Data Analytics Prof C Sudhakar CEO Raskey Software

Data Analytics Prof C Sudhakar CEO Raskey Software Solutions 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 1

Agenda �Discussion on Data �What is Analytics and Its Need �Road Map �Auditors perspective �Types of Analytics �Job Potential 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 2

Data • Raw data �Information • Knowledge • insights • Wisdom 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 3

Analytics �The extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and factbased management to drive decisions and actions --Prof Davenport 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 4

Four pillars of Data Analytics �Distinctive capability: The organization views analytics as something significant that sets it apart from competitors. �Enterprise wide approach: Analytics are managed and made widely available across the whole organization, not just to one department or a hodgepodge of employees. �Senior management commitment: Changes in culture, process, behavior and skills and a passion for fact-based decision-making must be led by the CEO. �Large-scale ambition: Analytical competitors bet their future business success on analytics-based strategies. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 5

5 levels of Analytical Capability �Stage 5 Analytical Competitors � Stage 4 g Analytical Companies � Stage 3 Analytical Aspirations �Stage 2 Localized Analytics �Stage 1 Analytically Impaired 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 6

Road Map to becoming an analytical competitor Stage 1 Top Management Support Full steam Ahead path Stage 3 Analyt ical Aspira tions 2/15/2022 Analytically impaired Management Support: Prove It Path Localized Analytics Functional Stage Management builds 2 Analytics Momentum and executives interest through application of basic analytics Terminal Stage Some Companies analytics efforts never receive management support and stall here as a result Prof C Sudhakar CEO Rakey Software Solutions 7

Road Map Stage 3 Analytic al Aspiratio ns Executives Commit to Analytics by Aligning resources and setting a time table to build a broad analytical capability 2/15/2022 Stage 4 Analyti cal Compa nies Enterprise-wide analytics capability under development: Top executives view analytic capability as a corporate priority Prof C Sudhakar CEO Rakey Software Solutions Stage 5 Analyti cal competi tors Organizations Routinely reaping the benefits of its enterprise –wide analytics capability and focusing on continuous analytics renewal 8

The Key elements in an analytical capability for assessment (For Audit) �Organization � Insight into performance drivers � Choosing a distinctive capabilities � Performance management and strategy execution � Process redesign and integration �Human � Leadership and senior executive commitment � Establishing a fact-based culture � Securing and building skills � Managing analytical people �Technology � Quality Data � Analytical Technologies 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 9

Choosing a Strategic Focus Organizations Initially focus on one or two areas for analytics �Harrah’s : Loyalty Plus Service �New England Patriots: Player Selection Plus Fan experience �Dreyfus Corporation: Equity analysis plus asset attrition �UPS: Operation plus Customer data �Wall Mart: Supply Chain Plus Marketing 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 10

Maturity of analytical capability by stage �Analytically impaired : �Organization �Analytical Objective : Limited insight into customers, Markets, Competitors �Analytical Process: Does Not Exist �Human �Skills: None �Sponsorship: None �Culture: Knowledge allergic- Pride on gut based decisions �Technology �Missing /Poor Quality Data, Multiple defines, unintegrated Systems 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 11

� Localized Analytics: � Organization � Analytical Objective : Autonomous activity builds experience and confidence using analytics: creates new analytically based insights � Analytical Process: Disconnected, Very Narrow focus � Human � Skills: Pockets of isolated analysts � Sponsorship: Functional and tactical � Culture: Desire for more objective data, successes from point use of analytics start to get attention � Technology � Recent transaction data un-integrated, missing important information. Isolated BI/analytic efforts 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 12

� Analytical aspirations : � Organization � Analytical Objective : Coordinated; establish enterprise performance metrics, build analytically based insights. � Analytical Process: Mostly separate analytic processes. Building Enterprise level plan � Human � Skills: Analysts in multiple areas of business but with limited interaction. � Sponsorship: Executive- early stages of awareness of competitive possibilities � Culture: Executive Support for fact based culture- may meet considerable resistance � Technology � Proliferation of BI tools. Data Marts, Data warehouse established/ expands. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 13

� Analytical Companies : � Organization � Analytical Objective : Change program to develop integrated analytical processes and applications and build analytical capabilities. � Analytical Process: Some embedded analytical processes � Human � Skills: Skills exists, but often not aligned to right level/ right role. � Sponsorship: Broad C Suite support � Culture: Change Management to build a fact based culture � Technology � High Quality Data, Have an enterprise BI plan/ strategy, IT processes, and governance principles in place. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 14

