Data Science for Entrepreneurs: Essential Elements for Innovation and Growth

Denise Daniels, Ph.D.

VP Data Science & AI Consulting

August 15, 2019

WHAT DO THESE COMPANIES MY BACKGROUND IN DATA DRIVEN MANAGEMENT

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TQM,DataAnalyticsandgrowthtoabilliondollarproductline

PrescriptiveLearningAIAlgorithms,40%increaseinmathscores

Data-DrivenEnrollmentManagement$400Kto$5Minthreeyears

PhysicianDecisionSupportSystemtoManageChronicPainandNarcoticMedication

GrowingaData-DrivenWebsitefrom40,000to7MVisitorsPerMonth

DataScience&AIDevelopmentConsulting

AGENDA

 Context:TheAgeofData

 Whydostart-upsneedadatasciencestrategy?

•  Innovation

•  Growth

•  CorporateCulture&TheDataMarketplace

  Isthereacorrectwaytoconductdatascienceinbusiness?

 Doesthe“DataScientist”reallyexist?

 WhatisyourroleasaleaderinTurningDataIntoProfit?

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IS DATA SCIENCE THE NEXT BEST PRACTICE OR YOUR KEY TO SURVIVAL?

“It’s clear that data is becoming a key business asset, central to the success of every company. Companies that don’t evolve and embrace the data revolution will be left behind.” – Bernard Marr, 2017

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WHAT DO THESE COMPANIES HAVE IN COMMON?

5DataScience&AIDevelopmentConsulting

 We’veofficially

transitionedfrom

TheInformationAgeto

TheDataAge

• Dataquantityisgrowingat

unprecedentedrates

• Dataqualityhasdrastically

improved

• Dataiseasierandless

expensivetocollectandstore

• Datafindingscan

immediatelybeusedto

generaterevenue

DATA SCIENCE IN BUSINESS: WHY NOW?

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SIMPLE CATEGORIES OF BUSINESS DATA

 Makebetterbusinessdecisions

•  OperationalData–ReduceExpenses

•  ConsumerData–IncreaseRevenue

•  Together:TurnDataintoProfit

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Business-DrivenProgram

RUNTHEBUSINESS(ProcessOptimization)

Dashboards

Reports

Automation

Workflows

Analysis

Exploration

Prediction

Monetization

GROWTHEBUSINESS(ConsumersandInnovation)

Reducecost,Overhead,andrisk

GrowrevenuesCustomerloyalty

DATA

DataInfrastructure&Service

DataGovernance

DataScience&AI

Adaptedfromwww.bernardmarr.com

SIMPLE DEFINITIONS: DATA SCIENCE UMBRELLA

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DataTransactionalandwebsitedata,dashboarddata,

extracteddata,collecteddata

DataScienceExtrapolationsActionableDataFindings=AI,usingdecisions,

Machinelearning

DataScienceAppliedAnswerstomaximizingprofit,therightdecision

DataAnalytics,CXMappingCounting,trends,insights,etc.,websitetrafficup/

down,butdon’tknowwhy,betterdecisions

TAXONOMY OF BUSINESS DECISIONS

Almostallthereallyimportantrevenuequestionsfallintooneofthesecategories:

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Product/ServiceDevelopmentWhattooffer/sellandatwhatprice?

CommunicatingEffectivelyWhataretherightmessagesandhow

besttoconveythem?

KeepingScoreHowdidwedoagainstourgoals?

RecognizingOpportunitiesHowtoturntrendsandproblemsinto

newopportunities?

DevelopingStrategyWhototargetwhereandwhy?

DATA SCIENCE: The key to surviving and thriving!

