It particularly uses a combination of Data Engineering, Data Sciences and Decision Sciences to effectively help companies to come up with unique solutions to the crucial decision making procedure. Raja Ram started Um sigma in 2004 and today it has emerged as a billion dollar enterprise
Um Sigma works with giants like Dell and Microsoft. Um Sigma is a category defining company which has been growing very quickly at 5% to 8 % per month through the combination of people, process, platform and products. The objective of the company is to double the revenue every two years along with the increase in headcount ratio. Um Sigma adopts a unique integrated DIP approach. The insights are derived by passing the data through four basic stages - Descriptive Analytics, Inquisitive analytics, Predictive Analytics and Prescriptive analytics. 1. 1 Location:
Um sigma is situated in Bangor with its headquarters in Chicago, Illinois, US. 1. 2 Industry: Um Sigma operates in the 'Analytics and decision sciences' industry. It focuses on using Big data to arrive at solutions for its customers from various domains. The growth in analytics industry, both in India and worldwide, has been tremendous. The number of analytics companies in India has grown three folds in last 1. 5 years. L In October 2012, HUB gave the title "The Sexiest Job of the 21st Century' to Data- Scientists, a term coined for professionals working extensively on data analytics. The
Advanced and Predictive Analytics (PAP) software market is projected from grow from $2. 28 2013 to $3. 48 in 2018, tangent a 9. 9% CARR in the forecast opened. A. T. Carney forecasts global spending on Big Data hardware, software and services will grow at a CARR of 30% through 2018, reaching a total market size of $BIBB. The average business expects to spend $MM on big data-related initiatives this year. 2 1. 3 Products & Services: Um Sigma helps organizations through the Journey from Data Engineering to Data Sciences and Decision Sciences thereby institutionalizing Decision Support. Decision Support Stack
Applications Platforms DECISION SCIENCES Structured Problem Solving and Guided Analytics Workbench Decision Support Applications Analytics Personalization Systems Intelligent Systems unlearn runners influenza DATA SCIENCES Applied Math Algorithms Econometrics Machine Learning Natural Language Processing (NIL) Operational Research Artificial Intelligence m show raunchy m u Text"* DATA ENGINEERING Data Acquisition (Data at Rest, Data at Motion) Data Storage (Databases, Big Data, In-memory) Data Processing (TTL, Event Processing) Data Workflow Management Computation Ennoblement Systems
Following are the platforms Um Sigma provides for decision sciences unlearn Platform that helps decision makers realize the promise of cross-industry learning Enterprise Signal Platform Integrated Marketing Mix Solution runaway Um Sigma Problem Definition Workbench m u Rows Decision Sciences Workbench Social Media Intelligence Platform & Real-Time Text Analytics Decision Optimization Engine High Performance Computing Text Mining Engine 1. Market: Frost and Sullivan has identified four broad use case categories of analytics that span multiple verticals: customer insights, resource optimization, processes/productivity improvement and risk, security and intelligence. The big data analytics market earned revenues worth $3. 2 billion in 2013 and it is predicted that this will increase to $1 5 billion by 20203. Vendors are putting substantial investments into research and development, as well as potential acquisitions. 1. Technology Sector: Um Sigma operates in an environment where technology plays a crucial role in predicting the future roadman of the company. There is an increasing use of advanced analytics, especially predictive modeling, machine learning techniques, and neural networks. The data revolution is disrupting established industries and business models. BMW uses sensor-data (predictive modeling) to tell its customers when their cars need to be serviced, for example. 2. Structure of the organization 2. Structural Dimension Formalization:company has low to medium level of formalization. The amount of written documentation related to policies and procedures are bare minimum, though with period of time, number of formal rules have increased, but still it remains an open culture company. Specialization: Um sigma does not have division of labor on the basis of specialization. This means that the specialization is low and employees perform wide range of tasks in their Jobs.
