1   Copyright © 2011, Oracle and/or its affiliates. All rights reserved.   Confidential – Oracle Restricted
Session 16847 / Oracle Real-Time Decisions: E-Commerce          Optimization at Betfair           Nicolas Bonnet, Sr Direc...
THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL  PRODUCT DIRECTION. IT IS INTENDED FOR INFORMATION  PURPOSES ONLY, AND MA...
Agenda                                            <Insert Picture Here>•  On Decision Management•  Oracle RTD Product Over...
Oracle Real Time Decisions     Closed Loop Transactional Business Intelligence•  DECISION MANAGEMENT                      ...
It’s All About Me                                                               •  Treat me like you know me and my busine...
Total Economic ImpactTM of Oracle Real-Time Decisions    Study Conducted by Forrester Consulting, Commissioned by Oracle  ...
Managing Customer Attention      Cross Channel Challenge                                          Call Center             ...
The “Moment of Impact”     RTD in Production•  Marketing Processes                                                        ...
Agenda     •  On Decision Management     •  Oracle RTD Product Overview     •  Ecommerce Optimization Use Case at Betfair1...
RTD Enables Adaptive Business Processes     Analytic Decisions as a Service          Business Process Execution           ...
Oracle Real-Time Decisions             Key Capabilities                                                                   ...
Agenda     •  On Decision Management     •  Oracle RTD Product Overview     •  Ecommerce Optimization Use Case at Betfair1...
BETFAIR – WHAT DO WE DO?•  Founded by Andrew Black and Ed Wray in 2000, floated last year for   £1.6bn•  Online sports boo...
Betfair Film15   CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
PERSONALISATION STRATEGY     To deliver “personalised” communications and interactions to every                           ...
BETFAIR – SOME OF OUR CHARACTERISTICSAS A BUSINESS   Repeat transaction                   Fluid product inventory   busine...
SELECTION PROCESS               Search for companies and               preliminary conversations           RFP sent to 23 ...
REASONS FOR SELECTING RTDSelf Learning                          Multi Channel                                   Time Aware...
MARKETS PROJECT•  RTD is a programme of work within Betfair to deliver our personalisation strategy –  Two projects comple...
MARKET RECOMMENDATIONS USE CASE
INPUTS  Customer data Behavioural          Oracle RTD data - Web                                   Relevant content to    ...
MARKET DECISION                                                                     RTD knows about you:                  ...
TARGET AND CONTROL GROUP COMPARISON    350    300    250    200%    150    100    50      0          1    2    3   4   5  ...
HIGHLIGHTS•  Controlled roll out•  Throttled traffic•  Control / test groups•  Increased volumes quicker than originally p...
DATA AVAILABLE IN RTD 26   CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange...
DATA AVAILABLE IN RTD 27   CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange...
THE PROJECT      Agile methodology used to release business value early and to      de-risk the project      July         ...
RESOURCES                                     Initial                                     Project       Ongoing    Develop...
RESULTS AND FUTURE PLANS                ?
Oracle Rich Landscape of Predictive AnalyticsFrom Statistics to Decision Management & Optimization                        ...
Oracle Real Time Decisions     Optimizing Customer Experiences                                      Business Objectives   ...
Q&A33   Copyright © 2011, Oracle and/or its affiliates. All rights reserved.   Confidential – Oracle Restricted
34   Copyright © 2011, Oracle and/or its affiliates. All rights reserved.   Confidential – Oracle Restricted
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Oracle Real-Time Decisions: E-Commerce Optimization at Betfair

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During this session, you will learn how Oracle Real-Time Decisions applies real-time predictive modeling to create tailored messaging for each and every unique customer interaction. Betfair, the world's largest international online sports betting provider, with its betting exchange processing more than five million transactions a day, discusses its successful implementation of Oracle Real-Time Decisions to personalize its Website to meet the challenge of managing a dynamic inventory of events that can exist from a few minutes to several years. Results show higher bet and click-through rates, ultimately resulting in revenue increase.

