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Establishing your
Online Analytics Maturity


                Stéphane Hamel
                    immeria.net
                  San Jose, May, 2009
Web Analytics Maturity                                                                   5. Competing on analytics
                                                             Management                  4. Culture
                                                                                         3. Senior management
                                                                         5
                                                                                         2. Director
                                                                                         1. A project
                                                                                         0. No champion
                                                                         4

                      Tools                                                                                             Objectives
                      Strategic .5                                       3
                                                                                                                      5. Competing on analytics
                          CRM .4
                                                                                                                      4. Business Optimization
                    eMarketing .3
                                                                                                                      3. eBusiness Optimization
         Behaviour Optimization .2                                       2
                                                                                                                      2. eMarketing Optimization
                   Web metrics .1
                                                                                                                      1. Request list
              No web analytics .0
                                                                                                                      0. Undefined
                                                                         1




       Methodology                                                                                                       Scope
                 Agile approach .5                                                                                    5. Competing on analytics
      Agile methodology (online) .4                                                                                   4. Online ecosystem
Continuous improvement process .3                                                                                     3. Single website
        Department/team metho .2                                                                                      2. Specific online activity/sector
                  Analyst’s own .1                                                                                    1. HiPPO
                No methodology .0                                                                                     0. Improvisation


                                Experienced/multidisciplinary .5
                                            Multidisciplinary .4
                                           Distributed team .3
                                                                   Resources
                                              Single analyst .2
                                           Project approach .1
                                                                     Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
                                    No dedicated resources .0
Critical Success Factors

“...critical activities required for ensuring
the success of your business.
...
The term was initially used in the world of
data analysis, and business analysis.”
                                                                              Wikipedia

                      Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Critical Success Factors

Management
Objectives
Scope
Resources
Methodology & process
Tools & Technology

              Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Champion

 Management role or strong influence
 Promote web analytics
   To higher management
   Collaborators
   Teams
 Change agent
 Approve and defend the strategy, goals & objectives




                            Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Roadmap

 Overall Business    • What is this business trying to accomplish?
    Strategy
                     • What are the short and long term objectives to
Goals & Objectives     achieve the strategy?

  Key Business       • What are the important execution steps to
                       meet the goals & objectives?
    Drivers
Key Performance      • What measure of success are tied to the
                       drivers?
   Indicators
                     • What are the detailed measures that feed and
Supporting Metrics     augment the KPIs?

                             Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Management

5. Competing on analytics
4. Part of the culture
3. Senior manager
2. Director or team lead
1. Project manager
0. No champion
                   Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Be SMARTer!
Specific
Measurable
Achievable
Realistic
Timely
Ethical/Engaging
Resources
                    Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Objectives

5. Competing on analytics
4. Business optimization
3. eBusiness optimization
2. eMarketing optimization
1. Request/task list
0. Undefined
                  Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Ecosystem



    « a system formed by the interaction
     of a community of organisms with
     their physical environment »
         WordNet, Princeton University



Graph generated with touchgraph.com
                                         Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Scope

5. Competing on analytics
4. Online ecosystem
3. Single website
2. Specific online activity/sector
1. HiPPO
0. Improvisation
                    Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Ultimate Team
                                                               Strategy
                                    Business                   Goals




                        Q&A                                      Business requirement &
           Actionable insight                                    objectives
                                    Empowered
                                     teamwork



  Analysis                                                                      Technology
         Statistics                                                            Technological capabilities &
Analytical mindset                                                             constraints
                                Means, tools and data
        Synthesis                                                              Information architecture
  Communication                                                                Tagging & BI




                                          Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Resources
5. Experienced/empowered business
   users
4. Multidisciplinary team
3. Distributed team
2. Full time analyst
1. Project team
0. No dedicated resources
                   Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
SixSigma 6σ
•   A set of practices aiming at systematically
    improving processes by eliminating defects
•   Leveraging segmentation,
    slicing & dicing of data, KPIs                                  Define
•   Continuous improvement
    process for a changing               Control                                            Measure
    environment


