20150118 s snet analytics vca

Growth and Approach towards Analytics

Analytics growing as a business mandate.

Data is Growing Performance Gap Widens Capability Gap Exists..

4.4x

2.7x

2.4x

2.4x

2x

Investment in Data and Analytics

Top Performer Bottom Performer

Sources: IBM Breakaway Now with Business Analytics and Optimization

17%

42%

28%

10%

USE OF DATA BY BUSINESS*

75% or more 50-74%

25-49% 0-24%

++ There is a skill gap

60% executives say they “have more information than we can effectively use”** [IBM Report] .

McKinsey Report on Big Data estimates 50-60% gap in the supply of deep analytical talent; equaling 140,000 to 190,000 unfilled positions.

40% growth in global data

annually

Globally 2.5 quintillion bytes of

data per day

90 % of the data in the world

today has been created in the last

two years alone.

Customer TransactionsCustomer records through device ubiquity and better data mgmt..

1

Customer InteractionsSocial Unstructure, semantics.. 20B events / Day – Facebook

2

Machine InteractionsLogs sensors intelligence on all equipment

3

IBM Report Global Business Analytics market size is pegged around $105 billion and growing at CAGR 8%.

Shifting Priorities for Management in Analytics..

Major themes for Analytics

Customer Insight

Business Risk

Operations / Service Warranty

Service / Warranty

Customer micro Segments – Delivering personalization Customer propensities for action, Cross sell, preferences, Next Best Action Digital Marketing, Below the line & Discovery Pricing Models / Sensitivity

Especially in BFSI where financial Risk coverage for regulation and internal business Portfolio Management & Ops Risk management Worldwide financial services OpRisk and GRC technology market will grow to $2 billion by 2013 [ @ CAGR 6.5% ]

Inventory, Parts Supply, Service Management Geo-Loc coordination for Logistics, Users, & producers Predicting failure of service and business components, Customer contact, sentiment and intent Resource Allocation and Triaging

New Product Design Pharma, Automobile, Hi Tech Smart Pricing utilites and Energy Claims And Litigation Insurance

Analytics Value to Business

Business outcome

Operations Transformation

Insights Data

•Strategic themes

•Customer Insight

•Digital Marketing

•Pricing / Risk

•Product Design

•Service / Operations

•BI / Dashboards

•Manual Operations

•Embedded Analytics

•CEP / Rules Engines

•RT Integration

•Analysis / Methods

•Prediction / Data Mining

•Machine Learning

•Sample vs Large Data

•Parameterized and NON

•Volume, Variety, Velocity

•Data Sources { External, Unstructured }

•Data Integration {ETL}

•Data Lineage {Metadata}

•Data Preparation {Index, Search}

•Customer Segmentation, Behavior based models in all industry

•Price Sensitivity analysis

•NPD / Molecule research in Pharma

•Risk in BFSI

•Driving Digital Initiatives like Mobile

•Triaging / Routing in Contact centers

•Running a Analytics KPO that provides insights for Operations

•Methods like Segmentation, Regression based scoring,

• Sensitivity Scenarios , What-if

•Text and media mining capabilities [ PCA ]

•Semantic Search

•70% of the effort is spelt out in Data

•External sources, public and paid..

•Text, media processing / Index

Changing Landscape .. Analytic Techniques ..

MIT SMR – IBM Study – The New path to Value 2012

Thanks to Teradata

Thanks to Teradata

Analytics Services Maturity Model

ALIGNED INTEGRATED OPTIMIZINGFRAGMENTED

DA

TAA

NA

LYTIC

SV

ISUA

LIZATIO

NP

RO

CESS [A

CTIO

NS]

SCALE / STRUCTURE

SOURCE / RETRIEVE

CONFIG - CONTROL

INTERACTION

ALGORITHM

MODELING

DESIGN

EXECUTE

MANAGE

PRESENTATION STRUCTURE

Simple 2-Dimensional Graphs and reports including Types of Visuals

supported?