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Oracle Real-Time Decisions: E-Commerce Optimization at Betfair

  1. 1. 1 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  2. 2. Session 16847 / Oracle Real-Time Decisions: E-Commerce Optimization at Betfair Nicolas Bonnet, Sr Director Product Management, Oracle James Knight, Product Manager, Betfair2 Daniel Taylor, Business Analyst, Betfair Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  3. 3. THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL PRODUCT DIRECTION. IT IS INTENDED FOR INFORMATION PURPOSES ONLY, AND MAY NOT BE INCORPORATED INTO ANY CONTRACT. IT IS NOT A COMMITMENT TO DELIVER ANYMATERIAL, CODE, OR FUNCTIONALITY, AND SHOULD NOT BE RELIED UPON IN MAKING PURCHASING DECISION. THEDEVELOPMENT, RELEASE, AND TIMING OF ANY FEATURES OR FUNCTIONALITY DESCRIBED FOR ORACLES PRODUCTS REMAINS AT THE SOLE DISCRETION OF ORACLE.3 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 8 Confidential – Oracle Restricted
  4. 4. Agenda <Insert Picture Here>•  On Decision Management•  Oracle RTD Product Overview•  Ecommerce Optimization Use Case at Betfair 4
  5. 5. Oracle Real Time Decisions Closed Loop Transactional Business Intelligence•  DECISION MANAGEMENT Rules  &   Models   •  Complete Decision Framework leveraging Data, Rules, Predictive Models •  Closed Loop Business Intelligence & Insight Discovery Goals   •  Business Controls supporting Collaboration over End to End Lifecycle Arbitraon  •  DECISION OPTIMIZATION •  Cross-Channel Decision Services for Business Process Optimization •  Adaptive Targeting Automation with Self Learning •  Scalable and Flexible Enterprise Infrastructure Automaon   •  ORACLE RTD DELIVERS QUANTIFIABLE RESULTS •  Personalized, Optimized and Context Centric Decisions •  Cross-Channel Learning & Decisions •  One Single Solution for Multiple Decision Management Use Cases 5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  6. 6. It’s All About Me •  Treat me like you know me and my business is important but do not patronize me•  Treat me consistently across •  Acknowledge me channels •  Save me time and money•  Recognize my needs and •  Reward my loyalty intentions •  Pay attention and make me feel special •  Be relevant to my [evolving] needs •  Respect my preferences •  Respect my privacy •  Support me anytime, anywhere 6 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  7. 7. Total Economic ImpactTM of Oracle Real-Time Decisions Study Conducted by Forrester Consulting, Commissioned by Oracle •  The company •  A financial services provider with more than 20,000 employees and operations across the United States •  The financial results (risk-adjusted / three years) •  ROI: 986% •  Payback period: 3 months •  Net Present value: $99,711,545 •  Total Benefits : $137,927,504 •  The benefits •  Improved closure rate revenue: $52,406,800 •  Incremental sale price revenue: $41,114,400 •  Post cart abandonment follow-up campaign revenue: $56,400,000 •  Greater customer retention and lifetime value •  Better business intelligence •  Improved customer experiences Source: “Total Economic Impact of Oracle Real-Time Decisions, a commissioned study conducted by Forrester Consulting on behalf of Oracle, July 2011”7 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  8. 8. Managing Customer Attention Cross Channel Challenge Call Center Social Media Branch ECMBI Get Advice Mobile Web Email Yesterday Today •  New Generation Channels •  Traditional Channels•  Multi-Channel Experiences CRM •  Cross-Channel Interactions •  Outbound Centric Model •  Inbound Centric Model 8 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  9. 9. The “Moment of Impact” RTD in Production•  Marketing Processes •  Service Processes •  Interactive Marketing Personalization •  Service Treatments Optimization •  Customer Experience Optimization Web •  Customer Retention Programs •  Next Best Action •  Call Center Optimization •  A/B and Multivariate Testing •  Risk and Fraud Analysis Enhancement •  Content Personalization Call Center Social Media Branch •  Sales Processes Mobile •  Operational Processes •  Customer Acquisition Targeting •  Maintenance Recommendations •  Cross Sell/Up Sell •  Operational Process Optimization •  eMail Targeting and Personalization One Single Platform for Multiple Decision Management Use Cases 9 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  10. 10. Agenda •  On Decision Management •  Oracle RTD Product Overview •  Ecommerce Optimization Use Case at Betfair10 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  11. 11. RTD Enables Adaptive Business Processes Analytic Decisions as a Service Business Process Execution •  Process learns and continuously optimizes in real- time or batch based on closed loop information •  Analytical decisions for each interactionINFORMANT ADVISOR INFORMANTProcess data Recommendations Feedback •  RTD Recommends with rules & predictive models Real-Time Closed Loop Self-Learning •  RTD Learns from each interaction •  Leverage common data model with real-time and historical data OLTP BI Grid Enterprise Information Model •  Decisions based on facts, context, predictive insights11 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  12. 12. Oracle Real-Time Decisions Key Capabilities Decision Management •  Collaborative environment to define decision management strategies •  Business user controls over decision optimization logic •  Cross-channel customer experience management framework Learning Engine Decision Engine•  Can be deployed independently from decision engine •  Combines rules and [automated] predictive models to•  Automatically learn from each interaction and discover important define contextual, optimal and personalized decision correlations logic•  Learning can be analyzed by way of user friendly reports •  Decision logic is highly scalable and self-adjusts based•  Learning can be used to make predictions on company defined performance goals 12 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  13. 13. Agenda •  On Decision Management •  Oracle RTD Product Overview •  Ecommerce Optimization Use Case at Betfair13 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  14. 14. BETFAIR – WHAT DO WE DO?•  Founded by Andrew Black and Ed Wray in 2000, floated last year for £1.6bn•  Online sports bookmaker where customers bet against each other on our “Exchange”. Also offer Poker and Casino
  15. 15. Betfair Film15 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  16. 16. PERSONALISATION STRATEGY To deliver “personalised” communications and interactions to every customer we have.•  More relevant content means –  More engaged customers –  Higher communication response –  Increased revenue and product take up –  Decreased churn•  Other companies report customer marketing ROI increases ranging from 100% to 300% by doing this•  Email trial –  Tested customer segmentation and predictive models on email channel –  Positive results paved way for personalisation programme.
