eBook - Harish Kotadia's Blog PostsDocument Transcript
FeedJournal 11/25/2010 - 4/12/2013 feedjournal.com5 Key Tech Trends driving Social CRMby Harish Kotadia, Ph.D. (Blog volume of user generated content if a customer (or a group of consumption for information &on Data Analytics, Big Data created by millions of users. Not customers) tweet about their entertainment or playing onlineand Social CRM) possible for CRM system to import/ dissatisfaction with a product or games a truly Social experience. store the data “locally”. This is unlike service, predictive analytics can help 5) Enterprise Application and DataSubmitted at 6/18/2011 4:54:15 PM “traditional” CRM, where data was in identifying who among them are Mashups: One year ago(June 15 th, 2010 to be generated by few users and stored in most likely to defect so that company In any large or medium enterprise,precise), I wrote a post titled Social “local” database. SaaS Model makes can take corrective action before it is we have a diverse range ofMedia: The New Front End of CRM it possible to store information in the too late. Better still, if they happen to applications such as “on premise”System in which I highlighted that in “cloud” (shared space) and access it be customer(s) of a competitor, CRM or SaaS CRM, BPM, MDM,spite of undergoing a fascinating from (Social) CRM application “on- company can make an attractive offer ERP etc. to name just a few. Addingtechnological transformation over the demand” and win them over. And thanks to Social Networks to Enterpriselast decade, Customer Relationship Social Media space is changing and SaaS model and SOA, this level of Application landscape increasesManagement (CRM) evolving rapidly. Very difficult, if not real-time “In Process” analytics complexity of integrating andsystems essentially record impossible, for any CRM vendor to functionality is available to small and managing all the applicationstransactional information using pre- incorporate all new channels and medium sized companies with no exponentially not only because ofdetermined fields on the screen (front feeds “locally” for every installation large scale investment requirements amount of data generated by users on-end) and store that information in of CRM system. Under the SaaS upfront. Social Networks but also the need todatabase. This customer transaction model, it is not difficult to add new 4) Smart Phones and Tablet PCs: monitor and respond in “realdata repository is essentially at the Social Media channels/feeds to the Mobile phones have evolved from time”. Enterprise Application andheart of any CRM system. “hosted” (Social) CRM application “simple” telephones to mobile multi- Data Mashups can solve this problem In “Social” age, customers are and make it available to users “on- media communication hub connected by combining data or functionalityempowered like never before as they demand” to internet via “always on” wireless from multiple applications andcan share their experiences and 2) Service Oriented Architecture broadband connection. This is going presenting information in the requiredopinions about brands/products on (SOA): to be one of the big stories over the format in a seamless manner.Social Media channels and marketers Service Oriented Architecture and next couple of years that will fuel In a Social CRM system forhave no control over what customers Cloud Computing not only make it exponential increase in Social example, Enterprise Application andare saying about their brands/ easy to integrate applications, but also Networking Sites and their user base. Data Mashups can be used toproducts. This discussion is visible to facilitate “plug and play” modules It is estimated that currently more combine data/functionality fromall including other customers, and add-ons that can dramatically than 650 million people worldwide, multiple applications such as CRM,potential customers and competitors. reduce time and cost involved in or 13.4% of mobile subscribers, use MDM, ERP etc. and new services can The best any marketer can do is to extending functionality of the the Web via a mobile device at least be created “on the fly” or specificListen and Learn from what application. SOA design is of great once a month(see this link). This work-flows can be triggered based oncustomers are saying and Engage help in Social CRM as new social number is all set to skyrocket as pre-defined business rules in a userthem in meaningful conversations. In media tools and functionality can be inexpensive smart phones continue to friendly way.other words, Social Media channels added without expensive flood the market. All the five tech trends discussedare the new front-end of CRM system customization or upgrades as was the Similarly, Tablet PCs, given their above, namely Cloud Computing/and CRM system should be designed case in traditional CRM systems. large hi-resolution screen with multi- SaaS CRM, Service Orientedin such a way that it captures all 3) Real Time “In Process” Analytics: touch input, Accelerometer sensor for Architecture (SOA), Real Time “Inrelevant information from Social Predictive analytics has made it UI, touch-sensitive controls and high Process” Analytics, Smart Phones/Media channels and uses Predictive possible not only to analyze past speed internet access via 3G/4G or Tablet PCs and EnterpriseAnalytics and Knowledge customer behavior, but predict future Wifi/WiMax have the potential to Application/Data Mashups are nowManagement tools to derive insights behavior too based on statistical change the way we use Social Media converging and are set to transformand help in decision making. models. Predictive analytics logic/ tools and take Social Networking to a how marketers engage