A Framework for Using Analytics to Make Decisions

A Framework for Using Analytics to Make Decisions

Paul J. Bracewell (Offlode Ltd., New Zealand)
DOI: 10.4018/978-1-60566-264-0.ch018
OnDemand PDF Download:
$37.50

Abstract

Analytics provides evidence for objective corporate decision-making. Lack of understanding of analytical techniques can create confusion amongst decision-makers. Confusion generates mistrust which leads to the exclusion of analytics from the decision-making process. Confusion is avoided by ensuring that results are justified. This requires that the analytical process is auditable. Aligning technological design and deployment with human roles creates the necessary framework for auditability. This is achieved with four analytical technology components: data manipulation, statistical and quantitative analysis, creation, and export of exploratory and predictive models, and delivery of output. These components correspond with key stages and phases of collaboration in the analytical process. Describing the interaction and alignment leads to a proposed framework for the socio-technical development of analytical software and process which considers both user and non-user needs. This framework can be expanded to other domains where technology and users of technology must collaborate with non-users who dictate acceptance.
Chapter Preview

In everything one must consider the end

—Jean De la Fountaine, 1668

Top

Introduction

Business is latching on to the power of analytics using skills derived from fields such as statistics, mathematics and operations research, conducted with tremendous (and increasing) computing capacity and storage capability. To deliver robust results to business in a timely manner requires deployment of applicable theory, which can only be achieved via suitable software installed on appropriate hardware and interpreted by someone with relevant domain knowledge. This process is concreting the abstract; the conversion of raw data and theory to tangible insight, leading to action.

Action in this instance is fact-based decision-making within the corporate environment. This requires collaboration between different entities who tend to have minimally overlapping skill-sets; hence the need for collaboration. To ensure that the outcome of this political process is consensual requires a number of conditions to be meet to the satisfaction of several key players. Parallels are drawn between the requirements of the key players with the demands of the process to meet these requirements. This congruence defines the technological requirements.

The key players in a business orientated analytical exercise are: analyst, data expert, consumer, sponsor and analytical software. Analytical software is a tool, or set of tools for quantitative analysis, enabling the four other human roles to successfully combine efforts to the benefit of business. Consequently, analytical software must allow for open, transparent, truthful and cost-effective communication, thereby presenting a unified foundation for decision-making. In order for that to be achieved, the version of the truth presented to the business must be plausible. This requires that the analytical process is transparent, or auditable. Crucial to this is how the analyst interacts with the software and other key players.

“Apart from the price tag, there is very little difference between a model that is not built and one that is not deployed” (Bracewell, 2006, p.5). Many factors influence the acceptance and deployment of analytical results within business culture. Those entities with an interest in the use of analytical software within a business environment are described and their potential impact upon the decision-making process examined.

An observational study of more than 30 Australasian corporations from the banking, quasi-government, utilities, retail and telecommunications sectors over a five year period is coupled with a review of the literature to develop a socio-technical framework for development and deployment of analytics and analytic software. Despite some industries being more analytically advanced, the needs are virtually identical as far as integrating analytics into the corporate decision-making process are concerned. Consequently there is no need to differentiate between the different industries. The development of analytical software to meet the needs of both the individual and the collective are then discussed. Importantly, the congruence between the needs of the key players and software design determines the manner in which analytics is integrated into the decision-making process. This process is auditable which ensures that those ultimately responsible for decision-making are able to interrogate how a result was acquired, thereby generating confidence in the results, enabling them to deliver the results to the wider business.

Corporate decision-making relies on analytics for a variety of tasks, limited only by the imagination of the business. Generic examples include: deciding whether or not to acquire/sell/close a business, what type of customers to acquire/retain, how those customers should be targeted, the budgetary requirement to acquire/retain and which customers should be personally managed. More specific examples include development of a personal finance product in the banking sector, where various factors such as pricing, likely uptake, target audience and profitability must all be determined in building a business case to have the product accepted.

Present literature describes either the properties of analytical software, or the nature of the analytical process, or those involved, but not the interaction between software, people and process. Whilst a number of analytical tools have the core features, the rationale for these features is not well documented. This has meant that the wide-spread adoption of analytics within business has been slower than would be expected.

Key Terms in this Chapter

Analytical Software: software that: 1) allows data sets to be manipulated, 2) performs statistical and quantitative analysis, 3) creates and exports exploratory and predictive models and 4) delivers output that can be used to drive decisions and actions.

Power Consumer: The person(s) tasked with deploying the output from an analytical exercise. They have sufficient knowledge of the analytical process and/or business problem to request from, or collaborate with, the analyst to determine expected outcomes for servicing the needs of the business.

Sponsor: The person with ownership for the project within an organisation. Typical accountabilities include: championing the project, obtaining budget approval and responsibility for documents such as business cases and proposals.