  17. 17. BETFAIR – SOME OF OUR CHARACTERISTICSAS A BUSINESS Repeat transaction Fluid product inventory business •  6000 markets live at one time •  400k customers per month •  Some markets last less than 5 •  100k of which drive 99% of minutes revenue and transact >10 days •  Content and comms fluid also in per month line with sporting calendar Huge Customer Diversity Revenue not known at •  Customers betting anywhere time of purchase between £2 and £1million stakes •  We only know the revenue when the match/competition finishes
  18. 18. SELECTION PROCESS Search for companies and preliminary conversations RFP sent to 23 potential suppliers 6 Supplier Presentations Shortlist – 3 Suppliers - Numerous meetings both product and technical. - Reference site visits Europe and America (6 Betfair staff attended)
  19. 19. REASONS FOR SELECTING RTDSelf Learning Multi Channel Time Aware Business Goal Arbitration Rules and Modelling Performance Control Group 19 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  20. 20. MARKETS PROJECT•  RTD is a programme of work within Betfair to deliver our personalisation strategy –  Two projects complete others in progress or planned –  Focus of today is on one particular use case – market recommendations –  Pre project belief - revenues could be increased by recommending individual users with markets that they would be interested in –  Other objectives of the project •  test RTD - unique use case due to nature of markets and their various life times •  fully automated solution •  prove performance •  prove integration with other systems 20 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  21. 21. MARKET RECOMMENDATIONS USE CASE
  22. 22. INPUTS Customer data Behavioural Oracle RTD data - Web Relevant content to customer Market information
  23. 23. MARKET DECISION RTD knows about you: -  Account data from data warehouse Minimum 6,000 markets -  Basic site browsing information £10,000 from API - Click and Bet information Matched Your Technical Velocity Minimum Interest Amount Matched 800 £20 Combined In Play markets Velocity Likelihood Turning in Play Your Event Sport RTD 300 Interest Decision markets Category EventPerformance – 300 markets * 8 models = 2,400 decisions per customer in under 100ms
  24. 24. TARGET AND CONTROL GROUP COMPARISON 350 300 250 200% 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 24 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  25. 25. HIGHLIGHTS•  Controlled roll out•  Throttled traffic•  Control / test groups•  Increased volumes quicker than originally planned•  Seven times more likely to click on relevant markets than random•  Analytical reporting•  Rapidly deploy logic / model enhancements
  26. 26. DATA AVAILABLE IN RTD 26 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  27. 27. DATA AVAILABLE IN RTD 27 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  28. 28. THE PROJECT Agile methodology used to release business value early and to de-risk the project July August September October November Phase 1 Hardware Phase 2 Environments Basic website Customer data Phase 3 integration integration Improved Phase 4 website integration Betfair API integration Pilot 28 CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited.
  29. 29. RESOURCES Initial Project Ongoing Developers 2 1 RTD Consultants (External) 3 RTD Developers (Internal) 3 QA 1 1 IS 0.5 0.5 BA 1 1 Project Manager 0.5 0.5 Product Manager 0.5 0.5 Statistical Analyst 0.5
  30. 30. RESULTS AND FUTURE PLANS ?
  31. 31. Oracle Rich Landscape of Predictive AnalyticsFrom Statistics to Decision Management & Optimization Oracle  Real  Time  Decisions   Oracle  Crystal  Ball  -­‐  Optimization  algorithms     Oracle  Crystal  Ball  Forecasting     Oracle  Essbase  &  Hyperion  Planning     Oracle  Data  Mining  and  Text  Mining   Oracle  Real  Time  Decisions   Oracle  Essbase  -­‐  Advanced  Calculations     Oracle  R  and  Oracle  Data  Mining:  In-­‐database  statistical  functions   31
  32. 32. Oracle Real Time Decisions Optimizing Customer Experiences Business Objectives Technology Requirements •  Differentiated, tailored user •  Scalability & Architecture experiences based on customer specific and •  Accurate, self-learning interaction data predictive capabilities •  Business intelligence via •  Low Total Cost Ownership analytical reports •  Flexibility to cope with •  Analytics automation evolving requirements •  Easy integration with •  Easy integration with ‘message’ supply chain ‘interaction’ channels Impressive ROI32 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  33. 33. Q&A33 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
  34. 34. 34 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted
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