Discover Relevant Insights Into Complex Problems

Learning Objectives

After completing this unit, you’ll be able to:
  • Create an Einstein Discovery story.
  • Use insights from the story to investigate the factors that can influence business outcomes (in this case, margin).
  • Ask questions to gain new insights that help you improve those outcomes.

What Happened to Our Margins?

Your company’s margins are shrinking and you're not sure why. But with Einstein Discovery in your toolbox, it's time to create a story that will give you answers!

Create the Story

If you’re not already in Tableau CRM Analytics Studio in your DE Org, launch it from the App Launcher.
  1. From the dataset's page or menu, select Create Story. Tableau CRM Analytics Studio launches the Story Setup wizard.Start an Einstein Discovery Story screen
  2. Because we want to learn what happened to lower our margins, under Story Goal, select the Margin column from the list.
    Story goal with Maximize Margin selected
    That's correct - our goal is to maximize margins. 
  3. The default story name is the same as the dataset name, but “APDist” isn't descriptive enough. Change it to “Maximize Margins”. Keep the default App as “My Private App”.
  4. Click Story Type. For our investigation, we want Einstein to conduct the more comprehensive analysis of the data. Therefore, click Insights & PredictionsStory setup screen - select story type (Insights Only or Insights & Predictions)
  5. Click Setup Options. For our investigation, let's have Einstein Discovery select the relevant fields for us. Story setup screen - choose automated or manual field selection
  6. Accept the default (Automated) and click Create Story.

Now sit back and watch as Einstein Discovery evaluates your data from just about every possible angle. This analysis usually takes a minute or two, so go ahead and take a stretch break.

Story creation progress screen

When it’s done preparing the story, Einstein Discovery shows you the insights it found.

Insights summary screen after story creation

Here are the key areas of the interface for Einstein Discovery stories:

AREA NAME DESCRIPTION
1
Story Headline Name of this story, selected goal, and most recent version.
2
Story Toolbar Tools you can use to view predictions and improvements, update story settings, and perform other tasks.
3
Variables Panel List of explanatory variables in your story and their correlation to the story outcome.
4
Story Version Summary Summary of story insights, including version comparison.
5 Insight Summary Panels  List of variables, ordered by correlation, that positively or negatively impact a story.
6
Top Insights List List of insights associated with this story.

Initially, you see descriptive insights in the insights list. These insights show what occurred in the past. The first visualization you see—a bar chart with highlights and explanatory text—represents the first of many insights that Einstein found. In fact, it’s the most statistically significant insight in the list. You can scroll through the list to explore other insights. Different products have widely different margins. An Einstein Discovery insight doesn’t simply present some data, it also highlights what’s important about it. The blue bars show the products where the margins were significantly better or worse than the average margin (the orange horizontal line).

Digging Deeper

Why aren't our margins doing better? What’s the cause? Let’s focus on the product with the lowest margin, alternators.

  1. In the Variables panel, select Product. Einstein Discovery displays the insights filter selector (1) and a summary (2) of insights associated with Product.

    Selected variable shows insights filter selector and insights summary
  2. Scroll down to the insight with the title “When Distributor is Nisizu, Product: Hybrid Motors and Lift Supports do better”.
    Insight titled: When Distributor is Nisizu, Product: Hybrid Motors and Lift Supports do betterGreat—looks like some products are returning good margins, particularly Hybrid Motors and Lift Supports, as the insight shows us. But it still doesn’t tell us why alternator margins are lagging so far behind, so let's keep going.
  3. From Choose Value, select Alternators.
    From Choose Value, select Alternators.

    Einstein summarizes how margin for Product: Alternators compares with all products.
    Summary for Product: Alternators and the most significant insight.
    The first insight tells you that all distributors are under-performing with alternators, but there’s one that’s doing especially poorly: Nisizu. You suspect that this distributor’s poor performance has had a major impact on overall margins. Let’s take this one step further and find another insight that can tell us why.
  4. Above the insight, click Why does this do worse? This kind of insight helps you take a deeper look into the exact factors that led to a particular outcome.

Location of the Why does this do worse? button above the first insight. You see a new insight that supports what you already suspected: “Product is Alternators by itself explains 4.123 of the change in Margin.” Insight titled: Product is Alternators by itself explains 4.123 of the change in Margin

The waterfall graph reveals a new view of your data. The explanatory text says: “Distributor is Nisizu occurs 35.8% of the time globally but it changes to 52.8% when it is known that Product is Alternators.” In other words, Nisizu is responsible for more than 50% of your distribution deals for alternators! That explains a significant part of the drop in margins.

Next Question: How Can We Improve Margins?

Now you have some indications about what’s causing margins to fall. That’s great, but you need a solution, so the obvious question to ask next is “What can I do about it?”

Let's try predictions, another type of insight, to figure this out. Predictions include:
  • Predictions of future outcomes based on a predictive analysis of your data
  • Suggested ways in which to improve your predicted outcome based on a prescriptive analysis

Let's take a look.

  1. On the Insights navigation bar, click PredictionsPredictions and improvements screen - select a group to predict
  2. In the left panel, click Product and select Alternators from the list. The projected margin is 20.68Prediction for when the selected product is alternators: margin of 20.68
  3. From Distributor, select Nisizu. The projected margin decreases to 15.02, which reaffirms what we already know - that distributing alternators through Nisizu lowers our margin. When Distributor is Nisizu and Product is Alternators, Margin is 15.02.
  4. Select different distributors until you find one that provides the highest margin for alternators. Consider whether to redirect alternator sales through this distributor.
  5. Let’s see how Nisuzu performs with a different product. For Distributor, select Nisizu again.
  6. For Product, select Belt Drives. The predicted margin increases to 56.90When Distributor is Nisizu and Product is Belt Drives, Margin increases to 56.90Wow! That’s quite a jump! However, before we conclude that distributing belt drives through Nisizu is the best option, let’s try something. To see what the margin for belt drives looks like across all distributors, remove the Distributor filter.
  7. For Distributor, click Select an Option (which clears the filter). The margin drops to 49.48. Having Nisizu distribute belt drives improves margin.When Product is Belt Drives, margin drops to 49.48
  8. Select different distributors until you determine which one provides the highest margin for belt drives. Perhaps you can consider redirecting belt drive sales through this distributor.
Great! You now have some ideas about why your margins are shrinking, and what you can do to improve them! Think of the work it would have taken to get the same results with your existing tools. Endless combing through spreadsheets, coming up with complex formulas for cross-tabulating and comparing results, emailing back and forth with distributors, and so on. With Einstein Discovery, you imported data from a CSV, navigated quickly through a few screens, and found actionable answers with just a few clicks. Looks like Einstein Discovery is going to make a great new addition to your team!

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