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Mario Faria
1
Acting on Analytics
Building a Data-Driven Enterprise
Sept 11th, 2013
Mario Faria
http://www.linkedin.com/in/mariofaria/
www.slideshare.com/fariamario
Twitter : @mariofaria
Mario Faria
2
Who am I ?
•  MIT recognition as one of the 1st Chief Data Officers and Data Scientist
Leaders in the world (just Google “Mario Faria Chief Data Officer”)
•  20+ years working with Information Technology, Management
Consulting, Financial Services, Retail, CPG and Private Equity
•  Proven expertise in Data Management, Data Science, Analytics, CRM
and Supply Chain Management
•  Speaker at several conferences on the subject in USA, Europe and Latin
America
•  Contributor to magazines and publications
•  Big Data Advisor at the Bill and Melinda Gates Foundation
•  Member of the MIT Data Science Initiative
•  Helping companies cross the Big Data Chasm
Mario Faria
3
Objectives
•  Clarify Analytics
•  Present some analytics terms that will help professionals
do their jobs better
•  Provide insights on how you should successfully create a
data & analytics organization
•  Present some concepts to help you prepare to implement a
data-driven organization
•  Bring some attention on how to properly use data
•  Show a few options available for your professional future
in today’s world
Mario Faria
4
Mario Faria
5
Where we stand today
•  Fragmented technology ecosystem
•  Over usage of the Big Data term
•  The “how to compete on analytics” is still
hard to achieve
•  In most companies, data is still managed
with an IT mind set
Big	
  Data	
  will	
  	
  
fade	
  away	
  	
  
to	
  Analy1cs	
  
Mario Faria
7
Analytics is transforming
data assets into
competitive insights, that
will drive business
decisions and actions,
using people, processes
and technologies
Mario Faria
8
People
Data
Management
Domain
Expertise
Statistics
On Analytics
Mario Faria
9
Mario Faria
10
Data, Information, Analytics, Business
Intelligence and Performance Management
Mario Faria
11
The Hawthorne Effect (1924-1933), at a
Western Electric factory outside Chicago
Mario Faria
12
“Measurement drives behavior, and if
we don’t understand how, it drives
behaviors in mysterious ways”
by Frank Buytendijk, Beingfrank Research, Sept 2012
1.  Understand the decision making process
2.  Understand what the many frameworks in
measurement do for us
3.  Understand what can go wrong
4.  Understand the culture
Mario Faria
13
Data is the oil of the 21st century
 
Data	
  access	
  is	
  quite	
  easy	
  to	
  
achieve	
  
	
  
Transforming	
  data	
  into	
  
something	
  useful	
  in	
  a	
  1mely	
  
manner	
  is	
  tough	
  	
  	
  
Mario Faria
15
The 5 Steps from Data to Decisions
Souce : Aryng Analytics Consulting
Data	
  Science	
  
	
  	
  
The	
  process	
  of	
  taking	
  raw	
  data,	
  
producing	
  informa1on	
  from	
  data,	
  
and	
  using	
  this	
  informa1on	
  to	
  
guide	
  ac1ons	
  that	
  will	
  bring	
  
financial	
  benefits	
  to	
  business	
  
Data	
  Mining	
  is	
  the	
  
explora1on	
  and	
  analysis	
  
of	
  large	
  quan11es	
  of	
  
data	
  to	
  discover	
  
meaningful	
  paCerns	
  	
  
and	
  rules	
  
Mario Faria
18
Source : Dr.Saed Sayad
Mario Faria
19
The Data Mining Goals
•  Explain the past
•  Predict the future
Mario Faria
20
The Data Mining Process
1.  Project definition
2.  Data exploration
3.  Data preparation
4.  Model creation
5.  Model deployment
6.  Model management
Machine	
  learning,	
  part	
  of	
  
ar1ficial	
  intelligence,	
  is	
  
about	
  the	
  construc1on	
  
and	
  study	
  of	
  systems	
  
that	
  can	
  learn	
  from	
  data	
  
Mario Faria
22
Machine Learning is the "Field of
study that gives computers the
ability to learn without being
explicitly programmed"
Arthur Samuel,
1959
Machine	
  Learning	
  is	
  about	
  
predic1on	
  and	
  learning	
  
from	
  data	
  
	
  
