1. Prof C Sudhakar CEO Raskey Software Solutions
Data Analytics
Prof C Sudhakar
CEO
Raskey Software Solutions
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

2. Agenda Discussion on Data What is Analytics and Its Need Road Map
Auditors perspective
Types of Analytics
Job Potential
The Major discussion will be introduction to topic and the role of auditor
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

3. Data Raw data Knowledge insights Wisdom Information 9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

4. Analytics
The extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions
--Prof Davenport
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

5. Four pillars of Data Analytics
Distinctive capability: The organization views analytics as something significant that sets it apart from competitors.
Enterprise wide approach: Analytics are managed and made widely available across the whole organization, not just to one department or a hodgepodge of employees.
Senior management commitment: Changes in culture, process, behavior and skills and a passion for fact-based decision-making must be led by the CEO.
Large-scale ambition: Analytical competitors bet their future business success on analytics-based strategies.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

6. 5 levels of Analytical Capability
Stage 5 Analytical Competitors
Stage 4 g Analytical Companies
Stage 3 Analytical Aspirations
Stage 2 Localized Analytics
Stage 1 Analytically Impaired
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

7. Road Map to becoming an analytical competitor
Analytically impaired
Management Support:
Prove It Path
Stage 1
Localized Analytics
Stage 2
Top Management Support Full steam Ahead path
Functional
Management builds Analytics Momentum and executives interest through application of basic analytics
Stage 3
Analytical Aspirations
Terminal Stage
Some Companies analytics efforts never receive management support and stall here as a result
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

8. Road Map Stage 3 Stage 4 Analytical Companies Analytical Aspirations
Analytical competitors
Enterprise-wide analytics capability under development: Top executives view analytic capability as a corporate priority
Executives Commit to Analytics by Aligning resources and setting a time table to build a broad analytical capability
Organizations Routinely reaping the benefits of its enterprise –wide analytics capability and focusing on continuous analytics renewal
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

9. The Key elements in an analytical capability for assessment (For Audit)
Organization
Insight into performance drivers
Choosing a distinctive capabilities
Performance management and strategy execution
Process redesign and integration
Human
Leadership and senior executive commitment
Establishing a fact-based culture
Securing and building skills
Managing analytical people
Technology
Quality Data
Analytical Technologies
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

10. Choosing a Strategic Focus
Organizations Initially focus on one or two areas for analytics
Harrah’s : Loyalty Plus Service
New England Patriots: Player Selection Plus Fan experience
Dreyfus Corporation: Equity analysis plus asset attrition
UPS: Operation plus Customer data
Wall Mart: Supply Chain Plus Marketing
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

11. Maturity of analytical capability by stage
Analytically impaired :
Organization
Analytical Objective : Limited insight into customers, Markets, Competitors
Analytical Process: Does Not Exist
Human
Skills: None
Sponsorship: None
Culture: Knowledge allergic- Pride on gut based decisions
Technology
Missing /Poor Quality Data, Multiple defines, un-integrated Systems
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

12. Analytical Process: Disconnected, Very Narrow focus Human
Localized Analytics:
Organization
Analytical Objective : Autonomous activity builds experience and confidence using analytics: creates new analytically based insights
Analytical Process: Disconnected, Very Narrow focus
Human
Skills: Pockets of isolated analysts
Sponsorship: Functional and tactical
Culture: Desire for more objective data, successes from point use of analytics start to get attention
Technology
Recent transaction data un-integrated, missing important information. Isolated BI/analytic efforts
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

13. Analytical aspirations : Organization
Analytical Objective : Coordinated; establish enterprise performance metrics, build analytically based insights.
Analytical Process: Mostly separate analytic processes. Building Enterprise level plan
Human
Skills: Analysts in multiple areas of business but with limited interaction.
Sponsorship: Executive- early stages of awareness of competitive possibilities
Culture: Executive Support for fact based culture- may meet considerable resistance
Technology
Proliferation of BI tools. Data Marts, Data warehouse established/ expands.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

14. Analytical Companies : Organization
Analytical Objective : Change program to develop integrated analytical processes and applications and build analytical capabilities.
Analytical Process: Some embedded analytical processes
Human
Skills: Skills exists, but often not aligned to right level/ right role.
Sponsorship: Broad C Suite support
Culture: Change Management to build a fact based culture
Technology
High Quality Data, Have an enterprise BI plan/ strategy, IT processes, and governance principles in place.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

