Presentation by Eura Nova on disruptive trends & business models due to cloud computing solutions - presented at sales summit 2 by Minds&More (oct 9, 2013); presented by Eric Delacroix of Eura Nova ...

1. Introduction
We're here to talk about the influence of advanced technologies and notably the cloud
on marketing and sales. Actually, it's interesting to include in this view the evolution of
social habits, that are closely linked to the evolution of technologies too. In this
business, it creates a kind of triangle.
We will try to show that this evolution accelerates and what are the key points where
the technologies of today have a great influence.
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2. 1950 - Main technology = Telephone
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3. 1980 - It took 30 years to see the first PC’s helping collect and store data.
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4. 2000 - It took only 20 years then to see those PC's connected, in order to share data.
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5. 2010 - And only 10 years more to get rid of the PC: all the calculation power and data
storage capability is provided by the clouds (extension of your own PC connected
through the Internet).
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6. Now - It’s time to seize the opportunity that brings this acceleration in the social and
technical cycles.
There are new needs, new demands, new behaviours and new technical means to
address them.
We will present three main axis that have been drastically influenced by this technical
evolution, as they made possible to exploit some new insights notably by being more
and more accessible.
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7. We can consider that today, people are digital:
• connected
• multichannels
• actively communicating on Internet and all "its clouds"
On the other hand, technologies have evolved such a way that we access to a huge
calculation power with the cloud (as an extension of the PC), and this huge capability
of storage enabling to access much larger amount of data (that are created by the new
social habits).
What can we do with this?
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8. The basic tools of the axis are:
Profiling
Profiling is to establish the criteria that define an observed behaviour.
You can do that not only for persons, but also for products, services or even
departments in an organisation.
Whatever the volume, my geeks wants to classify them experimenting new
mathematical algorithm to see different insights. The new calculation capability enables
to try a lot of things.
The oldest example is airlines companies.
But we imagined to do that to ease the matching between the products of an
important bank actor, and the profile of their corporate clients.
Those classifications will show key points that we can evaluate in order to enhance the
service, the product and the target.
We have new calculation power and storage capability.
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9. realIf you add to this the real-time capability
And it is a change of paradigm in term of technologies (the way you see it, you
conceive it and you use it) that is occurring now.
You are not only able to use advanced algorithm to calculate one insight, you can also
calculate it as many time as you want when the data are changing fast.
You can then decide when and where to interact with your user because you know his
trajectory.
Today it exists many automated platforms to treat the real-time buying of ad diffusion,
but they could be far more accurate (and they will).
In some companies, they are working on a connection between the call center, the CRM
and a mailing system that could trigger live alerts as soon as a number of identified
events occurred, so that the specific client treatments are anticipated and better
managed.
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10. The first possibility is that you are able to:
Understand
and act on efficiency!
Examples:
1. Nappies & beers
By analyzing buy logs, Walmart’s supermarkets found out that selling of beers are
correlated with selling of nappies (because young parents cannot go out drinking beer
outside anymore). Then they put nappies beside of beers and the increased the selling
of both! (+60%)
2. Amoobi
Amoobi is a belgian startup. They collect large amounts of data on customer flow
through stores. They follow anonymous shopper’s footsteps, all the way from entrance
to exit. Then they analyze the data and help the retailers figure out how to make their
store more efficient.
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11. Predict
Porsche has been able to simulate accurately the expected market share they would
get with the Panamera on the US market.
In the product planning process, the expected market share is critical, along with the
overall market forecast, as together they define the sales volume expectation.
For obvious reasons, sales volume is a key element in most business cases.
The prediction techniques enable also to establish a sentiment analysis of the
customers regarding a brand, a product or a service.
Recently, a pharmaceutical producer proposed a tool, based on the researches of
Google, to help people to predict when they might be caught by a Flu, and to better
protect themselves (by using a pharmaceutical product…).
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12. Recommend
By knowing the buying behaviour of their customers and by grouping their customers
by group of profiles, it becomes easy to provide the most relevant advice. In such a
way that you have an influence on the feeling of your customer. The best proof that it
acts on feeling is that it has an impact on the sales volume. They explained in 2006,
that the recommendation system of Amazon increased the sales by 35%. In 2012, an
article was explaining that a tweaking of this recommendation system boosted the
sales for a specific period (last month of the year) by 30%.
It is an extension of the profile matching but still you can enhance the profile matching.
We talked about in a big corporate, and directly upgrade the "matching engine" to a
"recommendation engine" that takes into account more complex data treatments and
calculation... or even more data into account.
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13. Extend current markets
Working on those three axis, you can certainly get some help to extend your market,
by gaining market shares into your market or extending your scope of targets. In the
worst case, you wouldn't lose against your smartest competitors that are already on
the subject.
As it is the mission of sales and marketing to take care of the future and existing
customer, by working on the cost of acquisition, the churn or the sales volume
predictions, your intuitions might be supported by some accurate figures or even
recommendations.
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14. New markets opportunities
But is it the limit of the mission of sales and marketing? Probably not! At least, with
those new means, you would be able to explore new market opportunities.
Indeed, if you extend your analytics capability to the level where you can include to
your own data all the data that can be collected on "the clouds", you should be able to
try and reach new markets with few investments in your products, services or systems.
Example:
YouTube started as a video dating site but drew little interest. Two very different
events in 2004 (JanetJackson’s ‘wardrobe malfunction’ and the Asian Tsunami)
shed light on an unmet need in the market: an amateur video-sharing website. These
events helped the founders to decide to turn YouTube into the go-to location for
internet video. It was acquired by Google for $1,65 billion in stock.
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15. Conclusion
You can today adapt yourself to the new market dynamics, if you take into account
those new capabilities. This is not necessarily a matter of huge IT projects, but rather
often just take the time to think exactly of which insight, which information, if only you
had it, oh what you could do then.
Then you will have to take care to your communication with your IT department or
partner, and to ask precisely what you expect, and to be able to discuss with them to
see exactly what is possible and what is not... but don't hesitate to challenge them, the
new capabilities are emerging very fast, and some of your competitors are probably
already working on it.
That's probably a reason why Gartner says that ...
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