  Leadstobetterandmoreintelligentdecisions

•  Betterbusinessdecisions–marketandconsumerintelligence•  Growrevenues

•  Consumerloyalty

•  Betterproductsandservices

•  Betterbusinessoperations–internalcompanyintelligence

•  Reduceexpenses,overhead,andrisk

•  Runthebusiness

•  Processoptimization

  Leadstoputtingthedatatowork

•  AI,AIAlgorithmsbuiltintoacompany’sdigitalplatforms(Gartner,2018)

  Leadstocustomercentricityandoutperformingcompetitionwhoarenotcustomerdatacentric

  Leadstohighercompanyvaluation

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Why do start-ups need a data science strategy? • Innovation

• Revenue Growth • Corporate Culture & The Data Marketplace

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DATA SCIENCE & INNOVATION

Problems,Needs,TheWorldAroundUs

(Consumer&MarketData)

Innovation–DefinedbyWebsterastheactorprocessofintroducingnewideas,devicesormethods.(ConsumerData&

Iteration)

Culture–Perseverance,focus,discipline,mistakesandfailurewelcomed,patience(DataDriven

Culture)

Product,ServiceLaunch

(ConsumerData,Iteration&Innovation)

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DATA SCIENCE & INNOVATION: Your Leadership

  Innovation•  Theactorprocessofintroducingnewideas,devicesormethods(Webster).

 Datathatspursinnovation

•  Dataonproblems,challenges,opportunities

•  Dataonnewtrends,what’smissing,what’sneeded

•  Dataonhumanbehavior,yourprospectiveconsumers

 Leadership:Howdoyouinnovate?

•  Explicituseofdata•  DataàInnovationàProductLaunch

•  Implicituseofdata•  InnovationàProductàData

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CONSUMER DATA & INNOVATION: Explicit or Implicit

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Consumer&Market

Data

Innovation

ConsumerData&

Iteration

Product

Launch

RevenueBuilding

InnovationBasedonPassion,Hunch&

InnerKnowing

Iteration

ProductLaunch

ConsumerData&Iteration

RevenueBuilding

DATA SCIENCE & GROWTH

Almostallthereallyimportantrevenuequestionsfallintooneofthesecategories:

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Product/ServiceDevelopmentWhattooffer/sellandatwhatprice?

CommunicatingEffectivelyWhataretherightmessagesandhow

besttoconveythem?

DissectingPerformanceHowdidwedoagainstourgoals?

RecognizingNewOpportunitiesHowtoturntrendsandproblemsinto

newopportunities?

DevelopingStrategyWhototargetwhereandwhy?Revenue

Growthlies

here.

DATA SCIENCE & GROWTH

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CaseStudies WhatReallyMattersforStart-ups&Growth

IdentifyingOpportunities Intoday’sworldofreadilyavailabledata,therelationshipbetween

productsandemergingmarkettrendscanbepredictedaheadoftimeand

AIenginescanbeseededbeforelaunch.

ImplementingStrategy Yourbrand’sposition,growingthementalavailabilityofthebrand

TARGET--consumerprofile,lifestyle,motivation,experience

BENEFITS–benefits

AdvancedDataSciencecantest1,000’sofpositions

ProductDevelopment Yourbrand’sfeatures,packaging,andprice

CommunicatingEffectively

Targetversusmassmarketing,differentiatingthemessagingversusthe

mediachannel

DissectingPerformance Increasedmarketsharecomesfromknowingwhyanddissectingthe

contributingfactorstorevenue

Home123Lending

DATA SCIENCE, CORPORATE CULTURE & THE DATA MARKETPLACE  DataMonetization

•  Howisthedatagoingtobemonetized,whoareyousellingdatato

 Dataanalyticproducts/dashboards,preventionanalytics

•  Dashboards:Descriptive,Diagnostic,Predictive,PrescriptiveAnalytics

 DataAIDevelopmentNeeds

•  Dataextrapolations,dataintelligence,humanlogic,“AI”

 Datalegalandprivacyissues?

