Corporate Brochure The best forecasts with Big Data Software for data analysis and accurate forecasting
Content About Blue Yonder 3 Analyzing and Using Big Data 4 Blue Yonder Portfolio 5 Demand Planning 7 Returns Optimization 8 Automated Merchandise Planning 9 Dynamic Pricing 9 Customer Analysis 10 Predictive Maintenance 12 Risk Analysis 13 Software as a Service 14 Quick Assessment 15 www.blue-yonder.com 2
About Blue Yonder Blue Yonder is the leading software provider for predictive analytics in Europe. With precise predictions, in real time and cloud-based, Blue Yonder makes an important contribution to a company s success. Blue Yonder recognizes previously undetected relationships and patterns in structured and unstructured data. The software originated in elementary particle physics. At research institutes like CERN, data quantities in the petabyte range were evaluated every second in the world s largest particle accelerators. Today, many different branches of industry make use of this capability in various applications. Our customers Axel Springer BGV/Badische Versicherungen bonprix Breuninger Bürgel Central Crate & Barrel dm dunnhumby EOS Heine Müller Next OTTO Quelle real,- Schwab SportScheck Vodafone Witt Weiden Blue Yonder receives honors In 2013, Blue Yonder won the FOCUS Digital Star innovation award. The award, presented by FOCUS magazine during the DLD technology conference, acknowledges digital innovation made-in-germany that demonstrates promising business models or exhibits newly developed technology. Blue Yonder is a three-time recipient of the prestigious Data Mining Cup award and also the CyberChampions award 2011/12 and the CyberOne award 2012. 3
Analyzing and Using Big Data We analyze data so that you have facts. Organizations store large quantities of customer, supplier and operational data and new information is collected in ERP and CRM systems every day. Millions of sensors that are connected with the Internet or networks, like mobile equipment, vehicles and cameras, produce and transmit enormous amounts of data. Smartphones and social networks can also be added to the list. The Blue Yonder software recognizes relationships and patterns in structured and unstructured data that slipped by in the past. The resulting forecasts which continuously and automatically adjust to the conditions at hand, are a main contributor to making business processes profitable and futureoriented. The proof of the pudding: By using Blue Yonder software, forecast quality increases by forty percent and more! 4
Blue Yonder Portfolio The Solution for Various Business Requirements Efficient and reliable planning with Blue Yonder The Blue Yonder Predictive Analytics Suite can be used to gain valuable insight from Big Data. This enables reliable decision making at different levels and in various organizational areas and industries. You receive reaffirmation that you are on the right operative and strategic course or if you need to make adjustments due to changing market conditions. Combined with your knowledge and your employees expertise, Blue Yonder s predictive analytics software provides you with an outstanding management tool. Industries where Big Data can be analyzed and used: Retail Insurance Banking Manufacturing Telecommunications Media Utilities 5
Improvement in inventory management by three percent more than one percent higher margin in retail! 6
Blue Yonder Portfolio Demand Planning EU size 38 (US 8 / UK 10); a trendy color; can be combined with various items: the female customers want it. The retailer could have sold at least thirty-three percent more, if only the demand planning hadn t been miscalculated. That wouldn t have happened with Blue Yonder software. The Blue Yonder Predictive Analytics Suite predicts sales for the entire season, early on, down to the article level even in cases where several thousand articles in different styles are involved. Since the forecasts are so accurate and the self-learning environment allows for continuous adjustment, your demand planning is based on realistic assumptions. You avoid outof-stock situations and high write-offs and, in the process, lower your costs. Regardless if you are a brick and mortar, online or multi-channel retailer: Where there are a multitude of influence factors and large quantities of data, Blue Yonder software successfully demonstrates its forecast strength. The structural change in the mail order business from catalog to the Internet presents us with entirely new challenges in sales forecasting. Blue Yonder bundles methods to form a unique solution in order to predict sales figures precisely. This is crucial for success in the competitive online business. Günther Harant, Purchasing Manager, SportScheck 7