Static simple play out

Simple structure, numeric [ cardinal]

and non-numeric- [ Ordinal]

Internal Local Files, federated

Ad-hoc Customer opportunity

Operational Changes >

Basic Functions and statistics

User Configuration, Data Security

Structured Data with metadata

support,

Integrated data sets through DB-

DWH, SQL based retrieve

Single Iteration playoutComputational Flows

Process Maps, Kpi- Metrics Breakdowns,

Manual Process Change / Actions

Tactical Changes – re-structure to

Business operations, processes..

Linear Functions, Regression,

Statistics,

Strategy Changes - New services

models, synthesis of business value

Integrated Partner Actions,

Automation into systems,

scenario analysis, what -if analysis,

Complex Statistics [econometrics] , Numerical Method, Clustering

Analysis,

System Generation-Automation ,

visual re-formation,

Compliance and traceability effort in

adding new data sources

external connectors – API,

Composite Visuals, infographics

Unstructured text, Data Scale – Size

and time

Value Chain Analysis , Benchmark

Data

New Revenue Models

Sense and response mechanisms,

Simulation, optimization,

Text & Analytics, Neural Networks,

fractals,

Actions integration - external

systems.

Storyboards, Virtual Reality

late binding – auto discovery of

structure

Access to non standard data, late structure binding Real time search

Data as Media like Voice, Image and

Video Bigdata Management

pivot based interaction – User self

service

Maps, Multi-dimensional Graphs,

How are Businesses acquiring Analytics

Inhouse / Captive

Solution Utilities

Services / Resources

Platforms / Products

1. A Typical Bank would have a 1Bn USD budget 2. 80% spend inhouse and in Captive 3. 1200 Person = 600Mn $ Value / 100 Mn $ Cost4. Slow, lethargy, internal Constraints, IPR

1. Small Boutique companies getting seeded 2. Focusing on either large platforms [ splunk ] or a

very specific Business use Case [ Mydrive ]3. Scale issues, pricing,

1. Large resource houses, with 80% $ from staff Aug 2. Fragmented delivery, water fall, change is a

challenge , Utilisation is key , security & leakage3. Can Scale, some can partner,

1. Best complement to Inhouse / Captive 2. Developing the foundations for the next gen, 3. Focused more on tech rather than business 4. Partner to all above entities,

Delivering Analytics Value to Business

Business outcome

Operations Transformation

Insights Data

Solu

tio

ns

serv

ices

Too

ls P

latf

orm

s

300 400 7000wipro

Other players CTS, TCS, Big 4, musigma

TeraData

Pivotal

Opera

Cloudera

Tableau

Clikview

RevoR

Mydrive InfoChimp

70 1200 500Bank captive

Typical Analytics PracticeStrategic Eco-system Alliances

1051

Analytics [ 140 – 60 USD ]

BI [ 100 - 40 USD ]

Data / Integration [ 100 – 30 USD]

1. 80% of the business is still Staff Augmentation

2. 80% of the business in BI / MI and low end data services..

3. Large players like Wipro / TCS / MuSigma in the range of 5000-10000 resources

4. Lot of SME consulting Smaller players

5. Clients are slower than the vendor..

1. Staff Augmentation in various Skill Areas

2. Partnering and COE development for clients

3. Project based Delivery – Agile Waterfall

4. Embedded Analytics in Operations and other initiatives like Digital, mobile etc..

5. Service Transformational Analytics – CTS

6. Very weak in industry / Business domain

For Every Analytics Resource.

