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SPECIAL SOFTWARE SYSTEMS June 11th, 2015 BUSINESS INTELLIGENCE DATA WAREHOUSE “A data warehouse is a subject-oriented, integrated, time- variant and non-volatile collection of data in support of management's decision making process. Subject-Oriented: A data warehouse can be used to analyze a particular subject area. For example, "sales" can be a particular subject. Integrated: A data warehouse integrates data from multiple data sources. For example, source A and source B may have different ways of identifying a product, but in a data warehouse, there will be only a single way of identifying a product. DATA WAREHOUSE Time-Variant: Historical data is kept in a data warehouse. For example, one can retrieve data from 3 months, 6 months, 12 months, or even older data from a data warehouse. This contrasts with a transactions system, where often only the most recent data is kept. For example, a transaction system may hold the most recent address of a customer, where a data warehouse can hold all addresses associated with a customer. Non-volatile: Once data is in the data warehouse, it will not change. So, historical data in a data warehouse should never be altered.

LESSON 11 Customer Intelligence

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  • SPECIAL SOFTWARESYSTEMS

    June 11th, 2015

    BUSINESSINTELLIGENCE

    DATA WAREHOUSEA data warehouse is a subject-oriented, integrated, time-variant and non-volatile collection of data in support ofmanagement's decision making process.Subject-Oriented: A data warehouse can be used to analyze aparticular subject area. For example, "sales" can be aparticular subject.Integrated: A data warehouse integrates data from multipledata sources. For example, source A and source B may havedifferent ways of identifying a product, but in a datawarehouse, there will be only a single way of identifying aproduct.

    DATA WAREHOUSETime-Variant: Historical data is kept in a data warehouse. Forexample, one can retrieve data from 3 months, 6 months, 12months, or even older data from a data warehouse. Thiscontrasts with a transactions system, where often only themost recent data is kept. For example, a transaction systemmay hold the most recent address of a customer, where adata warehouse can hold all addresses associated with acustomer.Non-volatile: Once data is in the data warehouse, it will notchange. So, historical data in a data warehouse should neverbe altered.

  • DATA WAREHOUSERalph Kimball provided a more concise definition of a datawarehouse:A data warehouse is a copy of transaction data specificallystructured for query and analysis.This is a functional view of a data warehouse. Kimball did notaddress how the data warehouse is built like Inmon did;rather he focused on the functionality of a data warehouse.

    What Should You Expectfrom Your Data Warehouse?

    Making business decisions based onfacts, not intuitionRealizing the value of data at your

    fingertipsLooking at cross-organization

    communications and your datawarehouseChanging your business because of

    insights from data warehouse information

    Making business decisions basedon facts, not intuition

    No matter what else appears on a datawarehousing projects mission statement,and no matter what the projects sponsorssay to convey the projects merits to thepeople who control funding, the primarypurpose of a data warehouse is to helppeople make better business decisions. Datawarehousing isnt about simply accessingdata and then doing nothing with it; its aboutreally using data.

    Realizing the value ofdata at your fingertips

    Everyone has heard the phrase information (or knowledge)is power, and the more skillfully people use information inthe course of their jobs, the greater their chances forsuccess. The process of gathering data from many different sources(if you can even get the data at all) has traditionally beentedious. Some novels and movies would have you believethat after you press just a few keys, you can automaticallyaccess vast amounts of data from anywhere in the world,regardless of the platform youre using, the structure of thedata (how its organized), or how the data is encoded orkeyed.

  • Looking at cross-organizationcommunications and your data warehouse

    A benefit of data warehousing thats much lesstangible than having information for betterbusiness decisions is that data warehousingoften facilitates better communications acrossa company than what existed before thewarehouse project began

    Changing your business because of insightsfrom data warehouse information

    Data warehousing involves facilitating changein business processes. In addition to being ableto make better, information-driven operationaland tactical decisions, you gain insight into keyareas that can help you make strategicdecisions about the fundamental aspects ofyour business. Your data warehouse can actas an early-warning system to let you knowthat you might need to make some majorbusiness changes.

    Data Refinery process

    Worth it?

    What Might a Recession Do forBI? http://esj.com/business_intelligence/article.aspx?EditorialsID=8801

    Is one olive worth oneflight attendant?

    http://community.pentaho.com/faq/data_mining.php

    Laptop vsDesktop

    Unless you're saving at least $1 million a year,you haven't realized the potential of enterprise business intelligencehttp://www.informationbuilders.com/products/

    COMPLIANCE:Basilea 2 Antiriciclaggio - HIPAA

  • and in operational CRM? SALES, MARKETING, SUPPORT

    OPERATIONALBUSINESS INTELLIGENCE

    HIT LISTCustomerAttritionCustomersegmentationand propensityto buy(es. Target cross sale)Total CustomerViewcreate some modelsto managetelemarketing andcampaignsdistributeresults(touchpoints)developbudget

    The top 10 CRManalytics

    buzzwords1. CRM analytics

    2. Customer relationship analysis

    3. OLAP for CRM

    4. Web analytics

    5. Web mining

    6. Clickstream analytics

    7. Predictive analytics

    8. Speech analytics

    9. Text analytics

    10. Real-time analytics

    CUSTOMER INTELLIGENCE

    Customer Intelligence is a key componentof effective Customer CRM, and wheneffectively implemented it is a rich source ofinsight into the behaviour and experience ofa company's customer base.

