SlideShare a Scribd company logo

Business Analytics Competency centre: A strategic Differentiator

•
•
BSGAfrica
BSGAfrica

The document discusses establishing a business analytics competency center (BACC) to help organizations better utilize analytics. It notes that effective analytics requires more than just technology and emphasizes the importance of aligning business and IT perspectives. A BACC can serve as a central hub to develop analytics infrastructure, promote collaboration, and ensure analytics efforts are in line with business priorities. The goal of a BACC is to facilitate a strategic, enterprise-wide approach to analytics through joint ownership between business and IT.

1 of 22
Download to read offline
Business Analytics Competency Centre: A Strategic Differentiator © BSG. All rights reserved. Steven Ing Associate Consultant, BSG Africa 12 February 2015
Industry trends •  Definition of digital insurance strategies. •  Customer centricity and improving the customer experience, including compliance requirements. •  Business analytics and information intelligence. •  Channel development and integration. •  Legacy modernisation, to support faster time-to-market with new products and services and greater flexibility. •  Assessing opportunities from emerging and potentially disruptive technology innovation, such as sensors in short-term vehicle insurance, wearable technology, etc. •  Managing innovation. •  Modernisation of business processes to support new business models. •  Regulatory change and compliance is increasing.
§  To excel, you need to: §  Treat your data as a strategic asset §  Harness that data to your advantage §  Look forward, not only backwards §  Keep asking “what if?” Confident leadership is driven by accurate data and decisions based on it Tom Davenport Author and Distinguished Professor at Babson College
It requires an enterprise strategy to coordinate and align key dimensions, most notably people §  The challenges: §  Growth in available information §  Competing priorities §  Information silos §  Business unit alignment §  Direction and leadership INFORMATION   PRIORITIES?   ALIGNMENT?  
§  To succeed, organisations need more than §  Technology §  A data warehouse §  Analytical talent §  They need §  Enterprise wide approach, sound collaboration between business and IT, alignment with business strategy, change management… Solution: Develop a strategy to address organisational alignment
Most information management practices tend to be ad hoc… §  And follow a “Project” mentality §  Start and end date with a narrow business focus §  Repeat standard processes – no “re-use” §  Sub-optimal use of skills §  Not enough data exploitation §  Potentially adding more silos §  Allow information to get outdated §  Unclear project ownership Typical environment ?
Leading information management practices support the biz strategy… §  And follow a “Program” Mentality §  Ensure buy-in from business and IT §  Re-use standard processes (leading practices) §  Leverage skills and promote ongoing learning as business requirements change §  Objective analysis – identify questions that have not been answered §  Reduce complexity – one version of the truth §  Ensure necessary changes are done on time Target environment ?
An enterprise center of excellence should lead the effort… §  Major objectives §  Change from a project to a program mentality §  Change from a tactical to a strategic approach §  Provide business and IT with shared-ownership of the enterprise information environment The journey towards the target ?