Data	
  Mining	
  is	
  about	
  	
  
finding	
  unknown	
  proper1es	
  
of	
  the	
  data	
  	
  
Mario Faria
24
Deep X Operational
Analytics
•  Deep Analytics
–  Few users
–  Complex queries
–  Worried about response time
–  Dedicated data marts
•  Operational Analytics
–  Lots users
–  Simple queries
–  Worried about throughput
–  Real time data flow
It takes more
than just
data and analytics
for results to be
achieved
Mario Faria
26
The 3 Architectures a Company needs
to succeed
Business
Architecture
Technology
Architecture
Data
Architecture
Mario Faria
27
The Data Value Chain
Mario Faria
28
Mario Faria
29
Chief Data Officer /
Chief Analytics Officer
Data Architect
Data Quality
Data Scientist
Data GovernanceData Operations
Mario Faria
30
The roles of an Analytics organization
A data scientist is the one
who looks for insights
The insight is operationalized
in BI/DW products, by data architects
The insight is shared
with the enterprise
The Chief Data/Analytics Officer is the
executive responsible and accountable for
the data life cycle inside the organization,
managing the people involved in the data
activities, such as acquisitions, analytics,
processes, governance, quality, technology
and budget
Mario Faria
31
Mario Faria
32
A Chief Data/
Analytics Officer is
the executive
responsible to
manage these areas
Mario Faria
33
The Best of the Breed
Data & Analytics Leader
•  Knows how to talk business with
business people; technology with
techies
•  Runs his/her team as a business
unit
•  Has multi-discipline skilled people
(technologists, mathematicians,
statisticians, business people as
well)
•  Manages quite well the back office
and front office functions
Mario Faria
34
The checklist to hire data & analytics professionals
Chami Akmeemana
Managing Director
Huntel Global
•  Where are they ? Think global
•  What are they interested in ? It is not just
money, it is the possibility to “create” something
new or transform
•  What are they going to do ? Gain clarity on
your business analytics strategy
•  What are they going to work with ? Set budget
for technology tools, data acquisition and other
resources needed
Link to download the full paper : http://goo.gl/Fc8Xl
Mario Faria
35
From good to great, an analytics team
must have:
•  Passion for analytics and data
•  Never stop learning
•  Always be there for tough analytics
questions
•  Ask questions until everything makes sense
and you are satisfied with the answers and
analyses
•  Learn how to develop prototypes quickly
•  Be an advocate for building a strong
foundation in corporate analytics
•  Be a "bridge builder" between IT and
business users
How	
  to	
  promote	
  
Business	
  Maturity	
  
through	
  Analy1cs	
  ?	
  
Mario Faria
37
Analytic Maturity Curve
Mario Faria
38
The Four Types of Analytics
Mario Faria
39
Data and Analytics professionals are not
helping others to understand it
Mario Faria
40
Is it possible to promote Business Maturity using
Analytics, or is it the other way around?
•  Your company must have some Business Maturity to take a step and
start using Analytics.
•  When you if take the path of using the right people, good technology,
proven methodologies and changing the current processes, you will gain
more Business Maturity.
•  After you have gained more Business Maturity, naturally you will start to
evolve to more complex Analytics usage
•  It is a self-promoting system following exactly the Deming PDCA method
Mario Faria
41
The 3 ingredients to make
Advanced Analytics work
•  Choosing the right data and managing multiple data
sources
•  Having the capability to build advanced models that turn
the data into insights
•  Management must undertake a transformational-change
program so that the insights translate into effective action
Mario Faria
42
Managing an Analytics project
•  Focus on the execution
•  Well-defined and realistic scope
•  Put all activities on the schedule
•  Budget control
Mario Faria
43
Technology alone will not change the
previous results
To succeed in Analytics, an organization will be required to
change some of its current internal processes
Good	
  KPIs	
  will	
  not	
  save	
  
your	
  business,	
  but	
  they	
  
will	
  be	
  able	
  to	
  tell	
  how	
  
screwed-­‐up	
  your	
  
business	
  is	
  
Conclusions	
  
Mario Faria
46
Which companies will thrive in the near
future ?
•  The ones which will understand how to adapt faster to
this new scenario
•  The ones which will have successful Analytics
implementations
•  The ones with great human capital, which understand
how to leverage their resources and with proven
methodologies to embrace this change
Is your company going to lead, influence or
follow when using data and analytics to
drive results ?
Mario Faria
47
Lessons to Analytical Success
•  People
•  Change Management (on going program)
•  Culture
•  Organization Model
•  Processes
•  Architecture
•  and Analytics, of course
Mario Faria
48
“Successful people shoot for
the stars, put their hearts on
the line in every battle, and
ultimately discover that the
lessons learned from the
pursuit of excellence mean
much more than the immediate
trophies and glory”
Josh Waitzkin, The Art of
Learning
Q&A
Mario Faria
50
Thank you
Mario Faria
Chief Data Officer and Analytics Strategy Advisor
http://www.linkedin.com/in/mariofaria/
Founder of the Digital Mad Men
www.slideshare.com/fariamario
Twitter : @mariofaria
fariamario@hotmail.com
+1 (425) 628-3517