                                                  Improve                          Analyze

                             Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Methodology

5. Agile approach (throughout)
4. Agile methodology (online)
3. Continuous improvement process
2. Department/team methodology
1. Analyst’s own way
0. No methodology
                  Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Tools Maturity                                                                             Level 5
                                                                                                                Level 4                                Corporate
                                                                                                                                                      Performance
                                                                               Level 3                                                                Management

                                           Level 2                                                                         CRM                    • Multichannel sales
                                                                                                                                                    report
        Level 1                                                                       E-Marketing                                                 • Activity-based
                                                                                                                 • Multichannel
                                                   Behavior                                                                                         costing
                                                                                                                   aggregation
                                                  Optimization                                                                                    • Balanced
                                                                                 • Merchandising                 • Cost-shifting
               Web Metrics                                                                                                                          scorecards
                                                                                 • Segmentation                    analysis
                                             • Path analysis                                                                                      • Strategic planning
                                                                                                                 • Lifetime value
                                                                                 • Search Engine
                                             • Funnel reports
          • Visitors, Visits,                                                                                                                     • Predictive
                                                                                                                 • Personalization
                                                                                   Optimization
                                             • A/B testing
            Page Views                                                                                                                              Analytics
                                                                                 • Campaign                      • Analytics based
                                             •
          • Top 10’s                           Key Performance                     Optimization                    content serving
                                               Indicators
          • Demographic                                                          • Personas                      • Process analytics
                                             • Dashboards
          • Technographics                                                       • KPI alerts                      (decision support)             Strategic Web
          • Top entry/exit
          • Performance
                                                                    330° view of customer (30° of privacy)
          • Capacity
          • Security                             Optimize the channel
                               Business driven, working on metrics, accuracy and process
           IT driven, “feel good” information, few decisions, minimal value




Adapted rfom Bill Gassman, Industry Analyst, Gartner, presented at eMetrics Summit 2007, San Francisco
                                                                                             Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Tools

5. Strategic Web
4. Customer Relationship Management
3. eMarketing
2. Behaviour Optimization
1. Web metrics
0. No web analytics
                   Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Typical
                                                  Management



• Focus on the tools
• Ambitious objectives
• Lack of commitment &
  resources
• Inexperienced and no
  agile methodology


                                                          Scope
                         Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Focused
                                                Management




•   Start small
•   Well balanced




                                                        Scope
                       Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Doomed!
                                                       Management
• Fix your issues...
• Get experienced and
  comfortable before moving
  on
• Unrealistic
  objectives/scope
• Minor improvements to
  resources and
  methodology (ex.
  “borrowing” from IT for
  some areas of the project)
                                                                 Scope
                               Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
Management



• Grow your web
  analytics maturity
• Keep balanced
• Don’t seek to grow
  more than 1 level at a
  time


                                                          Scope
                           Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
immeria: an immersion in analytics
     consulting::education::research

                          Stéphane Hamel
                      shamel@immeria.net
                               immeria.net
                         Twitter @immeria
                    LinkedIn.com/in/shamel

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Web Analytics Maturity Model

