Analytics Wednesday Evening – Team 7 Michelle Hansberry, Katie Heineman, John Wright, Lisa Wright

Agenda Explanation of Analytics How Analytics are used Current Case Studies Watson Future Implications

What are Analytics? AKA business analytics and data analysis The software and methods that organizations use to understand data

Why do we need Analytics? Big Data Create Value Competitive Advantage Productivity Growth Multiple Data Sources

Forms of Analytics? Analytic Decision Making Business Intelligence Performance Management Predictive Analysis Risk Analysis

Which Industries can use Analytics? Marketing Insurance Finance Health Care Diagnose & Decide Treatment Investment Decisions Consumer Needs Pricing & Program Design

BASP

Pillars 1 & 2 Business Challenges Data Foundation

Analytics Implementation Pillars 3&4 Analytics Implementation Insight

Execution and Measurement Distributed Knowledge Pillars 5 & 6 Execution and Measurement Distributed Knowledge

Pillar 7 Innovation

Example 1: MNOs in Africa Anticipate Combine and analyze Savings

Example 2: Macys.com Unsubscribe rates Marketing use Scores

What is the Watson? Watson Cognitive Computer Natural Language Processing Hypothesis Generation Evidence-based Learning Analysis Capability

Watson YouTube Watch for 2 minutes http://www.youtube.com/watch?v=WFR3lOm _xhE Watch for 2 minutes

What sets Watson apart? Ability to learn & understand Recognizes irony & sarcasm Operates in real time Makes decisions

Watson in Business? Feeds big data Creates sales databases, web pages, social networks Analyzes and makes predictions Provides evidence based recommendations

Discussion Have you made an important business decision based off of analytics? If so, what?

Future Implications of Analytics Predictive Analytics Smart Planet The need for strategy

Predictive Analytics Predictive Analytics: Software + Model + Strategy Knowing what’s already happened is useful; predicting what WILL happen gives competitive edge.   Evolving beyond knowing past performance: Knowing real- time performance

Predictive Analytics 1. Video: Predictive analytics in public safety (~30 sec)  http://www.youtube.com/watch?v=_ZyU6po_E74 2. Video: Predictive analytics in everyday businesses (~30 sec) http://www.youtube.com/watch?v=FpWoFMSf73g Predictive Analytics jobs & roles are becoming higher priorities for companies These very short videos give a visual depiction of how predictive analytics are becoming part of our everyday.

Smart Planet Using analytics can improve many areas of society. By using analytics to increase efficiencies, society can put resources where they are needed most & will make the most effective impact. Smart Planet is an initiative coined by IBM to describe what can happen if cities use overlapping information systems to obtain useful analytics, especially in a predictive sense.

Smart Planet Video “IBM: Smarter Cities Using Analytics” http://www.youtube.com/watch?v=TULPgblz-UA (~2 min) Using analytics from information systems to build what IBM calls a ‘smart planet’. I think this really is the future of analytics.

Analytics Still Require Strategy Analytics still need to be backed by strategic business strategy Video - SAS: Myths of Predictive Analytics (watch until 1:45 min) http://www.youtube.com/watch?v=NLdbYgreGiQ

Analytics Still Require Strategy Predictive Analytics: Software + Model + Strategy The predictive model must be carefully thought out.  Great software/ tools still need the dots connected correctly.   Must strategize to move model into business decisions #1: Great analytical tools can still fall victim to “garbage in = garbage out” #2: ie human eye for bringing all of the analysis and what ‘makes sense’ together as a single impact on the company

References IBM. Business Analytics from IBM: http://www-01.ibm.com/software/analytics/infographics/what-is-analytics/index.html Mckinsey. Big data: The next frontier for innovation, competition, and productivity: http://www.mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_innovation Earnix. Insurance Companies are Increasingly Using Advanced Analytics to Better Understand Customers – New Earnix Survey Shows: http://earnix.com/insurance-companies-are-increasingly-using-advanced-analytics-to-better- understand-customers-new-earnix-survey-shows/3432/ Forbes. Big Data, Analytics And The Future Of Marketing And Sales: http://www.forbes.com/sites/mckinsey/2013/07/22/big-data-analytics-and-the-future-of-marketing-sales/ Biztech Africa. Mobile operators to gain almost $4bn from applying analytics to reduce churn: http://www.biztechafrica.com/article/mobile-operators-gain-almost-4bn-applying- analytic/7043/?section=computing#.UlrlV1CsiM5 Apparel. Top Apparel Companies Transform Their Processes with Business Intelligence: http://apparel.edgl.com/case- studies/Top-Apparel-Companies-Transform-Their-Processes-with-Business-Intelligence88796 American Marketing Association.  Pillars for Successful Analytics Implementation: http://www.marketingpower.com/ResourceLibrary/Publications/MarketingInsights/2013/Spring/7%20Pillars.pdf IBM. The Science Behind Watson. http://www-03.ibm.com/innovation/us/watson/science-behind_watson.shtml Forbes. IBM's Watson Set To Revolutionize Marketing. http://www.forbes.com/sites/markfidelman/2013/09/04/ibms- watson-set-to-revolutionize-marketing/ Information Management. How Will Business Analytics Change in the Near Future? : http://www.information- management.com/resource-center/?id=10024267 Cite World. Predictive analytics shine a light on the future: http://www.citeworld.com/consumerization/22340/predicitive-analytics-shine-light-future?page=1 Forbes. Wearable Technology, Spatial Analytics: Future Of Sport Is Now: http://www.forbes.com/sites/sap/2013/09/26/wearable-technology-spatial-analytics-future-of-sport-is-now/