
Predictive Business Analytics
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Content
- Intro
- Predictive Business Analytics Forward-Looking Capabilities to Improve Business Performance
- Contents
- Preface
- PART ONE "Why"
- CHAPTER 1 Why Analytics Will Be the Next Competitive Edge
- ANALYTICS: JUST A SKILL, OR A PROFESSION?
- BUSINESS INTELLIGENCE VERSUS ANALYTICS VERSUS DECISIONS
- HOW DO EXECUTIVES AND MANAGERS MATURE IN APPLYING ACCEPTED METHODS?
- FILL IN THE BLANKS: WHICH X IS MOST LIKELY TO Y?
- PREDICTIVE BUSINESS ANALYTICS AND DECISION MANAGEMENT
- PREDICTIVE BUSINESS ANALYTICS: THE NEXT "NEW" WAVE
- GAME-CHANGER WAVE: AUTOMATED DECISION-BASED MANAGEMENT
- PRECONCEPTION BIAS
- ANALYSTS' IMAGINATION SPARKS CREATIVITY AND PRODUCES CONFIDENCE
- BEING WRONG VERSUS BEING CONFUSED
- Cultural Issues Related to Wrong Choices
- Is Your Decision Making an Eastern or Western Type?
- Implications for Success with Analytics
- AMBIGUITY AND UNCERTAINTY ARE YOUR FRIENDS
- Search for Surprises
- Quest for the Truth
- DO THE IMPORTANT STUFF FIRST-PREDICTIVE BUSINESS ANALYTICS
- WHAT IF . . . YOU CAN
- NOTES
- CHAPTER 2 The Predictive Business Analytics Model
- BUILDING THE BUSINESS CASE FOR PREDICTIVE BUSINESS ANALYTICS
- BUSINESS PARTNER ROLE AND CONTRIBUTIONS
- SUMMARY
- NOTES
- PART TWO Principles and Practices
- CHAPTER 3 Guiding Principles in Developing Predictive Business Analytics
- DEFINING A RELEVANT SET OF PRINCIPLES
- PRINCIPLE 1: DEMONSTRATE A STRONG CAUSE-AND-EFFECT RELATIONSHIP
- PRINCIPLE 2: INCORPORATE A BALANCED SET OF FINANCIAL AND NONFINANCIAL, INTERNAL AND EXTERNAL MEASURES
- PRINCIPLE 3: BE RELEVANT, RELIABLE, AND TIMELY FOR DECISION MAKERS
- Relevance
- Reliability
- Timeliness
- PRINCIPLE 4: ENSURE DATA INTEGRITY
- PRINCIPLE 5: BE ACCESSIBLE, UNDERSTANDABLE, AND WELL ORGANIZED
- PRINCIPLE 6: INTEGRATE INTO THE MANAGEMENT PROCESS
- PRINCIPLE 7: DRIVE BEHAVIORS AND RESULTS
- Benchmarking
- Rewards
- SUMMARY
- CHAPTER 4 Developing a Predictive Business Analytics Function
- GETTING STARTED
- SELECTING A DESIRED TARGET STATE
- ADOPTING A PBA FRAMEWORK
- DEVELOPING THE FRAMEWORK
- Step 1: Process Design
- Step 2: Model Development
- Step 3: Data Capture
- SUMMARY
- NOTES
- CHAPTER 5 Deploying the Predictive Business Analytics Function
- INTEGRATING PERFORMANCE MANAGEMENT WITH ANALYTICS
- PERFORMANCE MANAGEMENT SYSTEM
- IMPLEMENTING A PERFORMANCE SCORECARD
- Step 1: Getting Started
- Step 2: Defi ning Key Performance Indicators/Measures
- Step 3: Designing and Developing Predictive Business Analytics
- MANAGEMENT REVIEW PROCESS
- IMPLEMENTATION APPROACHES
- CHANGE MANAGEMENT
- SUMMARY
- NOTES
- PART THREE Case Studies
- CHAPTER 6 MetLife Case Study in Predictive Business Analytics
- THE PERFORMANCE MANAGEMENT PROGRAM
- Performance Management Framework
- Key Performance Indicators Reporting
- Management Operating Review
- Benchmarking
- IMPLEMENTING THE MOR PROGRAM
- Step 1: Establish Policy and Charter for a MOR Program
- Step 2: Develop KPIs/Measures
- Step 3: Establish Data Management
- Step 4: Develop Reporting Tools and Processes
- Step 5: Conduct Management Reviews
- Step 6: Build Organization and Supporting Resources
- Step 7: Maintain Communications and Change Management
- BENEFITS AND LESSONS LEARNED
- SUMMARY
- NOTES
- CHAPTER 7 Predictive Performance Analytics in the Biopharmaceutical Industry
- CASE STUDIES
- Case Study A: Customer-Driven Predictive Performance Analytics to Differentiate and Predict a Medicine's Success in the Market
- Case Study B: New Measures to Drive New Learn & Confirm R&D Model
- SUMMARY
- NOTE
- PART FOUR Integrating Business Methods and Techniques
- CHAPTER 8 Why Do Companies Fail (Because of Irrational Decisions)?
- IRRATIONAL DECISION MAKING
- WHY DO LARGE, SUCCESSFUL COMPANIES FAIL?