  • 1. Establishing your Online Analytics Maturity Stéphane Hamel immeria.net San Jose, May, 2009
  • 2. Web Analytics Maturity 5. Competing on analytics Management 4. Culture 3. Senior management 5 2. Director 1. A project 0. No champion 4 Tools Objectives Strategic .5 3 5. Competing on analytics CRM .4 4. Business Optimization eMarketing .3 3. eBusiness Optimization Behaviour Optimization .2 2 2. eMarketing Optimization Web metrics .1 1. Request list No web analytics .0 0. Undefined 1 Methodology Scope Agile approach .5 5. Competing on analytics Agile methodology (online) .4 4. Online ecosystem Continuous improvement process .3 3. Single website Department/team metho .2 2. Specific online activity/sector Analyst’s own .1 1. HiPPO No methodology .0 0. Improvisation Experienced/multidisciplinary .5 Multidisciplinary .4 Distributed team .3 Resources Single analyst .2 Project approach .1 Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net No dedicated resources .0
  • 3. Critical Success Factors “...critical activities required for ensuring the success of your business. ... The term was initially used in the world of data analysis, and business analysis.” Wikipedia Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 4. Critical Success Factors Management Objectives Scope Resources Methodology & process Tools & Technology Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 5.
  • 6. Champion  Management role or strong influence  Promote web analytics  To higher management  Collaborators  Teams  Change agent  Approve and defend the strategy, goals & objectives Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 7. Roadmap Overall Business • What is this business trying to accomplish? Strategy • What are the short and long term objectives to Goals & Objectives achieve the strategy? Key Business • What are the important execution steps to meet the goals & objectives? Drivers Key Performance • What measure of success are tied to the drivers? Indicators • What are the detailed measures that feed and Supporting Metrics augment the KPIs? Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 8. Management 5. Competing on analytics 4. Part of the culture 3. Senior manager 2. Director or team lead 1. Project manager 0. No champion Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 9. Be SMARTer! Specific Measurable Achievable Realistic Timely Ethical/Engaging Resources Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 10. Objectives 5. Competing on analytics 4. Business optimization 3. eBusiness optimization 2. eMarketing optimization 1. Request/task list 0. Undefined Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 11. Ecosystem « a system formed by the interaction of a community of organisms with their physical environment » WordNet, Princeton University Graph generated with touchgraph.com Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 12. Scope 5. Competing on analytics 4. Online ecosystem 3. Single website 2. Specific online activity/sector 1. HiPPO 0. Improvisation Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 13. Ultimate Team Strategy Business Goals Q&A Business requirement & Actionable insight objectives Empowered teamwork Analysis Technology Statistics Technological capabilities & Analytical mindset constraints Means, tools and data Synthesis Information architecture Communication Tagging & BI Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 14. Resources 5. Experienced/empowered business users 4. Multidisciplinary team 3. Distributed team 2. Full time analyst 1. Project team 0. No dedicated resources Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 15. SixSigma 6σ • A set of practices aiming at systematically improving processes by eliminating defects • Leveraging segmentation, slicing & dicing of data, KPIs Define • Continuous improvement process for a changing Control Measure environment Improve Analyze Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 16. Methodology 5. Agile approach (throughout) 4. Agile methodology (online) 3. Continuous improvement process 2. Department/team methodology 1. Analyst’s own way 0. No methodology Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 17. Tools Maturity Level 5 Level 4 Corporate Performance Level 3 Management Level 2 CRM • Multichannel sales report Level 1 E-Marketing • Activity-based • Multichannel Behavior costing aggregation Optimization • Balanced • Merchandising • Cost-shifting Web Metrics scorecards • Segmentation analysis • Path analysis • Strategic planning • Lifetime value • Search Engine • Funnel reports • Visitors, Visits, • Predictive • Personalization Optimization • A/B testing Page Views Analytics • Campaign • Analytics based • • Top 10’s Key Performance Optimization content serving Indicators • Demographic • Personas • Process analytics • Dashboards • Technographics • KPI alerts (decision support) Strategic Web • Top entry/exit • Performance 330° view of customer (30° of privacy) • Capacity • Security Optimize the channel Business driven, working on metrics, accuracy and process IT driven, “feel good” information, few decisions, minimal value Adapted rfom Bill Gassman, Industry Analyst, Gartner, presented at eMetrics Summit 2007, San Francisco Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 18. Tools 5. Strategic Web 4. Customer Relationship Management 3. eMarketing 2. Behaviour Optimization 1. Web metrics 0. No web analytics Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 19. Typical Management • Focus on the tools • Ambitious objectives • Lack of commitment & resources • Inexperienced and no agile methodology Scope Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 20. Focused Management • Start small • Well balanced Scope Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 21. Doomed! Management • Fix your issues... • Get experienced and comfortable before moving on • Unrealistic objectives/scope • Minor improvements to resources and methodology (ex. “borrowing” from IT for some areas of the project) Scope Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 22. Management • Grow your web analytics maturity • Keep balanced • Don’t seek to grow more than 1 level at a time Scope Copyright (c) 2009, Stéphane Hamel, immeria.net, All rights reserved. shamel@immeria.net
  • 23. immeria: an immersion in analytics consulting::education::research Stéphane Hamel shamel@immeria.net immeria.net Twitter @immeria LinkedIn.com/in/shamel

Editor's Notes

  1. Processes that operate with \"six sigma quality\" over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities (DPMO).[4][5] Six Sigma's implicit goal is to improve all processes to that level of quality or better.