PREDICTIVE

A N A LY T I C S
MADE PRACTICAL
Three keys to putting
predictive to work for you

P R E D I C T I V E A N A LY T I C S MANAGEMENT, DATA SCIENTISTS ,

WH I T E PA P E R AND CITIZEN DATA SCIENTISTS
 CONTENTS
T H E C H A L L E N G E TO B ECO M E DATA- D R IVE N 03

WH Y B E S T- I N - C L A S S CO M PA N I E S E M B R A C E 04
THE INSIGHTS REVOLUTION

THREE KEYS TO PUT TING PREDICTIVE TO WORK FOR YOU 05

1. Start with a Strategic Roadmap
2. Spark a Culture of Analytics
3. Let These Four Principles Be Your Guide

H OW R E A L CO M PA N I E S U S E A I T O D R I VE G R OWT H 07
We predict: 8% Revenue Increase at Large CPG Company
Align Sales Strategy with Payouts for Knockout Performance

YOUR PREDICTIVE FUTURE LOOKS BRIGHT 11

 THE
CHALLENGE
TO BECOME
DATA-
DRIVEN
The development of artificial intelligence (AI) is well on its way, and forward-
thinking companies are already using AI to gain a competitive edge. Your
organization has a wealth of data that could be used for AI initiatives to generate
real business value. But how do you get started?

If you lack the organizational and strategic initiatives to make these processes
come to life, it can seem impossible to leverage data-driven insights to promote
growth and revenue. This is a pain point for many businesses. Even firms that are
investing heavily in big data and analytics struggle to become truly data-driven.

A 2019 SURVEY OF BIG DATA AND

AI EXECUTIVES1 FOUND THAT:

72 % of companies report they have yet to forge a data culture

69 % report that they have not created a data-driven organization

53 % state that they are not yet treating data as a business asset

52 % admit that they are not competing on data and analytics

Efforts to become data-driven don’t reach their true potential or fail for a number
of reasons. It could be that only one part of the organization is driving the effort,
the cultural change is overlooked, the right governance structure isn’t put in place,
or the wrong technology is used. Note that technology is just one piece of the
puzzle; addressing cultural and organizational questions is just as critical as the
technical aspects.

1
“Big Data and AI Executive Survey 2019,” NewVantage Partners

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A D V A N C E D A N A LY T I C S
 WH Y B E S T- I N - C L A S S CO M PA N I E S
EMBRACE THE INSIGHTS
REVOLUTION

New research from the McKinsey Global Institute predicts a wide performance gap
between companies that fully absorb AI tools across their enterprises over the next
five to seven years and nonadopters. McKinsey found that adopters could potentially
double their cash flow by 2030, while nonadopters might experience a 20 percent
decline in cash flow.

The benefits of an analytics-driven culture are obvious, but what’s not so obvious is
how to achieve it. What are the steps you need to take to get from where you are now
to where you want to be with data and AI?

2030
AI ADOPTERS:
DOUBLED CASH FLOW BY 2030

2030
AI NONADOPTERS:
20 PERCENT DECLINE IN CASH
FLOW BY 2030
—McKinsey Global Institute

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A D V A N C E D A N A LY T I C S
 3 KEYS TO PUTTING PREDICTIVE
TO WORK FOR YOU

.01
HOW THE
U. S . STATE Start with a Strategic Roadmap
D E PA R T M E N T Each new data initiative at your organization should begin with a strategic roadmap.
A roadmap covers:
FEDERAL
CREDIT UNION • Goals and business objectives
• Analysis of your organization’s current state
(SDFCU) • Tools and technologies
S PA R K E D A • A plan to implement the new tools
C U LT U R E O F • Necessary organizational changes
• Prioritized projects, beginning with those that will produce the most value
A N A LY T I C S :
In order to produce long-term, scalable success at your organization, everyone from
“We went through the C-suite to departmental workers needs to see the value in becoming data-driven.
A roadmap aligns your company by clearly defining goals and the necessary steps to
the process of get there. It also prepares your team for the upcoming organizational changes and
justifies the investments in new platforms and roles.
aligning the people,

.02
the process, and our Spark a Culture of Analytics
technology assets…. Once you have a strategic roadmap, it’s time to get your entire organization involved in

