Unmasking Analytical Innovators David Kiron Executive Editor, Big Ideas Initiative MIT Sloan Management Review

SUST D&A SB MIT SMR Big Ideas Initiative

2014 D&A Research Report, out today In partnership with SAS Institute Survey of 2,037 professionals Interviewed 30+ executives across many sectors sloanreview.mit.edu/analytics2014

KEY FINDING Analytics has become a common path to value.

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014

Tyler Spalding CEO StyleSeek & MIT Alum Goal: Disrupt retail industry

styleseek.com

Who Succeeds?

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 The Importance of Culture

Components of an Analytics Culture

Analytical Innovators

5 Hallmarks of Success

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics Be Open to New Ideas

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics Treat Data as a Core Asset

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics Senior Management Pressure

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics Use Analytics to Guide Strategy

Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics Analytics Changes Operations

5 Hallmarks of Success 1.Be open to new ideas that challenge current practice. 2.View data as a core asset. 3.Senior management drives the organization to become more data-driven and analytical. 4.Use analytical insights to guide strategy. 5.Let analytics help change the way you do business.

Entravision MIT SMR Case Study sloanreview.mit.edu/luminar-insights

Entravision Communications US-based Latino media conglomerate Reach: 93% of US Latino population Latino population buying power: trillions of dollars Industry in transition Ad Agencies more powerful/New media distribution channels/consumer viewing habits shifting

Franklin Rios President of Luminar, a business unit w/in Entravision

Invest in Big Data 3000 data points 200 sources Consumption data, not survey Data Scientists from Mexico Real insights into Latino buying patterns sloanreview.mit.edu/ luminar-insights

Figure excerpted from “Luminar Insights: A Strategic Use of Analytics,” a case study by MIT SMR, made possible by SAS. Read the full case study at sloanreview.mit.edu/projects/luminar-insights/

1. Is my organization open to new ideas that challenge current practice?

2. Does my organization view data as a core asset?

3. Is senior management driving the organization to become more data-driven and analytical?

4. Is my organization using analytical insights for strategy?

5. Are we willing to let analytics help change the way we do business?

FINAL THOUGHT Data is evidence, not truth

sloanreview.mit.edu/data-analytics Thank you.

WellPoint MIT SMR Case Study sloanreview.mit.edu/wellpoint2014

Jill Hummel Vice President of Payment Innovation, WellPoint

WellPoint 34 million members 1 in 9 Americans 1 billion transactions 14 states Strategic need to reduce costs, improve health outcomes sloanreview.mit.edu/ wellpoint2014

WellPoint’s Five Reports 1.List of the physician’s total patient population 2.List of patients with gaps in care 3.List of patients visiting the emergency room 4.List of patients admitted to the hospital, highlighting those at high risk for readmission 5.List of high-risk patients to focus on with actionable information about their risk drivers