Analytics to Action! Team-Oriented Root-Cause-Analysis Enabled by Tableau

1. Analytics to Action!Team-Oriented Root-Cause-Analysis Enabled by Tableau George Smirnoff Trexin Consulting, LLC

2. Agenda Introduction – From the Beginning The Power of Analytics to Action! Accelerated Problem-Solving Using Tableau Examples Medical Claims Stock Trading Customer Satisfaction Applications Across the Business Questions Contact Information

3. Early Visual Analytics – 1854 London Cholera Epidemic Dr. John Snow • One of the fathers of epidemiology • Leader in anesthesia and medical hygiene Setting • Believed disease spread through bad air • No concept of hygiene and how disease was spread • Expected to “see” disease in a microscope Hypothesis • Cholera was being spread through the water, specifically through the public Broad Street Pump • Sewage-polluted sections had increased incidences of cholera Challenge • Couldn’t prove it through microscopic examination of the water

4. Visual Analysis Demonstrated a Surprising Result Method • Use pinpoints to identify location of cholera breakouts Result • Government officials were reluctant to accept that disease could be spread through oral-fecal means, and rejected the theory • But, the visual evidence was so compelling that in the interest of public health, they replaced the pump anyway • Later discovered that the well had been dug only 3 feet from an old cesspit, which leaked

5. Agenda Introduction – From the Beginning The Power of Analytics to Action! Accelerated Problem-Solving Using Tableau Examples Medical Claims Stock Trading Customer Satisfaction Applications Across the Business Questions Contact Information

6. Approaching the Inflection Point The power of “competing on analytics” is widely accepted, but the big BI tech project is not getting companies there • Act 1 • Competing on Analytics • Harvard Business Review • January, 2006 • “Virtually all the competitors we identified as aggressive competitors are clear leaders in their fields, and they attribute much of their success to the masterful exploitation of data.” • Act 2 • The Secrets of Successful Strategy Execution • Harvard Business Review • June, 2008 • “Research shows that enterprises fail at execution because they go straight to structural reorganization and neglect the most powerful drivers of effectiveness – decision rights and information flow.” Analytics to Action! • Integrating operations and information analytics, along with the decision rights to act, is key to achieving the promise of being an analytics competitor

7. Business Intelligence As It Is Today Is Not Enough The industry is maturing to realize that while Davenport’s “Competing on Analytics” was right, getting it done is incredibly difficult Successfully executing the promise of analytics requires embedding analytics into the front lines of business • Combining both decision rights and information analytics The “inflection point” represents the mostdifficult part of competing on analytics • Embedding analytics, with the decision rightsto act, into the fabric of your organization Value (ROI) Investment $$ By better integrating analytics with business knowledge, putting the power in the hands of the business, the promised ROI can be realized, thereby achieving competitive advantage

8. Information Flow Creates a Continuum for Execution Transaction Processing Customer Transaction Transactional Fulfillment Sales Data Flow Continuum Marketing Production & Inventory Data Timing Product Books & Records Accounting Customer History Financial Reporting Sales & Marketing Historical Corporate Customer Data Focus

9. Shifting the Model Enables Better Decision Making Transaction Processing Customer Transaction Transactional Fulfillment Sales Data Flow Continuum Marketing Production & Inventory Data Timing Product Books & Records Accounting Customer History Financial Reporting Sales & Marketing Historical Corporate Customer Data Focus

10. Competitive Advantage through Analytics Achieving Insight Creates Highly Leveraged Business Value …by process, function, department, division, capability, or company Revenue & Profitability Insight Enables Competitive Advantage Capability Maturity Analyze &Improve Action Iterative Cycle Iterative Cycle Innovation Value (& Risk Management) Measure Test Insight Information Well Understood Produces Insight Information Data Well Organized = Information Data Data Lifecycle Define & Design| Create & Collect | Move & Distribute | Use & Maintain | Archive | Dispose Time

11. Agenda Introduction – From the Beginning The Power of Analytics to Action! Accelerated Problem-Solving Using Tableau Examples Medical Claims Stock Trading Customer Satisfaction Applications Across the Business Questions Contact Information

12. Visual Analytics is Key for Analytics to Action! Integrating analytics into business operations is more easily described in concept than achieved in practice Requires a significant and iterative change process focusing on the critical touch points between information, business process, and the revenue value chain Tableau’s visual analytics is a fantastic enabler for viewing information through a business lens • Get the right data, removing noise and establishing full context • Get to one set of facts, fully understanding the business imperatives and the data that supports it • Gain alignment on what it means and how to act • Execute business change, not just spreadsheets and reports—all enabled by the integrated business focus • Build analytical capabilities into the day-to-day operations, pushing analytics to the front lines of business