Analytics Shifting Trends

Rapid Outsourcing Growth

Bringing Data together

Capabilities, Scale, = purchase

Management End User

Multiple Delivery focused on Captive

Data Driven Business

Partnership, Eco-system, Speed

Business End User

• Past helped ISV Grow Business [+30% CAGR ]

• Analytics == IPR Captives • Talent and Skills still a big shortage

• From structured to unstructured • IOT / sensors, new external data • Unstructured Data Media = Big Data• Large Data – Lakes, Metadata• Shift from Model to Compute

• Show & Tell + 0 consulting + Action • Partnerships, COE, Investments, Utilities =

Value Add • Utilities and Plug-n-Play

• Generating Business Use Cases Keeping managers charmed = BI Sophistication + Cool Tools

• Integrate Analytics within Digital Initiatives

• Management Ops Customer • Privacy + Security

Past 5 years Next 5 Years

How to Buy $$ Analytics

Business outcomes

Partnering Vendor

Total Cost of Operation

Future Proofing

• Deep integration with a Business outcome [ MyDrive]• Charging and Collection Model [RDC] • Time to deploy and transform [ Splunk ]

• Agile Delivery Models• Show and Tell / Productized services • Ability to Partner / Co-innovate

• Non-Linear Scale in the Business Model • Easy to Consume, Utility, Pricing

• Eco System Partnerships • Application potential across the Economy [ MyDrive] • Keeping it simple.

Solution Capability Development

Business Value Modeling.

Analytics Program Model.. Business Value and thereby Performance Hotspots drive solutions and messages

Sales & Marketing

Member Mgmt & UW

Provider Mgmt

Claims Mgmt

Customer Service

Medical Mgmt

Revenue - GTM

Business Case

Account Intel

Pitch / Proposal

Partnership / POC

Events / ABM

Engagements

Quote Generation

Broker Mgmt

Campaign Mgmt

Market Research

Member Retention

1. Brand Perception / Perf

Ratio

2. Influence Ratio

3. Number of leads

4. Cost per lead

5. Medium Conversion Rate

6. Avg Premium Val

7. Days visit to purchase

8. Task Completion Rate SOLUTION CATALOG

KEY OUTCOMES

Key Resources

Partnership Algorithm

Training Research LAB/ COE

Understand Business Landscape: What value is business after? Key pain points in decision making / operations

Leverage Internal Capability: No duplication of work already done / capability already in existence

In Sight of the Customer: Develop capability through the customer, interface, POC / Pilots

Develop Ecosystem for delivery:Relationships with established & emergent OEM who will drive the market

Time Bound: Ensure outcomes with time frame. 3 months to customer and 6 months to pilot

Develop Systemic Solutions: Consulting to understand customer, quick entry, low change and capital….

1

2

3

4

5

6Data

Process Actions

Analytics

Visualization

Capability Framework

1

2

3

Key principles

Program Status

Business Themes and Analytics COE

Marketing RoI & Growth analytics

Customer acquisition analytics

Customer retention analytics

Social media driven analytics

Customer/Employee fraud & risk

Competitive intelligence analytics

Supply chain analytics

MFG process quality & compliance

Early warning analyticsAsset Perf. Maint. & warrantyNetwork analyticsService Problem Analysis

Service Logistic & Resource Alloc.

Governance, Risk & compliance

Integrated financial perf. - EPM

Store operations Analytics

Merchandising & Pricing analytics

Claims analytics

Pre-Trade Post Trade Analytics

Drug discovery analytics

Post market analytics (Pharma)

Care & Safety analytics

Care analytics

Member Retention Analytics

Smart meter analytics

Technology

Business Automation Modeling

Dat

a

An

alys

is

Vis

ual

s

Pro

cess

People

Methods

Tools

Vertical Themes

Customer Lifecycle

Service & Warranty

GRC

EPM/WIPM

• Product Mgrs [10]• Clustered Solution

Themes + verticals • Teams for Verticals

program mgmt • Modelers & Technologist

report in.

• Business Consulting • Innovation &

Transformation Client Pitch / Engagement

• Analytics Program Management

• Long term look at business Automation solutions

• Modelers • Cluster Solution Themes

• Exploring Analysis Tools • Develop Models/Methods• # Of experiments• Play with data

• Information Technologist• Cluster 1

• All Data Gather & Aggregation technologies

• Solution Warranty / Scale• Speed, Variety – API • # Of experiments • Manage COE\Env.

Vishwanath Ramdas

Head Analytics FCC Compliance , Large MNC Bank

8 years in the industry with 17 Y experience in Business Transformation.