Blue Yonder Portfolio Returns Optimization The jeans look great in the trendy color. Hmm? Or maybe better in traditional jeans blue? They could be a bit tight on the leg. Better order the next size up, too. Maybe the other fit is better? Who cares. I ll order one of each. After all, it doesn t cost me anything to return them That s true. At least as far as the customer is concerned. However, for retailers, especially online retailers, returns are a huge cost factor that could turn into a critical factor for the company. With Blue Yonder predictive analytics software, your return management is built on a solid foundation. It allows you to accurately identify the reasons for returns and enables you to take appropriate counteraction to reduce costly returns. 8
Blue Yonder Portfolio Automated Merchandise Planning Unpredictable weather is forecast for the coming days. And people will probably extend the public holiday on Thursday by taking Friday as a vacation day. That will have an effect on supermarkets needing more grill meat for cookouts. Blue Yonder takes all relevant external and available internal data into consideration when creating a forecast. The software automatically gives order recommendations for every article, for every day, in every area. Out of stock and surplus situations are a thing of the past with automated merchandise planning. Profits increase since your inventory reflects your demand. Dynamic Pricing What is the best price for a fully automatic coffee machine? Blue Yonder knows. The software generates the best price for your goals based on all kinds of information: Less expensive than the five largest online shops offering the same product, but not a penny less than what interested customers are willing to pay. The software adjusts the price for every article in real time to the current market and competitive situation and, by doing so, ensures the maximum margin. 9
Blue Yonder Portfolio Customer Analysis Customer loyalty Mrs. Smith loves the coffee she has been ordering online for years. She also likes organic products. Over the past few days, she has been browsing coffee machines in an online electronics store. When she returns to the website where she normally buys her favorite coffee, she receives a rebate of ten percent towards the purchase of a coffee machine. The coffee machine fits her budget. In addition, she receives an additional offer for fair-trade organic coffee from Ethiopia. It s her favorite brand! Regardless if it s Ethiopian coffee or electronic devices: Online retailers that know their customers have a variety of possibilities to address customers individually. This can be done through advertisements on themed sites, through custom-tailored supplementary offers or through price reductions. By using Blue Yonder, your e-commerce revenue will be considerably higher. You offer your customers not only the right product, but you can also calculate the highest possible revenue achievable with a particular customer and, at the same time, automatically offer the customer an individual rebate. In addition, you can fully capitalize on the cross-selling potential. Brand new opportunities arise even for insurance companies. Whether automobile, property, life or health insurance, with Blue Yonder you make product recommendations based on your customers needs and leverage the cross-selling potential. This is possible because you see the current life phase of every customer in real time. You evaluate the customers total potential as well as their potential in the individual insurance segments and you can give individual advice on attractive offers created for that specific customer. The result: satisfied customers and growing market share. Satisfaction is the best recommendation. It costs approximately twenty to forty percent more to win a new customer than to retain an existing customer. 10
Blue Yonder Portfolio Avoid contract cancellations Mr. Jones changed telephone providers so that he could rent his smartphone at a less expensive rate. Since his wife is listed under her maiden name, Miller, it s not immediately obvious that they are a married couple. The likelihood that Mrs. Miller will also cancel her cellular contract in the coming months is very high. With Blue Yonder you recognize the possibility of a contract cancellation before it happens and you can react in time. For example, if you are a telecommunications company, you could consider including an offer with good conditions for a new contract with the semi-annual telephone bill. We help you to correctly interpret the signs of customer dissatisfaction or higher willingness to change providers. Blue Yonder is capable of predicting the exact risks of contract cancellation which is very important, for example, for telecommunication and insurance companies. Blue Yonder offers media companies the opportunity to precisely examine their readers data. You determine the exact risk of cancellation for every subscription and can take counteraction with specific measures. Blue Yonder shows us the risk of contract cancellation down to the exact contract number. This allows us to reach out with special offers at the opportune moment, to customers considering changing provider. Heinz Ohnmacht, Chairman of the Executive Board at BGV/Badische Versicherungen 11