15. Analytical Competitors : Organization
Analytical Objective : Deep, Strategic insights, continuous renewal and improvement
Analytical Process: fully embedded and much more highly integrated
Human
Skills: Highly skilled, leveraged, mobilized, centralized outsourced grunt work
Sponsorship: CEO passion, Broad based Management Commitment
Culture: Broadly supported fact based culture testing and learning culture
Technology
Enterprise wide BI/BA architecture largely implemented.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

16. 9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

17. Questions to ask when evaluating new analytical initiatives
How will this investment make us more competitive?
How does the initiative improve our enterprise-wide analytical capabilities?
What complementary changes need to be made in order to take full advantage of new capabilities such as developing new enhanced skills; improving IT training and processes or redesigning jobs?
Does the right data exists? If not, can we get it? Is the data timely, consistent, accurate, and complete?
Is the technology reliable? Is it cost effective? Is it scalable? Is this the right approach or tool for the right job?
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

18. Key people in Implementation of Analytics
CEO
CIO
CFO
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

19. Key requirements for analytical capabilities
Hard to duplicate
Unique
Adaptable to many situations
Better than competition
renewable
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

20. Types of Analytics Descriptive analytics
Inquisitive/Diagnostic Analytics
Predictive analytics
Prescriptive analytics
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

21. When Analytics Fail Assumptions are not properly done
Improper identification of variables
Wrong selection of statistical tool
Non Involvement of Top Management
Proper data not available
Immediate decision required
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

22. Descriptive Analytics
answers the question, "What happened in the business?" It looks at data and information to describe the current business situation in a way that trends, patterns and exceptions become apparent. This takes the form of reports, dashboards, MIS, etc.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

23. Inquisitive Analytics
answers the question, "Why is something happening in the business?" It is the study of data to validate / reject business hypotheses. This includes analytical drill downs into data, statistical analysis, factor Analysis, Cluster Analysis etc.,
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

24. Prescriptive Analytics
Prescriptive analytics automatically synthesizes big data, multiple disciplines of mathematical sciences and computational sciences, and business rules, to make predictions and then suggests decision options to take advantage of the predictions
is the combination of the above to provide answers to the "So what?" and the "Now what?" For example, what should a business do to retain key customers? How can businesses improve their supply chain to enhance service levels while reducing costs?
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

25. Predictive Analytics
answers the question, "What is likely to happen in the future?" Here data modeling and forecasting are used to determine future possibilities
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

26. Descriptive analytics and predictive analytics
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

27. Prescriptive Analytics
Prescriptive Analytics extends beyond predictive analytics by specifying both the actions necessary to achieve predicted outcomes, and the interrelated effects of each decision
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

28. 9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

29. Right Mix of Analytics
Counter to conventional thinking that organizations evolve from Descriptive to Inquisitive/Diagnostic to Predictive to Prescriptive analytics, all four kinds of analytics need to be done in the right mix to enable the holistic creation of insights. Different business problems will need different levels of all four kinds of analytics.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

30. Some categories of financial applications
External reporting to regulatory bodies and stake holders
Enterprise Performance Management and Score Card
Selecting Profitable New Markets to enter
Attracting and selecting the right customers
Driving pricing in accordance with risk
Reducing the severity of claims
Cost Management
Merger and acquisition Analytics
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

31. Difference between Credit Analysis and Financial Analytics
Credit analysts have the general responsibility of assessing a loan applicant’s credit-worthiness. In the scope of their position, they are required to gather relevant data and, based on the data, recommend a course of action for the credit application...
Financial analysts conduct research on a larger scale. They research the macroeconomic and microeconomic conditions that surround potential business, industry, and sector decisions. A decision is typically made based on the research findings. An example is the decision to purchase or sell a company’s stock. Financial analysts must remain aware of the conditions in the area in which he or she specializes, and they sometimes are required to build financial models to predict future conditions under a given scenario.
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

32. Job potential Types of Job How CAS Fit Into Financial Analysts
Armature Analysts
Analysts
Analytical Executives
How CAS Fit Into
Financial Analysts
System Auditors
Correct identification of Assumptions and variables (Confounding Variables)
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

33. Q&A PL
9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions

34. 9/20/2018
Prof C Sudhakar CEO Rakey Software Solutions