An executive vision to use data as a strategic asset is critical §  Focus on key organisational dimensions §  Human Capital §  Internal Information Processes §  Technical Infrastructure §  Organisational Culture §  Continuous alignment with business objectives §  Supported by an enterprise BA Center of Excellence Developing the target environment
Use a framework as a guide Maturity Model Culture Individual Departmental Enterprise Optimise Innovate People Process Infrastructure Maturity Businessvalue Campaign management / optimisation Cash management / optimisation Workforce Planning and managementIT performance management Scorecarding and dashboarding Activity based management Budgeting and planning Legal reporting Regulatory compliance Asset liability management Fraud management Operational, market and credit risk Segmentation and profiling Customer profitability and lifetime value Acquisition and retention Cross-sell, up-sell and event triggers Risk intelligence Customer intelligence Operational intelligence Financial intelligence
The difference between BI and BA Historical business information to improve business decision Gain insight, reveal patterns, anomalies, relationships to take precise and accurate actions and decisions INFORMATIONMANAGEMENT ANALYTICS REPORTING ?
What happened? Standard reports How many, how often, where? Ad hoc reports Where exactly is the problem? Query drill down Why is this happening? Statistical Analysis What if these trends continue? Forecast What will happen next? Predict What is the best that can happen? What actions are needed? Alerts Raw data Clean data OptimiseCompetitive Advantage Degree of Intelligence What is Business Analytics?
Centers of Excellence
An internal strategic team of experts with a specific focus on facilitating and promoting the use of analytics to achieve business objectives across the enterprise §  A central point for §  developing and evolving the Business Analytics infrastructure §  promoting collaboration and leading practices §  driving growth, cost reduction, and profitability What is a Business Analytics CoE?
A BA CoE must be sponsored by the executive team! §  Additionally §  Includes IT, business domain and analytic expertise §  Has well defined charter, responsibilities, and processes §  Collaborates with ALL appropriate stakeholders §  Focuses on making analytics a repeatable process Key characteristics of a BA CoE
Enterprise BA CoE functions Enterprise PM Strategy Promotion of PM within enterprise Governance & Policies Alignment with Business Priorities Technology Requirements & Standards Data Quality Standards Copyright ® 2011, SAS Institute Inc. All rights reserved.
Best practice BA environment BA Governance Model Supported by a Business Intelligence Competency Center Best Practice Architecture Business Requirements EDW Enhancements Continuous and strong connection
BACC Organisation © BSG. All rights reserved.
The goal of the BA CoE §  Alignment §  Joint ownership §  Focus on business priorities §  Different Perspectives §  Competing Priorities Most current Environments Desired Environment Align business and IT perspectives
Summary •  Effective use of analytics requires more than just technology •  Align business & IT perspectives is key •  Assess capabilities and develop roadmap •  Establish a CoE to support your effort © BSG. All rights reserved.
Questions
JohannesburgCape Town Laura Greaves Business Development +27 11 215 6666 laura.greaves@bsg.co.za Oxford Terrace 3 Ninth Street Houghton Estate 2198 www.bsg.co.za // @bsgafrica Laura Greaves Business Development +27 11 215 6666 laura.greaves@bsg.co.za Stonehill Place 22 Riebeek Street Cape Town 8001 www.bsg.co.za // @bsgafrica Steven Ing Associate Consultant +27 11 215 6666 steven.ing@bsg.co.za

