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Data-to-insight-to-action
Taking a business process view for analytics to deliver real
business impact
Abstract............................................................................................................................................................................... 1
1. A new competitive battleground............................................................................................................................. 1
2. Why it is hard to harness data for real business impact....................................................................................2
3. Design data-to-insight-to-action: A business process view..............................................................................3
3a) Understanding end-to-end business processes to design analytics’ enablement................................3
i Provide visibility.............................................................................................................................................3
ii Manage effectiveness.................................................................................................................................. 4
iii Execute actions..............................................................................................................................................5
iV Repeat and loop............................................................................................................................................ 6
3b) Organizational design: The operations of industrialized data-to-action................................................7
i Step #1: Dissect your data-to-insight process and visualize its tasks and required resources... 8
ii Step #2: Choose the right operating model for a shared analytics organization ...........................11
iii Step #3: Ensure all stakeholders are aligned around an agile, fast-ROI strategy ......................... 13
4. www.ibm.com/systems/hu/resources/the_real_word_use_of_big_data.pdf
5. Big data: The next frontier for innovation, McKinsey Research Institute, May 2012
6. Business intelligence/data warehousing GENPACT | Whitepaper | 2
7. Mike Gualtieri, Forrester. http://blogs.forrester.com/mike_gualtieri/13-01-02-big_data_predictions_for_2013
and the right big data IT tools. Our experience and A useful analogy can be derived by observing a
analysis show that the problem is an eminently recent disruption in the automobile industry. There
organizational one; the process of analytics (the arc of are obvious differences between cars (even the
data-to-insight) is not robust enough, and insufficient best ones) built 20 years ago and those built today.
“science” is applied to embedding analytics-driven While they use very similar mechanical parts,
insight into the actual business process (insight-to- today’s cars handle driving completely differently,
action) to generate a material impact. because they sense and react to conditions in a
granularly, timely, cost-effective, and scalable
3. Design data-to-insight-to- way. Today, the most innovative aspect of car
engineering is not the design of the mechanical
action: A business process view parts. It is the technology engineering that embeds
3 a). Understanding end-to-end business the insight from relentless analytical work,
processes to ingrain analytics embedding millions of tests into the programmed
reaction of key mechanical components—shock
The analytics challenge is both an insight absorbers, gas throttle, steering wheel, brakes,
generation (the data-to-insight process) and and even tire pressure and overhead augmented-
embedment (insight-to-action) of that insight reality displays. Statistical simulations drive our
so that it can be used at scale. At the risk of cars, literally, making them “intelligent.” Soon,
trivializing, the issue is that having great insight cars will be able to drive themselves. Moreover,
on PowerPoint or even on a streaming data interestingly, even the difference between older
visualization tool might help isolated consultants or and newer cars is particularly striking on “difficult,”
strategists, but it doesn’t per se help the operations unpredictable, winding roads—where agility is
of large and global organizations. Interestingly, necessary. It is not just a technology success, but an
this data-to-insight-to-action framework (in short, analytics breakthrough that has been embedded—
data-to-action) applies to simpler, discrete, and industrialized—to perfection.
descriptive analytics, as well as to big data and
Internet of things enabled by machine-to-machine The same thinking can and should be applied to
data transmission—as described in Table 1, which business processes, where insight deserves being
borrows the classification of analytics “ages” from embedded at scale.
Harvard’s Tom Davenport8.
To understand why analytics is often a challenge
Table 1. Analytics eras and related characteristics and to begin structuring a solution, let’s explore
Analytics Example Type of data Type of analysis Tools
“era”
the data-to-insight and insight-to-action arc. Three
1.0 Client Discrete, Descriptive, BI, online clusters of analytical processes exist in these
profitability structured, slow diagnostic— analytical business processes.
