Using data analysis as a management tool: ADVA Analysis Department launched
To date, XICA has conducted data analysis for over 100 enterprise companies. In order to give back the accumulated knowledge to society, XICA launched the "ADVA Analysis Department".
The ADVA Analysis Department consists of three sections: the MAGELLAN Section, the IES Section which specializes in the analysis of television commercials, and the Research Section which organizes knowledge and conducts research.
"Data analysis is a means of solving problems," say Taira Nishizu, head of the ADVA Analysis Department, and Motonobu Takagi, head of the Research Division and deputy head of the MAGELLAN Division of the ADVA Analysis Department. We spoke to these two men, who originally worked in research positions at graduate schools and research institutes before entering the business world, about what data analysis is and what value it will provide to customers in the future.
(Right) Shimpei Nishi, Director of the ADVA Analysis Department
Graduated from Kyushu University Graduate School of Engineering. During graduate school, he learned data analysis and statistics through experiments related to nuclear power generation, and after graduating, he worked for a gaming machine manufacturer for three years analyzing market trend data. Seeking an environment where he could conduct data analysis in a broader range without being limited to the industry, he joined XICA in October 3. He currently serves as the head of the ADVA Analysis Department.
(Left photo) Manager, Research Division, ADVA Analysis Department, Deputy Manager, MAGELLAN Division, ADVA Analysis Department
Motonobu Takaki
Graduated from the Graduate School of Science at the University of Tokyo. After that, he worked in research at the Center for Nuclear Study at the University of Tokyo. In order to broaden his career, he joined XICA in April 2019. He currently serves as the head of the Research Division of the ADVA Analysis Department and the deputy head of the MAGELLAN Division.
Towards a proactive analytical organization
──First, please tell us about the role of the ADVA Analysis department.
West ADVA Analysis DepartmentA group of data analysts with three roles: "analysis," "research," and "know-how building"We not only have the analytical function to analyze our customers' data, but also the research function to create new analytical techniques, and the consulting function to build know-how related to data analysis and feed it back to our customers' businesses.
(I.e. To date, XICA has analyzed data from over 100 enterprise companies. The ADVA Analysis Department will shape the tacit knowledge gained from that experience and build reproducible know-how. We aim to be an organization that can respond to customer challenges more accurately and quickly.
──How has the team changed compared to before the ADVA Analysis department was launched in April 2020?
West Up until now, we have focused on high quality, on how to provide the analysis results that meet our customers' needs with a high level of satisfaction. You could even say that we have taken a somewhat passive approach.
Of course, we will continue to conduct highly specialized analyses, but we will also be able to offer suggestions such as, "This analysis will add even more value, so why don't you try it?"A highly specialized and proactive analysis organizationWe changed the team's direction and decided to become a
──Please tell us what prompted the change in direction and what the background was.
(I.e. The majority of customers' concerns about data analysis are"What exactly do you need to do to analyze data?"That's why we receive a lot of requests from people who want us to not only share our own analysis results, but also share our knowledge as an analysis company and the principles of statistics as statistical professionals.
West Thankfully, we have a wealth of analytical experience that can meet these needs, but it is also true that we have not been making full use of this valuable asset.
So, I would like to learn about how to analyze data, trends by industry, characteristics of each medium, etc.Let's give shape to knowledge that has not been put into a concrete form until now, and convey our know-how to our customers through proposals and improvements to tools.This will allow our customers to:Improving data literacy and analytical accuracyWe can provide value that has never been offered before.
Data analysis as a weapon
──The ADVA Analysis Department's data analysis is carried out using Magellan, an analysis tool developed in-house. One of the missions of the ADVA Analysis Department is to turn Magellan into a tool that customers themselves can use. What are the benefits of being able to analyze data themselves?
West There are two benefits to customers being able to handle their own data.Strengthening hypothesis design and faster analysis speed.
The most important thing in data analysis is hypothesis design. And the ideal form of data analysis is:A method in which someone who can design strong hypotheses can carry out analysis with a sense of speed.
It is the customer who understands their own company's situation well and can formulate strong hypotheses, and the analysis can be completed faster if the customer does it themselves rather than us, as there is no data exchange involved.
--Do customers who have no experience in data analysis find it difficult to formulate hypotheses and conduct analysis?