Blue Yonder Portfolio Predictive Maintenance One thing is clear: The ball bearing in the machine has to be replaced within the next three months. Otherwise, it could come to an unplanned downtime. The mechanic will replace the ball bearings next week during the planned cleaning of the machine. The Blue Yonder predictive maintenance software monitors machines and equipment. It analyzes all available and incoming data as well as external factors. Current or expected losses in performance are noted immediately. Completely different parameters like machine data, information from the ERP system and values from the production environment (temperature, humidity, salinity) are evaluated in real time. The condition of the machine or equipment can be predicted for any time in the future and malfunctions can be accurately forecast long before they occur. Unplanned, cost intensive downtimes can be avoided. Maintenance processes can be optimized and resources can be used efficiently by performing necessary maintenance actions during a planned downtime, for example during the cleaning of the machine. Maintenance costs are therefore reduced. The process industry alone loses approximately five percent of its production performance through unplanned downtimes. Dr. Ralf Sick-Sonntag, conference Anlagenbau der Zukunft Fraunhofer IFF, 2012 12
Blue Yonder Portfolio The realistic evaluation of the probability and amount a debtor will pay is very important to us. We are convinced of the methods of the software: The results of Blue Yonder can be measured immediately and help to optimize our processes. Dr. Andreas Witzig, Managing Director, KG EOS Holding GmbH & Co Risk Analysis The customer advisor at the bank is taken by surprise when he finds out that the Smiths can t pay the mortgage on their home. Even experienced account managers are better equipped to predict risks when using Blue Yonder. Nowadays, a strategic risk analysis is essential for all large organizations because it can prevent significant financial damages to your company. With the predictive analytics software from Blue Yonder, you assess the probability of risks occurring and the related relevance of those risks to your organization. You discover relationships between risks and, based on this, make the right decisions for your organization. With Blue Yonder you avoid the following risks: Default Delivery Contract cancellation Economic Interest Liquidity Tariff 13
4/7 Software as a Service With Blue Yonder, forecasts based on Big Data are possible without a lot of technical effort, thanks to Software as a Service. The predictions and results created are either imported directly into your back-end system or called up via a user interface. Blue Yonder s SaaS model takes advantage of all the benefits of the cloud. A certified high-availability computer center guarantees the maximum availability with 24/7 service regardless of the security level. The benefits at a glance: 100% cost control Low investment costs Quick project start 14
Accurate Forecasts Predictive analytics increases a company s success How can you use predictive analytics profitably in your company? Let us show you free of charge in a quick assessment. What areas of application and advantages are of interest to you? Retail Manufacturing Sales forecasts on the item level Return optimization Determine customer value and plan marketing activities carefully Automated merchandise management Store demand planning Dynamic pricing in bricks-and-mortar and online retail Forecasts for promotional goods Insurance companies Loss forecasts for individual customers as the basis for an individual premium calculation High level of customer loyalty and optimal sales per customer thanks to advising along the customer life cycle Customer churn: identify customers thinking of switching Optimal personnel planning in the call center thanks to precise needs analysis Reduction of storage costs thanks to exact determination of required material quantities Improved production planning thanks to forecasting of machine capacity Calculation of likelihood of failure of machines and timely issuing of warning messages in order to prevent unplanned downtimes (predictive maintenance) Creation of sales forecasts Utility companies Optimal utilization of the grid thereby maximizing profits Exact forecast of power requirement, divided up by regions, as the basis for a specific market development Determination of the optimal price, for example for power from regenerative energy sources Telecommunications Early Detection of customers readiness to switch in order to take customer loyalty measures Targeted and individual use of advertising to increase the success quota Optimization of the rate structure with respect to market capability and maximization of profit Free quick assessment Speak to Blue Yonder s Big Data & predictive analytics experts! Dunja Riehemann Phone +49 (0)721 383 117 36 E-mail dunja.riehemann@blue-yonder.com www.blue-yonder.com 15
Blue Yonder GmbH & Co. KG Karlsruher Straße 88 76139 Karlsruhe Germany BY_052013 Phone +49 (0)721 383 117 0 Fax +49 (0)721 383 117 69 info@blue-yonder.com www.blue-yonder.com 16