Demand statistical processing
forecasts (OLAP), DW
2.0 Client Big data: Predictive, Above +
(i) Provide visibility
behavior Structured and prognostic— Hadoop®,
analysis and unstructured, advanced data etc. The first group of processes “provides management
intelligent high velocity, science
pricing high complexity, visibility” (Figure 1). This has traditionally been the
and volume
first space where descriptive analytics has supported
3.0 Machine- Ubiquitous Prescriptive, Above + executives. Here, executives and their teams use
to-machine sources of big embedded/ columnar specific technologies to obtain visibility about what
system data: anything invisible— databases
optimization with IP address heavy use (DBs), happened (and sometimes what might happen) and
is a source, of machine graph DBs, syndicate the learning with relevant colleagues to
and sensors learning etc.
add volume gather collective intelligence. This is where reports
and variety are produced, distributed, and discussed—and
ACTIONS
By 2020, that figure is expected to reach 75%.14
EXECUTE
Implement
initiatives Data extract, cleanse,
standardize, enhance (iv) Repeat and loop
e.g. additional data
sources
The end-to-end process view across data-to-
Implement enterprise
data and BI enablers, Enable decision making at
insight and insight-to-action can help design
embed business rules the “moment of truth” e.g. effective analytics solutions and enable targeted
Operate new customer offer, inventory
change management to embed them into business
decision
processes
processes (Figure 4). Effectively instrumentizing the
Figure 3 - “Execute actions” section of data-to-action
process, measuring and keeping people accountable
for actions are three crucial factors that an end-to-
end view can facilitate. In many respects, this is the
• Supporting sales operations’ speed and accuracy by allocation of
sales compensation for specific deals real power of Enterprise Performance Management
• Timely provision of pricing information to close a large, complex (EPM). This aspect is even more indispensable
support contract by quickly accessing client and asset risk data
• Correct execution of supplier relationship management procedures, as analytics become the real-time foundation of
depending on the suppliers’ status business offerings, which is the predicament of
• Execution of discounting to trade or clients’ order to cash collection
process, based on delinquency and history analytics 3.0.
• Appropriate reaction to clients’ feedback and the triggering of
assistance or repair at increasing levels or complexity
Data-to-insight Insight-to-action
• Suggestion of alternative products to be purchased (based on
availability, profitability, and customer behavior) or recommendation Set targets
about steps to be undertaken by AML/KYC staff on a specific client Report Account/
case Correct
consolidate
• Correct rotation speed of industrial equipment and its measurement strategy
of critical parameters such as temperature, energy consumption,
mechanical stress, output volume and quality, etc.
feedback
augment
However, according to one study, only 46% of the
ACTIONS
EXECUTE
companies are effective at using the data they have.13 Implement Measure
This is a major issue, as this part of the process is initiatives performance
engines), for instance, by defining the right Analytics Provide visibility Manage Execute actions
master data, identifying the right structured and “era” effectiveness
unstructured data sources, as well as designing 1.0 • Statisticians, • Business • Business owners, some
business analysts, analysts and IT, some business
optimal field engineer or workshop procedures. and management management, analysts, some ETL/
involved. some IT BI/DW/MDM
Significant advisory, and involvement
Industry leaders such as General Electric (GE) are involvement of other support,
• Infrequent changes,
moving decisively to capture the opportunity and ETL,15 MDM,16
and BI/DW
e.g., MDM
semi-automated
• Punctuated processes
even crystallize the fastest data-to-action loops in analyst support
activity
industrial “software.” • Punctuated
activity
2.0 • As above + data scientists • More IT involved
In reality, the end-to-end process view is still
• Semi-continuous activity • Simpler activities
relatively rarely used as a lens to understand changed in real time
interdependencies and drive activities toward the (e.g., client offers),
others in batches
“true north”—business impact—in turn generating 3.0 • As above + extensive use of machine • Resources savvy in
at least two major sets of negative consequences: learning, more technologist-oriented both technology and
staff, remote operations center (ROC)- analytics
type monitoring
• System is “self-
• Local optimization trumps whole-chain • Continuous activity directed,” real or
optimization: The central analytics team might near-real time
best-in-class
controllership
applications
Governance/
enablement
benchmark,
intelligence
Enterprise
Transform
Analytical
efficiency
Run cost-
Measure,
Analytics
Business
towards
design
a scalable (we call it “industrialized”) foundation of the impact delivered, and a test-and-learn
for data-to-action processes. It means decoupling environment for continuous improvement.
parts and delivering them from where the right
resources exist, as well as leveraging decades-long • People: Analytical talent is respected and
experiences of running operating centers, shared leveraged across functions; a central pool of
services, and outsourcing units. experts enables cross-learning.