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Acting on Analytics - How to Build a Data-Driven Enterprise - Brighttalk webinar Sept 2013

  • 1. Mario Faria 1 Acting on Analytics Building a Data-Driven Enterprise Sept 11th, 2013 Mario Faria http://www.linkedin.com/in/mariofaria/ www.slideshare.com/fariamario Twitter : @mariofaria
  • 2. Mario Faria 2 Who am I ? •  MIT recognition as one of the 1st Chief Data Officers and Data Scientist Leaders in the world (just Google “Mario Faria Chief Data Officer”) •  20+ years working with Information Technology, Management Consulting, Financial Services, Retail, CPG and Private Equity •  Proven expertise in Data Management, Data Science, Analytics, CRM and Supply Chain Management •  Speaker at several conferences on the subject in USA, Europe and Latin America •  Contributor to magazines and publications •  Big Data Advisor at the Bill and Melinda Gates Foundation •  Member of the MIT Data Science Initiative •  Helping companies cross the Big Data Chasm
  • 3. Mario Faria 3 Objectives •  Clarify Analytics •  Present some analytics terms that will help professionals do their jobs better •  Provide insights on how you should successfully create a data & analytics organization •  Present some concepts to help you prepare to implement a data-driven organization •  Bring some attention on how to properly use data •  Show a few options available for your professional future in today’s world
  • 5. Mario Faria 5 Where we stand today •  Fragmented technology ecosystem •  Over usage of the Big Data term •  The “how to compete on analytics” is still hard to achieve •  In most companies, data is still managed with an IT mind set
  • 6. Big  Data  will     fade  away     to  Analy1cs  
  • 7. Mario Faria 7 Analytics is transforming data assets into competitive insights, that will drive business decisions and actions, using people, processes and technologies
  • 10. Mario Faria 10 Data, Information, Analytics, Business Intelligence and Performance Management
  • 11. Mario Faria 11 The Hawthorne Effect (1924-1933), at a Western Electric factory outside Chicago
  • 12. Mario Faria 12 “Measurement drives behavior, and if we don’t understand how, it drives behaviors in mysterious ways” by Frank Buytendijk, Beingfrank Research, Sept 2012 1.  Understand the decision making process 2.  Understand what the many frameworks in measurement do for us 3.  Understand what can go wrong 4.  Understand the culture
  • 13. Mario Faria 13 Data is the oil of the 21st century
  • 14.   Data  access  is  quite  easy  to   achieve     Transforming  data  into   something  useful  in  a  1mely   manner  is  tough      
  • 15. Mario Faria 15 The 5 Steps from Data to Decisions Souce : Aryng Analytics Consulting
  • 16. Data  Science       The  process  of  taking  raw  data,   producing  informa1on  from  data,   and  using  this  informa1on  to   guide  ac1ons  that  will  bring   financial  benefits  to  business  
  • 17. Data  Mining  is  the   explora1on  and  analysis   of  large  quan11es  of   data  to  discover   meaningful  paCerns     and  rules  
  • 18. Mario Faria 18 Source : Dr.Saed Sayad
  • 19. Mario Faria 19 The Data Mining Goals •  Explain the past •  Predict the future
  • 20. Mario Faria 20 The Data Mining Process 1.  Project definition 2.  Data exploration 3.  Data preparation 4.  Model creation 5.  Model deployment 6.  Model management
  • 21. Machine  learning,  part  of   ar1ficial  intelligence,  is   about  the  construc1on   and  study  of  systems   that  can  learn  from  data  
  • 22. Mario Faria 22 Machine Learning is the "Field of study that gives computers the ability to learn without being explicitly programmed" Arthur Samuel, 1959
  • 23. Machine  Learning  is  about   predic1on  and  learning   from  data     Data  Mining  is  about     finding  unknown  proper1es   of  the  data    
  • 24. Mario Faria 24 Deep X Operational Analytics •  Deep Analytics –  Few users –  Complex queries –  Worried about response time –  Dedicated data marts •  Operational Analytics –  Lots users –  Simple queries –  Worried about throughput –  Real time data flow
  • 25. It takes more than just data and analytics for results to be achieved
  • 26. Mario Faria 26 The 3 Architectures a Company needs to succeed Business Architecture Technology Architecture Data Architecture
  • 27. Mario Faria 27 The Data Value Chain
  • 29. Mario Faria 29 Chief Data Officer / Chief Analytics Officer Data Architect Data Quality Data Scientist Data GovernanceData Operations