� Analytical Competitors : � Organization � Analytical Objective : Deep, Strategic insights, continuous renewal and improvement � Analytical Process: fully embedded and much more highly integrated � Human � Skills: Highly skilled, leveraged, mobilized, centralized outsourced grunt work � Sponsorship: CEO passion, Broad based Management Commitment � Culture: Broadly supported fact based culture testing and learning culture � Technology � Enterprise wide BI/BA architecture largely implemented. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 15

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Questions to ask when evaluating new analytical initiatives �How will this investment make us more competitive? �How does the initiative improve our enterprise-wide analytical capabilities? �What complementary changes need to be made in order to take full advantage of new capabilities such as developing new enhanced skills; improving IT training and processes or redesigning jobs? �Does the right data exists? If not, can we get it? Is the data timely, consistent, accurate, and complete? �Is the technology reliable? Is it cost effective? Is it scalable? Is this the right approach or tool for the right job? 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 17

Key people in Implementation of Analytics �CEO �CIO �CFO 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 18

Key requirements for analytical capabilities �Hard to duplicate �Unique �Adaptable to many situations �Better than competition �renewable 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 19

Types of Analytics �Descriptive analytics �Inquisitive/Diagnostic Analytics �Predictive analytics �Prescriptive analytics 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 20

When Analytics Fail �Assumptions are not properly done �Improper identification of variables �Wrong selection of statistical tool �Non Involvement of Top Management �Proper data not available �Immediate decision required 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 21

Descriptive Analytics �answers the question, "What happened in the business? " It looks at data and information to describe the current business situation in a way that trends, patterns and exceptions become apparent. This takes the form of reports, dashboards, MIS, etc. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 22

Inquisitive Analytics �answers the question, "Why is something happening in the business? " It is the study of data to validate / reject business hypotheses. This includes analytical drill downs into data, statistical analysis, factor Analysis, Cluster Analysis etc. , 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 23

Prescriptive Analytics �Prescriptive analytics automatically synthesizes big data, multiple disciplines of mathematical sciences and computational sciences, and business rules, to make predictions and then suggests decision options to take advantage of the predictions �is the combination of the above to provide answers to the "So what? " and the "Now what? " For example, what should a business do to retain key customers? How can businesses improve their supply chain to enhance service levels while reducing costs? 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 24

Predictive Analytics �answers the question, "What is likely to happen in the future? " Here data modeling and forecasting are used to determine future possibilities 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 25

Descriptive analytics and predictive analytics 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 26

Prescriptive Analytics extends beyond predictive analytics by specifying both the actions necessary to achieve predicted outcomes, and the interrelated 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions effects of each decision 27

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Right Mix of Analytics �Counter to conventional thinking that organizations evolve from Descriptive to Inquisitive/Diagnostic to Predictive to Prescriptive analytics, all four kinds of analytics need to be done in the right mix to enable the holistic creation of insights. Different business problems will need different levels of all four kinds of analytics. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 29

Some categories of financial applications �External reporting to regulatory bodies and stake holders �Enterprise Performance Management and Score Card �Selecting Profitable New Markets to enter �Attracting and selecting the right customers �Driving pricing in accordance with risk �Reducing the severity of claims �Cost Management �Merger and acquisition Analytics 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 30

Difference between Credit Analysis and Financial Analytics �Credit analysts have the general responsibility of assessing a loan applicant’s credit-worthiness. In the scope of their position, they are required to gather relevant data and, based on the data, recommend a course of action for the credit application. . . �Financial analysts conduct research on a larger scale. They research the macroeconomic and microeconomic conditions that surround potential business, industry, and sector decisions. A decision is typically made based on the research findings. An example is the decision to purchase or sell a company’s stock. Financial analysts must remain aware of the conditions in the area in which he or she specializes, and they sometimes are required to build financial models to predict future conditions under a given scenario. 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 31

Job potential �Types of Job �Armature Analysts �Analytical Executives �How CAS Fit Into �Financial Analysts �System Auditors �Correct identification of Assumptions and variables (Confounding Variables) 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 32

� Q&A PL 2/15/2022 Prof C Sudhakar CEO Rakey Software Solutions 33

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