Analytics is the new email. Just like email, analytics has to be pervasive, reliably available, real-time, and has to just work. And this needs an architecture to establish an analytics organization that adapt and respond quickly to the needs changing business needs especially new era of artificial intelligence. At Kvantum, we have built an analytics architecture to establish a robust analytics capability that keeps pace with an organization's decision making needs.
Through this article, we propose the "Analytics Architecture" for an organization to collect, organize and utilize all the information generated from various organizational functions. Specifically, this article focuses on examples from "marketing" function to illustrate different aspects of the Analytics Architecture but it can be applied to any organization function including sales, manufacturing, sustainability, supply chain, procurement, finance, human resource, corporate development, etc.
This document is intended for business & technology leaders, in any organization, who are building analytics solutions and capabilities. It covers our views on the architectural terminology, concepts, and definitions needed to keep pace with the rapid evolution of AI & Machine learning technologies.
There are four layers to any Analytics Architecture - Information, Estimation, Control and Knowledge. The table below introduces these concepts by leveraging examples from marketing analytics domain.
A. Information Layer
- Structured clean-up and harmonization of data.
- Online & adaptive processing of data.
B. Estimation LAyer
C. Control LAYER
- One approach would to be to target a narrowly defined audience at a high frequency, expecting a high conversion rate.
- Another approach can be to buy low CPM, high efficiency impressions with a very wide reach.
- Or it may be a combination of both depending on the campaign objective. If you are selling pizza and convincing a high value repeat buyer to remain with your brand, you are probably going to buy a higher CPM retargeting with an promotion geared towards conversion. However if you are targeting a deal seeker, who tends to switch brands, you are essentially casting a wider but cheaper net.
D. Knowledge LAYER
- The analytics capability perceives the environment, understands the specifics of the environments and codifies this knowledge through models & recommended outcomes.
- The executive capability acts on this intelligence in the short term, and codifies long run policies associated with repeated actions and their effectiveness. The role of working memory is to retain this knowledge of perception and associated action, such that the organization can recognize environmental changes more quickly, and act on ther more quickly.
Harpreet Singh is CTO & co-founder at Kvantum. Currently, Harpreet’s primary area of interest & research is on establishing evolutionary, real time, simulation based algorithmic systems to track business performance data across all functions of an enterprise, and provide real time tracking & guidance.