Moreover, while the traditional approach to Achieving maturity across these pillars is an
information problems has for sometime been one organizational journey, often requiring a different
of “cementing a solution” into an IT deployment, in operating model for a number of functions, not just
these times of volatility, organizations increasingly the central analytics group where it exists.
need fast ROI and flexible solutions that can be
evolved to accommodate the possible (and likely) Three steps enable progress toward the maturation
changes to their business models. of these pillars. First, dissect your data-to-insight-
to-action process and visualize its “assembly line”;
In our experience, there are four pillars to a second, set up an analytics center of excellence
scalable, agile, cost-effective solution, which we call (COE); third, ensure stakeholders are aligned
“industrialized analytics”: around an agile, fast-ROI strategy. Let us delve into
each of them.
• Data: Data assets across the organization are
understood, and there is a plan to integrate data
Step #1: Dissect your data-to-insight process
across functional silos; integrity of information
and visualize its tasks and required resources.
across the organization is maintained, such that
there is a “single truth.” Some steps of the data-to-insight process can be
delivered through very scalable and cost-effective
• Technology: Relevant technologies are
operating models. This can obviously remove a
leveraged consistently across the organization—
number of obstacles to the generation of insight that
technologies related to (1) data and infrastructure,
is granular and timely enough to make a difference.
(2) BI and reporting, (3) advanced analytics, (4)
Just as before the industrial revolution, the process
visualization, etc.
of production was performed end-to-end by scarce,
• Governance: This involves standardization of often very talented but completely non-scalable
processes and cross-leverage. The ongoing artisans and sometimes by real artists, there is an
program for insights includes prioritization opportunity to deconstruct, decouple, and optimize
of areas to build predictive analytics, review this business process . Our analysis shows that a
GENPACT | Whitepaper | 8
significant part (close to 30%) of the analytics work Easy to Harder to
industralize industralize DIRECTIONAL
lends itself to being decoupled and its “heavy lifting”
provided by globally located shared services. Analysis design Proportion of
time spent
Data acquisition/
The more unstructured the data and the more collection
unclear the questions, the more organizations tend Data preparation
to co-locate very competent analysts and business
experts to iterate quickly on all of the steps listed Data analytics
Data loading/Cleansing/ Dictionary creation & Report & dashboard Dashboard & UI development
Integration; Syndicated, POS, maintenance Design & development
W*M, Club
Analytic application
Content research - internet, development
Trends analysis & scorecards
Master data management outbound, calling, catalogues,
packaging, media
Six Sigma based automation
Standard periodic report
Attribute coding & item delivery
Data investigation Process improvement
categorization
tools
Ad hoc queries & reports for
Workflow management & Product & customer hierarchy marketing, finance, client Custom design &
process QC management servicing and sales support development
Five types of resources can be decoupled, as follows: orientation is required for some members of the
team. This is especially true in structured data that
• Data management: This resource refers to the requires strong master data management, such as
capabilities in the development, execution, client and vendor master data used, for instance,
and supervision of plans, policies, programs, in client discount, vendor sourcing negotiations,
and practices that control, protect, deliver, and and ultimately, profitability management. The
enhance the value of data and information assets. reason is that master data issues are very often
These are IT-related skills and can typically be business process issues (the inability of people at
performed at scale from anywhere, provided various touch points to classify information) and
that the appropriate technology and security not just technical ones.
policies are in place. However, a business process
GENPACT | Whitepaper | 9
• Developers/statisticians/analysts: This resource business context or functional analytics expertise.
type involves creating a workbench of highly Typically, the latter is easier to find in global work
skilled professionals who are competent in markets, while the former should be the focus of
various statistical and analytical techniques, data the “business client” organization.
