Securing Stakeholder Buy In for Big Data Initiatives
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1 Copyright 2014 EMC Corporation. All rights reserved. 1 CDM Big Data Summit, May 2014 Securing Stakeholder Buy In for Big Data Initiatives Joshua Siegel, EMC Professional Services
2 Big Data is changing the World All Around Us Copyright 2014 EMC Corporation. All rights reserved. 2 No longer dumb, our things are rapidly becoming data generators Banks Travel Cars TV Each one of these will not exist as we know them in n years Virtual Face-to-Face customer interactions Book, check-in, and record your trip with wearable technology Hands free driving, hotels on wheels Closed loop marketplace; customizable cable offerings based on preferences Telephone Phones are worn or implanted Homes A house that learns your habits; a carpet that knows when you re sick
3 Copyright 2014 EMC Corporation. All rights reserved. 3 Impact Is Already Being Felt Across Industries Bookstores Electronics Vs. Vs. Borders failed to understand digital revolution Ebooks have gained prevalence in market Borders could not compete with Amazon Kindle or the Barnes & Noble Nook Movies Online stores operate with lower margins, less overhead Subject to Free-Riding : consumers using the salesperson s knowledge and listening to actual systems in store then buying online Photography Vs. Vs. Blockbuster failed to keep up with technology Failed to be affordable: $4 for one new release Failed to be customer friendly: Expensive late fees Smartphones now have high quality cameras No need for film/development of photos Can share photos via social media/ easily print Many others stand on the edge of massive change
4 Everyone s Playing in Everyone Else s Space Copyright 2014 EMC Corporation. All rights reserved. 4 Companies aren t accepting the boundaries set by their industries anymore and new entrants have no legacy industry to start with Banking Energy Technology Healthcare Retail
5 Copyright 2014 EMC Corporation. All rights reserved How do you get stakeholders to understand and move when the opportunity and the challenge can be so great? TODAY Geolocation-based offers > 50% smartphone penetration App. driven culture Technology driven change Unleveraged unstructured data YEARS 1-3 Ubiquitous facial recognition Cloud-based, biometric authentication Omni-channel advertising Rapidly evolving business models (e.g., TV, content, home) Drones FUTURE Driverless cars Implantable technology Genetic-centric medicine Thought-driven processes Wireless electricity Teleportation
6 Big Data Business Model Maturity Index Copyright 2014 EMC Corporation. All rights reserved. 6 Measures the degree to which the organization has integrated big data and advanced analytics into their business model Data Monetization Business Metamorphosis Business Optimization Business Monitoring Business Insights
7 Link business drivers to use cases and measurable outcomes with Big Data Envisioning Copyright 2014 EMC Corporation. All rights reserved. 7 Vision Workshop Identify big data analytics business use cases Proof of Value Lab Deploy analytics sandbox to quantify the business case Analytics Operationalization Identify current state, determine required state and conduct gap analysis to develop analytics implementation roadmap Repeat the process for identified business cases
8 Copyright 2014 EMC Corporation. All rights reserved. Business Value 8 Vision Workshop: Identify Where And How To Start Your Big Data Analytics Journey Interviews with select Business and IT participants to understand objectives and challenges Prep work to confirm targeted business initiative On-site workshop with Business and IT Stakeholders to tease out big data analytics business opportunities Envisioning exercise to help convey the realm of the possible with big data analytics Identify, brainstorm and prioritize business opportunities Understand implementation complexities and business value of opportunities Prioritize key opportunity for Analytics Lab Hi Lo F Capture Creator Segment E Feasibility A Engagement: identify the optimal times, places and offerings with which to engage Creators in order to influence their product and project buying decisions B Communication: leverage marketing and social media to influence and measure Creators and their spheres of influence, advocacy and net promoter scores C Product / Project: identify, influence and predict product buying and project planning decisions, and understand the effectiveness of marketing and merchandising in reaching them at decision time D Financial: identify the drivers of decisions and measuring the effectiveness of influencing those drivers E Identify / Targeting: provide a predictive environment for identifying the Creator s lifecycle F Loyalty: create and monitor a customer loyalty index that can guide customer acquisition, growth and retention marketing campaigns C A B D Hi
9 Case Study: What s Important To Chipotle? Chipotle Business Strategy Continue to build a people culture that attracts and empowers top performers Continue to grow revenues (up 20.3% in 2012) by opening new stores (opened 183 in 2012) and increase comparable restaurant sales growth (7.1% in 2012) Marketing focused on building the Chipotle brand and engaging with our customers in ways that create stronger, deeper bonds Chipotle 2012 Annual Report Copyright 2013 EMC Corporation. All rights reserved. 9
10 Value Drivers Initiative #1: Continue to grow revenues (up 20.3% in 2012) by opening new stores (opened 183 in 2012) Initiative #2: Increase comparable restaurant sales (by 7.1% in 2012) Initiative #3: Marketing building Chipotle brand and engaging customers to create stronger, deeper bonds Outcomes & Critical Success Factors Chipotle 2012 Business Strategy Outcome 1: Develop individual store profiles including traffic patterns, customer demographics and product preferences by time of day/day of week Outcome 2: Leverage local sporting and entertainment events to drive store traffic at slow stores and during slow times Expand in-store customer data collection at POS (leverage credit card information) Capture, validate, score and integrate local events data Integrate local events insights into local marketing and promotional communications
11 Value Drivers Initiative #1: Continue to grow revenues (up 20.3% in 2012) by opening new stores (opened 183 in 2012) Initiative #2: Increase comparable restaurant sales (by 7.1% in 2012) Initiative #3: Marketing building Chipotle brand and engaging customers to create stronger, deeper bonds Outcomes & Critical Success Factors Chipotle 2012 Business Strategy Outcome 1: Develop individual store profiles including traffic patterns, customer demographics and product preferences by time of day/day of week Outcome 2: Leverage local sporting and entertainment events to drive store traffic at slow stores and during slow times Expand in-store customer data collection at POS (leverage credit card information) Capture, validate, score and integrate local events data Integrate local events insights into local marketing and promotional communications Increase store traffic (acquire new customers, frequency of repeat customers) Increase shopping bag revenue and margins (cross-sell complementary products, up-sell) Increase number of corporate events (catering, repeat catering events) Improve promotional effectiveness (Halloween Boo-ritto, Christmas gift cards, graduation gift cards) Improve new product introduction effectiveness (seasonal, holiday)
12 Business Value Assessment: Improve Comp Store Sales (Chipotle) Data Source Increase Store Traffic Increase Shopping Bag Revenue Increase # Corporate Events Increase Promotional Effectiveness Key Worst Best Improve NPI Effectiveness Point of Sales Transactions Market Baskets Store Demographics Local Competitive Stores Store Manager Demographics Consumer Comments Social Media Weather Local Events Copyright 2013 EMC Corporation. All rights reserved. 12
13 Copyright 2014 EMC Corporation. All rights reserved. 13 Examples of other prioritized use cases from our customers Driven by overall business strategy Fraud prevention Predicting agent/merchant/customer churn Cross-sell / Up-sell Mobile authentication, marketing / loyalty System Ops. / NOC Data security / Threat assessment Compliance & Risk Management 360 degree customer view / experience
14 Big Data Envisioning Workshops align the art of the possible with the reality of the practical Copyright 2014 EMC Corporation. All rights reserved. 14 Identify Use Cases & Prioritize Show near term, incremental payback Don t get bogged down trying to build consensus Don t get blinded by the hype Benchmark showcase what is being done by others Consider implementation cost Link back to business priorities
15 Thank You Questions
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