Value of Business Analytics

EVAN STUBBS is the Regional Product Manager for Analytics at SAS Australia/New Zealand. A key champion for innovation and improvement, he advises organizations across multiple industry sectors and assists companies in achieving best practice in analytics. He has successfully applied analytics in a highly varied range of situations, from implementing an analytics-based policy planning toolkit within a large government department to creating the vision, market specifications, and demand forecasts for a concept car.

• Preface ixAcknowledgments xiiiChapter 1 Introduction and Background 1The Power of Information 1Modern-Day Magicians 3The Secret of Success 5Notes 7Chapter 2 The Importance of Business Analytics 9Introduction 9Business Analytics: A Definition 10Role of the Organization 13Reasons behind Strategic Planning 17Business Analytics and the Traditional View 25Business Analytics and the External View 28Business Analytics and the Internal View 35Business Analytics and the Customer View 39Fostering Innovation and Invention 44Delivering Value through Renewable Return 46Summary 51Note 51Chapter 3 The Challenges of Tactical Delivery 53Introduction 53Core Vocabulary 54Common Team Structures 66Roles and Responsibilities 68Challenges of Applying Business Analytics 83Finding the Path to Profitability 85Selling the Value of Analytics 86Meeting and Overcoming These Challenges 90The Four-Step Framework 97Note 97Chapter 4 Defining the Value of Business Analytics 99Introduction 99Why You Need to Define the Value 100Different Types of Value 103Role of the Business Case 108Identifying Tangible Value 115Identifying Intangible Value 131Simulating Business Cases 134Practical Example: Reducing Churn in Telecommunications 140Summary 143Chapter 5 Communicating the Value Proposition 147Introduction 147Why You Need to Plan Your Communication Strategy 148Need for a Communication Strategy 154Awareness and Information Relevancy 158Organizational and Societal Cultural Considerations 163Conceptual Relevancy 172The Path to Persuasion 178Practical Example: A Forecasting Model for Planning 182Summary 185Note 187Chapter 6 Creating the Execution Plan and Delivering Value 189Introduction 189Why You Need an Execution Plan 190Role of the Execution Plan 194Establishing Direction 195Delivering to the Plan 215Dealing with Resource Constraints 216Planning for Success 220Practical Example: Social Network Analysis 229Summary 231Chapter 7 Delivering the Measurement Framework 235Introduction 235Why a Measurement Framework is Essential 236Role of the Measurement Framework 241Measuring What is Important 247Establishing a Measurement Framework 260Delivering the Measurement Framework 263Advanced Measurement Concepts 268Practical Example: The Ongoing Growth of an Analytics Team 278Summary 281Chapter 8 Bringing it All Together 285Introduction 285Sarah’s Challenges 286The Light-Bulb Moment 288Transforming the Organization 292Summary 296Glossary 299About the Author 317Index 319