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

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

3. 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

4. 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?

5. Meet Your Presenter Mark Peco, CBIP Analytics Consultant and Educator

6. What Does Data-Driven Mean?

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

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

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

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

11. 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

12. 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

13. 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

14. 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

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

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

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

18. Why Do Companies Pursue It?

19. 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

20. What Capabilities are Needed for Success?

21. 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

22. 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

23. 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

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

25. 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

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

27. 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

28. How Can a Capability Lens be Used?

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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. Thank You Viewing Data-Driven Success Through a Capability Lens
Mark Peco, CBIP

51. Thank you for Attending!
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