West As a premise,"We will flexibly change the way we interact with our customers to suit their needs."We support clients who want to be able to perform analysis in-house so that they can operate independently, but if they are willing to leave data analysis to a specialized organization like us, we won't just hand over the data analysis to them.
(I.e. So, in terms of how it relates toThere are two patterns: either we perform the analysis ourselves, or the customer performs the analysis themselves..
In the former case, we listen to the customer's hypotheses, select the strongest ones from among them, and then proceed to analysis and interpretation of the results. By working through this process together, even customers with no prior experience in analysis can design hypotheses and interpret analysis results in-house within a year.
To be honest, it is quite a high hurdle to have them do the analysis. There are three hurdles to overcome: learning statistics and data literacy, and finally learning how to use the tools.
West If you want to utilize data, you don't need to be able to analyze it yourself.It is important to be able to formulate correct hypotheses, correctly interpret the results, and use them in business decisions.If customers can do this part themselves, the data will become meaningful.
(I.e. A company that can use data analysis as a weaponWe would like you to become one of them. That is the wish we have.
Usable analysis = analysis that can solve problems
──Please tell us about the strengths of the ADVA Analysis department.
West One is,Ability to make action-oriented proposalsWhat our customers want to know is, "What should we do?" So we conduct analysis that will get to that point.
(I.e. The other one is,Number and quality of analysis resultsThe 100+ enterprise companies we have analyzed so far are unbiased in a good sense. Because we cover all industries, we can understand the trends in each industry and analyze what customers are like within the industry.
West laterAnalysis speedThat's right. The "high-speed PDCA" approach advocated by the ADVA Analysis Department is a very important element in connecting data and business.
--How much can analysis speed be reduced with "high-speed PDCA"?
(I.e. An analysis that would normally take six months to a year can be completed in just one month at XICA.
We have heard many stories from clients like, "When we asked another data analysis company to do the work, they were able to provide us with a good analysis, but the analysis for 2019 came out at the end of 2020, so all we could say was, 'Oh, that's what we were doing.'"
West Marketing is very trend-driven.Providing analytical results that can be truly used when deciding on customer actions or business decisionsBecause we are implementing a high-speed PDCA cycle, we are able to accumulate information on the latest media and recent advertising trends, and we are able to provide you with analysis results that include these trends.
(I.e. For example, even if we say the impact of the coronavirus, the way it is affected varies greatly depending on the industry. Some companies are greatly affected in the early stages of the coronavirus outbreak, some are hit hard during the state of emergency, and some see their sales fluctuate depending on when subsidies are distributed.
Because we analyze a wide range of industries, we can predict trends for each industry.So, depending on the expected changes in social conditions, we can make suggestions such as "Sales are likely to change like this" or "You should focus on this marketing initiative." Even if the results of this analysis were presented next year, it would not lead to any action.
West After all, if the speed of analysis does not match the speed of business, the data will not be useful for management."Means of problem solving"This is the underlying idea behind our approach, to utilize it as a
Protecting our core and innovating
---Please tell us how you are able to maintain such speed in your analysis.
West First,Owning our own analytical tool, MagellanThis is the biggest reason. We develop tools that are specialized for marketing analysis, so they have all the functions necessary for analysis.
(I.e. the other one is,The company has accumulated knowledge that allows it to predict trends, analysis results, and actions to a certain extent just by looking at data, as well as know-how that allows it to instantly grasp external factors that have influenced results and advertising trends.is not it.
West As a company, one of the things we value is"We want the fastest speed"What is it?"I'd rather get five 100s than one 1."The company operates under this guiding principle, so rather than taking the time to perform accurate analysis, we are conscious of prioritizing speed while maintaining the direction of action.
──The ADVA Analysis Department is now the largest organization at XICA. It is rare for a venture with just under 100 people to launch a research organization dedicated to data analysis. What kind of organization do you want to develop into in the future?
(I.e. I want to further strengthen my credibility as a professional in the field of "advertising x statistics"I want people to realize that "if we leave the analysis of advertising to XICA, we can properly visualize the effects and provide analytical results that can be used to decide on actions," and I want to continue improving so that this becomes the case.
West Data analysis has been XICA's roots and strength since its founding.While maintaining our unwavering focus on "performing analysis that leads to solving customer problems," we also want to swiftly advance research that produces innovative analytical technologies.is not it.
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*The affiliation and title of the interviewee are those at the time of the interview.
