Unmasking Analytical Innovators David Kiron Executive Editor, Big Ideas Initiative MIT Sloan Management Review MIT SMR Big Ideas Initiative SUST D&A SB 2014 D&A Research Report, out today • In partnership with SAS Institute • Survey of 2,037 professionals • Interviewed 30+ executives across many sectors sloanreview.mit.edu/analytics2014 KEY FINDING Analytics has become a common path to value. Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 Tyler Spalding CEO StyleSeek & MIT Alum Goal: Disrupt retail industry styleseek.com styleseek.com styleseek.com Who Succeeds? The Importance of Culture Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 Components of an Analytics Culture Analytical Innovators 5 Hallmarks of Success 1. Be Open to New Ideas Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 2. Treat Data as a Core Asset Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 3. Senior Management Pressure Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 4. Use Analytics to Guide Strategy Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 5. Analytics Changes Operations Data excerpted from the 2014 Data & Analytics Global Executive Study and Research Project by MIT SMR, in partnership with SAS. Read the full report at sloanreview.mit.edu/analytics2014 5 Hallmarks of Success 1. Be open to new ideas that challenge current practice. 2. View data as a core asset. 3. Senior management drives the organization to become more data-driven and analytical. 4. Use analytical insights to guide strategy. 5. Let analytics help change the way you do business. Entravision MIT SMR Case Study sloanreview.mit.edu/luminar-insights Entravision Communications • US-based Latino media conglomerate • Reach: 93% of US Latino population • Latino population buying power: trillions of dollars • Industry in transition • Ad Agencies more powerful/New media distribution channels/consumer viewing habits shifting Franklin Rios President of Luminar, a business unit w/in Entravision Invest in Big Data • 3000 data points • 200 sources • Consumption data, not survey • Data Scientists from Mexico • Real insights into Latino buying patterns sloanreview.mit.edu/ luminar-insights Figure excerpted from “Luminar Insights: A Strategic Use of Analytics,” a case study by MIT SMR, made possible by SAS. Read the full case study at sloanreview.mit.edu/projects/luminar-insights/ 1. Is my organization open to new ideas that challenge current practice? 2. Does my organization view data as a core asset? 3. Is senior management driving the organization to become more data-driven and analytical? 4. Is my organization using analytical insights for strategy? 5. Are we willing to let analytics help change the way we do business? FINAL THOUGHT Data is evidence, not truth Thank you. sloanreview.mit.edu/data-analytics WellPoint MIT SMR Case Study sloanreview.mit.edu/wellpoint2014 Jill Hummel Vice President of Payment Innovation, WellPoint WellPoint • 34 million members • 1 in 9 Americans • 1 billion transactions • 14 states • Strategic need to reduce costs, improve health outcomes sloanreview.mit.edu/ wellpoint2014 WellPoint’s Five Reports 1. List of the physician’s total patient population 2. List of patients with gaps in care 3. List of patients visiting the emergency room 4. List of patients admitted to the hospital, highlighting those at high risk for readmission 5. List of high-risk patients to focus on with actionable information about their risk drivers