There is a lot of flexibility for the employees to use their expertise, ranging from training, recruitment to business development in whichever field they want like airline/hospitality and entertainment, retail and consumer products, pharmacy, telecoms, healthcare etc. Hierarchy of authority: There is no well defined hierarchy of authority. The employees are divided into teams containing 4 to 5 members in each, depending upon the request made by them as to which team they want to be part of. The request is approved by the manager. These teams then work on specific projects but have the flexibility to move across domains (only after 1. Years). At the broader level, there are managers having 5 associate managers under them. The associate managers further have 5 members under them, giving a total of 25 members. Here hierarchy of authority is shorter. Shorter hierarchy ensures a collaborative and decentralized decision making. Here employees can even directly meet Dramatically if they have something to discuss with him. Centralization: Um sigma follows a decentralized structure wherein the decision does to rest at the top level but is delegated to the lower organizational levels.
The teams can make decision individually or mutually with the help of the team leaders. Professionalism: It refers to the level of formal education and training to the employees. Um sigma has high degree of professionalism. MaJor recruiting is through requirements for the hiring of employees are as follows: Necessary Traits Description Learning Over Knowing Ability to apply first principles and structured approaches to problem solving as opposed to relying excessively on past domain expertise Agility
Required to cope up with continuous transformation Scale & Convergence Potential to synergies in an ecosystem of talent, capabilities, processes, customers and partners, which can be leveraged across verticals, domains and geographies Multi-disciplinary talent Ability to apply Math + Business + Technology + Behavioral Sciences Innovation Increase breadth and depth of problem solving by constantly researching and deploying emerging techniques, technologies and applications Cost Effectiveness Ensure sustainability and institutionalizing of problem solving across organizations E. G. India, at the entry level, company only recruits engineers from top tier colleges and the master of stats professionals. The designation level given to these fresher's is Trainee Decision Scientist. Their major designation hierarchies in India are Trainee Decision Scientist, Senior Business Analyst, Associate Manager, Manager, Senior Manager, Delivery Lead, Director, UP and leading to CEO. In US, this designation hierarchy is slightly different-Difference is because the level of skills and expertise of the people applying for analytics Jobs are different- they are mostly post graduates ND experienced.
Hence in US, the hierarchy designation directly starts from associate and is followed by Engagement Manager, Account Manager, Regional Head, Geography Head, leading to CEO. 2. 2 Contextual Dimension Size: The Organization of Musings is relatively small with about 3000 highly educated employees and four vertical division, which helps the company to be flexible in adapting to the changes in the environment with low labor base.
Organizational technology: Musings uses Data Engineering, Data Sciences and Decision Sciences techniques to convert data from the industry to a valuable decision purport thereby helping its clients in the decision making procedure. It utilizes advanced information systems and Internet to carry out its tasks. Environment: Um Sigma interacts directly with industrial sector( pharmacy, health retail), human resource sector(employees) and market sector (customers, clients).
He also interacts indirectly with the technology sector and uses advanced analytics, especially predictive modeling, machine learning techniques, and neural networks. Goals and strategies: The Company has a well-defined written down goals and strategy and a sound relationship with the employees to achieve those goals. Each employee is given a target which he is supposed to meet through innovation. Culture: Um sigma has a very good cultural environment and has adopted a TRITIUM philosophy from Hindu Mythology.