13. A Powerful Example, Root-Cause-Analysis Visual analytics is having a profound impact on problem-solving and root-cause-analysis because it brings together operational, analytical, and technical skills together • Multi-disciplinary teams in interactive working sessions • Looking at problems from multiple angles, often combining disparate data sources, in real time Seen significant acceleration in problem-solving by moving from systematic to collective problem solving • Examples of shortcutting months and years into days Addresses the two keys to successful execution – information flow and decision rights – using visual analytics as the bridge Using multi-disciplinary teams consolidates information flow into interactive visual analytic sessions bringing accelerated resolution to perplexing problems

14. Agenda Introduction – From the Beginning The Power of Analytics to Action! Accelerated Problem-Solving Using Tableau Examples Medical Claims Stock Trading Customer Satisfaction Applications Across the Business Questions Contact Information

15. Examples Across the Spectrum Strategic Example: Customer Satisfaction in Financial Services • Target areas for improvement • Strategy adjustment • Measurable impact Compliance Example: Stock Trading • Identification of trading self-dealing • Fraud and compliance analysis Operational Excellence Example: Medical Claims • Payment backlogs • Coding errors

16. Operational Excellence Example: Medical Claims Typical Scenario Unexplained revenue shortfalls Medical claims are submitted electronically Multiple claims per visit Valid combinations highly dependent Common Issues Coding mismatches Timing issues 2/3 of revenue shortfall due to one modifier coding error was in found in just 3 codes and there is likely a significant process issue due to claims being open too long. Observations • Coding mismatches • Claims beginning with a 77 require a special explanation, indicated by a 26 modifier • Incorrect modifiers results in lack of payment • Timing issues • Majority of claims were being paid slower than contractual obligation Significant claims were not paid in Q1/2006 Missing revenue due to coding errors: 70% Delayed revenue due to claim backlog: 25%

17. Compliance Example: Stock Trading Typical Scenario Investigative analytics as part of a comprehensive fraud and/or compliance program Huge volumes of data – deal with samples High degree of business knowledge required Common Issues Self dealing at broker or firm level Trader commissions relative to other traders within one security can easily be broken out so that anomalies stand out. But, caution looks can be deceiving… Observations • There are many ways to mask trader profitability and the most obvious is never where the money is hidden • Visual analysis is critical for breaking complex data into manageable tranches • Errors in analysis due to easily overlooked factors can easily be seen through a visual breakout With complex data, Tableau can be used to visually break out the different scenarios for further analysis

18. Strategic Example: Customer Satisfaction Typical Scenario Financial services company with extensive agent network Customer service drives new sales and has a significant impact on retention Do customer survey using standardized (ACSI in this case) questions plus some targeted at driving meaningful impact analysis Common Issues Maximize customer satisfaction and revenues Executive misalignment on root-causes Key customer defection metric quickly shows the potential impact of customer service deficiencies Observations • Graphical analysis set direction for advanced financial analysis • 10% of agents giving 50% of work to competitors • Hundreds of millions $$ in revenue at risk through poor customer service • Just a 2% services issue with agents put tens of millions $$ at risk The core data also lends itself to industry benchmarking when using standardized survey questions and measures

19. Agenda Introduction – From the Beginning The Power of Analytics to Action! Accelerated Problem-Solving Using Tableau Examples Medical Claims Stock Trading Customer Satisfaction Applications Across the Business Questions Contact Information

20. Visual Analytics Can Be Applied Across the Business Grow the Business Corporate Strategy Target Markets Product Design Financial Planning Sales & Marketing Customer Response Marketing Campaigns Human Resources Employee Performance Technology Strategic Investment Run the Business Business Operations Finance & Budgeting Sales & Marketing • Tracking, Management, and Performance • Customer Experience Human Resources • Training & Benefits Impact Technology • Data and Infrastructure Management Transform the Business New Market Entry Distribution Channel Enhancement Outsourcing • Operational Excellence Talent Management • Talent Analysis & Enhancement Technology Platform Transformation • Upgrades & Replacement

21. Agenda Introduction – From the Beginning The Power of Analytics to Action! Accelerated Problem-Solving Using Tableau Examples Medical Claims Stock Trading Customer Satisfaction Applications Across the Business Questions Contact Information

22. About the Presenter George Smirnoff isa Managing Director at Trexin Consulting focusing on creating competitive advantage by leveraging data analytics. Previously, George led Ernst & Young’s Information Management & Analysis practice for Financial Services. He was the VP of Product Strategy and Application Development at PRG-Schultz and began his career at Diamond Management and Technology Consultants. George holds a J.D. and M.B.A. from Cleveland State, completed the Goizueta Executive Program at Emory, and is a CISSP and member of the Ohio Bar. Trexin Consulting is a management and business technology consultancy that provides both advisory and implementation services.  Trexin assists customers with complex and sensitive business issues that require a trusted perspective, an experienced hand, and an innovative approach.  The company’s client work is focused on driving profitable growth, managing effective transitions, and “getting to done.”