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Turning Big Data into Social Good
The Challenge, The Opportunity
Jaime Fitzgerald
December 6, 2011 – Turin, Italy



                                    Architects of Fact-Based Decisions™
Introduction

                                                   Jaime Fitzgerald,
                  Role:                            Founder @ Fitzgerald Analytics

                                         • Find & unlock opportunities
       Mission:
                                           via data, technology, people, + processes.

    Principles: “Begin with the End in Mind” (Covey)


                                        “Quality is Free” (McGregor)


Turning Data to DollarsTM : A Practical Approach                                        2
From Data to Dollars…




              “A journey of a thousand miles….”

                                                   Fitzgerald Analytics: Converting Data to Dollars™

                            Better Data                             Better Analysis                    Better Results




Turning Data to DollarsTM : A Practical Approach                                                                        3
The Gap vs. Potential


        1. So Much “Buzz” about the Potential of Analytics
                Best-selling books on Analytics (Competing on Analytics, Supercrunchers, etc.)
                New efforts (business units, teams, roles, initiatives)


        2. When Analytics Works, the Impact is Buzz-Worthy!
                Selected firms have made analytics a source of competitive advantage
                It happens every day… just not as broadly as would be ideal

           1                                       2                  3               4
                Right Focus                            Right Method       Execution       Results!

         Let’s discuss the keys to increasing your odds of success…



Turning Data to DollarsTM : A Practical Approach                                                     4
Why So Much Untapped Potential?




                                       Long Term Vision




Turning Data to DollarsTM : A Practical Approach          5
The #1 Threat to Results … Complexity



                                                                 2. Decisions
                    1. Business Models
                                                                 + Processes
                                                    Analytic
                                                   Initiatives
                                                              4. Tech Tools,
                    3. Analysis Options                    Platforms, Plug-ins,
                                                           Deployment Options

        We need a way to simplify this complexity without losing the potential


Turning Data to DollarsTM : A Practical Approach                                  6
Other Root Causes of “Analytic Underperformance”
        While complexity is the largest impediment to results in analytics,
        there are several other challenges worth mentioning…
             1
                     Cross-Functional Collaboration

             2
                                                         The good news is…
                        Communication Challenges
                                                         …managing complexity
             3                                           makes all these other
                             Technology and              problems easier to manage
                        Data Management Barriers         also…

             4
                     People: Talent, Skills, Learning,
                          Team Effectiveness


Turning Data to DollarsTM : A Practical Approach                                     7
What if Steven Covey Were An Analyst?




Turning Data to DollarsTM : A Practical Approach   8
Three Simplifying Concepts
        To “begin with the business goal in mind,” I recommend three concepts

                           Term                                          Definition
          1. Point of Opportunity                   An opportunity for improvement within YOUR
                                                     business model
                                                    Defined because it impacts key drivers of your
                                                     results

          2. Causal Clarity
                                                    Clear Definition of key drivers, cause + effect in
                 Cause                    Effect     your business model, business unit, etc.
                                                    Easy to Explain to others, preferably visually

          3. Causal Model
                                                    A visual representation of “what drives results” in
                Price
                                        Revenue
                                                     your business model
           Transactions                             Create this, and you have achieved “Causal Clarity”


Turning Data to DollarsTM : A Practical Approach                                                           9
Causal Models: A Simple “Base Case”
        Each business model has an inherent “causal model,” but the “core branches” are
        similar


                                                                                      Example: Drivers
                                                                                        of Net Profit
                                                      Revenue

                                                        less
           Your                          Has       Cost of Revenue   Gross Profit
         Business                                  Operating Costs
          Model                                                        less         Net Profit
                                                     Marketing       Other Costs
                                                     Overhead

                                                       Other




Turning Data to DollarsTM : A Practical Approach                                                         10
Example: A Point of Opportunity
        Here is an opportunity to enhance ROI on Marketing + Sales efforts:

              Point of Opportunity:                              “Efficiency of New Client Acquisition”
                        Key Driver / KPI:                           Acquisition Cost per New Client
                                       Formula: [spending on new client marketing]/[# New Clients)

               Transactions                         Price per
                per Client                         Transaction
                          X

                 # of Clients                       Volume




                   Sales and
                   Marketing


Turning Data to DollarsTM : A Practical Approach                                                          11
Planning Your Analysis
         Planning starts with the goal, the “point of opportunity”



                                               Your Point of Opportunity (Decision or Process)
                            Translates to


                                                      Insights or Information Required

                            Which drives

                                          Analysis Methods Required to Create this Information

                            Allowing definition of

                                                               Required Data

                            And selection of the right

                                            Tools, Platforms, Technology, People, and Processes


Turning Data to DollarsTM : A Practical Approach                                                  12
Summary of Key Takeaways
         We hope you will benefit from the concepts shared today

       For All 1. Begin Your 2. Define +                        3. Identify    4. Define the 5. Keep
   Attendees Business          Agree on                           Points of      info needed analysis as
                                Model              the Causal     Opp.           to unlock     simple as
                                                   Model                         the opp.      possible…



          Tips By            Executives Leadership
            Role:             Establish “causal clarity” visually so that everyone understands
                              Encourage teams to use this context to prioritize and target effort
                              Expect recommendations to be justified by their impact on key drivers

                             Business Professionals                      Technology Professionals
                              Identify points of opportunity             Insist upon understanding the
                               before investing time in analytic           business context and causal logic
                               details                                     of requests for analytic systems
                                                                           and effort

Turning Data to DollarsTM : A Practical Approach                                                               13
Thank You!
         For more information and comments, you may reach me through the following:




                Email                              jfitzgerald@fitzgerald-analytics.com

                Twitter                            jaimefitzgerald

                Phone                              1-917-846-3759

                Website                            www.fitzgerald-analytics.com


Turning Data to DollarsTM : A Practical Approach                                          14
Let’s Change the World Together (for the better!)




