IRISH BUSINESS LEADERS TELL WHY DATA ANALYTICS MATTER

“Today, there simply is no customer experience of any value without data analytics. It’s what informs every progressive business in pursuit of winning and retaining new customers. Post- recession, the marketing landscape has changed utterly and now it’s about mining data to develop insights that make your brand or experience compelling enough to purchase. The challenge now for business is getting the process and function of data analytics right and matching the right talent to that need.” That’s according to Charley Stoney, Managing Director, The Alternatives Group (www.alternatives.ie), Ireland’s No. 1 marketing customer and commercial talent house which hosted a breakfast meeting on the theme of Data Analytics (DA), in association with(www.idiro.com) who provide advanced analytics to clients in Europe, Asia and the US from its HQ in Dublin.

A panel of speakers comprising Olivier Van Parys, Head of Analytics, Bank of Ireland, Richard Harris, Head of Online Marketing and Customer Intelligence, Paddy Power Betfair and Ronan Brennan, Insights Manager, LinkedIn offered their expert insights on the so-called data analytics “journey” from those businesses just embracing this function to those where it is an embedded part of the business culture. The meeting addressed the 5 most significant questions in data analytics.

Q1. Why does data analytics exist for your business?  What is the business imperative?

For Richard, joining Paddy Power from American Express was something of an eye-opener, both being highly information driven and data hungry businesses and marketing organisations but at very different stages of maturity as regards how they were organised around the resourcing and provision of data analytics and modelling capability to the business. Rapid growth and development had almost outstripped the development of analytics within the business as a competitive weapon to inform strategy and drive better marketing decisions, the symptom being vast swathes of reports upon reports but little insight. However, in 2016 Paddy Power is in a very different place with disciplined and well-structured teams operating in conjunction with the marketing teams to drive informed choices around strategy and planning and the associated measurement of those choices.

At Bank of Ireland, Olivier feels that data analytics really helps to customise the customer experience and provide timely, relevant and valuable engagement. “Putting customers at the core of everything we do and leveraging data to help our customers to better manage their finances is simply good business which benefits everyone.” For him, there is no opt out when it comes to Data Analytics – it’s essential for every organisation, not an optional extra.

Ronan believes that when it comes to D.A. there are two types of business – those like Linked In where it is absolutely central to the operation of the service to those where data is on the periphery.  According to him: “DA is evolving rapidly – those who don’t embrace it fully will be left behind – it’s that simple. So, for competitive edge and to plan for a successful future, it’s all about expanding the use of real insights and analytics to generate increased revenues.”

Q2 .Where are you on the analytics journey at the moment? 

While Bank of Ireland is very data driven, Olivier had some interesting thoughts to offer other businesses based on this experience at Google. “Walk before you run is not a cliché in this context – it’s true.  Also, avoid jumping steps or moving too quickly. To have full engagement with DA, have senior management buy-in and, perhaps most of all, respect the culture – change in any form takes time to develop and that’s why it’s also important to demystify DA”

For Richard, what’s needed in effective DA is an understanding that Data for Data’s sake is a waste of time and resources. “Before the DA process begins have a very firm view of what the data needs to answer. Context is critical and allows the analyst to provide insights that otherwise might get left behind. Also, don’t be afraid to make a decision based on the best data available. The notion of “Perfect Data” is an expensive fallacy”. The materiality of the decision you are looking to make should inform the sweat equity ratio of the risk at hand. “How good does the analysis need to be?” and “Do you really need to cut the data in a number of different ways?” – have the courage of your convictions and be prepared to make a decision.

Q3. What have you learnt along the journey?

Drawing on his experience across many industries, Olivier learned that it’s important to be collaborative.

“No one gets to live in an Ivory Tower. For DA to be viewed throughout the organisation as worthwhile, it needs to be seen to add value. It needs to demonstrate why it’s an essential part of the commercial operation. Patience is an important virtue to build a successful DA operation within a business. For DA, “success has many fathers” and customer facing staff are a key part of the delivery process.”

According to Richard; “Knowing how to ask the right questions is important. Saying No for instance, to directionless requests for data becomes important.  In the case of our newly merged business, it’s essential for us to be open to the possibilities that two distinct customer data sources – one from Paddy Power, the other from Betfair, offers us.”    

Ronan says: “I’ve learnt that it’s important to evangelise DA within an organisation, communicating the depth and scope of the possibilities it offers: – endorsement from senior management is a vital component. Also, sharing the success of DA is paramount – the DA process is a collaborative one and embraces many functions within the organisation to be successful. Crucially, Predictive modelling is important in the process of giving you data that you’re happy with. And I believe that a centralised approach to DA is the optimal approach in many organisations.”

Aidan Connolly of Idiro Analytics said: “From the outset it’s important to have a single view of the customer to give shape to your DA journey. Also, don’t underestimate how long it can sometimes take to get your data right.”

Q4. How is your organisation structured around analytics?

According to Olivier Van Parys: “At Bank of Ireland, DA is an evolving process and a key enabler into putting the customer into the core of everything we do Recruiting the right talent is essential and we have a lot to offer data scientists with a curious and future orientated mind-set. Such an outward looking way of thinking is critical as the world of data science is evolving so rapidly.”

For Ronan: “At LinkedIn we see ourselves as data driven story tellers. Identifying what clients need and why they need it remains an exciting challenge. Finding the right talent – with the right blend of commercial acumen and technical expertise – is a challenge in a marketplace like ours.”

For Richard the challenge is simple. “There is always a danger that teams and or individuals become over reliant on centralised analytics teams to create and churn out reports with precious time suddenly becoming biased towards the adhoc and tactical as opposed to the strategic and value creating.  Organisations need to think about how “self-serving” of consistent and standard Executive reports and KPI’s is embedded across teams. All marketing is becoming increasingly digital and data driven and the hybrid marketer who blends communications, creativity, technical and analytical skills will continue to be in short supply.”

The Talent Dilemma and the solution

The panel all agreed that finding the right DA talent to match corporate needs is an issue with the market at the moment.  As a result, outsourcing has become a viable – and valuable – option. For instance, the type of solution that Alternatives/Idiro provides where there’s a “marrying” of the Artists (marketers) with Scientists (data analytics) to provide project teams for setup or isolated projects is gaining in popularity.

But even here there are learnings to be observed.

For Olivier, knowledge transfer and co-creation is essential and the commercial imperatives of privacy apply.

Richard’s perspective is that outsourcing works if it’s fully collaborative with a shared view of what’s needed and how that knowledge transfer and retention is subsequently managed. It’s essential to have a vision for success that everyone can work towards. Meanwhile, Ronan’s take is that going the outsourcing route is all about scale and efficiencies, delivering DA needs on time and within budget.

Charley Stoney believes that an organisation with DA needs – regardless of where they are on the journey, needs to implement a cost benefit analysis and have a clear willingness to match resources to deliver a robust DA capability.

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