Case 8- Anthem Benefits from

More Business Intelligence

Business Intelligence and Analytics for Decision Support

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The Balanced Scorecard Framework

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 Anthem Benefits from More Business Intelligence
 Anthem Inc. is one of the largest health benefit companies in the United States.
 Anthem has been an industry leader in analyzing data to reduce fraud and waste, fine-
tune its products, and keep healthcare costs low.
 Anthem wanted to apply its analytical skill internally to sharpen decision about how to
deploy and develop its 56,000 employees as a strategic resources.
 Anthem created a cloud-based People Data Central (PDC) portal, whose interactive
“workforce intelligence” dashboard lets HR and other users access and ask questions,
using internal and third-party data.
 A high-level “executive scorecard” feature explores the relationship between Human
Resources metrics and business outcomes to use in short- and long-term planning.

Why did Anthem need better data and analytics tools for
Human Resources? What management, organization, and

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technology factors contributed to Anthem’s need for

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better HR data and analytics?

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Management: Anthem wants to apply its analytical skills internally to sharpen decisions

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about how to deploy and develop its employees as a strategic resource.
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 Organization: To improve the HR department’s recruiting, hiring, promotion, and
employee development programs, Anthem needed better analytic tools and a single
standardized enterprise-wide view of its data.
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 Technology: Anthem’s human resources and talent data used to be scattered among
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many different systems and spreadsheets, so they were difficult to aggregate and
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compare. Basic questions such as “What is our turnover rate?” or “How many open
positions do we have right now?” produced different answers, depending on who was
asked, even within the same location or work group.
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Describe the business intelligence capabilities of the PDC

portal.
 Anthem created a cloud-based People Data Central (PDC) portal, whose interactive
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“workforce intelligence” dashboard lets HR and other Anthem users access and ask
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questions using internal and third-party data. The portal serves 56,000 employees and
presents data in dashboards, graphs, reports, and other highly visual formats that are
easy to comprehend and manipulate.
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 A high-level “executive scorecard” feature explores the relationship between Human

Resources metrics and business outcomes to use in short- and long-term planning.
o One scorecard report showed the relationship between customer growth,
Anthem’s net hire ratio, and total costs associated with internal and external
labor.

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 o PDC provides a total of seven dashboards on “hire-to-retire” HR operations, 50
summary views from which users can drill down into detailed reports, and links
to other relevant data and training sources.

What groups in the company benefited from Anthem’s

new analytics tools? Explain your answer.
 The company formed a Talent Insights team, whose members include MBAs, PhDs, and
CPAs, to develop more sophisticated data analysis and help users work with the data.
o The team worked with Anthem’s Wellness team to examine data on employees
who utilize company wellness credits to determine whether this could be
correlated with reduced absenteeism and employee turnover. Every month, the
team looks at a different slice of data using various indicators such as company
performance, employee participation in wellness programs, or reductions in

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absenteeism.

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 The Anthem Talent Insights team is also helping other business groups outside of Human

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Resources make better use of data. These employees from other functional business

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areas typically have access only to the data for their business units. Talent Insights helps

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them combine these data with HR data so they can answer questions such as how their
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high-potential employees whose careers are advancing compare with those in other
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parts of the company.
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How did Anthem’s new data analytics capabilities change

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the Human Resources function at the company?

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 The PDC is able to perform sentiment analysis.

 The portal includes a channel where employees can voice their opinions about their
work experiences confidentially, using emojis and limited text entries.
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 The system analyzes these ongoing sentiments to create “team vitals” reports to help
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management identify and address potential productivity risks.

 The company often finds information on which it can immediately take action, such as
ideas for improving processes or re-prioritizing resources.
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