Focus on Two Things
Provide A Structured Approach to Problem Solving
Identify the Biggest Opportunity
A small wheel chock can prevent a mile long train from moving
Best resources, focused at the right activity, release an immense amount of value
Provide Optimal Analysis
Focused process to make better decisions quickly, is the difference
Building an optimal process to make the best decisions quickly, is the difference
Support Ongoing Activities
Comprehensive analysis minimizes delays from future questions
Sustaining momentum requires having support at the right place and right time
Provide Enhanced Analytical Capabilities
project examples
There are several examples below that provide a limited view of the types of projects that we can support
Net Present Value Simulation
Demand Scenarios
Customer Segmentation
Adhoc Data Manipulation
Net Present Value Simulation
Provide visibility to the true potential financial impact of an investment. This was accomplished using a simulation model
Objective: understand and quantify potential financial impact associated with an innovation project.
- Project with multiple variables, two with high uncertainty
Methodology
- Created a pro-forma P&L and calculated the NPV of the base case
- Established value range for each variable
- Model would randomly adjust each variable within min/max
- Ran a simulation of 25,000 potential combinations of variables
- Created a histogram of possible financial results
Result: Identified the variables that had the greatest financial impact on the results, allowing client to prioritized where to focus effort to reduce the uncertainty.
Demand Scenarios
Improve quality of demand projection by adding external data and establishing a range of demand vs single value
Network Optimization: Location for new facility
- Greatest unknown was related to demand
- Needed long-term demand projection ~15 years
- Extrapolating current demand wasn’t accurate enough
Methodology
- Combined existing sales with several external sources of data
- Created multiple scenarios and combined into a range of demand
- Range of projected demand was the input into site selection model
Result showed cost implication of each potential facility location depending on the long-term demand scenario
Customer Segmentation
Improve accuracy by incorporating external data and utilizing a combination of simulation and optimization
Regional sales and services business looking to expand customer base needed to understand impact of potential customer’s location
- Located in large metropolitan area, highly sensitive to traffic delays
- Provided mix of routine service and emergency repair
Methodology
- Modeled existing business to establish base line
- Added potential customer volumes and locations
- Overlaid with hourly traffic patterns and modeled the implications on staffing
Deliverable
- Projected the requirements of trucks and drivers for each potential new customer
- Determined cost to serve of existing customers
Adhoc Data Manipulation
Several examples the show the breadth of capability
PDF to P&L
- Client only had access to electronic pdf copies of bank records and needed to build out a a P&L to manage business
- Converted 2+ years of monthly bank records across multiple accounts into database
- Built out chart of accounts, customer, supplier and uploaded to Quickbooks
- Set up reconcilable financials
Social Media Listening
- Project team had immediate need to share specific information
- Determined that tracking across twitter would be an accurate proxy for the market
- Built a tracker that captured real time tweets based on a set of key words
- Setup and monitored for a 5 day period and provided updates multiple times per day
Analytical capability
Overview of the basic strategy for making better decisions, tactics for doing it faster and summary of focus areas and tools
Strategy
Types of Analysis
Tools
Strategy
Strategy for making better decisions:
- Better inputs – find or create more accurate data
- Change the way the analysis is done – better tools
- Provide range of outcomes vs single number
- Understand how each input impacts the result or contributes to the uncertainty
The combination of these four steps provide clearer understanding of the risks and insights for making a better decision
Tactics for making faster decisions:
- Select the best tools for different types of analysis
- Establish and optimize core tools that can be leveraged across multiple types of analysis
- Have alternative tools for more complex problems
- To the extent it is practical, bring in more data to provide better information
Types of Analysis
Proof of Concept – answer the question, if the idea is:
- Possible
- Profitable
- The most effective way
- Identify and answer “killer questions” – what needs to be true to move forward?
Rapid Prototype – Build working software model or tool that can be utilized while on-going development is completed
- Reduce risk and cost associated with innovation
- Capture quick wins and value associated with
Ad-hoc Analysis
- Customized analysis to support innovation, problem solving, M&A, internal or external audits.
- Combine multiple data sources to provide greater insights
Financial Analysis
- Financial Analysis / Simulation
- Reinvestment Economics
- Proforma P&L
Project Optimization
- Critical Path Modeling
- Time vs Cost Optimization
- Critical Success Factors
- Key Performance Indicators
Tools
Core Analytics
- Machine Learning
- Root Cause Analysis
- Descriptive and Predictive Analytics
- Simulation / Optimization
PC Based Analytics
- Microsoft Excel, Access
- Programming languages: Python, R, Visual Basic
- Data ETL: Alteryx
- Data Visualization: Tableau
Cloud Based Analytics
- Microsoft Azure
- IBM Watson
- Google Cloud Platform
- Amazon Web Services