The document discusses the value of analytics for businesses in the digital era. It covers: 1) The business purpose of analytics is to go beyond borders and understand customers better. 2) To guarantee success with analytics requires managed data quality. 3) New technologies like Hadoop, cloud platforms, and real-time systems enable more effective analytics.

1. THE VALUE OF ANALYTICS
IN THE WORLD OF THE DIGISUMER
HPMC 2014
PETER WOODS
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2. AGENDA
THE VALUE OF ANALYTICS
•
•
•
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The business purpose of analytics
The conditions to guarantee success
How new technologies support analytics

3. THE NEW CUSTOMER
IS MORE DEMANDING AND LESS LOYAL
THE CUSTOMER
IS A CAT!
The Customer is a cat.
To conquer the heart of this new Customer type
is one of the big challenges.
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4. THE NEW CUSTOMER
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ALL DOGS ARE CHASING THE SAME CAT!

5. C op yr i g h t © 2 0 1 4 , S A S I n s t i t u t e I n c . A l l r i g h t s r es er v e d .

6. WHY DO WE CARE?
Act
Orient
Decide
MARKET
OPPORTUNITY
Decide
Orient
Act
Observe
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YOUR
COMPETITIVE
ADVANTAGE

7. WHAT ENABLES
IT‘S PREDICTIVE ANALYTICS LOOKING INTO THE FUTURE
THIS MAGIC?
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8. WHERE IS
ANALYTICS OF AS A GAME-CHANGER
VALUE?
Intelligence-driven
Business Differentiation
Intelligence-driven
Business Innovation
Intelligence-driven
Business Transformation
Increasing process
effectiveness and
customer relevance
Innovating existing
business model with new
revenue streams
Transforming the business
entering in brand new
markets
Campaign Management
Optimization
Cross-sell to new
business lines
Creation of a new
company
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9. WHAT A GREAT
IDEA!
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12. C op yr i g h t © 2 0 1 4 , S A S I n s t i t u t e I n c . A l l r i g h t s r es er v e d .

13. C op yr i g h t © 2 0 1 4 , S A S I n s t i t u t e I n c . A l l r i g h t s r es er v e d .

14. SCIENCE
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ART

15. MARKETERS TODAY ARE DATA-DRIVEN
Structured
Rational needs
Information,
Transaction, Service
SCIENCE
Customer
Experience
Semistructured
Emotional needs
Unstructured
#SASCI
Belonging, Identity, Aspiration,
Performance, Knowledge
Sources: Work·Play·Experience I Forrester Blog--Kerry Bodine, April 2, 2014 | SAS
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ART

16. MARKETING CREATES UNDERSTANDING
Forecasting Scenario analysis
Dynamic time-lap analysis
Decision tree analysis
•
•
•
Self-service
Easy to use Analytics
Work with more data
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•
•
Reporting and Dashboards
Mobile BI
Collaboration

17. PICTURES MEET NUMBERS
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18. YES, I WANT
IT IS STRAIGHT FORWARD!
ANALYTICS
BUSINESS
MANAGER
Domain Expert
Makes Decisions
Evaluates Processes and ROI
EVALUATE /
MONITOR
RESULTS
IDENTIFY /
FORMULATE
PROBLEM
DATA
PREPARATION
DEPLOY
MODEL
IT SYSTEMS /
MANAGEMENT
Model Validation
Model Deployment
Model Monitoring
Data Preparation
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BUSINESS
ANALYST
Data Exploration
Data Visualization
Report Creation
DATA
EXPLORATION
DATA SCIENTIST /
DATA MINER /
STATISTICIAN
VALIDATE
MODEL
TRANSFORM
& SELECT
BUILD
MODEL
Story Telling
Exploratory Analysis
Descriptive Segmentation
Predictive Modeling