More Related Content

Business Analytics Competency centre: A strategic Differentiator

  • 1. Business Analytics Competency Centre: A Strategic Differentiator © BSG. All rights reserved. Steven Ing Associate Consultant, BSG Africa 12 February 2015
  • 2. Industry trends •  Definition of digital insurance strategies. •  Customer centricity and improving the customer experience, including compliance requirements. •  Business analytics and information intelligence. •  Channel development and integration. •  Legacy modernisation, to support faster time-to-market with new products and services and greater flexibility. •  Assessing opportunities from emerging and potentially disruptive technology innovation, such as sensors in short-term vehicle insurance, wearable technology, etc. •  Managing innovation. •  Modernisation of business processes to support new business models. •  Regulatory change and compliance is increasing.
  • 3. §  To excel, you need to: §  Treat your data as a strategic asset §  Harness that data to your advantage §  Look forward, not only backwards §  Keep asking “what if?” Confident leadership is driven by accurate data and decisions based on it Tom Davenport Author and Distinguished Professor at Babson College
  • 4. It requires an enterprise strategy to coordinate and align key dimensions, most notably people §  The challenges: §  Growth in available information §  Competing priorities §  Information silos §  Business unit alignment §  Direction and leadership INFORMATION   PRIORITIES?   ALIGNMENT?  
  • 5. §  To succeed, organisations need more than §  Technology §  A data warehouse §  Analytical talent §  They need §  Enterprise wide approach, sound collaboration between business and IT, alignment with business strategy, change management… Solution: Develop a strategy to address organisational alignment
  • 6. Most information management practices tend to be ad hoc… §  And follow a “Project” mentality §  Start and end date with a narrow business focus §  Repeat standard processes – no “re-use” §  Sub-optimal use of skills §  Not enough data exploitation §  Potentially adding more silos §  Allow information to get outdated §  Unclear project ownership Typical environment ?
  • 7. Leading information management practices support the biz strategy… §  And follow a “Program” Mentality §  Ensure buy-in from business and IT §  Re-use standard processes (leading practices) §  Leverage skills and promote ongoing learning as business requirements change §  Objective analysis – identify questions that have not been answered §  Reduce complexity – one version of the truth §  Ensure necessary changes are done on time Target environment ?
  • 8. An enterprise center of excellence should lead the effort… §  Major objectives §  Change from a project to a program mentality §  Change from a tactical to a strategic approach §  Provide business and IT with shared-ownership of the enterprise information environment The journey towards the target ?
  • 9. An executive vision to use data as a strategic asset is critical §  Focus on key organisational dimensions §  Human Capital §  Internal Information Processes §  Technical Infrastructure §  Organisational Culture §  Continuous alignment with business objectives §  Supported by an enterprise BA Center of Excellence Developing the target environment
  • 10. Use a framework as a guide Maturity Model Culture Individual Departmental Enterprise Optimise Innovate People Process Infrastructure Maturity Businessvalue Campaign management / optimisation Cash management / optimisation Workforce Planning and managementIT performance management Scorecarding and dashboarding Activity based management Budgeting and planning Legal reporting Regulatory compliance Asset liability management Fraud management Operational, market and credit risk Segmentation and profiling Customer profitability and lifetime value Acquisition and retention Cross-sell, up-sell and event triggers Risk intelligence Customer intelligence Operational intelligence Financial intelligence
  • 11. The difference between BI and BA Historical business information to improve business decision Gain insight, reveal patterns, anomalies, relationships to take precise and accurate actions and decisions INFORMATIONMANAGEMENT ANALYTICS REPORTING ?
  • 12. What happened? Standard reports How many, how often, where? Ad hoc reports Where exactly is the problem? Query drill down Why is this happening? Statistical Analysis What if these trends continue? Forecast What will happen next? Predict What is the best that can happen? What actions are needed? Alerts Raw data Clean data OptimiseCompetitive Advantage Degree of Intelligence What is Business Analytics?
  • 14. An internal strategic team of experts with a specific focus on facilitating and promoting the use of analytics to achieve business objectives across the enterprise §  A central point for §  developing and evolving the Business Analytics infrastructure §  promoting collaboration and leading practices §  driving growth, cost reduction, and profitability What is a Business Analytics CoE?
  • 15. A BA CoE must be sponsored by the executive team! §  Additionally §  Includes IT, business domain and analytic expertise §  Has well defined charter, responsibilities, and processes §  Collaborates with ALL appropriate stakeholders §  Focuses on making analytics a repeatable process Key characteristics of a BA CoE
  • 16. Enterprise BA CoE functions Enterprise PM Strategy Promotion of PM within enterprise Governance & Policies Alignment with Business Priorities Technology Requirements & Standards Data Quality Standards Copyright ® 2011, SAS Institute Inc. All rights reserved.
  • 17. Best practice BA environment BA Governance Model Supported by a Business Intelligence Competency Center Best Practice Architecture Business Requirements EDW Enhancements Continuous and strong connection
  • 18. BACC Organisation © BSG. All rights reserved.
  • 19. The goal of the BA CoE §  Alignment §  Joint ownership §  Focus on business priorities §  Different Perspectives §  Competing Priorities Most current Environments Desired Environment Align business and IT perspectives
  • 20. Summary •  Effective use of analytics requires more than just technology •  Align business & IT perspectives is key •  Assess capabilities and develop roadmap •  Establish a CoE to support your effort © BSG. All rights reserved.
  • 22. JohannesburgCape Town Laura Greaves Business Development +27 11 215 6666 laura.greaves@bsg.co.za Oxford Terrace 3 Ninth Street Houghton Estate 2198 www.bsg.co.za // @bsgafrica Laura Greaves Business Development +27 11 215 6666 laura.greaves@bsg.co.za Stonehill Place 22 Riebeek Street Cape Town 8001 www.bsg.co.za // @bsgafrica Steven Ing Associate Consultant +27 11 215 6666 steven.ing@bsg.co.za