Data Expert: The person(s) who understands the structure, size and format of the data, where the data is drawn from and how it is captured.

Analyst: The person(s) with the required understanding of the capabilities and limitations of the analytical methods that may be applicable to the business problem; thereby enabling them to conduct the analysis.

Business Intelligence: a set of technologies and processes that use data to understand and analyse business performance encompassing data access, reporting and analytics.

Analytics: the extensive use of data, statistical and quantitative analysis, exploratory and predictive models, and fact-based management to drive decisions and actions.

Complete Chapter List

Search this Book:
Reset
Editorial Advisory Board
Table of Contents
Foreword
Ben Shneiderman
Preface
Brian Whitworth, Aldo de Moor
Acknowledgment
Brian Whitworth, Aldo de Moor
List of Reviewers
Prologue: General Socio-Technical Theory
$37.50
Chapter 1
Brian Whitworth
A socio-technical system (STS) is a social system built upon a technical base. An STS adds social requirements to human-computer interaction (HCI)... Sample PDF
The Social Requirements of Technical Systems
$37.50
Chapter 2
Matti Tedre
This chapter introduces the reader to some social research characteristics that are central to the social study of computer science. It introduces... Sample PDF
The Social Study of Computer Science
$37.50
Chapter 3
Ann Borda, Jonathan P. Bowen
This chapter introduces the concept of a Virtual Organization (VO), using the Internet to link geographically separated participants in an efficient... Sample PDF
Virtual Collaboration and Community
$37.50
Chapter 4
David Davenport
This chapter analyses the effect that social values have on the design of technical systems. Beginning with an examination of the role technology... Sample PDF
The Social Derivation of Technical Systems
$37.50
Chapter 5
Ken Eason, José Abdelnour-Nocera
This chapter sets the traditional focus of socio-technical systems theory on primary work systems in a modern context where information and... Sample PDF
Socio-Technical Theory and Work Systems in the Information Age
$37.50
Chapter 6
Peter Day
This chapter introduces the community engagement strategy of the Community Network Analysis (CNA) project and considers its significance to research... Sample PDF
An Engagement Strategy for Community Network Research and Design
$37.50
Chapter 7
Cleidson R.B. de Souza, David F. Redmiles
This chapter reviews the socio-technical relationship between organizational and software structure. It describes the early theoretical work about... Sample PDF
On the Alignment of Organizational and Software Structure
$37.50
Chapter
Ronald K. Stamper
Prologue: Socio-Technical Perspectives
$37.50
Chapter 8
Catherine Heeney
The chapter discusses the traditional expectations about privacy protection and argues that current models for the governance of data do not... Sample PDF
Privacy and the Identity Gap in Socio-Technical Systems
$37.50
Chapter 9
Ronald Leenes
Second Life can be seen as a social microcosmos in which fairly normal people lead a social life and where social needs develop. Privacy is one of... Sample PDF
Privacy Regulation in the Metaverse
$37.50
Chapter 10
David Tuffley
This chapter introduces a process reference model of leadership for integrated teams operating in virtual environments. Geographically dispersed... Sample PDF
Leadership of Integrated Teams in Virtual Environments
$37.50
Chapter 11
Monique Janneck
For a technology use to be successful, the circumstance of its introduction into a use context—or recontextualization— is crucial. The users of a... Sample PDF
Recontextualising Technology in Appropriation Processes
$37.50
Chapter 12
Petter Bae Brandtzæg, Jan Heim
The last few years have seen a substantial growth in online communities such as MySpace and Facebook. In order to survive and increase in size... Sample PDF
Explaining Participation in Online Communities
$37.50
Chapter 13
Malcolm Shore
This chapter is about the way in which computer hackers invoke social networking paradigms to support and encourage their activities. It reviews the... Sample PDF
Cyber Security and Anti-Social Networking
$37.50
Chapter 14
Wilson Huang, Shun-Yung Kevin Wang
This chapter examines the gaps that arise between reactive social control systems and proactive technology systems. The authors further link these... Sample PDF
Emerging Cybercrime Variants in the Socio-Technical Space
$37.50
Chapter 15
Elayne W. Coakes, Peter Smith, Dee Alwis
This chapter presents the argument that service innovation is promoted by supporting divergent interpretations, enlarging the scope of employee and... Sample PDF
Developing Innovative Practice in Service Industries
$37.50
Chapter
Mark Aakhus
Prologue: Socio-Technical Analysis
$37.50
Chapter 16
Hans Weigand
Often socio-technical systems are designed simply on the basis of what the user asks, and without considering explicitly whether the required... Sample PDF