19. THE MARKETER CAN BUILD THE CUSTOMER PROFILE
Anonymous
Behavior
E-Mail
Account
Social
Customer Behavior
Customer Value (RFM)
Customer Value
Buying Behavior
Segmentation
Browsing
Behavior
Previous
browsing
activity
Clustering
Ability to look
back
Product linking
(nearness)
Predictive Insight
(Churn/Opportunity)
More effective
targeting
Lifecycle and Lifestyle
marketing
Frequency of visits
Customer as
partner/promoter
Engagement Level
Big Data
Time
Cookie
123
Sessions
1
2 … n
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E-mail
Peter.woods@sas.com
User ID
PW45361
Geo
Online
Segment
01
Browser
Customer
Segment
DedicatedFan
Customer
Knowledge

20. THRIVING IN THE BIG DATA ERA
VOLUME
DATA SIZE
VARIETY
VELOCITY
VALUE
TODAY
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THE FUTURE

21. WHAT IS THE IMPACT FROM BIG DATA ON CUSTOMER ANALYTICS?
Operationalize
Real-time
In-database
….
DEPLOY
PREPARE
DATA
All Data
Number of Variables
New Events
Unstructured Data
…..
CUSTOMER
ANALYTICS
MODEL
No. of Iterations
Complex Models
Retraining
Ensembles
….
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EXPLORE
Fast
Interactive
Visual
Analytical
….

22. BIG DATA ANALYTICS?!
Value
creation
Analytics
High-Performance Analytics
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23. THE ANALYTICS
MOVE THE ANALYTICS TO THE (BIG) DATA
LIFECYCLE
EVALUATE /
MONITOR
RESULTS
IDENTIFY /
FORMULATE
PROBLEM
DATA
PREPARATION
DEPLOY
MODEL
DATA
EXPLORATION
VALIDATE
MODEL
TRANSFORM
& SELECT
BUILD
MODEL
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24. BIG DATA
INTEGRATED USER EXPERIENCE
ANALYTICS
BUSINESS ANALYST
STATISTICIAN
DATA SCIENTIST /PROGRAMMER
GUI
Visual
Analytics
Data
Preparation
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Exploration/
Visualization
GUI
Visual
Statistics
Modeling
Deployment

25. LAST PIECE OF THE
DATA QUALITY “DATA DELAYED IS DATA DENIED”
PUZZLE:
“…poor data quality costs U.S. businesses
$600 billion annually”
Market
value
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Pumped into the
U.S. economy

26. DATA QUALITY
IMPACT: MANAGED DATA
Predictive Modeling Process
Limited and
poor Data
Low predictive effectiveness
Model lift
“low-average”
Exhaustive and
documented
information
High predictive effectiveness
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Model lift
“good-high”

27. MANAGED ANALYTICAL DATA
1. Access the data
from multiple
systems:
- Integrate
- Enrich
- Describe
2. Cleanse data
- Analyse
- Inform
- Improve
Growth path:
Data governance, Master data management
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28. BIG DATA ANALYTICS
BUSINESS ANALYST
STATISTICIAN
DATA SCIENTIST /PROGRAMMER
GUI
Visual
Analytics
Data
Preparation
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Exploration/
Visualization
GUI
Visual
Statistics
Modeling
Deployment

29. BIG DATA ANALYTICS
BUSINESS ANALYST
STATISTICIAN
DATA SCIENTIST /PROGRAMMER
Quality
Analytics
Scoring
GUI
In-database
processing
Data
Preparation
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Visual
Analytics
Exploration/
Visualization
GUI
Visual
Statistics
Modeling
Deployment

30. SO WHERE DO WE
READY YOURSELF TO CREATE VALUE
STAND
The business purpose of analytics >>>
•
Analytics to go beyond borders
The conditions to guarantee success >>>
•
Managed data
How new technologies support analytics >>>
•
Enabled on Hadoop, Cloud, real-time platforms
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31. FUTURE VALUE OF ANALYTICS
According to experts:
- We are not able to crash a car anymore or
burn diner
- BUT Most importantly:
All customer communication is personal!!
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32. MORE
INFORMATION
Download the whitepaper:
Four Tips to Mastering Multichannel Digital Marketing Attribution
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33. THANK YOU
PETER.WOODS@SAS.COM
NL.LINKEDIN.COM/IN/PETERWOODS/
SELECTED MATERIALS COURTESY OF BRIAN VELLMURE
BRIANVELLMURE.COM
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