Decision Management In The Age Of The Customer. Mike Gualtieri, Principal Analyst

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1 Decision Management In The Age Of The Customer Mike Gualtieri, Principal Analyst

2 Firms know that customers want to be treated as individuals What new customer expectations does your organization face? (Check all that apply for each category of customer) To be treated as individuals To enjoy their dealings with us more Easier interactions with us More information and help from us To deal with us via their smartphones Consistent treatment across channels To be heard by us (give us feedback) To serve themselves To interact with other customers None of these 3.8% 26.2% 58.4% 55.8% 55.3% 54.4% 50.6% 47.3% 44.7% 0% 10% 20% 30% 40% 50% 60% 70% 2013 Forrester Research, Inc. Reproduction Prohibited 2

3 #Royalty

4 Trend People want you to treat them like royalty.

5

6

7 Royalty experiences have contextual awareness and adapt to serve a single individual.

8 Male How well do you know this customer? 35 years old Single Resides in New York City Makes $110,000 per year Quiz What do you predict he would do if the bank accidently transferred $6,000 into his bank account? A. Give the money back B. Take the money and run 2013 Forrester Research, Inc. Reproduction Prohibited 8

9 George Costanza

10 You need data, data, and data to understand your customers Source: June 25, 2013, Predictive Apps Are The Next Big Thing In Customer Engagement Forrester report 2013 Forrester Research, Inc. Reproduction Prohibited 10

11 #BigData

12 Big Data means all your data++. Trend

13 FORRESTER Big Data is the frontier of a firm s ability to store, process, and access all of the data it needs to operate, make decisions, reduce risks, and serve customers. DEFINITION

14 Thank goodness executives and technology decision-makers are talking about data again. Please rank the following technologies according to their importance and investment within your firm? Data related projects 24% 33% Systems of record applications Systems of engagement applications 20% 18% 16% 17% 57% Cloud related projects 15% 18% Mobile related projects Social related projects 7% 16% 5% 12% Source: Forrsights Software Survey, Q4 2013, Base: 2,074 IT executives and technology decision-makers 2nd Priority Top Priority 2013 Forrester Research, Inc. Reproduction Prohibited 14

15 Big Data is gushing from many sources. Structured text Unstructured text Binary Data described by a schema Relational database, XML, delimited flat file, system events Free-form text , documents, tweets, blog comments, Facebook status, genome Audio, images, video Surveillance cameras, geological survey maps, Siri voice 2013 Forrester Research, Inc. Reproduction Prohibited 15

16 ERP ecommerce Mobile Customer Service Web analytics Media Social VOC Finance POS MRP Marketing BPM Data warehouse ecommerce Excel & Access CRM Web Customer Service Field Operations Claims Planning

17 Quiz What percentage of enterprise data do firms use for analytics? Enterprise Data A. 12% B. 34% C. 53% D. 76% 2013 Forrester Research, Inc. Reproduction Prohibited 17

18 Audience Quiz What percentage of enterprise data do firms use for analytics? Enterprise Data A. 12% B. 34% C. 53% D. 76% 2013 Forrester Research, Inc. Reproduction Prohibited 18

19 Data silos create biased and inaccurate views of your business and hinder smart decision.

20 #DataScience

21 Trend Data science supercharges your decisions.

22 Data scientists use a combination of statistical and machine learning algorithms to find patterns and predictive models.

23 Data science is very different from traditional business intelligence (BI) BI Choose a business outcome to improve Decide what data will be relevant Create a data model Design reports, dashboards, and/or visualize Data Science Choose business outcome to improve Assemble all possible data Run algorithms on the data to find a model Evaluate the model Operationalize the model 2013 Forrester Research, Inc. Reproduction Prohibited 23

24 Data scientists unleash algorithms on data to find decision rules and predictive models BI Analyst Statistician Data Scientist Reports Statistics Machine learning algorithms 2013 Forrester Research, Inc. Reproduction Prohibited 24

25 Will the real data scientist please stand up? I m a data scientist. I m a data scientist. I m a data scientist Forrester Research, Inc. Reproduction Prohibited 25

26 Data science can overturn expert human bias.

27 I Quit How can you prevent key employees from resigning?

28 Turkey How can you predict where customers will be on Thanksgiving?

29 Recommend How can you provide the perfect, individualized product recommendation?

30 $3.2B How can you turn up the heat for your customer?

31 Influence Can you predict what voters will be positively impacted by campaign (marketing) contact?

32 #Streaming

33 Trend Data in-motion is as valuable as data at-rest.

34 Streaming Analytics is about: Now Later Streaming analytics can help firms make operational decisions, adapt to the business environments, and serve customers better when it really matters in realtime.

35 Fraud How can you prevent this dude from fleecing you?

36 Sports What could you predict if you had the court location of the players and ball 25 times per second?

37 #PredictiveApps

38 2013 Forrester Research, Inc. Reproduction Prohibited 38

39 Trip 1 Easy. Buy a copper tube ice maker kit.

40 Buy a shut-off valve for the copper tubing. Trip 2

41 Trip 3 Buy a T-connector to tap the cold water supply line.

42 Trip 4 Whoops. Also need to buy a hacksaw to cut the copper pipe.

43 Trip 5 Finally. A special drill bit to make a hole in the kitchen floor for the copper tubing.

44 Predictive apps can make customers feel intensely royal and loyal.

45 Customers are ready: Treat them like royalty to get their loyalty Forrester Research, Inc. Reproduction Prohibited 45

46 Customers are ready: Treat them like royalty to get loyalty. Big Data Data Science Streaming Applications Big Data can give you the power to really know your customers as individuals. Data science supercharges decision models. Streaming data makes ideal decisions in milliseconds. Predictive apps are what you can build to integrate across all channels Forrester Research, Inc. Reproduction Prohibited 46

47 #Imagination

48 Decision management is about innovation, but not if you don t use it. Innovators Collectors Capture Store Archive Transactions Journalists Reports Dashboards Alerts Business Intelligence Big Data Data Science Streaming Predictive Apps 2013 Forrester Research, Inc. Reproduction Prohibited 48

49 Thank you Mike Gualtieri

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