Mind+Machine: A Decision Model for Optimizing and Implementing Analytics

Praise for mind+machine

"Mind+Machine is a thought–provoking exploration of data analytics as they stand now. Marc introduces and develops several game–changing concepts, like the Efficient Frontier, Ring of Knowledge, and Use Case Methodology, showing how to apply them for the best possible return on investment. These ideas should be the cornerstone of every organization′s approach to data analytics. Written for the generalist with plenty of real–world examples, it′s a fascinating read that I couldn′t put down."
Stefan Arn, Global Head of Technology for UBS Wealth Management and UBS Switzerland and Group IT Head for Strategic Regulatory Initiatives

"Mind+Machine provides a much needed antidote for the business leader looking for actionable business insights in a world of information and technology overload. Based on his credentials as adviser to many of the world′s top banks, corporations, and professional services firms, as well founder of two industry–disrupting businesses, Marc has a unique perspective on how to combine human expertise with technology to deliver high ROI business results. He simplifies a complex subject, and his approach is supported by over 40 accessible and insightful case studies. A compelling and accessible guide for decision makers and business leaders seeking sustainable competitive advantage in their markets."
Mark Bidwell, founder of The Innovation Ecosystem, chairman of BC Platforms and director at Terramera

"A very interesting read. It demystifies data analytics with lots of real–world examples on use–cases, best practices and insights from industry. It also offers refreshing business angles of examining the value of analytics in terms of ROI and ′so–what′. Though it is targeted at top managers and decision makers, I find it to be a good read for technical staff, researchers and data analysts. I will use it as part of my research into big data and social media analytics."
Professor Tat–Seng Chua, KITHCT Chair Professor at the School of Computing, National University of Singapore

Acknowledgments xvii

List of Use Cases xix

Part I: The Top 12 Fallacies about Mind+Machine 1

Fallacy #1: Big Data Solves Everything 3

Fallacy #2: More Data Means More Insight 17

Fallacy #3: First, We Need a Data Lake and Tools 26

Fallacy #4: Analytics Is Just an Analytics Challenge: Part I: The Last Mile 31

Fallacy #5: Analytics Is Just an Analytics Challenge: Part II: The Organization 36

Fallacy #6: Reorganizations Won t Hurt Analytics 40

Fallacy #7: Knowledge Management Is Easy We Just Need Some Wikis 45

Fallacy #8: Intelligent Machines Can Solve Any Analytic Problem 49

Fallacy #9: Everything Must Be Done In–House! 61

Fallacy #10: We Need More, Larger, and Fancier Reports 66

Fallacy #11: Analytics Investment Means Great ROI 72

Fallacy #12: Analytics Is a Rational Process 78

Part I: Conclusion 82

Part II: 13 Trends Creating Massive Opportunities for Mind+Machine 85

Trend #1: The Asteroid Impact of Cloud and Mobile 87

Trend #2: The Yin and Yang of the Internet of Things 96

Trend #3: One–to–One Marketing 105

Trend #4: Regulatory Flooding of the Ring of Knowledge 111

The European Union and Privacy Rules: The General Data Protection Regulation and the EU US Privacy Shield 114

The Teeth of the General Data Protection Regulation 115

Privacy Impacting the Ring of Knowledge 120

The Nine Questions You Need to Ask Your CIO Regarding Personal Data 121

Trend #5: The Seismic Shift to Pay–as–You–Go or Output–Based Commercial Models 123

Trend #6: The Hidden Treasures of Multiple–Client Utilities 133

Trend #7: The Race for Data Assets, Alternative Data, and Smart Data 136

Trend #8: Marketplaces and the Sharing Economy Finally Arriving in Data and Analytics 144

Trend #9: Knowledge Management 2.0 Still an Elusive Vision? 147

Trend #10: Workfl ow Platforms and Process Automation for Analytics Use Cases 156

Trend #11: 2015 2025: The Rise of the Mind Machine Interface 164

Trend #12: Agile, Agile, Agile 172

Trend #13: (Mind+Machine)2 = Global Partnering Equals More Than 1+1 177

Era 1: Pure Geographic Cost Arbitrage (2000 2005) 178

Era 2: Globalizing Outsourcing (2005 2015) 180

Era 3: Process Reengineering (2007 2015) and Specialization 184

Era 4: Hybrid On–Site, Near–Shore, and Far–Shore Outsourcing (2010 ) 184

Era 5: Mind+Machine in Outsourcing (2010 ) 185

Pricing and Performance Benchmarks 190

The Future of Outsourcing in Knowledge–Intensive Processes 194

Part II: Conclusion 196

Part III: How to Implement the Mind+Machine Approach 197

The Analytics Use Case Methodology: A Change in Mind–Set 198

Perspective #1: Focus on the Business Issue and the Client Benefits 207

Perspective #2: Map Out the Ring of Knowledge 214

Perspective #3: Choose Data Wisely Based on the Issue Tree 218

Perspective #4: The Effi cient Frontier Where Machines Support Minds 226

Perspective #5: The Right Mix of Minds Means a World of Good Options 232

Perspective #6: The Right Workfl ow: Flexible Platforms Embedded in the Process 241

Perspective #7: Serving the End Users Well: Figuring Out the Last Mile 245

Perspective #8: The Right User Interaction: The Art of User Experience 250

Perspective #9: Integrated Knowledge Management Means Speed and Savings 257

Perspective #10: The Commercial Model: Pay–as–You–Go or Per–Unit Pricing 264

Perspective #11: Intellectual Property: Knowledge Objects for Mind+Machine 266

Perspective #12: Create an Audit Trail and Manage Risk 269

Perspective #13: The Right Psychology: Getting the Minds to Work Together 271

Perspective #14: The Governance of Use Case Portfolios: Control and ROI 274

Perspective #15: Trading and Sharing Use Cases, Even across Company Boundaries 279

Part III: Conclusion 281

Notes 283

About the Author 287

Index 289

MARC VOLLENWEIDER is co–founder and CEO of Evalueserve, an industry– influencing global research, analytics, and data management solutions provider known for its mind+machine process that combines a global network of expert analysts and best–in–class technology. The McKinsey & Co. alum has extensive consulting experience in such industries as telecommunications, banking, and pharmaceuticals.