

• Creates a culture of sharing and

learning by example.

• Successful organizations will

balance the art (behavioral) and

the science (proof /incentives) of

this critical culture change

• Culture is not a barrier

to success… lack of ambition is.

IMPROVED

VISIBILITY

ENHANCED

ACCOUNTABILITY

EFFICIENT

ORGANIZATIONAL

CHANGE

Visibility often highlights Indirect

baseline increase of 20-40%

Accountability defined right up to C-

Suite as Global Package Owners

Sustainability dependent on

understanding of what it means to each

individual

UNPLANNED ANALYTICS WITH FASTTSMART SPEND SOLUTION


FOR MORE INFORATION

TERRY HEMKENManaging Director,

Accenture Analytics Insights Service

https://www.linkedin.com/in/terry-hemken/

https://www.linkedin.com/in/terry-hemken/

ABOUT ACCENTUREAccenture is a leading global professional services organization, providing a broad range of

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sustainable value for their stakeholders. With more than 411,000 people serving clients in more

than 120 countries, Accenture drives innovation to improve the way the world works and lives.

Visit us at www.accenture.com.

Copyright © 2017 Accenture

All rights reserved.

Accenture, its logo, and

High Performance Delivered are

trademarks of Accenture.

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Unplanned analytics-led transformation

Technology

Transcript of Unplanned analytics-led transformation