It believes in creating knowledge, utilizing the capital available and taking risk and help the clients. The employees share good professional and personal relationship with each other thereby creating a healthy working environment. 2. 3 Indistinguishableness Framework professionals that work across complex domains such as data engineering, data sciences and data decisions. They have a small technical support staff and a iterate size of administrative support staff. 2. Functional classification Being an Analytics firm, the functional classification briefly can be: Basic reporting: Tasks like basic data TTL, data sanity checks and making the given data into information. Basic Analytics: Creating advanced reports by deriving additional metrics to come up with business insights The capabilities may vary from creating/evaluating business models to developing frameworks which facilitate better business insights Modeling: Sometimes basic analytics fail to deliver the required business insights from the data
Modeling solutions by using sophisticated modeling techniques like predictive and statistical modeling can noontime the data to a better extent Visualization: Making the generated insights/ reports more easy to understand by creating visuals This involves creating advanced dashboards and attractive business insights frameworks for the ease of consumption of the reports Social media analytics: Responsible for generating consumer sentiment insights from the social media data Big data analytics: Creating frameworks for fail-proof acquiring of the generated big data and analysis
Developing advanced algorithms and usage of better frameworks to reduce data latency Products: Um Sigma has been active developing products consumable by anyone who need analytics They have a wide range of products like Murex, Mums, Umpped and more. Basic IT infrastructure and support team 3. Reporting Relationships 3. 1 Reporting Structure The basic hierarchy in Um Sigma till a certain extent is fairly flat. Senior management is easily approachable. Formality is not expected in form of speech but in terms of mutual respect.
Since most of the work force is comprised of students who are Irving their first Jobs, the environment in the teams is mostly energetic, impulsive and dynamic. The Saba's also are Just a year or a couple of years older than the Bag's. This eases work coordination, knowledge transfer and communication among the peers. Overall at a team level, everyone reports to the lead, which can be SABA/BAA depending on the team composition. At an account level, everyone reports to the Manager. This almost flat hierarchy at team level ensures smooth communication among the peers, which reduces work conflicts.
There is a high level of coordination among the different departments of the organization. There are several individual departments which deals with IT operations, Finance operations, HER operations, Delivery, Research operations etc. The delivery team which is responsible for most of the work sold by the organization can get any of their issues resolved/ get inputs from other departments with ease. All the departments are very much accessible ensuring transparency of operations to all the employees. Um Sigma ensures the inter-departmental operations are smooth to ensure quick and optimal delivery. . 3 Role of Top Management Um-Sigma management aims to be the global leader in analytics consulting. Let aims to e a fascinating and learning organization and banks on its unique combination of mathematical and analytical problem solving skills of its employees. With the increased focus on analytics by companies around the world, Um-Sigma sees this a tremendous opportunity. But in this competitive environment, it faces threat from the existing IT services companies and captive units of Mans who are willing to enter into analytics space to get a slice of their pie e. . A US based Fortune 100 bank, an ex Um-Sigma client, which was earlier outsourcing its entire analytics work has now started its in-house analytics unit. Hence, Um-sigma now faces another challenge to ensure resource availability. However, sometimes this need to aggressively compete for resources and client has a detrimental effect on the employees. E. G. Some employees feel that company over expects while designing and pitching new projects I. E. While selling projects and setting timeliness, they don't discuss these things with employee.
Hence, due to unrealistic timeliness, pressure on employees is high and this sometimes leads to a cause of attrition. Employees believe that they should be involved not only in implementing stage but also in initial planning stage. . 4 Expectations from Employees Um-Sigma has a decentralized structure. Here employees are not Just considered as resources but are considered as partners. Hence, very high expectations are set on them. Even while recruiting, focus is on getting employees who are not only high on IQ but also on CEQ.
This trend is generally reflected and followed during campus recruitment drivers. Employees are also expected to work across diverse activities, ranging from training, BAD activities to organizational development activities in addition to working across different domains. The company believes that best ideas ND most innovative ideas in an industry come from an unrelated industry, hence they expect employees to have cross- domain experience. 3. 5 Roles and Responsibilities of Employees Here, roles and responsibilities are not defined.
Even while recruiting, there is no fixed Job description corresponding to a Job title. Depending on the employee's skill set and company's need, an employee can be expected to perform varied work. Even a senior Business analyst and a manager can have exactly same role. They may be doing same BAD activities and team lead. There is no co-relation between designation and your roles. People don't have any fixed specialization and management expects In Um-Sigma, employees are expected to set annual goals for them at the end of every year.
