CFO Series #1_2

a single solution

7 MINUTES 7 QUESTIONSONLY 4% OF COMPANIES ARE GOOD AT ANALYTICS. ARE YOU ONE

OF THEM?

July 22, 2014

CFO ROUNDTABLE DISCUSSION

transforming complex challengesinto a single solution

a single solution

FEATURED SPEAKER

Charles WilsonFounder and Principal ConsultantGudmundr

• Led by the top talent in analytics and enterprise performance management

• Strive to influence how executives harness their data to make informed decisions for their organizations

• Officially founded in 2013 in Southern California, boasts over 60 references gathered over the years of working together on successful analytics projects

A fast‐growing agile management and execution consulting firm

transforming complex challenges into a single solution

Are you good at analytics?

Why is it still a struggle for so

many companies?

Who should lead analytics in the

organization? etc.

© Copyright 2014 Guðmundr, LLC All Rights Reserved

Only 4% of companies are good at analyticsIn a 2013 study Bain & Company* reviewed the analytics capabilities of more than 400 companies around the world with revenues larger than $1 billion. The results were stunning: only 4% of companies are good at analytics.

Yet, those who are good, are: ▪ two times as likely to be in the top quartile of financial performance within their industries,▪ three times more likely to execute decisions as intended, and ▪ five times more likely to make decisions faster.

Analytics is no longer a luxury, it is a requirement to compete and a real opportunity to pull ahead of the competition. Then why are so many companies lagging behind?

We spoke to over 50 executives from leading companies across North America to find out.

* Bain & Company, The Value of Big Data: How Analytics differentiates winners, September 2013


Who did we talk to?We surveyed a wide variety of individuals with different responsibilities from many different industries and sizes of organizations.

$100 - 500 Million, 12.96%

< $100 Million, 40.74%

> $500 Million, 46.30%

Organization Size© Copyright 2014 Guðmundr, LLC All Rights Reserved

Who did we talk to?We surveyed a wide variety of individuals with different responsibilities from many different industries and sizes of organizations.

Analytics, 18.52%

Executive, 9.26%

Finance, 18.52%

IT, 20.37%

Marketing, 11.11%

Operations, 22.22%

Manufacturing, 16.67%

NonProfit, 20.37%

Retail/Distribution, 25.93%

Services, 37.04%

Industry Department/Role


Are you part of the Analytics Elite?According to Bain & Company the 4% of companies which are good at analytics deliberately invest in all four of these areas: data-savvy people, quality data, state-of-the-art tools and organizational intent, or incentives and processes that support analytics-based data-driven decision making.


Do you have a data-savvy team?


Do you have quality data?


How does data quality change as a company grows?

< $100 MillionWe do not have the right tools to easily visualize our dataThe data is trapped in too many different systems, so it is hard to get a unified view of the businessWe do not have the right systems to collect useful data

$100 ‐ 500 MillionWe do not have the right tools to easily visualize our dataThe data is trapped in too many different systems, so it is hard to get a unified view of the businessData is not stored properly and access to it is limited to certain people/teams

> $500 MillionThe data is trapped in too many different systems, so it is hard to get a unified view of the businessWe have too much data and it is difficult to decide what are the most relevant pieces to analyzeThe data is not good enough ‐ it is too messy or low quality

As organizations get bigger the perceived challenges with data quality evolve and change. This change suggests that investments in traditional enterprise systems do not inherently make a company more analytically savvy or improve data quality.


Do you have state-of-the-art tools?


Do you have the organizational intent for analytics?

Level1 Level2 Level3CEO 92.9% 67.9% 35.7%CAO 80.8% 53.8% 23.1%Division Head 100.0% 53.6% 17.9%CIO 91.0% 50.0% 8.8%CFO 90.0% 45.0% 2.5%

Organizations that believe that the CEO should set analytics priorities are approximately twice as likely to be perceived as part of the analytics elite than organizations that believe a division head should set analytics priorities


Quality data

State-of-the-art tools

Data-savvy people

Organizational intent, i.e. commitment to make data-savvy decisions

What can an executive do to encourage a data driven culture?

How can an executive influence co-workers and senior leadership to make analytics a bigger part of the organizations mission?

What role do tools and technology play in making an organization more analytical?

Is it possible to be over reliant on tools?

How do you keep up with the changes in technology and avoid falling behind because of rapid changes in technology?

How do you think the cloud might help address the issue of obsolescence?

What is the link between intent, tools, people and data quality?


a single solution

Q&A

a single solution

THANKS

CFO Series #1_2

Documents

Transcript of CFO Series #1_2