Viewing Data-Driven Success Through a Capability Lens Mark Peco, CBIP Analytics Consultant and Educator

Welcome to Viewing Data-Driven Success Through a Capability Lens .

Objectives Clarify some basic data-driven concepts Frame the “Success” conversation Shift focus from “things” to “capabilities” Help identify and connect the right pieces of the puzzle Connect “data” with “value” Foster collaboration and change

Agenda Discuss and answer four basic questions… What does “data-driven” mean? Why do companies pursue it? What capabilities are needed to achieve success? How can a capability lens be used to view success?

Meet Your Presenter Mark Peco, CBIP Analytics Consultant and Educator mark.peco@gmail.com

What Does Data-Driven Mean?

What Does Data-Driven Mean? It Looks Pretty Complicated © Mark Peco

What Does Data-Driven Mean? Many “Data” Terms Leading to Confusion How to Filter What’s Important? © Mark Peco

What Does Data-Driven Mean? Business Intelligence A set of Capabilities for intelligently solving problems and accomplishing goals “Better, Faster, Smarter” © Mark Peco

What Does Data-Driven Mean? Analytics A set of Capabilities for generating and sharing insights “New Information & Insights” © Mark Peco

What Does Data-Driven Mean? Data Science A set of research oriented processes for supporting insight discovery and application “Business Experiments and Discovery“ © Mark Peco

What Does Data-Driven Mean? Big Data Non-traditional data sets that are impactful and driving disruptive change “Volume, Variety, Velocity Veracity & Value” © Mark Peco

What Does Data-Driven Mean? Management Science A set of quantitative processes used to manage and improve activities and results “Evidence based decision making” © Mark Peco

What Does Data-Driven Mean? Data-Driven A set of conditions when Management Science meets Data Science driving changes in culture, processes and performance. “Intelligent Actions based on Business Intelligence” © Mark Peco

What Does Data-Driven Mean? Impact Observed changes in outcomes, activities or conditions “effectiveness, efficiency, quality, agility, innovation” © Mark Peco

What Does Data-Driven Mean? Common Themes Capabilities Conditions Results Processes Data Sets © Mark Peco

What Does Data-Driven Mean? Data-Driven Success Analytics Actions Impact Decisions Culture Conditions Business Intelligence = Intelligent Business $$$ Success Factors © Mark Peco

Why Do Companies Pursue It?

Why Do Companies Pursue It? Motivation To become better, smarter, faster and more…. Effective Efficient Agile Innovative Compliant Consistent Disruptive Confident Sustainable √ Categories of Impact © Mark Peco

What Capabilities are Needed for Success?

What Capabilities are Needed for Success? From Gears to Capabilities Capability The capacity to get something done Adding people to the mix of gears © Mark Peco

What Capabilities are Needed for Success? Example Integrated Parts Only No Capability to Move at High Speed Just a Physical Object Integrated Parts with a Human Capability to Move at High Speed © Mark Peco

What Capabilities are Needed for Success? Building Blocks What Work is Planned and Carried Out Process Human Skills Standards & Norms Technology Who Does the Work Impact The Capacity To Execute Tools and Techniques Used to Do Work Leadership, Policies, Governance & Culture © Mark Peco

What Capabilities are Needed for Success? Impact Capability Outputs = Impact Capability produces impact depends on other inputs Inputs = Dependencies © Mark Peco

What Capabilities are Needed for Success? Mapping Dependencies Final Impact Capability 1 Capability 3 Capability 2 Enable Dependency Dependency Impact Impact Dependency Dependency © Mark Peco

What Capabilities are Needed for Success? A Scenario Basketball Team Management © Mark Peco

What Capabilities are Needed for Success? Capability Mapping Make Playoff s Desired Final Impact Areas Entertaining Competitive Team Capabilities Set Context Enable Athletic Capabilities Management Capabilities © Mark Peco

How Can a Capability Lens be Used?

What Can a Capability Lens be Used? Description A reference model for discovering and mapping key capabilities Impact, Business, Analytics, Data, Organizational © Mark Peco

How Can a Capability Lens be Used? Traditional ``Non Data-Driven`` View Plan Organize Control Produce Deliver Operate Build Serve Administer Conventional Business Capabilities How To Enrich These Business Capabilities? Common Definitions of Business Success Business Impact Areas High Margin Low Costs Safe Operations Clean Environment Happy Customers High Process Efficiency High Product Quality Low Risks High Compliance High Levels of Security © Mark Peco

How Can a Capability Lens be Used? Finding What is Important So you think you want to become data-driven….. Getting focus to start…. Eliminate the Noise & Confusion Capability Lens © Mark Peco

How Can a Capability Lens be Used? Becoming Data-Driven Common Definitions of Enhanced Data-Driven Success Enhanced Business Impact Examples Higher Margin Lower Costs Safer Operations Cleaner Environment Happier Customers Higher Process Efficiency Higher Product Quality Lower Risks Higher Compliance Higher Levels of Security Expected Uptick Business Capability Analytics Capability Requirements Enable Data Capability Organizational Capability Adding Data-Driven Capabilities © Mark Peco

How Can a Capability Lens be Used? Impact Business Capability Impact Categories Innovation Effectiveness Efficiency Quality Risk Agility Analytics Capability Data Capability The ``So-What`` Factor Organizational Capability © Mark Peco

How Can a Capability Lens be Used? Business Capability Plans, Decisions & Actions Business Capability Categories Plan Organize Control Produce Deliver Operate Build Serve Administer Analytics Capability Data Capability Areas of Business Improvement Organizational Capability © Mark Peco

