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.

Discover the breakthrough tool your company can use to makewinning decisions This forward-thinking book addresses the emergence of predictivebusiness analytics, how it can help redefine the way yourorganization operates, and many of the misconceptions that impedethe adoption of this new management capability. Filled with caseexamples, Predictive Business Analytics defines ways inwhich specific industries have applied these techniques and toolsand how predictive business analytics can complement otherfinancial applications such as budgeting, forecasting, andperformance reporting. Examines how predictive business analytics can help yourorganization understand its various drivers of performance, theirrelationship to future outcomes, and improve managerialdecision-makingLooks at how to develop new insights and understand businessperformance based on extensive use of data, statistical andquantitative analysis, and explanatory and predictive modelingWritten for senior financial professionals, as well as generaland divisional senior management Visionary and effective, Predictive Business Analyticsreveals how you can use your business's skills, technologies,tools, and processes for continuous analysis of past businessperformance to gain forward-looking insight and drive businessdecisions and actions.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.