1

What’s the Big Deal

About Big Data?

And What You Need to do in 2015

A Guide for Non-Technical Managers

Agenda

What is “Big Data?”

What made Big Data possible?

What’s Happening Now

Importance of 2015

How to Make it Happen

2

3

What Enabled the “Big Data”

Phenomenon?

The confluence of two major changes:

1.The explosion of data – both structured (rows and columns) and

unstructured (web swipes, GPS tracks, satellite feeds, etc.)

2. The development of new software and analytic paradigms that

can make sense of the data in near real-time.

Volume: The explosion of web activity,

the ability to track individual keystrokes

and to analyze “unstructured” data

(non-digital data, such as surveillance camera images) has produced an unprecedented flood of potential information.

Velocity: Long gone are the days of waiting for monthly reports, now, for some data, after lunch is too late.

Variety: Today’s data comes in all forms, from traditional reports to video camera film and web app swipes. It’s messy and impossible for traditional systems to understand.

4

What is “Big Data”?

Computational Advances

New software is revolutionizing analytics:

1. Software that uses semantic (language) understanding to

compute

2. Hadoop: Open source distributed storage and processing

software for commodity servers.

3. R Open source statistical language (understands language)

5

1. Creating information transparency and usability at a

much higher frequency and finer granularity.

2. Enabling modeling and simulation at a lower cost

compared to real-world experiments, accelerating the

innovation cycle.

3. Fine-grain segmenting of customers to understand

and target customers individually.

4. Substantially improving decision-making through

data-driven decision support that replaces/supports

humans.

5. Powerful driver of innovation - The ultimate goal.

6

5 Ways Big Data Adds Value

7

Consumer

Behavior

Product

Intelligence

Merchandising

& Store

Format

Ontology Trade

Promotion

Intelligence

Transportation/

Logistics

Intelligence

Synergy of

All Data

Common

Sense Engine

Loyalty and POS

Data

Shipping &

Logistics DateDemographic & Lifestyle

Date

Product and

Inventory Data

Syndicated DataStore Format &

Merchandising

Data

Result: Integrated Understanding

Are these developments new to you or is your company actively pursuing some or all of theses technological advances?

If you have employed new technology, what are you doing?

Have you had any discussions with customers – e.g. Walmart – about using Big Data Solutions such as Savings Catcher or WMX?

Are your Supply Chain folks moving to Big Data Analytics?

8

Poll Questions

The advent of “Big Data” Analytics will cause seismic changes in the all

industries by providing truly new and more comprehensive analytics that can

drive a deeper insights.

For example:

Consumer behavior and the Digital Path to Purchase

Cognitive Supply Chain: Understand logistics variables, choke points and

potential problems before they happen

The true impact of Trade Promotion

Consumer satisfaction post-purchase

9*In professional golf, “Moving Day” is Saturday – the day competitors must make a

move to position themselves to win on Sunday.

2015 is “Moving Day” for CPG

What’s Happening Now

Examples of leading Big Data

Initiatives

10

*

11

McCormick Web Site

12

McCormick's FlavorPrint engages customers through

everyday interactions.

A simple promise: Tell it what you like and it recommends recipes

personalized to your tastes.

Those recommendations become more finely tuned to your tastes as

you continue to interact with the site.

Since the site was launched, users have doubled repeat usage and

increased time spent on the site nine-fold; and McCormick has seen

double-digit growth in spice purchases for FlavorPrint users.

Next: Incorporate users’ social networks, retailers and third-party

services like Foodily.

Digital Path to Purchase

13

Wal-Mart acquires recipe-supplier Yumprint

Supermarket News, Feb 28, 2014

Wal-Mart Stores, Bentonville, Ark., said it has acquired Yumprint, a Seattle-

based company that provides access to recipes and meal-planning ideas.

Yumprint, … operates a website and mobile app that enable consumers to

search for recipes from thousands of food blogs, as well as to plan meals and

calculate nutritional information.

Walmart said Yumprint will become part of @WalmartLabs, the company’s

ecommerce division based in San Bruno, Calif., and will be utilized as part of

Walmart To Go, a delivery pilot being tested in Denver and the San

Francisco/San Jose area of Northern California. Walmart To Go enables

shoppers to use technology to have grocery orders delivered to their

homes or make them available for free pickup at participating stores.

Why Did Walmart Buy Yumprint?

14

The Yumprint acquisition will allow Walmart to attack three of its major

problems:

1. Reduced shopper count: Yumprint will enable Walmart to access shoppers

from all socio -economic strata, regardless of where they shop today, with a

web presence at the Yumprint site.

2. Store on-shelf conditions will be largely irrelevant with the store pick-up

and delivery model.

3. Walmart will be taking a shot at major thorn-in-the-foot Amazon by

competing in its back yard – the on-line shopper.

Why Did Walmart Buy Yumprint?

