Business Analytics and Process Performance

Maximizing the Business Impact of Analytics

WebinarJune 15, 2016

Frank CapekFCB AffiliateTo subscribe to the webinar series, email [email protected] or call 617 245 0265

mailto:[email protected]

2©2016 FCB Partners. All rights reserved.

2016 Webinars and Courses

WebinarsTitle Date

Improving the Performance EnvironmentRobert Sher, CEO to CEO

May 11

Smart Work: Book LaunchSteve Stanton, FCB Partners May 18

Asset Commissioning & StartupTom Purves, VP Shell (ret’d) June 1

Business Impact of AnalyticsFrank Capek, Customer Innovations June 15

Smart StrategyTim Collins, Director, Rich Products June 29

Courses

Title Date and Location

Power of ProcessSteve Stanton

New Orleans, LAOctober 24-25Hammer Certification

Implementation and ExecutionKay Coleman

New Orleans, LAOctober 26-27Advanced Certification

Leading TransformationWalter Popper

New Orleans, LAOctober 26-28Hammer Certification

For information about onsite courses and workshops call 617 245 0265 or contact us by email: [email protected]

Where We’re Coming From…

For more than 25 years, Customer Innovations has helped leading organizations successfully innovate products, services and experiences that transform the performance of their business by improving the well-being of

customers, employees, and other stakeholders.

Over this time, we’ve evolved unique capabilities in three areas:

3 | © 2016 Customer Innovations. All Rights Reserved.

Client Example: A Company With a Performance Challenge

The Challenge:Katrina, Rita, Gustav, Ike, Isaac ,

Arkansas Ice Storm, etc…

In 2009, all 5 Entergy Operating Companies were in the 4th Quartile of J.D. Power. Entergy New Orleans was in last place.

Entergy’s Utility Business 5 operating companies across 4

contiguous states: Arkansas, Louisiana, Mississippi, Texas


Fast Forward a Few Years…

Entergy Mississippi

Entergy New Orleans

Entergy Arkansas

Entergy Texas

Entergy Louisiana

PSE&G

We Energies

Con Edison

Pepco

Southern California Edison

Atlantic City Electric

L. A. Dept. of Water & Power

PPL Electric Utilities

29%

26%

25%

25%

23%

14%

14%

13%

12%

12%

11%

11%

11%

Proactive Outage Communications

Entergy is the first company to capture all of the top spots in any

category three years in a row.

2013 J.D. Power National Ranking

Over 3 years, Entergy’s overall JD Power national ranking improved from lower-4th quartile to mid-2nd

quartile with Entergy Arkansas now in the 1st quartile.

Outage-related call volume was also significantly reduced: from 35% of effected customers to 8% with only

2% requiring agent contact.


Maximizing the Impact of Analytics: Aligning Three Processes

DEMAND

• Overall Objectives – Define clear and precise business objectives for analytics-related projects or processes.

• Leadership & Strategic Direction – Alignment on the direction & prioritization of analytic investments & activities

• Closed Loop Analytic Process– An integrated set of processes for collecting, analyzing, communicating, applying, planning, & acting on customer findings

SUPPLY• Problem Statement – Ensuring

specific questions are effectively framed.

• Collection – Gathering customer and market data appropriate to the objectives.

• Analysis – Deriving high impact actionable insight from the data. Developing recommendations for improved performance or decision making.

• Communication – Reporting and briefing decision makers in a way that creates understanding and leads to desired actions.APPLICATION

• Alignment on Implications – Building executive agreement and momentum on applying key findings• Action Planning – Structuring an appropriate action plan for improving performance• Execution – Ensuring accountability and follow through• Feedback – Measuring the business impact of actions taken and refining the understanding of the firm’s

relationship to the market and to the customer.


These Processes Are Typically Misaligned

• Demand from individual stakeholders idiosyncratically negotiated.

• Demand framed as broad areas of interest rather than prioritized hypotheses and experiments.

• Analysis is commissioned within silos.