  • OverviewCustomer Intelligence begins with reference data - basic keyfacts about the customer, such as their geographic location.

    This data is then supplemented with transactional data -reports of customer activity. This can be commercialinformation (for example purchase history from sales andorder processing), interactions from service contacts over thephone and via e-mail.

    A further subjective dimension can be added, in the form ofcustomer satisfaction surveys or agent data.

    Competitor insight and mystery shopping to get a better viewof how their service benchmarks in the market

    Overview Deepening customer insight.

    Manage data, profile and segment customers, andpredict customer behavior.

    Choreographing customer interactions. Develop and optimize strategies, and manage customer

    engagement at the enterprise level. Continuous improvement.

    Measure and report KPIs that matter, optimizeinvestment of sales and marketing resources, andcontinuously learn from every customer interaction.

    Deepening

    Integrate quality customer data.Accessing virtually any database to createa customer-centric data repository, movingdata between operational and marketingsystems, and cleansing the data to ensuredecisions are made using the right data.

    Predict customer behavior.Exploit predictive analytics to truly understandcustomers - not just past behaviors, but likelyfuture preferences and purchase patterns. Thisknowledge enables you to anticipate customerneeds, improve customer retention and identifyopportunities to cross-sell and up-sell.

    Deepening

  • Profile and segment customers.Develop effective customer profiles andsegments based on a customers historicalbehavior, profitability and future potential.Historically, segmentation has been used tosupport product-push marketing models;today many companies are using it to moreclosely understand customers and drivecustomer-centric strategies, even in aproduct-centered organizational structure.

    Deepening TOOLSData integration pulls data from nearly any source and applies proper data quality techniques toensure customer information is in the best possible state.

    Customer analytics transform customer and market data into insights that can guide decision making.Armed with this information, you can create highly tailored marketing campaigns and identify high-valueindividuals, instead of inundating customers with irrelevant offers.

    Customer profitability solutions calculate profitability at multiple levels, including: customer,household, product, channel, sales representative and geographic profit centers (e.g., stores, branches).

    Online analytics deliver customer intelligence from the digital data created by customer visits to onlinechannels.

    Social marketing analysis identifies patterns and gleans customer intelligence from enormousvolumes of text, such as e-mails.

    Credit risk analysis and assessment capabilities help more accurately develop and track credit riskscores.

    Forecasting allows you to identify previously unseen trends in customer data helping you to makemarketing decisions accordingly.

    Interaction

    Manage and optimize segment strategies.What unique treatments should eachcustomer receive? Whats the best bundlingof price and promotion? What is the beststrategy for up-selling, cross-selling andretention efforts?

    Armed with richer customer insight andtargeted customer segments, marketers arebecoming more selective about where theyinvest resources - including which customersthey will even accept.

    Engage effectively with customers.Naturally, marketing success stems fromtargeting the right customers with the rightoffers at the right time - even in real time -while prudently avoiding spending onunprofitable prospects.

    Interactions

  • With deep customer insight and theappropriate enabling capabilities, marketerscan effectively manage the customerdialogue across multiple products andchannels, balancing the realities of budgets,sales capacity and other constraints

    Interactions TOOLSAdvanced campaign management enables marketers toplan the most effective campaign offers and strategies,target campaign activities to tightly defined marketsegments, act on those plans and learn from the results.Campaign management automates campaign processes,such as pulling lists, managing communications withcustomers across multiple channels, tracking responses,and consolidating and reporting results. Modern campaign management systems enable

    marketers manage customer relationships at anindividual level and to measure the relative effectivenessof various offers and creative treatments.

    Continuous Improvement

    Measure and report on all aspects of the marketingorganization

    Align activities to strategies and goals, and improve theperformance and accountability of marketing, sales andservice.

    Deliver the information that marketing team membersneed, in a form they can use to support decisions andunderstand their contributions to overall success.

    Continuous Improvement

    Optimize investment across direct and indirectmarketing.

    Analyze and optimize marketing mix elements, such asadvertising, promotion and pricing; media plans by mediumand market; and customer segmentation and treatmentstrategies.

  • Continuous Improvement

    Continuously learn and improve through a closed-loopsystem

    Leading to a knowledge-based relationship with yourcustomers that will differentiate you from your competitors.

    TOOLS Advanced campaign management enables marketers to learn from campaign

    experience by measuring campaign results and automatically feeding that intelligenceback into the system to tune future campaigns.

    A comprehensive business intelligence framework provides a unifiedenvironment for managing data, converts it into intelligence that can be acted uponand disseminates it to decision makers.

    Marketing mix optimization analyzes marketing mix elements and calculates ROIby any number of factors, such as advertising medium or geographic area.

    Insights from this solution can maximize ROI on market investments, reduce wastedinvestments and integrate new learning for continuous improvement.

    Marketing performance management provides marketing-specific key performanceindicators (KPIs), generates dashboards and scorecards that provide an at-a-glanceview of performance on those key metrics, and supports greater accountability andcontinuous improvement.