Strata Jumpstart: Proven Techniques for Exploiting Big Data Analytics. Copyright 2011 EMC Corporation. All rights reserved. 1

Companies are looking to exploit big data analytics for competitive advantage Suppliers Manufacturing Inventory Physical Assets Distribution Services Mass Marketing Customers Who are my most valuable customers? What are my most important products? What are my most successful campaigns? Suppliers Manufacturing Inventory Physical Assets Distribution Services Personal Marketing Additional Profits Customers Today s Business Model Big Data Analytics Business Model Copyright 2011 EMC Corporation. All rights reserved. 2

Technique #1: Use Big Data Analytics worksheet to identify! business impact areas "#$%&'()!*+$,-.%$!/01"2! Detailed structured data (POS, CDR, call center, credit card, RFID) to drive more granular analysis, insights and decisions Unstructured data (social media, machine generated) to drive higher-fidelity analysis, insights and decisions! 9&)(! <(%4,:(=! 3%)#6%#)(=! <4%4! >+$%)#6%#)(=! <4%4!! Increased data velocity to drive low-latency!(real-time) data access, analysis, insights and decisions "#$%&'()! "#$%&'()! "#$%&'()! "#$%&'()! "#$%&'()! 3(+%,'(+%! 3(-'(+%4%,&+! 567#,$,%,&+! 8(%(+%,&+! 94%#)4%,&+! 5+4:;$,$!!!!!!!!! "#$%&$!'(#$! )#%*+,%#! -+.&('$#!.$)'$*&.! "#$%&$!#/-0$#!.$)'$*&%&/(*! %*1!-,+.&$#/*)! '(1$,.! "#$%&$!'(#$! %--+#%&$! -+.&('$#!.$)'$*&.!2/&0!.(-/%,!1%&%! "#$%&$!#/-0$#!.$)'$*&%&/(*! %*1!-,+.&$#/*)! '(1$,.! <4%4!?(:&6,%;! 3/*$4&+*$! -+.&('$#!.$)'$*&%&/(*! '(1$,.!'(#$! 5#$6+$*&,7! 3/*$!&+*$!'(1$,! /*45,/)0&!(5! %-6+/./&/(*! -%'8%/)*.! Leverage more detailed POS data to create more granular, tighter customer micro-segments Leverage un-sampled data to create richer, more accurate segmentation and clustering models!!!!!!!! Leverage social media data to create higherfidelity, more actionable customer segments Leverage more customer attributes to create richer segmentation and clustering models!!!! Fine-tune customer segmentation models more frequently (e.g., immediately after critical events) Update customer acquisitions models and scores daily in-flight of customer marketing campaigns Copyright 2011 EMC Corporation. All rights reserved. 4

Technique #2: Porter s Five Forces of Competitive Position business impact analysis New Market Entrants: Entry ease/barriers Geographical factors Incumbents resistance New entrant strategy Routes to market Supplier Power: Brand reputation Geographical coverage Product/service quality Customer relationships Bidding capabilities Competitive Rivalry: Number and size of firms Industry size and trends Fixed v. variable cost bases Product/service ranges Differentiation, strategy Buying Power: Buyer choice Buyers size/number Change cost/frequency Product/service importance Volumes, JIT scheduling Product/Tech Development: Alternatives price/quality Market distribution changes Fashions and trends Legislative effects Michael E. Porter "Competitive Strategy: Techniques for Analyzing Industries and Competitors 1980 Copyright 2011 EMC Corporation. All rights reserved. 5

Porter s Five Forces Example: Big Data Analytics to Monetize Merchandising Trends (Retail) Competitive Rivalry Buyer Power Supplier Power Product & Technology New Market Entrants Use cross-media Conversion Attribution Analysis to outflank competition on crosschannel pricing and promotion effectiveness Leverage A/B Testing to provide messaging and placement insights that drive category and market basket growth Leverage Sentiment Analysis to identify micro-population product, pricing and market trends Engage real-time targeting to increase on-site customer monetization Leverage Recommendation Engines to increase shopping cart profitability Leverage detailed POS and RFID data to identify hot products more quickly (lock in supplier terms & conditions) Leverage detailed POS and RFID data to cancel / return slow and no movers faster than competition (minimize markdown management) Provide Dashboard SaaS platform to help suppliers minimize inventory & supply chain costs Use Predictive Analytics to provide in-flight campaign recommendations (optimize campaign performance) Use Hadoop to monitor social media for customer, market and product trends Leverage Social Media and Mobile Data to identify and quantify new product, market and customer developments Copyright 2011 EMC Corporation. All rights reserved. 6

Technique #3: Porter s Value Chain big data analytics business impact analysis Support Activities Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Service Primary Activities Michael E. Porter "Competitive Strategy: Techniques for Analyzing Industries and Competitors 1980 Copyright 2011 EMC Corporation. All rights reserved. 7

Porter s Value Chain Analysis Example: Big Data Analytics to Monetize Merchandising Trends (Retail) Support Activities Primary Activities Distribution Operations Merchandising Advertising Service Use real-time POS data to identify and notify suppliers of potential out-of-stock situations more quickly Use real-time POS and RFID data to manage markdowns, identify slow and no movers and optimize in-store inventory Leverage social media and mobile data to uncover merchandising insights to optimize merchandising performance Use Conversion Attribution Analysis to optimize ad placement and messaging more quickly Infrastructure Human Resources Technology Procurement Deploy predictive, real-time merchandising dashboards to store and department management Use social media data to forecast promotion demand in order to optimize labor scheduling Use in-memory analytics to alert management regarding merchandising performance changes Use merchandising insights from granular POS data to negotiate superior supplier terms and conditions Combine Social Media with POS data to identify potential product or service performance problems Copyright 2011 EMC Corporation. All rights reserved. 8