Big Data: Real-life Examples of Business Value Generation

Big Data: Real-life examples of Business Value Generation

Richard Brown Global Programme Leader Big Data & Analytics

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Copyright © 2014 Capgemini. All rights reserved.

Big Data: Real-life Examples of Business Value Generation | Richard Brown

Over 40% of the companies that were in the

fortune 500 in 2000 were not there in 2010

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Big Data: A confluence of Sources and Technology

New

Opportunities

New

Sourc

es

Public

Social

Geo RFID

Meters

Mobile

Web

New

Technolo

gie

s

Sensors

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4 Ways in which the opportunity is being exploited

Improving Revenue New products and different

markets

Cost Reduction

Data as a Revenue

Stream

Improving Revenue Existing products & services

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US Retail Chain

Hadoop: Data storage cost down from $30k/Tb $1k/Tb.

The Situation The Solution The Benefits

Massive EDW

4000 stores

650m SKUs

50 Tb per day

440 node Hadoop

cluster

POS, Inventory, Social

Data optimized

across EDW &HDFS.

Max use of Opensource

$23m saving p.a.

Higher level of

forecast accuracy

Improved collaboration

with vendors

Improved data integrity

Cost

Reduction

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60% of Hadoop implementations are for new business applications

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More sophisticated models: Cross-selling example

Event calendar

Sales history, events and customer buying history

This customer fits

demographic profile A they are

buying product

X then the model proposes

product Y.

Event calendar

Sales history and event calendar

Modified offer selection based

on the fact that the world cup

is running.

Sales History People who bought product A

bought product B.

Event calendar

Sales history, events and customer buying history + social media

Either customer specific or

general + what is trending.

Existing

Revenue

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You only need to be

a few % points better

to pull away from the

competitors

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Insight at the point of action

Online enquiry

Service B

Product A Product selected

Up-sell

x-sell

Customer

Sales history

Web

transaction

Success rate from 5% → 20%

Stock out

in store

Source D

Source C Sources

indentified Supply

Available

stock

Delivery lead

times

On-shelf Availability up 7%

Product in transit

– RFID location

Model of

optimum revenue

for replenishment

scenarios

Shipping

partner:

Route data

Current

performance

of supply

routes

Stores: live sales

performance

Competitor sales

data in locality

from 3rd party

provider

Recent social

media activity

Success rate for

product in x-sell

scenario

Customer web

profile data

Predictive model

of customer

response

Available

Products

Recent call

history:

Sentiment data

Existing

Revenue

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Global Media & Entertainment company Existing

Revenue

Rapid correlation of social media and operational data

The Ask The Solution The Benefits

How to improve box

office takings?

Social media analysis

• Sentiment

• Mentions

Theatre counts

Key influencers

Format release

analysis

Improved release

schedules

Improved marketing

effectiveness

Rapid response to

market changes

Improved yields

($ m)

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$ 90 Billion: Global Pharmaceutical Promotion Spend in 2012*

$19.7 Billion: Pharmaceutical Promotion Spend in 2012 in European Union (EU5).**

European Pharmaceutical

*Source: Cegedim Strategic Data, “2012 Pharmaceutical Promotional Spending: Global Trends”.

** EU top 5 = France, Germany, Italy, Spain, United Kingdom.

Physicians are key opinion leaders on drug

selection

Selection of right Opinion Leaders can allow

more effective targeting of marketing funds

More effective identification of Opinion

leaders can deliver significant ROI.

Emerging Trends in European Pharma Market.

As Pharmaceutical promotional spends shrink (EU5 -3.6% in 2012 *) and sales force is reduced, effective

identification segmentation and targeting of doctors becomes important.

1-to-1

Physician

interaction

(Detailing)

Direct to

Customer

Existing

Revenue

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Opinion Leader Identification Process

Network Influence

Score gives measure of

Influence in the Referral

Network of doctors.

Publication Score gives

measure of Influence in

Publication activities.

Prescription Score gives

measure of Influence from

drugs’ Prescription activities.

Affiliation Perception

Score gives measure of

perception based on

affiliations to Prestigious

Hospitals & Academic

Institutes.

Social Media Score gives measure of influence in

social media, blogs etc.

Opinion Leaders

Prescription Data

Publication Data

Referral Data

Survey Data

Social Media Data

Affiliation Data

Existing

Revenue

Referral Data of doctors.

Prescriptions Data.

3rd Party Survey Data.

Hospitals, Institutes &

Academic Institutes

affiliation Data.

PubMed Data for medical

publications; clinical trials,

research papers, news

etc.

Pharma blogs, forums

and other social

networking sites.

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“Shifting sands”

In today’s information

landscape new islands

of value are appearing

across organisation &

industry boundaries

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Global Telecommunications Provider

Opening up new revenue streams

The Ask The Solution The Benefits

Traffic volumes

Plan the network

Data to help

negotiate with

partners

Socio-thermodynamic

modeling

Network modeling

Fault and fraud

detection

Traffic imbalance

analysis

Major cost saving

Increase customer

service / response to

issues

Identified new

business opportunities:

• New markets

• New customer

.

New

Revenue

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Data Monetization Data

Monetization

“Data is the new oil.”

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Public Sector

Fraud Detection

Crime Prevention

Service Optimization

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How are organisations getting there?

Dig

ital C

apabili

ty

Leadership Capability

The How:

Successful transformations depend as much

on how firms manage digital transformation than solely on

implementing new technologies

The What:

Using digital technology to transform the customer

experience, operational processes and business models

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How are organisations getting there?

Dig

ital C

apabili

ty


DIGITAL MASTERS FASHIONISTAS

CONSERVATIVES BEGINNERS

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Revenue Generation

Dig

ital C

apabili

ty


Revenue Generation

+9%

-10% -4%

+6%

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Profitability

Dig

ital C

apabili

ty


Profitability

+26%

+9% -24%

-11%

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It is not from the edge You need Vision, Strategy

and Business & IT working together

The information contained in this presentation is proprietary.


Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com/bim

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