Using Communication Norms in Socio-Technical Systems
$37.50
Chapter 17
Jonas Sjöström, Göran Goldkuhl
This chapter introduces the theoretical framework of Socio-Instrumental Pragmatism (SIP) and illustrates how it has been used as an analytic... Sample PDF
Socio-Instrumental Pragmatism in Action
$37.50
Chapter 18
Paul J. Bracewell
Analytics provides evidence for objective corporate decision-making. Lack of understanding of analytical techniques can create confusion amongst... Sample PDF
A Framework for Using Analytics to Make Decisions
$37.50
Chapter 19
Mikael Lind, Peter Rittgen
Setting up co-design processes involving several stakeholders is a complex task. In this chapter the authors have looked upon experiences from... Sample PDF
The Challenges of Co-Design and the Case of e-Me
$37.50
Chapter 20
Harry S. Delugach
Automated tools are often used to support software development workflows. Many of these tools are aimed toward a development workflow that relies... Sample PDF
Formal Analysis of Workflows in Software Development
$37.50
Chapter 21
Dorit Nevo, Brent Furneaux
This chapter reviews the significance of expectations to information systems development with particular emphasis on the process of requirements... Sample PDF
The Role of Expectations in Information Systems Development
$37.50
Chapter 22
Jeff Axup
With mobile technologies increasingly weaving themselves into the fabric of our communities, it would be beneficial to increase our understanding of... Sample PDF
Building a Path for Future Communities
$37.50
Chapter
Thomas Erickson
Prologue: Socio-Technical Design
$37.50
Chapter 23
Thomas Herrmann
Socio-technical systems integrate technical and organizational structures and are related to various stakeholders and their perspectives. The design... Sample PDF
Systems Design with the Socio-Technical Walkthrough
$37.50
Chapter 24
Anders I. Mørch
This chapter presents a translational approach to socio-technical design, as a new approach to the theorybased design of user interfaces, supported... Sample PDF
Applied Pragmatism and Interaction Design
$37.50
Chapter 25
Manuel Kolp, Yves Wautelet
Information systems are deeply linked to human activities. Unfortunately, development methodologies have been traditionally inspired by programming... Sample PDF
A Social Framework for Software Architectural Design
$37.50
Chapter 26
Designing for Trust  (pages 388-401)
Piotr Cofta
Designing for trust is a methodology that attempts to design our perception of trust in information systems, in the long-term expectation that such... Sample PDF
Designing for Trust
$37.50
Chapter 27
Dan Dixon
Three decades ago the concept of pattern languages were introduced in the field of architecture and they have since become widely used in... Sample PDF
Pattern Languages for CMC Design
$37.50
Chapter 28
Anton Nijholt, Dirk Heylen, Rutger Rienks
In this chapter the authors discuss a particular approach to the creation of socio-technical systems for the meeting domain. Besides presenting a... Sample PDF
Creating Social Technologies to Assist and Understand Social Interactions
$37.50
Chapter 29
Jos Benders, Ronald Batenburg, Paul Hoeken, Roel Schouteten
This chapter sketches an Organization Design perspective called “Modern Socio-technical Design”, and subsequently discusses the implementation of... Sample PDF
A Modern Socio-Technical View on ERP-Systems
$37.50
Chapter 30
Mary Allan, David Thorns
The chapter introduces the Bourdieuean habitus and field theory as a framework for an alternative way of investigating how perceptions of Media Rich... Sample PDF
Being Face to Face: A State of Mind or Technological Design?
$37.50
Chapter 31
Rebecca M. Ellis
This chapter introduces the work of sociologist Pierre Bourdieu and his concepts of “the field” and “capital” in relation to eBay. In any given... Sample PDF
Applying Bourdieu to eBay's Success and Socio-Technical Design
$37.50
Chapter 32
Christopher A. Miller
This chapter focuses not on technology mediation of human relationships, but rather on human-like relationships with technology itself. The author... Sample PDF
Relationships and Etiquette with Technical Systems
$37.50
Chapter
Anton Nijholt
Prologue: Socio-Technical Implementation
$37.50
Chapter 33
Laura Anna Ripamonti, Ines Di Loreto, Dario Maggiorini
The necessity of supporting more and more social interaction (and not only mere information sharing) in online environments is the disruptive force... Sample PDF
Augmenting Actual Life Through MUVEs
$37.50
Chapter 34
Mohamed Ben Ammar, Mahmoud Neji, Adel M. Alimi
Affective computing is a new artificial intelligence area that deals with the possibility of making computers able to recognize human emotions in... Sample PDF
The Role of Affect in an Agent-Based Collaborative E-Learning System Used for Engineering Education
$37.50
Chapter 35
Pernilla Qvarfordt, Shumin Zhai
Eye-gaze plays an important role in face-to-face communication. This chapter presents research on exploiting the rich information contained in human... Sample PDF