•  CaliforniaConsumerPrivacyActof2018(CCPA);GeneralDataProtectionRegulation(GDPR)

 DataArchitecture&Technology

•  Datasources,datamanagement&hygiene,dataarchitecturesservers,software

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DATA SCIENCE, CORPORATE CULTURE & THE DATA MARKETPLACE  Benefitsofbuildingdataintothe“DNA”ofyourcompany

•  Morelikelytogetfunded

•  Morelikelytomaketherightdecisions

•  Morelikelytoinnovateandgrow

•  Morelikelytobecomecustomercentric

•  Morelikelytogetahighervaluation

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Is there a correct way to conduct data science in business? “Creating new data is as important as using existing data.” – Venture Beat, 2018

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THE RIGHT DATA SCIENCE PROCESS Active,Disciplined,Efficient,CostEffective

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DataFishingTrip

NoPre-WrittenReportReady

toPluginAnswers

GarbageIn!GarbageOut

TheIncorrectAnalysis

LeadingtoFalseResults

TheRightQuestions

TheRightDesign&

Methods

TheRight

Data

The

Right

Analysis

TheRightAnswer

AIAction

RevenueBuilding

AnswersDon’tQuiteMakeSenseorCan’t

ExplaintheResultstoManagement

FurtherAnalysis,Time,andExpense

vs.

vs.

vs.

vs.

vs.

vs.

Does the “Data Scientist” really exist? “Nationally, we have a shortage of 151,717 people with data science skills, with particularly acute shortages in New York (34,032 people), the SF Bay Area (31,798 people), and Los Angeles (12,251 people).” – LinkedIn Labor Report, 2018

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DATA SCIENTIST = THE DATA SCIENCE TEAM

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DataAlgorithmProgram

DataJock

BusinessAnalyst

BusinessThinker

Statistician,Mathematician

Data Thinker

The

Data

Scientist

Psychologist

Consumer

Behavior Thinker

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DataScience,Modeling,Technology&TraditionalMarketResearchtoSolveBusinessProblemsScientificallyHORIZON CONSUMER SCIENCE:

MorganCesa,Ph.D.

JanMuska,Ph.D.

SkyeStamey,B.Sc.

JonAmmerman,B.Sc.

DataScience,

Mathematics

&ComputerScience

Business&MarketingAnalytics

ResearchPsychology&Behavioral

Science

MikeFeely,M.B.A.

NicoleMo,M.B.A.

IanCesa,Ph.D.

DeniseDaniels,Ph.D.

HORIZON

CONSUMER

SCIENCE

What is your role as a leader in Turning Data Into Profit?

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Leading in the Data Revolution

  TheDataDisruptionisHere–WhatReallyMatters•  Datanoise

•  Moredatadoesnotmeanmorequestions

 CanYourDataScienceTeamExplainHowTheyGotTheirResults•  Answernoise

•  Answersarepronetothepitfallsofanincorrectprocess

  KeepingScoreStrategically–AnalyticsWillOnlyTakeYouSoFar•  Whatkeepscoreof,whatisimportant

•  Analyticswillonlytakeyousofar,datascienceleadstoprofit

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A MODEL FOR TURNING DATA INTO PROFITS: YOUR ROLE

  I.THEBRIEF:KnowYourQuestionsandTentativeAnswers•  Focusonthequestionsyouwanttoanswer

•  Comeupwithtentativeanswersbasedonwhatyouknowandwhatyouthinkishappening

  II.THEEXPERTISE:GettheRightTeamandHoldThemAccountable

  III.THEASSET:TreattheFindingsasanAsset

•  Putyourdatafindingstoworkordon’tdotheprojectinthefirstplace

•  BuildinstitutionalmemorybybuildingappliedA.I.intoyourdigitalplatform

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TheRight

Analysis

TheRight

AnswerTheRight

Data

TheRight

Design&

Method

TheRight

Question

Discussion Questions

 Whattypeofdataleaderareyouandwhy?

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Discussion Questions

 Howwillyouusedatatorapidlygrowrevenue?

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Discussion Questions

 WhattypeofcorporateculturewillyoudevelopinThe

DataMarketplace?

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Discussion Questions

 Whattypeofdataleaderareyouandwhy?

 Howwillyouusedatatorapidlygrowrevenue?

 WhattypeofcorporateculturewillyoudevelopinTheData

Marketplace?

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