The goals are to the process. AI initiatives require active engagement and cooperation from several key
departments.
drive efficiency—
Business, IT, and data science teams all need to work together to make a project
minimize re-work— successful and instill a company-wide data culture. Uncertainties and reservations
but we want to also should be addressed from the start to make sure everyone understands the objectives
and how the project will contribute to success.
increase our speed to
market, reduce costs BUSINESS TEAMS
Business departments are leery of spending big money on big data initiatives without
from an operational understanding the ROI. This group needs to see the quantifiable value that the
initiative will provide and how it will be sustained in the long-term. They also need
standpoint, and … to understand how to drive adoption of new processes and tools within departments
enable innovation and teams. Well-defined use cases with actionable implementation plans encourage
executive buy-in and ensure everyone understands the potential value.
within [our]
organization.” IT/DATA TEAMS
Your IT team provides the information that fuels the intelligence and insights. At
the start of a project, data sources may be scattered and disorganized, and it may
be unclear how to support multiple architectures and platforms. Harmonized data
sources on a secure, central platform, a strict project management plan, and an
understanding of how the business will use the insights ensure that the IT team will
— REGGIE contribute to the project’s success.
WILKERSON,
A N A LY T I C S / D A T A S C I E N C E T E A M S
A LT E R Y X U S E R S I N C E 2 0 1 5
Analytics and data science teams often struggle because they don’t have a deep
SDFCU enough understanding of the business side of the organization. For example, how does
the sales team work, what do they need, and how will these new insights change their
ways of working? They also need to understand how to best deliver the insights and
drive adoption. This team should always work with the business objectives in mind
and work in close partnership with subject matter experts and managers.
2
“Notes from the AI Frontier: Modeling the Impact of AI on the World Economy,” McKinsey Global Institute

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 .03
Let These Four Principles Be Your Guide
As you take the first steps in becoming AI-driven, keep the following guiding principles
in mind:

1.
B U I L D C O N F I D E N C E I N T H E A N A LY T I C S
Get to know best-in-class technologies and methodologies. As your
organization becomes more familiar with these tools and what they can
do, you’ll have a better understanding of the potential business value.
Company-wide support of the new initiative will help ensure success.

2.
START WITH THE END IN MIND
Start with what you want to achieve. Rather than focusing on the
specific technology or dataset, always focus on solving the business
problem. This makes it easier to understand what you need to do in
earlier steps of the analytics process.

3.
DESIGN FOR THE USER
Socializing insights is about understanding how the end user will not
only consume, but actually use the insights in day-to-day business.
When you design for the end user, you create a solution that speaks
directly to the business problem.

4.
MANAGE THE CHANGE
Changing behavior based on insights is difficult and requires an
adequate change management approach. Make it a priority to fully
understand the necessary organizational changes so that the result is
scalable and can succeed in the long-term.

T H E A N A LY T I C S V A L U E C H A I N
Turn insight into action by taking the entire process into account

FROM DATA TO INFORMATION FROM INFORMATION TO INSIGHT

A N A LY S I S
Selecting a method of analysis,
executing, and evaluating
outcomes

P R E PA R AT I O N PRESENTATION +
CONSUMPTION
Collecting, cleansing, preparing,
and validating data Presenting outcomes so
stakeholders can easily digest
the information

BUSINESS QUESTIONS APPLICATION

OF INSIGHTS
Clearly formulating the
information need and translating Socializing and applying
it into an actionable question insights that lead to concrete
improvements

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 H OW R E A L CO M PA N I E S U S E A I
TO DRIVE GROWTH

Discover how others are seeing success with predictive analytics in these two real case
studies from Keyrus, a global data and digital consultancy that helps companies reach
their goals through confident, data-driven decisions.

8
WE PREDICT:
8% REVENUE INCREASE AT
L A R G E C P G CO M PA N Y

Fortune 500 organizations invest hundreds of millions of dollars into their businesses to
draw the attention of consumers or prospective clients. The main question around these
investments is what works, and what doesn’t?

Analytics platforms like Alteryx make it easy to bring in the relevant data sources and
build sophisticated models to analyze ROI. In this example, we put the above principles
in action to analyze ROI at a large consumer packaged goods company.

1.
B U I L D C O N F I D E N C E I N T H E A N A LY T I C S
We effectively joined sales, marketing, competitor, and media data using
accelerators like Alteryx to familiarize the team with new technologies.
We also built accurate revenue models in the same platform to
demonstrate early value from the analytics.

2.
START WITH THE END IN MIND
We worked with the business users to understand how they currently
planned and executed their marketing initiatives to understand how and
where we could challenge their plans. The goal was to optimize their
marketing spend to maximize revenue.

