Decision Management In The Age Of The Customer Mike Gualtieri, Principal Analyst
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
#Royalty
Trend People want you to treat them like royalty.
Royalty experiences have contextual awareness and adapt to serve a single individual.
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
George Costanza
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
#BigData
Big Data means all your data++. Trend
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
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
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 Email, documents, tweets, blog comments, Facebook status, genome Audio, images, video Surveillance cameras, geological survey maps, Siri voice 2013 Forrester Research, Inc. Reproduction Prohibited 15
ERP ecommerce Mobile Customer Service Web analytics Media Social VOC Finance POS MRP Marketing BPM Data warehouse ecommerce Excel & Access CRM Web Customer Service Email Field Operations Claims Planning
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
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
1100100110110 01001100110 01001001 0100 Data silos create biased and inaccurate views of your business and hinder smart decision.
#DataScience
Trend Data science supercharges your decisions.
Data scientists use a combination of statistical and machine learning algorithms to find patterns and predictive models.
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
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
Will the real data scientist please stand up? I m a data scientist. I m a data scientist. I m a data scientist. 2013 Forrester Research, Inc. Reproduction Prohibited 25
Data science can overturn expert human bias.
I Quit How can you prevent key employees from resigning?
Turkey How can you predict where customers will be on Thanksgiving?
Recommend How can you provide the perfect, individualized product recommendation?
$3.2B How can you turn up the heat for your customer?
Influence Can you predict what voters will be positively impacted by campaign (marketing) contact?
#Streaming
Trend Data in-motion is as valuable as data at-rest.
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.
Fraud How can you prevent this dude from fleecing you?
Sports What could you predict if you had the court location of the players and ball 25 times per second?
#PredictiveApps
2013 Forrester Research, Inc. Reproduction Prohibited 38
Trip 1 Easy. Buy a copper tube ice maker kit.
Buy a shut-off valve for the copper tubing. Trip 2
Trip 3 Buy a T-connector to tap the cold water supply line.
Trip 4 Whoops. Also need to buy a hacksaw to cut the copper pipe.
Trip 5 Finally. A special drill bit to make a hole in the kitchen floor for the copper tubing.
Predictive apps can make customers feel intensely royal and loyal.
Customers are ready: Treat them like royalty to get their loyalty. 2013 Forrester Research, Inc. Reproduction Prohibited 45
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. 2013 Forrester Research, Inc. Reproduction Prohibited 46
#Imagination
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
Thank you Mike Gualtieri mgualtieri@forrester.com