  • 30. Mario Faria 30 The roles of an Analytics organization A data scientist is the one who looks for insights The insight is operationalized in BI/DW products, by data architects The insight is shared with the enterprise The Chief Data/Analytics Officer is the executive responsible and accountable for the data life cycle inside the organization, managing the people involved in the data activities, such as acquisitions, analytics, processes, governance, quality, technology and budget
  • 32. Mario Faria 32 A Chief Data/ Analytics Officer is the executive responsible to manage these areas
  • 33. Mario Faria 33 The Best of the Breed Data & Analytics Leader •  Knows how to talk business with business people; technology with techies •  Runs his/her team as a business unit •  Has multi-discipline skilled people (technologists, mathematicians, statisticians, business people as well) •  Manages quite well the back office and front office functions
  • 34. Mario Faria 34 The checklist to hire data & analytics professionals Chami Akmeemana Managing Director Huntel Global •  Where are they ? Think global •  What are they interested in ? It is not just money, it is the possibility to “create” something new or transform •  What are they going to do ? Gain clarity on your business analytics strategy •  What are they going to work with ? Set budget for technology tools, data acquisition and other resources needed Link to download the full paper : http://goo.gl/Fc8Xl
  • 35. Mario Faria 35 From good to great, an analytics team must have: •  Passion for analytics and data •  Never stop learning •  Always be there for tough analytics questions •  Ask questions until everything makes sense and you are satisfied with the answers and analyses •  Learn how to develop prototypes quickly •  Be an advocate for building a strong foundation in corporate analytics •  Be a "bridge builder" between IT and business users
  • 36. How  to  promote   Business  Maturity   through  Analy1cs  ?  
  • 38. Mario Faria 38 The Four Types of Analytics
  • 39. Mario Faria 39 Data and Analytics professionals are not helping others to understand it
  • 40. Mario Faria 40 Is it possible to promote Business Maturity using Analytics, or is it the other way around? •  Your company must have some Business Maturity to take a step and start using Analytics. •  When you if take the path of using the right people, good technology, proven methodologies and changing the current processes, you will gain more Business Maturity. •  After you have gained more Business Maturity, naturally you will start to evolve to more complex Analytics usage •  It is a self-promoting system following exactly the Deming PDCA method
  • 41. Mario Faria 41 The 3 ingredients to make Advanced Analytics work •  Choosing the right data and managing multiple data sources •  Having the capability to build advanced models that turn the data into insights •  Management must undertake a transformational-change program so that the insights translate into effective action
  • 42. Mario Faria 42 Managing an Analytics project •  Focus on the execution •  Well-defined and realistic scope •  Put all activities on the schedule •  Budget control
  • 43. Mario Faria 43 Technology alone will not change the previous results To succeed in Analytics, an organization will be required to change some of its current internal processes
  • 44. Good  KPIs  will  not  save   your  business,  but  they   will  be  able  to  tell  how   screwed-­‐up  your   business  is  
  • 46. Mario Faria 46 Which companies will thrive in the near future ? •  The ones which will understand how to adapt faster to this new scenario •  The ones which will have successful Analytics implementations •  The ones with great human capital, which understand how to leverage their resources and with proven methodologies to embrace this change Is your company going to lead, influence or follow when using data and analytics to drive results ?
  • 47. Mario Faria 47 Lessons to Analytical Success •  People •  Change Management (on going program) •  Culture •  Organization Model •  Processes •  Architecture •  and Analytics, of course
  • 48. Mario Faria 48 “Successful people shoot for the stars, put their hearts on the line in every battle, and ultimately discover that the lessons learned from the pursuit of excellence mean much more than the immediate trophies and glory” Josh Waitzkin, The Art of Learning
  • 49. Q&A
  • 50. Mario Faria 50 Thank you Mario Faria Chief Data Officer and Analytics Strategy Advisor http://www.linkedin.com/in/mariofaria/ Founder of the Digital Mad Men www.slideshare.com/fariamario Twitter : @mariofaria fariamario@hotmail.com +1 (425) 628-3517