Connect with Us

About Us

The Decision Factor offers insightful comments and observations on analytics—from views on new technology approaches and market dynamics to the latest industry trends driving demand for faster, smarter information analysis. This blog contains personal views, thoughts, and opinions from SAP employees, mentors, and friends working in the area of analytics. It’s not endorsed by SAP nor does it constitute an official communication of SAP.

Archives

Retail Innovation – A Game of Checkers

game changer retail

The balance of power within the retail ecosystem has shifted many times over the years and will continue to do so. As the game of checkers goes, players methodically attempt to outmaneuver and manipulate towards the outcome of the game.

Within the retail ecosystem, it was the suppliers and vendors that dictated the rules of the game for retail early on. How products would be made available, and when and how they would be promoted, was decided by the needs of the retailer. In the mid-1960s, along came the “Big Box” retailers such as Wal-Mart, Carrefour, Target, and Kmart. …

Upping Your Analytics IQ

empower graphic

As the data explosion and technology disruptions continue and analytics become pervasive in every job, many organizations are reviewing analytic skills and aptitudes in new hires. They‘re also looking into how to help existing employees upgrade their analytic skills.

New titles are abounding. At the executive level we have Chief Analytics Officers and Chief Data Scientists. In the middle, traditional Business Analyst and KPI Analyst roles continue to exist, but are complemented by more informal, and playful, titles like “Data Diva” or “Data Savant.”

Not everyone needs to be a data scientist, but every employee should be analytically curious …

Retail and Commercial Banking

big data for finance

This blog was originally published on Banking View and has been republished with permission.

Customer data analysis has revolutionized retail – but retail banking is lagging behind. When customer understanding is the key to profit, the capacity to gather and interpret data is no longer optional.

When you think about the challenges facing retail and commercial banking, “Ann Taylor” is not, perhaps, the first name that springs to mind. But the arrival of an e-mail from Ann Taylor to my wife made me think about …

Social Media – A Double-Edged Sword for Corporations!

Just recently, I noticed a couple of similar social media posts by friends. They echoed the same sentiment —extreme irritation at bad customer service by a large airline, which is notorious for its lack of attention to its passengers. Ironically, my friends were flying first class on the occasions they were mistreated.

Their accounts reminded me of a similar bad experience I had with the same airline. I looked up J. D. Power’s customer satisfaction rankings of North American airline companies, and sure enough, found our antagonists languishing near the bottom.

Social media is a great leveler—it enables the …

Analytics and Innovation Make a Difference for a Nonprofit

City Year

We often associate the use of analytics with running a successful corporation, but the truth is, its use goes way beyond that. Analytics is now increasingly playing a role in sports (Super Bowl, soccer, tennis), in the public sector and politics, and at nonprofit organizations.

City Year: Helping Students and Schools

City Year is a national nonprofit organization …

Subtlety, Complexity, and the Future of Retail

Subtlety, Complexity, and the Future of Retail

Why is the future so difficult to predict? It is easy enough to jot down a few paragraphs on a given future topic, say the future of the retail industry and the impact that big data will have on it, but it is very difficult to have any assurance that those projections will map to anything that actually happens. Part of the problem is that we tend to see the future as an exaggerated version of the present rather than a world in which fundamental changes have occurred.

There is an old story in futurist circles, probably apocryphal, about a …

Now You’ve Defined Your Incentive Plans, There’s One More Thing You Have To Do

Now You've Defined Your Incentive Plans, There's One More Thing You Have To Do

It’s the start of the year, and organizations around the world are holding kickoff meetings in order to explain new incentive systems to their employees.

These plans are typically the result of many months of painful negotiations, as corporate stakeholders debate the perfect set of incentives to support the organization’s strategy.

But every system of incentives inevitably opens up the possibility of dysfunctional behavior. Not necessarily because employees are corrupt, but because they feel pressured to “meet the numbers” – and because daring to question the value of corporate KPIs is actively discouraged.

Dysfunctional behavior is just as predictable as …

2 More Big Data V’s — Value and Veracity

2 More Big Data V's -- Value and Veracity

A lot has been written on the 3 V’s of Big Data – Volume, Variety and Velocity. Yet there are two more equally, and perhaps even more important, attributes to consider—Value (business value to be derived) and Veracity (the quality and understandability of the data).

Big Data Value

Value starts and ends with the business use case. The business must define the analytic application of the data and its potential associated value to the business. Use cases are important both to define initial “Big Data” pilot justification and to build a roadmap for transformation.

This value is critical in the …

Surveys Generate Data But Don’t Necessarily Replace Hard Data

Surveys Generate Data But Don't Necessarily Replace Hard Data

Surveys, questionnaires, and polls generate data, but survey data and hard data aren’t the same thing. I often see them treated in the same light in the context of answering business questions or delivering actionable insight, and with equal zeal and qualification. But there are definite differences.

Understanding the difference between data collected from surveys vs. data generated from transactions or operations is crucial. It will help us find the relevant answers to our questions and also save us a lot of time and money in the process.

There’s a science and methodology to developing effective surveys. Design and data …

Bad Data the Culprit in Weird Holiday Gift List Mystery

Marketing Data

Come holiday season and it’s normal for your promotional mail to increase four folds. But this holiday, I received a few weird offers—a hearing aid, a retirement community brochure, and a marketing call for an elderly alert system. Being in analytics myself, I wanted to understand the reason why these companies are targeting me since I assumed this didn’t result from mass marketing.

I started scanning my last few months’ purchases to understand the trigger and didn’t find anything. Finally, I found a website that listed my marketing data and this is what I found:

Read the rest of this entry