3.
DESIGN FOR THE USER
We exposed the models in a dashboard-like interface so that users could
also do meaningful what-if analysis to help with their planning. This
provided a level of user feedback into the system that helped with user
engagement and was also useful because the model could not capture all
real-life constraints.

4.
MANAGE THE CHANGE
We worked top-down with effective buy-in and communication
strategies to set the right expectations with the business users.

As a result, we optimized the marketing spend for a predicted increase of 8% revenue

by shifting money away from traditional channels and into more demographic-specific
channels.
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A D V A N C E D A N A LY T I C S
 OPTIMIZING MARKETING
SPEND LEADS TO PREDICTED
8% REVENUE INCREASE

0.55

0.50

0.45

0.40

0.35

PERCENT OF TOTAL
0.30

0.25

0.20

0.15

0.10

44.0%
54.9%

34.5%
11.5%

21.1%
10%
16%
0.05

8%
0.00

Cable TV Network TV Spanish Cable TV Spanish Network TV

NAME

ORIGINAL PROPOSED
SPEND SPEND

ALIGN SALES STRATEGY WITH

PAYO UT S F O R K N O C KO UT
PERFORMANCE

Sales and marketing teams need to understand who their customers are in order to
reach them effectively. We can provide a clearer picture of who the customer is by
enhancing traditional demographic information with data from sources like consumer
preference surveys or social media.

In this example, we highlight how a sales organization used new consumer segments
to enrich customer profiles.

1.
B U I L D C O N F I D E N C E I N T H E A N A LY T I C S
We used best-in-class supervised learning algorithms to classify
segments based off the sales teams’ input. This methodology was key
since the idea of certain segments were already aligned with predefined
sales strategies.

2.
START WITH THE END IN MIND
The results of the segmentation project were to be fed back into
traditional operational business intelligence reporting tools so that
sales teams could track their progress against the new features. We
designed new dashboards and data pipelines from the machine learning
environment back into the data warehouse to facilitate this reporting.

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A D V A N C E D A N A LY T I C S
 3.
DESIGN FOR THE USER
The dashboards were very impactful for the sales team since they
contained their performance versus bonusable metrics.

4.
MANAGE THE CHANGE
We worked with IT-Business teams to ensure the nontechnical sales
teams were comfortable with the rollout of the new tools and business
requirements.

New dashboards with the segmentations were rolled out to over 250 people in the sales
organization, providing a more accurate picture of their customers and enabling a more
efficient planning process:

PRODUCT

160 M 11.2%

140 M

120 M

100 M

80 M
VOLUME R12

0.1%
60 M
1.3% -5.7%
40 M
-5.6%
20 M -40.7% -1.6%

0M

Soup - Bouillion - Coconut - Bar Nature Sausage- Appetizer- Barley-

Knorr, Fish Shredded, Valley Meat Assorted Box Pearl
French Sweet

DOMINANT CLUSTER TYPE

1.7%
50 M

40 M 4.5%
-0.7%
-5.0% 15.8%
30 M -0.3%
VOLUME R12

20 M
12.3%

10 M

0M

C11 D18 O54 G25 I32 K38 N48

Aging of Suburban Striving Urban Steadfast Gotham Rural
Aquarius Attainment Single Scene Edge Conventi- Blend Southern
onalists Bliss

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A D V A N C E D A N A LY T I C S
 YEAR OVER YEAR GROWTH
70.7%
0.7

0.6

0.5

0.4

0.3

0.2 13.9% 14.7%

VA LU E
0.1 5.3% 5.6%
0.9% 0.2%
0.0

Avg. Total Avg. Total Avg. Total Avg. Total Avg. Total Avg. Total Avg. Total
American Asian Black/African Hispanic/ Native Some Other White
Indian Population American Latino Hawaiian/ Race Population
Population Population Population Other Population

These are just a few examples of how organizations are currently using AI-driven insights
to optimize processes and increase revenue. With the right foundation and strategic
roadmap in place, your organization can roll out a successful analytics initiative and use
AI-driven insights to tackle your biggest business challenges.

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A D V A N C E D A N A LY T I C S
 ABOUT KEYRUS
Keyrus is a global consultancy
that specializes in the
development of data and digital
technology solutions for

YOUR
performance management. With
a team of experts in data
engineering, data discovery, and

PREDICTIVE
data science, Keyrus helps
companies turn their data into
valuable business insights.

+1 646 664 4872

FUTURE LOOKS
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