The Analytics Revolution: How to Improve Your Business By Making Analytics Operational In The Big Data Era

307 Pages·2014·3.6 MB·English

by  Bill Franks

Additional praise for The Analytics Revolution:
“I have known Bill for many years and I admire him for his very
pragmatic and straight forward approach to operationalizing analyt-
ics.  Two decades of real-life, hands-on experience set Bill apart and
defi ne him as one of the top leaders in the analytics space!”
Elpida Ormanidou, Vice President, Global People
Analytics, Walmart
“Franks has created another masterpiece of pragmatic insight and
direction, taking the standard of practice and leaping it forward.
While data scientists and data managers will appreciate the business
value Franks offers, anyone who wants to advance data-driven deci-
sioning and operational analytics needs to read this guide to reach-
ing the next level of the analytics-based business. “
Jeff Tanner, author of Analytics and Dynamic Customer Strategy
and Director, Baylor’s Innovative Business Collaboratory
“As recently as a few years ago, many organizations, departments, and
people remained dubious about Big Data and questioned whether
analytics mattered at all. Today, those who haven’t crossed the chasm
are squandering massive opportunities. They appear outdated and
hidebound. But where to begin? While no one book can possibly
answer every question about making Big Data happen, The Analytics
Revolution provides an excellent framework. I heartily recommend it.”
Phil Simon, keynote speaker and award-winning author of The Visual
Organization andToo Big to Ignore
“This is a comprehensive and much-needed guidebook to success-
fully implementing operational analytics, automating decisions, and
driving data analysis deep into business processes. There is no better
guide than Bill Franks to this timely subject, fast becoming a critical
strategic differentiator in the era of big data. “
Gil Press, contributor to Forbes.com
“The book offers an excellent perspective on what a business leader
must do and consider to be successful with analytics. The way deci-
sions are made at fi rms, by operational processes and even by
customers is changing - all driven by analytics! This revolutionary
change in decision-making will be a new norm in business. I highly
recommend this book as a great guide on what to do and expect with
operationalizing analytics!”
Russell Walker, Clinical Associate Professor,
Managerial Economics and Decision Sciences,
Northwestern University Kellogg
School of Management
“If you’re in the thick of the Big Data movement at your organization
(and who isn’t?), then you must read this book. Through his unique
storytelling ability, Bill Franks delivers entertaining and insightful
examples of how fi rms around the globe capitalize on their data
stores through operational analytics.  In particular, there is a keen
focus on how to assign value to  smart use of data, something that has
been missing in many conversations involving Big Data. Franks fol-
lows up his succinct analysis presented in Taming The Big Data Tidal
Wavee by providing a surfboard for those who want to optimize their
ride on the wave, and provides his vision for the future of a data
driven world.”
Linda Burtch, Managing Director,
Burtch Works Executive Recruiting
“One our key learnings at Kaggle is that big data is about more than
building advanced algorithms. Bill has written an important book
about what’s involved in putting analytics into practice.”
Anthony Goldbloom, Founder & CEO, Kaggle
The Analytics Revolution
HOW TO IMPROVE YOUR BUSINESS BY MAKING
ANALYTICS OPERATIONAL IN THE BIG DATA ERA
Bill Franks
Cover image: Wiley
Cover design: © istock.com/jerry_only
Copyright © 2014 by Bill Franks. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Franks, Bill, 1968-
The analytics revolution : how to improve your business by making analytics
operational in the big data era/Bill Franks.
pages cm
Includes index.
ISBN 978-1-118-87367-0 (cloth); 978-1-118-97675-3 (ebk); 978-1-118-97676-0 (ebk)
1. Business intelligence. 2. Big data. I. Title.
HD38.7.F733 2014
658.4′013--dc23
2014022308
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
This book is dedicated to Stacie, Jesse, and Danielle.

Contents
Foreword xi
Preface xv
Acknowledgments xxv
PART I The Revolution Has Begun 1
Chapter 1 Understanding Operational Analytics 3
Defi ning Operational Analytics 4
Welcome to Analytics 3.0 10
How Analytics Are Changing Business 20
Putting Operational Analytics in Perspective 26
Wrap-Up 30
Notes 31
Chapter 2 More Data . . . More Data . . . Big Data! 33
Cutting through the Hype 33
Preparing for Big Data 39
Putting Big Data in Context 48
Wrap-Up 58
Notes 59
Chapter 3 Operational Analytics in Action 61
Improving Customer Experiences 62
Time Is of the Essence 68
Making Us Safer 71
Increasing Operational Effi ciency 74
vii
viii Contents
Improving Our Lives in the Future 77
Finding Unexpected Value in Data 79
Wrap-Up 83
Notes 84
PART II Laying the Foundation 87
Chapter 4 Want Budget? Build the Business Case! 89
Setting the Priorities 89
Choosing the Right Decision Criteria 93
Business Case Framework to Consider 101
Tips for Creating a Winning Business Case 108
Wrap-Up 115
Notes 116
Chapter 5 Creating an Analytic Platform 117
Planning 118
Building 123
Using 140
Wrap-Up 143
Notes 145
Chapter 6 Governance and Privacy 147
Setting the Stage for Governance 148
Deciding Where Analytics Happen 154
Governing Operational Analytics 158
Privacy 165
Wrap-Up 172
Notes 173
PART III Making Analytics Operational 175
Chapter 7 The Analytics 177
Creating Operational Analytics Processes 177
Expanding into New Analytics Disciplines 181
Focusing Analytics Efforts 187
Comparing Analytics Approaches 193
Lessons from the Past 198