• Patterns with strategic implications go unrecognized; or, patterns that have emerged have been largely discounted or ignored (I.e, pricing issues, service issues)

• Valuable analytic findings gather dust in one silo while blocked from action by other silos

• There is a “capability seeking a problem” approach to investments in big data analytics / decision sciences.

• Analysts lack critical contextual understanding of data sources and of customers’ real life motivations and end-to-end experiences.

ApplicationSupplyDemand

Strategic Asset

StrengthCompetence

Emergingad Hoc

Analytic Process MaturityExample: Leading Finance Services Company


Getting it Right: Three Key Characteristics

Outcomes DrivenHolistically Integrated

Iteratively Convergent

Analytic investments are clearly focused on understanding and influencing the specific behaviors that have the greatest impact on business results

Analytic investments build a holistic qualitative AND quantitative

understanding of what customers do, why they do it, and how to

influence the most critical behaviors

Analytic investments are embedded in a fast cycle experimentation process that

continuously evolves a deeper understanding of customer behavior as

well as levers for influencing that behavior


A Small Number of Behaviors Drive Significant Performance Gains

Automotive Service• Visit frequency• Customer referrals

Financial Advisory• Goal statement• Completed plan

Restaurant Chain• The second occasion• Ordering wine with meal

Business News• Second time renewals• Online visit frequency

Insurance Company• Life customers

that buy auto• Auto renewal rates

For Example:


Electric Utility• Outage communications• High-bill reactions


What?

Why?

Moving From “Knowing About” to “Knowing” Customers

AnalyticsAnalysis of actual behavioral patterns and social data in order to identify correlations, clusters, potential influence levers, and the results of experiments with new offerings.

ObservationRelating to people in their environment to develop intimate awareness of their latent needs, motivations, behavioral pathways,

usage patterns and choice drivers

ElicitationA set of structured instruments and projective

techniques that surface behavioral preferences, goals, metaphors, constructs, behavioral

pathways, emotional states and choice drivers.

Direct

Indirect

Discovery &Sense-making

Loops


Innovating WITH Customers vs. Innovating AT Customers

Innovating WITH Customers

“Engage and Experiment”Engages customers in the articulation and prioritization of needs, as well as the design of products, services, and

experiences

Innovating AT Customers

“Plan and Push”Researchers and designers get closer to the state

of mind, behavioral pathways, and feelings of the customer

CustomersDesigners


The Innovation Lab Engages Customers and Other Key Stakeholders

The Innovation Lab is a structured approach and platform for engaging customers and designers along with business stakeholders and other diverse participants in the process of innovating new products, services and experiences.

Concepts are iteratively defined, tested and validated in a way that accelerates progress and minimizes risk.

InnovationLab

Work Teams (Design, Implementation, Testing)

Designers

BusinessAnalysts

Customers

SolutionConcepts

Solution Concepts

SolutionConcepts

SolutionConcepts

Facilitator/Process Manager/Recorder

BusinessStakeholders


The Lab Uses Experimentation to Move from Ideas into Action

Developing Innovative Product, Service and Experience Concepts

Understand Customer Goals and Behavior

Generate Ideas

Develop Concepts

Refine PotentialOfferings

Structure & RunExperiments

Define Value Chain Implications

Detail Operating Model Changes

Prototype Technology

AddressCultural Changes

Develop Phased Implementation Plan

Aligning for Deployment and Profitable Operations

Fast-CycleBusiness

ExperimentsCycle Time:1-3 Months

Validated Solutions

Cycle Time:3-6 Months


Getting it Right: Three Key Characteristics

Outcomes DrivenHolistically Integrated

Iteratively Convergent

Analytic investments are clearly focused on understanding and influencing the specific behaviors that have the greatest impact on business results

Analytic investments build a holistic qualitative AND quantitative

understanding of what customers do, why they do it, and how to

influence the most critical behaviors

Analytic investments are embedded in a fast cycle experimentation process that

continuously evolves a deeper understanding of customer behavior as

well as levers for influencing that behavior


Questions


Frank [email protected]

(404) 542-0258

For more information:www.customerinnovations.com