15

System Will Buy Media for Retailer –

And Its Suppliers

Chain Looks to Tap Growing Data Pool in Drive for

Efficiency

Advertising Age, July, 2014

“Now that digital and social media are

reaching what Walmart U.S. Chief Marketing Officer Stephen Quinn calls

"critical mass," the retail giant is reshaping its marketing team and changing

how it works with suppliers – including buying media for them.”

Advertising Age, July, 2014

In other words, WMX’s targeting combines Walmart’s own, powerful first-party

data on consumer purchasing behavior with social media data on what

consumers are saying and thinking about brands.

Walmart Exchange (WMX)

Big Data in Supply Chain:16

Holistic View, Analytics,

Insights, Predictions, Alerts,

& Sales Opportunities

Enterra’s CRP constantly

monitors the Value Chain

Enterra Solutions Major Motor Company Supply Chain Demonstration

17

*What to Do? Emerging Roles

18

CIO

Align tech w/biz goals; liase with IT;evaluate & choose IT vendors

Sales

Cust Sales Tech

Vendors

Marketing

CMT

Set tech vision for Mktg IT

Supply Chain

CSCT

ID's SC tech needs; liase with Man &

Sales

Internal Technology

Media Outlets

Information Officer:

Liase between

internal needs and

external resources to

ensure the best fit of

technology to needs.

Everyday interface

with the customers,

either as part of a

Customer Team or as a

representative of Sales

in general.

Role 2: Supply Chain

Ensures internal

departments

understand the

personnel and tech

issues that need to

be addressed, and

are in place.

Role 1: Chief

Information Officer

Role 2: Supply Chain

Tech.

Role 3: Dir., Cust.

Sales Tech.

Ensures internal

departments

understand the

important personnel

and tech issues, and

are in place.

Role 4: Chief

Marketing Officer

HUGE role for HR to assume, as well!

What to DO? Emerging Roles

1. Thorough internal analysis:

Enterprise-wide goals

Buy-in to goals and processes

Cross-Functional collaboration

Current systems analysis

What to DO?

19

Competitive

Status

Business

Access State

Strategize Categories

Forward Thinking

Buttoned UpCategory Builder

Brand SupportBasic

Functionality

2. Formally involve your customers to better

understand what they value from their best

suppliers:

Retailers consistently tell us that those

suppliers that innovate and collaborate

are considered better partners – with real

business benefits – than those who do not.

Prepare for the Era of Big Data

Analytics

20

1. Develop a formal position on Big Data Analytics

Hierarchy of needs/benefits

Potential price effectiveness/ROI

Structural implications

Customer buy-in

2. Prioritize

Supply Chain first – that’s where any short term money is.

• Unilever saw 40% improvement in 7-day forecasts

• Del Monte reduced inventory rates by 27 percent in

two years, decreasing pallet space requirements in

retailer distribution centers up to 65%

3. Make it a part of the culture to constantly improve analytics

Not Every Company can be P&G

21

But every company can compete more

effectively

We Can Help

We purchase systems, tools, and

technology

Especially 2015, when many firms are

looking for and answer to the advent of

“Big Data” analytics

22

Now is the Time When

Now is the Time When

We sandbag expectations

23

(15)

(10)

(5)

-

5

10

15

20

A B C D E F G I J K L M N O Avg.

Business Results vs. 2014 Plan and 2013 Actual

vs Forecast vs. LY

Sometimes plans can be aggressive,

sometimes unrealistic.

We force tactics into poorly

defined strategies…and seek

self-preservation.

24

We look for a panacea

Now is the Time When

Typical Outcomes

A T BEST – no change in performance

More likely

Expenses incurred

Confusion/frustration/time-wasted

Missed opportunities

Because the process lacked “Due Diligence” or analysis

to understand the BUSINESS ISSUE, leading to…

A repeat of the previous year’s problems

25

How would you/do you measure the(expected) impact of “Big

Data” implementation?

Profit/Margin/Revenue

Supply Chain Efficiencies (timing, error rates, etc.)

Target Marketing

Customer Satisfaction

Other

26

Poll Question

27

How Can We Bend the Future?

Plan with comprehensive knowledge of:

Your enterprise SWOTS and objectives

Your customers’ attitudes, technology plans, desires and the attributes and services they value most from suppliers.

28

Step 1: Internal

Diagnosis

Step 2: Retailer

Input

Step 3:

Implementation

Internal Strategy

Alignment:

• Sales,

Marketing,

Supply Chain,

Operations

Benchmark vs

the Competition

with key

customers

• How we rank?

• Why?

• What would be

the business

benefit if we

improved?

• Priorities

Implementation

• Detailed plan

• Broad

involvement

• Periodic

checkpoints

• Report back to

retailers

January – June

2015

July – September

2015

Sept. – December

2015 – Ongoing

“Moving Day” Initiatives

Big Data is No Longer the Future

29

Why This (and Next) are More

Important Than Ever

2015 is “Moving Day”

Position Your Company to Win

30

Contact ZAHN Consulting, LLC now to position your company

for success in the world of Big Data Analytics

It is not too late!

*Thank You for Attending

For a copy of this presentation – click here <link to a slideshare pres.>

31