- FROM DATA TO INSIGHTS
- INCREASING THE RETURN ON INVESTMENT FROM INFORMATION ASSETS
- EMERGING NEED FOR ANALYTICS
- SUMMARY
- NOTES
- CHAPTER 9 Integration of Business Intelligence, Business Analytics, and Enterprise Performance Management
- RELATIONSHIP AMONG BUSINESS INTELLIGENCE, BUSINESS ANALYTICS, AND ENTERPRISE PERFORMANCE MANAGEMENT
- OVERCOMING BARRIERS
- SUMMARY
- NOTES
- CHAPTER 10 Predictive Accounting and Marginal Expense Analytics
- LOGIC DIAGRAMS DISTINGUISH BUSINESS FROM COST DRIVERS
- CONFUSION ABOUT ACCOUNTING METHODS
- HISTORICAL EVOLUTION OF MANAGERIAL ACCOUNTING
- AN ACCOUNTING FRAMEWORK AND TAXONOMY
- WHAT? SO WHAT? THEN WHAT?
- COEXISTING COST ACCOUNTING METHODS
- PREDICTIVE ACCOUNTING WITH MARGINAL EXPENSE ANALYSIS
- WHAT IS THE PURPOSE OF MANAGEMENT ACCOUNTING?
- WHAT TYPES OF DECISIONS ARE MADE WITH MANAGERIAL ACCOUNTING INFORMATION?
- ACTIVITY-BASED COST/MANAGEMENT AS A FOUNDATION FOR PREDICTIVE BUSINESS ACCOUNTING
- MAJOR CLUE: CAPACITY EXISTS ONLY AS A RESOURCE
- PREDICTIVE ACCOUNTING INVOLVES MARGINAL EXPENSE CALCULATIONS
- DECOMPOSING THE INFORMATION FLOWS FIGURE
- FRAMEWORK TO COMPARE AND CONTRAST EXPENSE ESTIMATING METHODS
- PREDICTIVE COSTING IS MODELING
- DEBATES ABOUT COSTING METHODS
- SUMMARY
- NOTES
- CHAPTER 11 Driver-Based Budget and Rolling Forecasts
- EVOLUTIONARY HISTORY OF BUDGETS
- A SEA CHANGE IN ACCOUNTING AND FINANCE
- FINANCIAL MANAGEMENT INTEGRATED INFORMATION DELIVERY PORTAL
- PUT YOUR MONEY WHERE YOUR STRATEGY IS
- PROBLEM WITH BUDGETING
- VALUE IS CREATED FROM PROJECTS AND INITIATIVES, NOT THE STRATEGIC OBJECTIVES
- DRIVER-BASED RESOURCE CAPACITY AND SPENDING PLANNING
- INCLUDING RISK MITIGATION WITH A RISK ASSESSMENT GRID
- FOUR TYPES OF BUDGET SPENDING: OPERATIONAL, CAPITAL, STRATEGIC, AND RISK
- FROM A STATIC ANNUAL BUDGET TO ROLLING FINANCIAL FORECASTS
- MANAGING STRATEGY IS LEARNABLE
- SUMMARY
- NOTES
- PART FIVE Trends and Organizational Challenges
- CHAPTER 12 CFO Trends
- RESISTANCE TO CHANGE AND PRESUMPTIONS OF EXISTING CAPABILITIES
- EVIDENCE OF DEFICIENT USE OF BUSINESS ANALYTICS IN FINANCE AND ACCOUNTING
- SOBERING INDICATION OF THE ADVANCES YET NEEDED BY THE CFO FUNCTION
- MOVING FROM ASPIRATIONS TO PRACTICE WITH ANALYTICS
- Customer Profi tability Analysis to Take Actions
- Rationalizing and Validating Key Performance Indicators in a Strategy Map and Balanced Scorecard
- Moving from Possibilities to Probabilities with Analytics
- APPROACHING NIRVANA
- CFO FUNCTION NEEDS TO PUSH THE ENVELOPE
- SUMMARY
- NOTES
- CHAPTER 13 Organizational Challenges
- WHAT IS THE PRIMARY BARRIER SLOWING THE ADOPTION RATE OF ANALYTICS?
- A BLISSFUL ROMANCE WITH ANALYTICS
- WHY DOES SHAKEN CONFIDENCE REINFORCE ONE'S ADVOCACY?
- EARLY ADOPTERS AND LAGGARDS
- HOW CAN ONE OVERCOME RESISTANCE TO CHANGE?
- THE TIME TO CREATE A CULTURE FOR ANALYTICS IS NOW
- PREDICTIVE BUSINESS ANALYTICS: NONSENSE OR PRUDENCE?
- TWO TYPES OF EMPLOYEES
- INEQUALITY OF DECISION RIGHTS
- WHAT FACTORS CONTRIBUTE TO ORGANIZATIONAL IMPROVEMENT?
- ANALYTICS: THE SKEPTICS VERSUS THE ENTHUSIASTS
- A Quick Quiz
- Where Are the Skeptics Coming From?
- Skeptics' Reliance on Buffers to Protect against Errors
- Where Are the Enthusiasts for Analytics Coming From?
- Enthusiasts Use Analytics to Replace Buffers
- Enthusiasts Can Win Buy-In from the Skeptics
- MAXIMIZING PREDICTIVE BUSINESS ANALYTICS: TOP-DOWN OR BOTTOM-UP LEADERSHIP?
- Carlson's Law: Bottom-Up versus Top-Down Ideas
- ANALYSTS PURSUE PERCEIVED UNACHIEVABLE ACCOMPLISHMENTS
- ANALYSTS CAN BE LEADERS
- SUMMARY
- NOTES
- About the Authors
- Index
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