types, and treatment of data. Structuring teams
with the right combination of industries, process • Specialized services (predictive/optimization/
specialists, and analytical experts is crucial. Parts unstructured/big data). Developing capabilities
of these talent pools can be sourced globally, as in advanced analytics to fully realize the true
long as the COEs or shared services (including potential of analytics-led decision making is
outsourced partners) utilize specialized human often where the most acute talent scarcity
resource management practices, as well as exists. The solution can often be similar to the
collaboration tools. above-mentioned ones, as long as exploratory
and small-scale work is tackled carefully, and
• Solution architects: They comprise a small pool of only for scalable tasks that do not require
specialized people who can design new solutions intimate business knowledge and continuous,
and are able to respond to changing needs of the synchronous co-work. Interestingly, we find that
organization by optimizing existing technology even exploratory and “skunk work” activities lend
investments and introducing new, cost-effective, themselves to being partially industrialized by
and scalable solutions. Depending on the solution decoupling steps appropriately.
needed, there might be a stronger need for
EXAMPLE
Minimum Median Maximum
Rec
o rd to
Key Performance Measures Practices repo
rt
• Recs prioritization
• Documented reconciliation policy in place
• Use of automated tick and tie/reconciliation tool
Recs cycle • Reconciliation dashboards published regularly
Account time from 45 14 • Clearly defined approved backup per category
Reconciliation BS date 30
(days) • Standard policies/operating framework
• Analysis of repetitive open items to reduce inflow
* Days from qtr. end to earnings release
Source: Genpact SEP SM
Figure 8 - SEP model example for designing business processes based on business outcomes and key metrics
GENPACT | Whitepaper | 10
• Advisory: This is where organizations strategically Minimum business impact Maximum business impact
envisage industrialization of analytics and enterprise wide enterprise wide
operations. We find that the best advisory work Figure 9 - Different operating models for analytics organization
is supported by specific frameworks, such as
our smart enterprise processes (SEPSM),18 which These organizational structures are by now well
enable more targeted interventions by focusing understood. For at least two decades, shared services,
on the desired business outcome (for example, operating centers, and more recently, global business
enabling the CFO to harness more timely financial services (GBS)20 have enabled organizations to use
data reporting, as depicted in the example in scale and specialized skills to solve for the cost to
Figure 8) and reverse-engineer the process end- serve, scalability, and access to talent.
to-end in order to achieve that result. In doing so,
analytics advisory uncovers the most important Whereas in the past, much interaction used to
people, technology, process design, and policy happen through workflows, emails, and phones,
opportunities. a whole new era of collaboration tools21 enables
people to work together on more unstructured
Step #2: Choose the right operating model for
business problems, irrespective of location (Figures
a shared analytics organization.
10 and 11). This clearly opens an opportunity
As Thomas Davenport, one of the most prominent for parsing components of the insight-to-action
analytics experts, observes,19 “There is reason chain, and utilizing the COE’s pooled, specialized,
to believe that the availability of big data […] scalable, and cost-effective resources to solve
will benefit those organizations that centralize various problems that routinely “cripple” analytical
their capabilities to capture and analyze the data. impact. The COEs can provide experience in specific
We already see this with small data analytics; disciplines, such as utilizing specialized tools,
many organizations have begun to build centrally breaking organizational silos, and providing more
coordinated analytics strategies and groups. cost-effective resources. They can also help scale up
If big data resides in silos and pockets across or down the analytical efforts faster.
organizations, it will be very difficult to pull it
together to understand and act on business Decoupling the shared organizations from the
opportunities.” (See Figure 9). rest of the enterprise needs to be done carefully
because of the risk of severing the ties with the
business. Thankfully, there is by now a good deal
of experience from both other business processes
and analytics themselves. Our own experience
separating from GE in 2006 and creating a global
delivery backbone has become a widely discussed
management case study.