Gaze-Aided Human-Computer and Human-Human Dialogue
$37.50
Chapter 36
Licia Calvi
The chapter presents and combines the results of two case studies dealing with online communities1 in order to understand under which conditions... Sample PDF
How to Engage Users in Online Sociability
$37.50
Chapter 37
Ivan Launders
The UK National Health Service (NHS) provides the opportunity to undertake local socio-technical system design to help staff maximize the... Sample PDF
Socio-Technical Systems and Knowledge Representation
$37.50
Chapter 38
Claire de la Varre, Julie Keane, Matthew J. Irvin, Wallace Hannum
This chapter describes the design of a sociotechnical system to support rural high school students in an online distance education (ODE) course. The... Sample PDF
Social Support for Online Learning
$37.50
Chapter 39
Jeremy Birnholtz, Emilee J. Rader, Daniel B. Horn, Thomas Finholt
This chapter uses the theoretical notion of common ground to explore remote participation in experimental research. On one hand, there is a desire... Sample PDF
Enabling Remote Participation in Research
$37.50
Chapter
Starr Roxanne Hiltz
Prologue: Socio-Technical Evaluation
$37.50
Chapter 40
John M. Carroll, Mary Beth Rosson, Umer Farooq, Jamika D. Burge
Socio-technical systems are social systems that incorporate technological infrastructures. At the group level of analysis, the most important... Sample PDF
Community Collective Efficacy
$37.50
Chapter 41
Tanguy Coenen, Wouter Van den Bosch, Veerle Van der Sluys
This chapter views social networking sites as supporting social capital and the advantages which derive from it, namely emotional support... Sample PDF
An Analysis of the Socio-Technical Gap in Social Networking Sites
$37.50
Chapter 42
Olga Kulyk, Betsy van Dijk, Paul van der Vet, Anton Nijholt, Gerrit van der Veer
This chapter addresses awareness support to enhance teamwork in co-located collaborative environments. In particular, the authors focus on the... Sample PDF
Situational Awareness In Collaborative Work Environments
$37.50
Chapter 43
Janet L. Holland
This chapter deals with research on the development and use of an assessment instrument for measuring affective satisfaction in online learning. The... Sample PDF
A Scale of Affective Satisfaction in Online Learning Communities
$37.50
Chapter 44
David Hinds, Ronald M. Lee
In this chapter, the authors suggest how measures of “social network health” can be used to evaluate the status and progress of a virtual community.... Sample PDF
Assessing the Social Network Health of Virtual Communities
$37.50
Chapter 45
Bertram C. Bruce, Andee Rubin, Junghyun An
This chapter introduces situated evaluation as an approach for evaluating socio-technical innovation and change. Many current evaluations simply... Sample PDF
Situated Evaluation of Socio-Technical Systems
$37.50
Chapter 46
Heike Winschiers-Theophilus
Communities all over the world have established their own value systems which do not necessarily correlate with the intrinsic values of technology.... Sample PDF
Cultural Appropriation of Software Design and Evaluation
$37.50
Chapter
Charles Steinfield
Prologue: The Future of Socio-Technical Systems
$37.50
Chapter 47
Peter J. Denning
Wicked problems (messes) are tangled social situations that are too costly to stay in and too intransigent to get out of. Collaboration is essential... Sample PDF
Resolving Wicked Problems through Collaboration
$37.50
Chapter 48
Rachel McLean
As a social activity, the shopping experience can not be recreated or improved through technical design alone. This chapter proposes that there is... Sample PDF
The Myth of the e-Commerce Serf to Sovereign Powershift
$37.50
Chapter 49
Theresa Dirndorfer Anderson
This chapter explores the challenges associated with teaching the principles of socio-technical systems in the dynamic climate that characterizes... Sample PDF
Teaching the Socio-Technical Practices of Tomorrow Today
$37.50
Chapter 50
Isa Jahnke
The chapter describes an empirical study of a socio-technical community—as an extended part of an institution— with the aim of revealing its... Sample PDF
Socio-Technical Communities: From Informal to Formal?
$37.50
Chapter 51
Laurence Claeys, Johan Criel
This chapter introduces the concept of critical user participation as a means to see the socio-technical gap in context aware applications as an... Sample PDF
Future Living in a Participatory Way
$37.50
Chapter 52
Paul Hodgson
This chapter analyses the formation and generation of social trust through communications technology in postmodern society, and presents some... Sample PDF
The Impact of Communications Technology on Trust
$37.50
Chapter 53
Kenneth E. Kendall, Julie E. Kendall
This chapter explores the social, organizational, and individual impacts of emerging information technologies using the advent of recent... Sample PDF
Good and Evil in the Garden of Emerging Information Technologies
$37.50
About the Contributors