squeezing more insights from big data_fractal analytics_ibi summit 2012

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Confidential | Copyright © 2012 Fractal Analytics, Inc.

Squeezing More Insights from Big Data

Deepak Ramanathan Fractal Analytics Inc.

IBI Summit - June 6, 2012 Kissimmee, FL

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Key points

1. Winners are positioning to leverage Big Data and Analytics

2. What is preventing success?

3. Stages of developing a data-driven culture

4. How to get started?

2

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We all know companies using analytics win more…

* IBM Survey was conducted on 3,000 executives, managers and analysts working across more than 30 industries and 100 countries where respondents were asked to assess their organization’s competitive position^ IDC white paper “The Financial Impact of Business Analytics”

Study 2^: Predictive Analytics improves ROI of BI application by ~ 60%

89%

145%

Only BI BI & Predictive Analytics

Study 1*: Predictive Analytics = better performance

45%

20%

53%

27%

Top Performers

Use analytics to guide future strategies

Use analytics for day to day operations

BottomPerformers

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2008 2009 2010 2011 YTD 2012

2,340 2,130

25,800 25,300

63,800# of “BIG DATA” articles online

Source: Google NEWS

“H-P said it will reallocate the $3 billion to $3.5 billion savings

each year from the 27,000 job cuts planned between now

and 2014 to Big Data analytics, cloud computing and security infrastructure.”

16%

33%

40%

7%

107%

% denotes change in stock price from list price* Data approximated as of May 25 2012

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But the concept of BIG DATA is emerging…

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…This has the potential for disrupting the notion of analytics in your industry

Confidential | Copyright © Fractal 2012

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Telematics in Insurance Industry

Premium

The Car

Whose Driving

Type of policy

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Today, analytics is not set-up to cater to ‘BIG’ demands

Reporting strength Cost centre Hidden cost of service Reactive

206

1

5

EVPSales Team

Marketing Team

Analytics

12Product

Development

6

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…which will lead to implementation challenges

Q: Top business challenges to delivering a successful big data analytics solution?

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Source: IDC and Computerworld BI and Analytics Survey Research Group IT Survey, 2012,

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Overcoming analytics barriers – history lesson

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Reference; http://en.wikipedia.org/wiki/John_Snow_(physician)

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Key phases of analytics adoption

1. Identify current gaps

2. Roadmap for execution

3. Talent acquisition

1. Choosing a Pilot

2. Defining Success Factor

3. Implement and measure success

1. Talent retention

2. Develop SLAs

3. Focus on Innovation

Top

3 C

on

sid

erat

ion

s

Vision Pilot Growth Steady State

1. Ramping Up

2. Project planning

3. Maintain quality levels

Focus

9

M0 M3 M24 M36M12

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Business diagnostic helps you layout your vision

Assess status quo: Data infrastructure Analytics process

Business diagnostic helps: Understand current gaps Prioritize needs Plan investments Benchmark against best practices

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Vision Pilot Growth

Steady State

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…and helps to develop an execution plan

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Vision Pilot Growth

Steady State

Current test and learn capabilities Campaign, offer, design effectiveness Supporting tools and processes

Analysis tools Resources, and methodologies Quickwins

Campaign planning and execution Tools and capabilities ROI framework

Data Quality Assessment Duplicity GranularityD

ata

Insi

gh

t

Mea

sure

Fee

db

ack

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Where to start?

Business Diagnostic Roadmap

Focus Preparation for assessment

Key Activities

Deliverables

Week 1

Project Kick off and Stakeholder

meetings

• Obtain background data and documents

• Prepare questions for stake-holders

• Set-up key meetings• Send stake holders

list of questions

• Kick-off meeting• Conduct key

stakeholder meetings• Prepare meeting

notes and obtain clarifications

• Obtain relevant documentation

• Extract sample data

• Define “As is” situation

• Define “Desired” situation

• Define Current Processes

• Benchmark with industry

• Identify gaps and enhancements

• List of documents and data

• Questions for stakeholders

• Kick-off meeting deck

Detailed Review, Analyses and Assessment

Final Recommendations

and Report

Week 2 Week 3-4 Week 5

• Prioritize initiatives • Identify quick wins• Align initiatives with

implementation time and ROI

• Create final report with recommendations

• Share best practices

• Stakeholder meeting notes with clarifications

• Sample Data Assessment

• List of quick wins• Roadmap with

initiatives and ROI• Recommendations• All supporting

materials

• “As-is” document• “To Be” document• Current process

documents• Gaps and

enhancements

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Vision Pilot Growth

Steady State

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Diagnostic: Enhancement prioritization

Immediate (0-6 Months) Medium (6 Months -1 Year) Long (1 Year +)

Low to Medium

1Cross Sell 3

Restructure SalesChannels

6MIS Dashboards

10Proactive limit management

9Revamp Bonus Points Program

4Retention Management

8Cross –sell Parma

Medium to High

12Increase card delivery rates

11Activation Campaigns

2Loyalty Pgm

5Spend Management

7Launch New Products

Impact on Bank

Illustrative

13

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Diagnostic: Talent acquisition framework

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Type of TalentStatistician, Data expert, Business Analyst

• Where in the analytics pyramid is the team operating in?

Right Levels

VP, Director, Manager, Analyst

• Who is the sponsor?• How is the team going to

interact with the rest of the organization?

Right MixOptimizing the talent acquisition budget

• Is the team going to provide consulting solutions or analytical insights?

Analytics Unit

Benchmark Learning• Typical Analytics Unit – 1 VP/ Director for every 2-3 manager, 1 manager for every 3-4 analyst

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Diagnostic: Organization structure

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Analytics

Unit

Partner Consultant Data Team

Business Units

Future model

Business Units

Analytics

Unit

Data Team

Current model

Partner Consultant

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Key points

1. Winners are positioned to leverage Big Data and Analytics

2. Status quo, demand creation & developing a business case are barriers to adoption

3. To succeed follow the 4 phases of analytics implementation

4. Diagnostic uncovers untapped potential

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United States | United Kingdom | Singapore | India | Dubai

www.fractalanalytics.com

We believe analytics is critical to deeply connect with consumers, earn customer loyalty, make better decisions to reduce waste, and ultimately improve lives.

Fortune 500 companies partner with Fractal to build breakthrough analytic solutions, set up analytical centers of excellence, and create a culture of data driven decisioning.

We solve problems, operationalize solutions to drive results, and ultimately drive change in organizations towards fact-based decisioning.

We help businesses: (a) Understand, predict and influence consumer behavior; (b) Improve marketing, pricing, supply chain, risk and claims management; (c) Harmonize data, visualize information, build dashboards and forecast business performance.

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Deepak Ramanathan, Vice President323.719.4165

[email protected]

Contact Us

http://www.fractalanalytics.com/

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