These goals need to be approved by both - employee as well as the manager. These goals are focused across 3 areas: Competencies: Every employee is expected to develop technical and functional competencies across increasing areas. It can be either in terms of learning new skills such as AS, Bal tools or in terms of getting functional knowledge of the area of scope. E. G. Employees are encouraged to do insurance related certifications to hone their functional expertise. Individual Growth: A lot of focus is to ensure individual growth of the employee.
Hence, in addition to above mentioned technical and functional skills, employees are also encourage take part in personality development and managerial development sessions, which company regularly organizes from time to time. Resynchronization: Um-Sigma considers its employees as partners and employees are encouraged to contribute to organizational growth and development. This includes contribution in terms of developing in-house expertise and tools and as well as participating and training and recruiting activities.
A strong focus is placed on ensuring that these goals are met and hence processes have been put into place to ensure honest feedback. At the end of every quarter, every employee is asked to track and note down his progress in all the mentioned goals. Employees are encouraged to have a discussion with the manager if required. This ensures that manager is aware of the employee goals and suitable corrective actions can be taken at the earliest. 3. 7 Information Sharing Structure Um-Sigma prides on its horizontal structure designed for learning.
The company has a flat hierarchy with few rules. All people sit in an open bay and only the company's head has a separate room. Since in analytics industry, most of the techniques and common and replicable across variety of industries, hence focus is lot on horizontal and face to face communication. It also has a company point shared site called SPAN where employees can exchange their information and aid in mutual development. Besides this, there are also formal knowledge exchange sessions among different teams.
Um- Sigma believes that this wide spread sharing of information keeps organization working at optimum levels. Ideas and information are shared across many, ensuring that every employee has a holistic view about the company and the resources are adaptive. 4. Strategy 4. 1 Strategic Intent Mission: To solve High Impact Business Problems for market leading customers across various industry verticals using advanced analytics in a sustainable manner. Vision: To enable businesses to institutionalize data-driven decision making.
Before moving on to defining the kind of strategy that senior managers at Um Sigma employ, it is important to understand the competitive environment under which Um India included: Size of the Indian Analytics Market: $ 375 million Number of companies operating in this segment in India: Over 500 companies Expected size of the Indian Analytics Market by 2015- $ 1. 15 billion 4. 2 Competitors EXCEL, Absolutist, Fractal Analytics, Affine Analytics. Also, the in-house analytics teams being put together by most companies pose a major threat to Um Sigma. 4. Competitive Advantage The major source of competitive advantage that Um Sigma enjoys stems from its highly talented workforce. Raja, the company founder, strongly believed in establishing an A Team. He realized the importance of having the right people in the organization to drive it towards success. Since its inception, the organization has strongly focused on acquiring the right talent to suit its need. This fact is also reflected in the highly selective process employed by Um Sigma's hiring managers: just one in 16 people interviewed is hired, and many more are rejected before they get to that stage.
The newcomers are not appraised for the first three years. The company's 45-people human resources, or HER, team is large for Um Sigma's sizes The firm, however, also got more things right than Just the people piece. It started playing in many sectors - from financial services to healthcare - which helped it gain scale ND advantage over its competitors. Apart from enjoying these advantages over competitors, the firm also focuses strongly on innovation. It has a separate Innovation & Development Group which caters solely to innovation specific activities within the firm.
Mile's and Snow strategy framework to identify the kind of strategy that is being implemented (or should be implemented) at Um Sigma. Given the above observations on the dynamic, uncertain and growing environment of the Data Analytics industry and the enormous amount of competition, it makes sense to follow the Prospector strategy in order to stay competitive and to survive. The people oriented culture of Innovation within the organization, which we observed above, to some extent, does support this strategy. 4. Porter's Competitive Strategies Um Sigma follows a strategy of Differentiation. This is in line with its strategy of investing heavily in 'Innovation and development' with a focus on developing in house data analysis tools.