Analytics in the ‘New Normal’: Three keys to success

In speaking with many Fortune 500 executives in the last few months since the pandemic began, it’s clear that data and analytics are becoming a business fundamental – critical to enterprise success in the post-pandemic world. Data and analytics are no longer a by-product of automation – they are now a first-class citizen in organizations’ digital transformation efforts. Across successful data initiatives I have observed, a few priorities really stand out: AI-powered analytics, the role of “Humans in the loop” and Experience-led transformation.

AI-powered analytics

I’m not really a frequent viewer of television. But I’ve recently become intrigued with a particular Israeli TV series on one of my media services providers. I never would have found it on my own – the AI-powered analytics at the streaming company thought I’d enjoy it, and they were right.

Similar examples are coursing their way through large corporations, where the predictive power of analytics is helping change business models and create new ways for companies to interact with their end users.

For instance, a large medical goods supplier used AI-powered analytics to help them deal with surging demand, a web of government requirements, and the need to provide medical supplies to areas that needed it the most to help save lives. These were complicated decisions they were being forced to make: How do they utilize different facilities in different countries? How do they manage complicated supply chains? How do they model production capacity? How do they calculate future surges in demand to stay ahead? How do they rank-order hospital needs? Through all of this, they also had to consider all aspects of engaging their employees: ensuring their safety, proper shifts, cleaning protocols, articulating potential risks, and all related decisions that become critical components of their data and analytics.

We are seeing multiple example of AI-powered analytics taking center stage in shaping new business models for organizations.

The role of the Human in the loop

Some 25 years ago, five sales leaders got together every month in a break area for their “forecasting meeting” over coffee and donuts. Two were really good at bringing data to the table, which stimulated good conversation. Two others were good at math – helping to figure in their heads, or on the back of a napkin, financial changes as different data models were considered. The fifth person could be counted on to always ask questions: “What about this scenario?” “What if this happens, how would our forecast change?”. 

Then came the advent of spreadsheet software.

Suddenly, the first two individuals focused on data were still important, but their contributions were eclipsed by spreadsheets loaded with data. The second two were still important, too – math always is. But their quick-calculating ability suddenly was a little less in demand; the software could do it more quickly. And the fifth person? She grew markedly in her importance. She drove the scenario modeling that this powerful tool could now leverage and outperform around, it ultimately drove the teams success. I love the story because it underscores the value of human judgment, asking the right questions to enable the right view of data to help lead to a great decision.

There always will be a need for humans in the loop, no matter the sophistication of AI and analytics. We see that regularly in the work we do at Envision Virgin Racing. We help drive deep analytics and AI work that enables the racing team to make split decisions that their drivers can act on. But make no mistake: Winning races requires humans in today’s world, and our goal is to augment the driver and racing team’s ability to apply judgment and take action – sometimes in a split second.

So, no matter where AI may take us, humans will always be important to apply judgment and make data-based decisions.

Experience-led transformation

Experience is the “true north” in any digital transformation. Consider this: Before the pandemic, I could rattle off my top 10 favorite restaurants if we wanted to go out with friends. I knew the owners, the staff, their best dishes, and the items to avoid. With the pandemic, that changed overnight…as did the expectations I had for my dining experience.

It no longer was based on quality of the environment or the way they made that special sauce; rather, it was based on how well they had analyzed all aspects of the take-out delivery experience in a world of touch-free experiences. Could I interact with the restaurant online versus having to call and remain on hold? Did they offer accurate pick-up times, so I was outside with the trunk open the shortest amount of time possible? Was the food kept hot, so I had a satisfactory dining experience in the safety of my home? My requirements for an excellent experience changed overnight – and restaurants had to react.

This underscores how important experience has become in our “new normal.” Companies that will succeed are focusing on experience, and that focus is driving how analytics are helping them drive that success. A couple of lessons that have been learned so far: first, experience and data need to be at the core of a digital journey, not an after-thought. Second, diverse work teams will help connect with the experience needs of end users, whose behaviors can – as we’ve seen – can change in a split second.

The ”new normal” is coming at warp speed. The companies that succeed will be those that embrace AI-powered analytics, keep humans in the loop, transform their value propositions to deliver rich, high-value experiences.