Analytics for Optimizing the

Enterprise

Dr. P GopalakrishnanChief Mentor

BigInfoLabs

Analytics for Enterprise OptimizationP. Gopalakrishnan, PhD

Technology ConsultantMentor, BigInfo Labs

Former VP of Technology, IBM Corp. Armonk, NY

Enterprise Processes• Large enterprises have many complex processes

R&D Marketing Sales

Manufacturing Fulfilment Purchasing

H&R

R&DR&D

MarketingMarketing

SalesSales

ManufacturingManufacturing

FulfilmentFulfillment

PurchasingProcurement

H&RHR

FinanceFinance

FinanceOperations

OperationsOperations

Optimization

• Analytic methods have been widely applied in areas that focus on questions external to the enterprise– Customer analytics, buying behavior, demographics, segmentation– Market insights, market position

• Significant efficiency improvements (and improved financial results) possible from applying analytics inside the enterprise

• But it needs …– Leadership and culture – commitment to making decisions based on

data and analytics– Ability to bridge from insights to execution– “Numbers need to become language”

A few examples

• Two areas – Sales– R&D

• Sales– Territory alignment– Quota and incentives– Sales productivity– Customer assignment

• R&D– Innovation and intellectual property strategy– Talent management

• Decisions based on experience and gut feel• Customer

targeting• Pricing• Productivity

The good old (?) days

Analytics can support many sales decisions

Sales process

Customer targeting

Incentive compensation

Geographic deployment

HiringPerformance management

Goal settingSales force size and

structure

Zoltners & Sinha, Kellog School of Management

Example: Territory assignment

Client profitability

Sales force performance

Sales person to client assignment

• Individual productivity• Areas of expertise• Served channels

• Industry• Historical revenue• Forecasts of revenue• Coverage segments

• Maximize sales potential

• Balance workload• Minimize disruption• Minimize travel

Ref: Baier et. Al, IBM Journal of R&D, Nov/Dec 2012

Example: Incentives

Source: Zoltners & Sinha, Kellog School of Management

achievement

Incentive payout

Payout appears to be capped for high performers

Analysis of incentive payout shows high performers are not being paid adequately. This could lead to dissatisfaction and attrition of high performers.

R&D Process

Concept Research Development

Development

Manufacturing

Manufacturing Market

Analytics can help• Identify technology threats and opportunities• Monitor competition and market throughout the R&D lifecycle• Protect intellectual property, assess risks• Manage talent – recruiting and retention• Investment decisions• Schedule risks and costs

Example: Monitoring trends

• An R&D leader is interested in gathering insights on emerging technology trends.

• Sources of information may be scientific literature, news, social media activity

• Diversity of portfolio often makes it difficult to analyze • Big data and unstructured analytics can help

Example: Monitoring Emerging Trends

Example: Intellectual Property Management

• Questions across a variety of concern areas– Competition– Patentability– Freedom to operate– Risk of infringing someone else’s IP– Monitoring potential infringement

• IP as a potential revenue source

Example: IP Management

Open IssuesSome tough analytics problems arise in the management of R&D

• What is the RoI of R&D investment? If R&D budget is increased / decreased what is the impact on revenue?– Example: Ratio of revenue increase to prior year R&D investment

• What is the best use of R&D investment across a range of projects?

• What is the optimal allocation of resources to R&D projects, balancing skills, recruiting, retention, cost

• What is the risk that the product will not be ready on time?

Community Focused

Volunteer Driven

Knowledge Share

Accelerated Learning

Collective Excellence

Distilled Knowledge

Shared, Non Conflicting Goals

Validation / Brainstorm platform

Mentor, Guide, Coach

Satisfied, Empowered Professional

Richer Industry and Academia

About Information Excellence Group

Progress Information Excellence

Towards an Enriched Profession, Business and Society

About Information Excellence Group

Reach us at:

blog: http://informationexcellence.wordpress.com/

linked in: http://www.linkedin.com/groups/Information-Excellence-3893869

Facebook: http://www.facebook.com/pages/Information-excellence-group/171892096247159

presentations: http://www.slideshare.net/informationexcellence

twitter: #infoexcel

email: informationexcellence@compegence.cominformationexcellencegroup@gmail.com

Have you enriched yourself by contributing to the community Knowledge Share..

Progress Information Excellence Towards an Enriched Profession, Business and Society

Progress Information Excellence Towards an Enriched Profession, Business and Society