vantiv-kalvin presentation at cbig event

Institutionalizing Analytics into Decision Making

Cincinnati Business Intelligence Group Presenters:Cincinnati Business Intelligence Group

November 15, 2012

Presenters:

Scott DeAngelo, Senior Vice President of Strategic Pricing & Portfolio Management, Vantiv

Sarah Barber, Director of Strategic Pricing & Portfolio Analytics, Vantiv

Shankar Ranganathan, Vice President of Analytics & Strategy, Kalvin

Merchant Services Financial Institution Services

Card Issuer Processing

Merchant Acquiring

Network Services

A Leading Integrated Payment Processor in the U.S.

#3 � Ranked U.S. Merchant Acquirer in Total Transactions

#1 � Ranked U.S. Merchant Acquirer in PIN Debit Transactions

#2 � Ranked U.S. Merchant Acquirer in Transaction Growth

9% � Market Share in the U.S. based on number of FI customers

1,300 � Financial Institution relationships across the U.S.

Vantiv is Well Positioned as a Market Leader

Leading MerchantServices Provider

Leading Financial Institution Services Provider

Single, Integrated Technology Platform

12b+ Transactions at 400k+ Merchant Locations Processed Annually through a Single Platform

�Proprietary Technology Platform

� Integrated Business

�Comprehensive Suite of Services

�Diverse Distribution Channels

�Strong Execution Capabilities

Hot Trends

• Enhanced Exposure

• Expanded • Expanded Opportunity

• “Major” Area of Study

• Up-front vs. Back-end

• Speed vs.

Hot Mess

• Speed vs. Accuracy

• Form vs. Functionality

5 things we’re doing to accelerate the Institutionalization of Analytics into Decision Making at .

1. Defining & Scoping What Analytics Is

Macro Level

Descriptive Predictive

Analytics!?!? Analytics!?!?

Micro Level

Descriptive Predictive

Analytics!?!? Analytics!?!?

Macro Level

Descriptive Predictive

“Top of House” Financials

Monthly Business Forecasts

Micro Level

Descriptive Predictive

Segment Specific Reporting

Customer Level Predictions

2. Location, Location, Location

3. Managing the “All or Nothing” Mentality

Where We Will Be

Where We AreWhere We Are

Where We Were

4. Balancing Accuracy & Understandability

“The test of a first rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the

ability to function.”

-F. Scott Fitzgerald

Key lessons learned from data visualization at

Data tells the narrative…

Opposing ideas by default work against each other.

But if we think of opposing ideas like a magnetic force-- the very force that causes like magnets to push against each other also causes attraction.

To get them to work together all relies on how they are positioned.

…if that data is well-positioned

Visualizations deliver organizational buy-in.

Total Signature Revenue by Month – Vantiv Merchant Direct

Feb. ’12

$18,000,000

$20,000,000

Pricing Ef fect

Spring ’11

Pricing Actions

Fall ’11 Pricing

Actions+Durbin

January ’12

Pricing ActionsAction 1 Action 2 Action 3

Incremental

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

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Volume Effect

29% of total

42% of total

50% of total

Baseline

Visualizations deliver organizational buy-in.

Z%

Revenue by Industry Revenue Margin by Industry

24%29% 32%

100% = $_B $_B $_B

X%

Y%

27%23%

19%

48%

48%49%

2010 2011 2012

Industries 5-7

Industries 2-4

Industry 1

Keep it Simple, Statistician.

Simplicity elevates insight to value.

Get in the weeds…

… But don’t get lost.

5. Pushing Intelligence to the “Front Line”

From Push to Pull

Presenting intelligence through data visualization pulls executive strategies to the

front-line

Discover the “Unknown Unknowns”

- Donald Rumsfeld

Real Time and Proactive – What is it?

Decision Set

Predict

and

Act

Information

Set

Real Time and Proactive – What does it take?

Analytics

Process

Action Distance

Process

Source: Richard Hackathorn at TDAN.com

So, what is Analytical Process?

• Shifts in Margin

Business Problem

• Attrition issue

• Lower Margin Customer Acquisition

• Volume Mix Shift

Analytics

• Health Check Dashboard

• Customer Migration Report

• Price/Attrition Alerts

Information

• Volume Mix ShiftAlerts

• Cross Sell

• Up Sell

• Reduce Price

• Add-On

Activate

Operationalize and update

strategy

•KPIs

•Dashboards

•ROI

Measure

Speed of Analytics – Why business reaction is slow?B

us

ine

ss

V

alu

ebusiness

event

data stored

information delivered

Bu

sin

es

s

Capture Latency

Analysis Latency

DecisionLatency

Time

action taken

CapturedBusiness Value

Source: Richard Hackathorn at TDAN.com

Lo

st

Speed of Analytics – How can we increase speed?

business event

data stored

information delivered

Bu

sin

es

s V

alu

e

Time

action takenB

us

ine

ss

CapturedBusiness Value

Source: Richard Hackathorn at TDAN.com

Lo

st

Speed of Analytics – Getting Real Time …….

business event

data stored

information delivered

action takenB

usin

ess V

alu

eL

ost

Time

CapturedBusiness Value

Source: Richard Hackathorn at TDAN.com

Data to Insights - How Traditional Process works?

Data sourcesData Integration Data Marts

Pre

se

nta

tio

n T

oo

l

Decision Makers

Report Consumers

Integrated Data Warehouse and BI

Da

ta A

na

lyti

cs

Pre

se

nta

tio

n T

oo

l

Business Analysts

Da

ta A

na

lyti

cs

End to End Data Analytics Solution

6-8 months 6-8 months 6-8 months

We are building data and delivering insights at the same time

Data sources

Data Integration Data Marts

Pre

se

nta

tio

n T

oo

l

Analystsand Business Users

Integrated Data Warehouse and BI

Enriched and Intelligent Data

Pre

se

nta

tio

n T

oo

l

Feedback Process ( Update Analytical Models)

KalvinTellTM

– An Integrated Solution Analytical

Engine

Decision Makers

Analysts Business UsersDecision Makers

Analytical Data Synchronization

KalvinTellTM – An Integrated Analytical Engine for faster turnaround

Data Integration

Logic

Report Calculations & Business

RulesData

Quality Logic

Data

Security Logic

Multiple Regression

Survival

Segmentation

Probabilistic Model

Data sources

KalvinTellTM – an automated end-to-end solution with up-to-date predictive analytics embedded within data layer

KalvinTell

™(Kalvin’s

Analytical

Engine)

Growth

Targeted

audience

WebI

Dashboards

Upside

potential Explorer

Attrition

Rate

Pricing

Strategy

Mobility

Merchant Centric Analytics Roadmap

DiagnosticsHealth Check

Reporting

Predictive Analytics

Merchant Engagement & Growthenables...

to drive...

to grow...

– Customer Migration Reporting

– Retention Modeling – Relevant Communications

– AnalysisReporting

– Key Drivers & Metrics

– Customer Loyalty

– Customer attrition

– Attrition Modeling

– Revenue and Margin Forecasting

– Pricing Strategy

Communications

– Merchant Product Enhancements

– Merchant Behavioural Selection (targeting)

– Trends

– Segmentations

– Capture relevant attributes

Real Time in Days

What? What Next?

Pricing and Attrition Alerts

Cross Sell or Up Sell

Real Time in Months

What? What Next?

Merchant Centric Segmentation

36

Key Takeaways

Thank You!Thank You!