How Can a Capability Lens be Used? Analytics Capability Business Capability Analytics Capability Categories Inform Measure Describe Predict Detect Diagnose Prescribe Discover Analytics Capability Information & Insights Data Capability Organizational Capability New or Enhanced Analytic Components © Mark Peco

How Can a Capability Lens be Used? Data Capability Business Capability New or Enhanced Data Components Analytics Capability Data Capability Categories Discover Evaluate Format Acquire Integrate Catalogue Describe Secure Provision Cleanse Deliver Data Capability Provision Organizational Capability © Mark Peco

How Can a Capability Lens be Used? Organizational Capability Business Capability New or Enhanced Organizational Components Analytics Capability Organizational Capability Categories Govern Data Govern Models Collaborate Organize Coordinate Enable Data Literacy Build Competencies Build Teams Motivate Incent Data Capability Organizational Capability Leadership & Standards © Mark Peco

How Can a Capability Lens be Used? The Need to Understand “How” Business Capability Impact ? ? Analytics Capability ? How? Requirements and Context Enable Data Capability ? What Outputs Are Delivered by Each Layer? How Do they Enable Other Improved Capabilities? Organizational Capability © Mark Peco

How Can a Capability Lens be Used? Thinking “Inputs” and “Outputs” Impact Business Capability Changed Behavior Information & Insights Analytics Capability Useful & Relevant Data Data Capability Changed Culture Literacy Incentives Policies Organizational Capability © Mark Peco

How Can a Capability Lens be Used? Two Types of Planning Questions Question 1 – Top Down How Can Existing Business Capabilities be Improved by New Data-Driven Capabilities? Question 2 – Bottom Up What New Business Capabilities are possible from New or Existing Data-Driven Capabilities? © Mark Peco

How Can a Capability Lens be Used? Identifying Technology Components Process Skills Standards & Norms Model Building Control Charts Business Leader Data Governance Visualization Optimization Decision Maker Portfolio Management Storage Simulation Business Analyst Recruiting Acquisition Time Series Model Builder Skills Development Presentation Descriptive Statistics Subject Matter Expert Compensation Model Execution Probability Data Analyst Culture Development Data Preparation Machine Learning Operations Analyst Architecture Development Quality Rule Based Methods Data Scientist Strategy Development Integration Experimental Design Architect Business Performance Decision Making Program Leader Process Management Process Analysis Project Manager Accountability Assignment © Mark Peco

How Can a Capability Lens be Used? Identifying Process Components Technology Process Skills Standards & Norms Model Building Control Charts Business Leader Data Governance Visualization Optimization Decision Maker Portfolio Management Storage Simulation Business Analyst Recruiting Acquisition Time Series Model Builder Skills Development Presentation Descriptive Statistics Subject Matter Expert Compensation Model Execution Probability Data Analyst Culture Development Data Preparation Machine Learning Operations Analyst Architecture Development Quality Rule Based Methods Data Scientist Strategy Development Integration Experimental Design Architect Business Performance Decision Making Program Leader Process Management Process Analysis Project Manager Accountability Assignment © Mark Peco

How Can a Capability Lens be Used? Identifying Skills Components Technology Process Skills Standards & Norms Model Building Control Charts Business Leader Data Governance Visualization Optimization Decision Maker Portfolio Management Storage Simulation Business Analyst Recruiting Acquisition Time Series Model Builder Skills Development Presentation Descriptive Statistics Subject Matter Expert Compensation Model Execution Probability Data Analyst Culture Development Data Preparation Machine Learning Operations Analyst Architecture Development Quality Rule Based Methods Data Scientist Strategy Development Integration Experimental Design Architect Business Performance Decision Making Program Leader Process Management Process Analysis Project Manager Accountability Assignment © Mark Peco

How Can a Capability Lens be Used? Identifying Standards Components Technology Process Skills Standards & Norms Model Building Control Charts Business Leader Data Governance Visualization Optimization Decision Maker Portfolio Management Storage Simulation Business Analyst Recruiting Acquisition Time Series Model Builder Skills Development Presentation Descriptive Statistics Subject Matter Expert Compensation Model Execution Probability Data Analyst Culture Development Data Preparation Machine Learning Operations Analyst Architecture Development Quality Rule Based Methods Data Scientist Strategy Development Integration Experimental Design Architect Business Performance Decision Making Program Leader Process Management Process Analysis Project Manager Accountability Assignment © Mark Peco

How Can a Capability Lens be Used? Planning Business Capability Pump with Higher Reliability Execute Pump Maintenance Analytics Capability Impact Area ``Efficiency`` Predict Pump Failures Enable Data Capability Provision Pump Operating Data Organizational Capability Govern Pump Predictive Model Govern Pump Operating Data Capability Lens © Mark Peco

How Can a Capability Lens be Used? Assessment Category Capability Process Technology & Tools Skills Policies & Standards Business Plan Build Operate Analytic Describe Predict Data Acquire Integrate Provision Organizational Quality Policy Motivate Communicate © Mark Peco

How Can a Capability Lens be Used? Monitoring Category Capability Process Technology & Tools Skills Policies & Standards Business Plan Build Operate Analytic Describe Predict Data Acquire Integrate Provision Organizational Quality Policy Motivate Communicate © Mark Peco

How Can a Capability Lens be Used? A Layer of Abstraction Eliminate the Noise & Confusion Capability Lens Find What You Need with Purpose and Confidence Reduce the Risk of “Incomplete” Solutions © Mark Peco

Summary Many moving parts must fit together Capability modeling connects the parts The Capability Lens gives purpose to each part Filter out the noise and hype Maintain purpose and focus Increase chances of success © Mark Peco

Thank You Viewing Data-Driven Success Through a Capability Lens Mark Peco, CBIP mark.peco@gmail.com

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