18. http://www.genpact.com/home/smart-enterprise-processes
19. Thomas Davenport, Big Data at work, 2013
20. http://www.genpact.com/home/solutions/reengineering/global-business-services
21. http://www.genpact.com/home/smart-technology/unified-collaboration
GENPACT | Whitepaper | 11
Business Partner
Business
• Services that require onsite presence or that
directly impact the customer experience
nc c
ida gi
Se
e
gu rate
r
vic
St
e
lts
Inp
su
Re
ut
Service requirements
Corporate GBS
• Industry Analysis • CAD Design and • Demand Planning • Customer & Market • Shop Visit Planning
• Growth Playbook Customization • Inventory Optimization Analysis and Forecasting
• Long Range Forecast • Engineering • Logistics and Fulfillment • Customer Segmentation • Repair History Analysis
• Economic Analysis Documentation • Sourcing and Spend • Pricing Analytics • Reliability Analytics
• NPI Support Analytics • Competitive Intelligence • Shop process planning
• Value Engineering • Vendor Management • Customer Loyalty Analysis and optimization
• Reliability Analysis • Category Management • Sales Force Effectiveness • Spare Parts Pricing and
• IT Solutions • Commodity Research • Win-Loss post mortem fulfillment
• CRM Analytics • Contract Management
• Digital Marketing & Social
Media Research
Taking deliberately the two steps described above with business process experts who understand
provides the opportunity to create scalable, back- the insight-to-action part of the process, it can
office, data-to-insight organizations, able to muscle also serve as a global process owner (GPO) for
up cost effectively a variety of functional analytics, analytically enabled processes. The GPO model has
such as in the industrial manufacturing example in become prevalent in GBS environments, serving
Figure 11. However, when this organization is staffed functions such as finance or human resources
GENPACT | Whitepaper | 12
or even IT, but it is still less commonly adopted clearly benefit from such heavy investment and do
in analytics. However, the success of GPOs in not run the risk of “cementing solutions in the wrong
optimizing end-to-end processes, irrespective of place,” hence restraining future adaptability.
their hierarchical ownership, is a clear example for a
more industrialized analytics adoption.
Conclusion
Step #3: Ensure all stakeholders are aligned Insights have material impact only when
around an agile, fast-ROI strategy. industrialized and effectively embedded into
business processes. Data-driven insight is fast
Analytics investments are heavily scrutinized by the
becoming a significant factor in the success or
chief information officer (CIO), CFO, and functional
underperformance of companies. Many firms
or business leaders. Making the respective business
struggle with harnessing analytics practices to drive
cases is often a difficult exercise. Typically, these
material business impact—and contrary to common
are not “cost-reduction” efforts, and the resulting
wisdom, not just because data scientists are hard to
impact depends heavily on the adoption and
find or because technology is a “moving target.” It is
longevity of solutions. Both are tentative estimates
because enterprises are not used to thinking of the
at best. Especially in these volatile times where
analytical impact at scale in terms of (1) the data-
demand, supply, and technology change fast and
to-insight process and (2) the insight-to-action
upend business models, and in turn, operating
process.
models, enterprises must thoroughly evaluate more
agile deployment options. Industrialized analytics This paper has articulated that the impact of
does not need to be a three-year-long exercise with these two processes can be materially enhanced
substantial technological risk. In fact, it should be by analyzing them end-to-end as a first step to a
made as nimble as possible. robust, scalable, and flexible solution. The second
step is the formation of an organizational strategy
A sobering example comes from remembering the that uses advanced operating models such as COEs
billions of dollars spent on data warehouses in the and their respective targeted technologies—not just
last ten years, on the premise that they would enable analytical but also collaboration tools—to power up
a strong analytical workbench for the future— those processes.
only to discover that new data characteristics
(complexity, velocity, volume) and fragmentation do The business environment has never been as
not lend themselves to being adapted to those older difficult as today; volatility and uncertainty are
structures, and new technologies may leapfrog old widespread, while the stock market’s hunger
ones, making them an obsolete legacy. relentlessly asks for performance acceleration.
We have used the analogy of old cars compared
Agile design and deployment of globally located, to digitally enabled new models that use data to
well-orchestrated organizational structures enabled make the vehicle more intelligent—agile, safer, and
by nimble technology is often a more strategically less expensive. We have noted that the difference
sound choice—providing the option to evolve is even more strongly felt on difficult roads. While
further, but also enabling short-term learning there might never have been an easy, straight, and
and avoidance of an excessive fixed cost. Parts of flat road in business, today the path is mountainous
that portfolio can later be fully consolidated with and full of hairpin bends. Better get ready for it by
lengthier IT approaches, but only when those areas industrializing our analytical insight and making our
business processes intelligent.
GENPACT | Whitepaper | 13
This paper was authored by Gianni Giacomelli, Chief Marketing Officer, and Sanjay Srivastava, SVP Enterprise Technology Solutions at Genpact.
About Genpact
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more competitive by making their enterprises more intelligent: more adaptive, innovative, globally effective and connected. Genpact stands
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