            Email                                  jfitzgerald@fitzgerald-analytics.com


            Twitter                                @jaimefitzgerald
                                                   @fitzanalytics
                                                   @data2dollars
            Phone                                  1-917-846-3759

                                                   www.fitzgerald-analytics.com

Turning Data to DollarsTM : A Practical Approach                                          15

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Big Data, Analytics, and Social Good - The Challenges, The Opportunity

  • 1. Turning Big Data into Social Good The Challenge, The Opportunity Jaime Fitzgerald December 6, 2011 – Turin, Italy Architects of Fact-Based Decisions™
  • 2. Introduction Jaime Fitzgerald, Role: Founder @ Fitzgerald Analytics • Find & unlock opportunities Mission: via data, technology, people, + processes. Principles: “Begin with the End in Mind” (Covey) “Quality is Free” (McGregor) Turning Data to DollarsTM : A Practical Approach 2
  • 3. From Data to Dollars… “A journey of a thousand miles….” Fitzgerald Analytics: Converting Data to Dollars™ Better Data Better Analysis Better Results Turning Data to DollarsTM : A Practical Approach 3
  • 4. The Gap vs. Potential 1. So Much “Buzz” about the Potential of Analytics  Best-selling books on Analytics (Competing on Analytics, Supercrunchers, etc.)  New efforts (business units, teams, roles, initiatives) 2. When Analytics Works, the Impact is Buzz-Worthy!  Selected firms have made analytics a source of competitive advantage  It happens every day… just not as broadly as would be ideal 1 2 3 4 Right Focus Right Method Execution Results! Let’s discuss the keys to increasing your odds of success… Turning Data to DollarsTM : A Practical Approach 4
  • 5. Why So Much Untapped Potential? Long Term Vision Turning Data to DollarsTM : A Practical Approach 5
  • 6. The #1 Threat to Results … Complexity 2. Decisions 1. Business Models + Processes Analytic Initiatives 4. Tech Tools, 3. Analysis Options Platforms, Plug-ins, Deployment Options We need a way to simplify this complexity without losing the potential Turning Data to DollarsTM : A Practical Approach 6
  • 7. Other Root Causes of “Analytic Underperformance” While complexity is the largest impediment to results in analytics, there are several other challenges worth mentioning… 1 Cross-Functional Collaboration 2 The good news is… Communication Challenges …managing complexity 3 makes all these other Technology and problems easier to manage Data Management Barriers also… 4 People: Talent, Skills, Learning, Team Effectiveness Turning Data to DollarsTM : A Practical Approach 7
  • 8. What if Steven Covey Were An Analyst? Turning Data to DollarsTM : A Practical Approach 8
  • 9. Three Simplifying Concepts To “begin with the business goal in mind,” I recommend three concepts Term Definition 1. Point of Opportunity  An opportunity for improvement within YOUR business model  Defined because it impacts key drivers of your results 2. Causal Clarity  Clear Definition of key drivers, cause + effect in Cause Effect your business model, business unit, etc.  Easy to Explain to others, preferably visually 3. Causal Model  A visual representation of “what drives results” in Price Revenue your business model Transactions  Create this, and you have achieved “Causal Clarity” Turning Data to DollarsTM : A Practical Approach 9
  • 10. Causal Models: A Simple “Base Case” Each business model has an inherent “causal model,” but the “core branches” are similar Example: Drivers of Net Profit Revenue less Your Has Cost of Revenue Gross Profit Business Operating Costs Model less Net Profit Marketing Other Costs Overhead Other Turning Data to DollarsTM : A Practical Approach 10
  • 11. Example: A Point of Opportunity Here is an opportunity to enhance ROI on Marketing + Sales efforts: Point of Opportunity: “Efficiency of New Client Acquisition” Key Driver / KPI: Acquisition Cost per New Client Formula: [spending on new client marketing]/[# New Clients) Transactions Price per per Client Transaction X # of Clients Volume Sales and Marketing Turning Data to DollarsTM : A Practical Approach 11
  • 12. Planning Your Analysis Planning starts with the goal, the “point of opportunity” Your Point of Opportunity (Decision or Process) Translates to Insights or Information Required Which drives Analysis Methods Required to Create this Information Allowing definition of Required Data And selection of the right Tools, Platforms, Technology, People, and Processes Turning Data to DollarsTM : A Practical Approach 12
  • 13. Summary of Key Takeaways We hope you will benefit from the concepts shared today For All 1. Begin Your 2. Define + 3. Identify 4. Define the 5. Keep Attendees Business Agree on Points of info needed analysis as Model the Causal Opp. to unlock simple as Model the opp. possible… Tips By Executives Leadership Role:  Establish “causal clarity” visually so that everyone understands  Encourage teams to use this context to prioritize and target effort  Expect recommendations to be justified by their impact on key drivers Business Professionals Technology Professionals  Identify points of opportunity  Insist upon understanding the before investing time in analytic business context and causal logic details of requests for analytic systems and effort Turning Data to DollarsTM : A Practical Approach 13
  • 14. Thank You! For more information and comments, you may reach me through the following: Email jfitzgerald@fitzgerald-analytics.com Twitter jaimefitzgerald Phone 1-917-846-3759 Website www.fitzgerald-analytics.com Turning Data to DollarsTM : A Practical Approach 14
  • 15. Let’s Change the World Together (for the better!) Email jfitzgerald@fitzgerald-analytics.com Twitter @jaimefitzgerald @fitzanalytics @data2dollars Phone 1-917-846-3759 www.fitzgerald-analytics.com Turning Data to DollarsTM : A Practical Approach 15