Lawrence S. Maisel - AI-Enabled Analytics for Business

1 Cover

2 Title Page AI-Enabled Analytics for Business A Roadmap for Becoming an Analytics Powerhouse Lawrence S. MaiselRobert J. ZwerlingJesper H. Sorensen

3 Copyright 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

4 Dedication 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

5 Acknowledgments 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.

6 Introduction

7 PART I: Fundamentals CHAPTER 1: A Primer on AI-Enabled Analytics for Business AI AND ML—SIMILAR BUT DIFFERENT MACHINE LEARNING PRIMER ANALYTICS VS. ANALYSIS BI AND DATA VISUALIZATION VS. ANALYTICS BIASED VS. UNBIASED AI AND ROI CONCLUSION NOTES CHAPTER 2: Why AI-Enabled Analytics Is Essential for Business COMPETITIVENESS HUMAN JUDGMENT AND DECISION-MAKING CONCLUSION NOTES CHAPTER 3: Myths and Misconceptions About Analytics DATA SCIENTIST MISCONCEPTION AND MYTH SHOT IN THE DARK BASS-ACKWARD AI IS NOT IT BIG IS NOT BETTER NOT NOW NOTE TO EXECUTIVES CONCLUSION NOTES CHAPTER 4: Applications of AI-Enabled Analytics FINANCE SALES MANUFACTURING AND SUPPLY CHAIN DEMAND PLANNING AND INVENTORY CONCLUSION NOTES

8 PART II: Roadmap CHAPTER 5: Roadmap for How to Implement AI-Enabled Analytics in Business CULTURE MINDSET PEOPLE PROCESS SYSTEMS THE ROADMAP FOR IMPLEMENTING AI-ENABLED ANALYTICS LAUNCHING THE CULTURE OF ANALYTICS CONCLUSION NOTES CHAPTER 6: Executive Responsibilities to Implement Analytics EXECUTIVE COMMITMENT ANALYTICS CHAMPION CHANGE MANAGEMENT CONCLUSION NOTES CHAPTER 7: Implementing Analytics DEFINE THE PROBLEM SELECT AN ANALYTICS SOFTWARE POC VENDOR PERFORM THE ANALYTICS POC BENCHMARK PEOPLE SKILLSET SCALE ANALYTICS ILLUSTRATIVE EXAMPLE OF THE ANALYTICS POC ANALYTICS POWERHOUSE CONCLUSION NOTE CHAPTER 8: The Role of Analytics in Strategic Decisions HOW WE TRICK OURSELVES TACTICS THAT AFFECT STRATEGY KEY PERFORMANCE INDICATORS (KPIs) AND STRATEGIC OBJECTIVES THE ANALYTICS SCORECARD™ CONCLUSION NOTES

9 PART III: Use Cases CHAPTER 9: Cases of Analytics Failures from Deviation to the Roadmap MINDSET COMMITMENT INSUFFICIENT PEOPLE AND PROCESSES TOOLBOX CONFUSION CONCLUSION NOTE CHAPTER 10: Use Case: Grabbing Defeat from the Jaws of Victory POC RESULTS—REALIZING THE THREE GOALS THE ROI OF AI FAILURE IS A CHOICE NOTE CHAPTER 11: Use Case: Incremental Improvements to Gain Insights STARTING ANALYTICS TEST AND LEARN ASSESSING ANALYTICS PERSONAS MOVING FORWARD NOTE CHAPTER 12: Use Case: Analytics Are for Everyone THE ROAD TO ANALYTICS STEPPING INTO ANALYTICS ANALYTICS IS FOR ALL

10 Epilogue NOTES

11 APPENDIX: Analytics Champion Framework: The Fundamental Qualifications, Skills, and Project Steps for the Analytics ChampionINTRODUCTION ANALYTICS CHAMPION QUALIFICATIONS ANALYTICS CHAMPION SKILLSETS STARTING AN ANALYTICS PROJECT EPILOGUE NOTES

12 About the AuthorsLAWRENCE S. MAISEL ROBERT J. ZWERLING JESPER H. SORENSEN

13 About the Website

14 Index

15 End User License Agreement

1 Chapter 5Table 5.1 Persona, tools, and usage.

2 Chapter 10Table 10.1 ROI from the analytics POC.

3 Chapter 11Table 11.1 Roadmap self-assessment by functional area.

4 2Table A.1 Definition of Hypothesis, Data, Math, and Dimensions.

1 Chapter 1 Figure 1.1 Superset and subsets of AI. Figure 1.2 ML process. Figure 1.3 Deloitte analytics for decision-making.

2 Chapter 3 Figure 3.1 Forecast error comparison.

3 Chapter 4 Figure 4.1 Benchmark analytics business partner.Figure 4.2 Monte Carlo simulation.Figure 4.3 Fair Challenge.Figure 4.4 Sales deal path to close assessment.

4 Chapter 5Figure 5.1 From data to insights.Figure 5.2 Analytics Intelligence, decisions, and PersonasFigure 5.3 Informative vs. InsightfulFigure 5.4 People proportional soft skills.Figure 5.5 Tableau Executive Dashboard (https://www.tableau.com/solutions/it...Figure 5.6 Tableau Dashboard (https://www.tableau.com/products/desktop).Figure 5.7 Forecast comparisons and reasonability test.Figure 5.8 Proportion of people hard-skill utilization in an Analytics Cultu...Figure 5.9 Roadmap to implementing analytics.

5 Chapter 6Figure 6.1 Analytics culture readiness.

6 Chapter 7Figure 7.1 Five steps to implementing analytics.Figure 7.2 Trend and predicted trend direction.

7 Chapter 8Figure 8.1 BSC for PhoneCalls-R-Us.Figure 8.2 Analytics Scorecard.