Lawrence S. Maisel - AI-Enabled Analytics for Business

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We are entering the era of digital transformation where human and artificial intelligence (AI) work hand in hand to achieve data driven performance.  Today, more than ever, businesses are expected to possess the talent, tools, processes, and capabilities to enable their organizations to implement and utilize continuous analysis of past business performance and events to gain forward-looking insight to drive business decisions and actions. 
 is your Roadmap to meet this essential business capability. To ensure we can plan for the future vs react to the future when it arrives, we need to develop and deploy a toolbox of tools, techniques, and effective processes to reveal forward-looking unbiased insights that help us understand significant patterns, relationships, and trends. This book promotes clarity to enable you to make better decisions from insights about the future. 
Learn how advanced analytics ensures that your people have the right information at the right time to gain critical insights and performance opportunities Empower better, smarter decision making by implementing AI-enabled analytics decision support tools Uncover patterns and insights in data, and discover facts about your business that will unlock greater performance Gain inspiration from practical examples and use cases showing how to move your business toward AI-Enabled decision making 
 is a must-have practical resource for directors, officers, and executives across various functional disciplines who seek increased business performance and valuation.

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A Roadmap for Becoming an Analytics Powerhouse

Lawrence S. MaiselRobert J. ZwerlingJesper H. Sorensen

AIEnabled Analytics for Business - изображение 1

Copyright © 2022 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permission.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com.

Library of Congress Cataloging-in-Publication Data is Available:

ISBN 978-111-9736-080 (Hardback)

ISBN 978-111-9736-103 (ePDF)

ISBN 978-111-9736-097 (epub)

Cover Design: Wiley

Cover Image: © DNY59/Getty Images

I would like to dedicate this book to my wife Claudia, whose endless patience, bright smile, and intelligence have always been a source of inspiration. I also want to acknowledge my parents and brother, who provided gentle guidance and love. I especially want to thank my children, Nicole, Dana, and Jonathan, who inspire and always bring out the best in me.

To Dana, forever in my heart.

Lawrence S. Maisel

This book is dedicated in loving memory of my mother, Joy, the merriment of my grandmother, Tess, and the wisdom and discipline of my grandfather, Ruby. The best of life and the greatest of gifts I have are from my sister, Alice, wife, Val, and daughter, Megan.

Robert J. Zwerling

This book was written in memories of my parents, who patiently helped me learn. I also want to acknowledge my wife, Anne. Without you this would not be possible.

Jesper H. Sorensen

Acknowledgments

We thank Kent Bearden, Jonathan Morgan, and Lisa Tapp for sharing their experiences and helping us learn the ways AI and analytics contribute to improving their operations. With gratitude, we also acknowledge the support and editorial assistance of Sheck Cho and Susan Cerra of Wiley, which enabled us to complete this book.

Introduction

Everywhere you turn, you hear or read about artificial intelligence (AI) and the emerging importance of digital transformation. To be competitive in modern business, decision-making needs to evolve into a more objective, insightful, and unbiased process that is powered by the application of AI-enabled analytics.

We have written AI-Enabled Analytics for Business: A Roadmap for Becoming an Analytics Powerhouse for executives to gain a solid understanding of AI and analytics that will give clarity, vision, and voice to integrating them in business processes that will be impactful and increase business performance.

Today, there is more promise than practice in implementing AI and analytics for data-driven decisions. As you will learn, there are twice as many analytics failures than successes, and there are twice as many successes that are abandoned rather than sustained. The good news is that almost all failure can be traced back to executive decisions that are entirely avoidable and easily identified.

Further, AI is not the sole purview of big companies, big data, and big data projects that seek to boil the ocean. The butcher, baker, and candlestick maker can all incorporate AI to increase productivity, reduce workforce, retain higher-skilled talent, and enhance the customer's experience. In fact, AI and analytics are better done incrementally, building on each success to scale the business to become an analytics powerhouse.

Our research, training, consulting, and on-the-ground experiences with AI-enabled analytics have shaped our perspectives, refined our practices, and tested our tactics. We have worked side by side with executives like you, and our empirical results demonstrate the critical factor to success is the executive's mindset to the value of analytics and commitment to allocate the resources to building the Analytics Culture. This book gives you the Roadmap to implement AI and analytics, which, as you will learn, the executive will make or break. As we will show, failure is a choice; the good news is that it is eminently avoidable, and we have specified the steps for success.

In Part I, we cover the fundamentals of AI and analytics, beginning in Chapter 1to untangle the many seemingly synonymous terms, partitioning tools that do and do not do analytics, and the ROI of AI. It is essential to know the difference between analysis , which is the application of arithmetic on data to yield information, and analytics , which is the application of mathematics on data to yield insights. In Chapter 2, we illuminate why analytics is essential in business and share Noble Prize-winning research that recognizes the limitations of human decision-making based on biased intuition and gut feel, and why analytics must be included as the essential unbiased component. Chapter 3discusses myths and misconceptions regarding the approach to analytics, and Chapter 4takes you through several applications of AI and analytics across different business functions.

In Part II, we define the Roadmap for how to implement AI-enabled analytics for data-driven decisions and the contributions of executives for becoming an analytics powerhouse. Chapter 5is the fulcrum of this book and delivers a detailed discussion of analytics as more than a tool—it is a culture with four components: Mindset, People, Processes, and Systems. When these components are aligned, immense value to optimize performance is created, and we delineate in depth how this is accomplished. In Chapter 6, you will learn that executive action determines the successful implementation of the Analytics Culture, and you will see what executive actions are needed. Further, we introduce the Analytics Champion, who supports the executive and delivers the tactical implementation of the Analytics Culture. In Chapter 7, we specify with clarity and simplicity how to implement analytics and show that achieving it is not time-consuming, hard, or expensive—it is a discipline. Chapter 8links analytics to strategic decisions and debuts the new and innovative Analytics Scorecard, which elevates the traditional and subjective Business Scorecard into a quantitative cause-and-effect delineation of strategies that can drive increased business performance.

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