their Here’s how five key technological modules can be “embedded” in Social whole new level. customers through social media withtrends are driving evolution of CRM CRM work-flows to analyse and Current Social Media tools such as goal of building trust and brandinto next generation Social CRM predict customer behavior from “real- Twitter or Facebook are “text” or loyalty!systems: time” social network data feed and “web-page” UI based. NextGen What do you think? Please do share 1) Cloud Computing/SaaS CRM: take corrective action by triggering Social Media tools will leverage full your thoughts and opinion: Social Media channels (like Twitter appropriate work-flows based on pre- range of functionality available inand Facebook) generate tremendous defined business rules. For example, Tablet PCs and make mediaWanna see Social CRM ROI? Here it is!by Harish Kotadia, Ph.D. (Blog goal has been achieved and resultant Airport, KLM employees collected between Social CRM ROI and KLMon Data Analytics, Big Data business benefits and not with tools information from their Social Media Surprise? Watch the following videoand Social CRM) Per se. I received lot of great accounts like Twitter, Facebook and of KLM Surprise in action and feedback and comments about this Foursquare, selected an individual observe the surprise and smile onSubmitted at 1/7/2011 2:47:34 AM post, including some that asked where gift for the customers, located him or customers’ face. Now think about In one of my previous post titled is the proof? or show me the ROI? her in the airport terminal, delivered KLM’s investment in this pilotHow to measure Social CRM ROI, I Well, here it is! the surprise gift to them and shared project and resultant businessexplained that Social CRM ROI Royal Dutch Airlines KLM had this information on KLM’s Facebook benefits, not only in terms of loyalty,depends on how well Social Media launched a pilot program called KLM page and Twitter account (for more, but customer advocacy and buzz thistools are used for achieving the goal Surprise. For customers checking in read my earlier post titled KLM has generated on Social Mediaof building trust or loyalty and why using Foursquare at one of KLM’s Surprise: Is it Social CRM?) channels. Isn’t this a priceless proofROI is associated with how well the venues at Amsterdam Schipol You may ask what is the connection of Social CRM ROI?
2 FeedJournalLooming Talent Crunch in Social CRMby Harish Kotadia, Ph.D. (Blog solutions and for which companies likely to rise exponentially during (like Banking, Insurance, Retail,on Data Analytics, Big Data have they implemented CRM, ERP, 2011-2013 time-frame and in just 24 Pharma and Health Care, Travel &and Social CRM) BPM, MDM or similar solutions? months from now, Social CRM will Hospitality to name just a few). How many CRM “As Is” and “To account for a major chunk of CRM Sooner they do this, better for themSubmitted at 4/16/2011 10:42:36 PM Be” process flows have they mapped (and Enterprise Solutions) market. as only those consulting and IT Talk to senior or middle level or how many Use Cases have they Unfortunately, we don’t have supply services companies who can bringexecutives in Marketing or IT about written? For how many clients have of talented people in enough numbers right thought leaders and talentedSocial Media or Enterprise 2.0 and they documented CRM business to match this demand in Social CRM teams to the table for addressingyou will see their face light up requirements (BRs), Functional space. Real bottleneck to growth in growing demand in Social CRMimmediately with excitement from Requirements (FRs) or have designed Social CRM is lack of competent space are likely to emerge as winnersperceived opportunity and with fear the CRM system? What are their people to drive sCRM initiatives. and can expect to corner a lions sharefrom perceived threat – all at once. thoughts on integrating CRM system Unless you have the right people of the market. This is all the moreMost executives will tell you that with multiple other enterprise guiding your Social CRM initiatives, important given importance of Socialthey want to leverage Social Media information systems like Billing, you are likely to go wrong and as we CRM to senior marketing and ITand Enterprise 2.0 tools and Finance, HR? Can they describe know, failure is not an option when it executives in client organizations.technology for engaging their current best practices when it comes comes to Social Media. Although size of Social CRMcustomers and employees but don’t to Data Migration or MDM? (heck, Given my experience implementing projects (in terms of revenue or teamknow what to do or how to go about ask them what MDM stands for?) CRM Solutions for more than a size) may be small as compared toit. There is real shortage of “talented” You can judge expertise of self- decade, having successfully managed large ERP or CRM projects, given thepeople who understand both – Social proclaimed gurus based on response many large and complex CRM criticality and visibility of SocialMedia/Enterprise 2.0 AND existing to these questions. It is easy to projects for Fortune 500 companies in CRM initiatives, a successful sCRMmarketing and IT systems/processes browse internet, collect few talking the US, here’s my suggestion: solution implementation can openlike CRM and ERP. points, prepare a sleek presentation Identify people in your organization doors for many large Don’t get me wrong. I am not saying and lecture unsuspecting audience who “get” Social Media and know “transformational” projects involvingthat there is a shortage of Social about Social CRM, but when it comes about existing marketing/IT systems Social Media and Enterprise 2.0. It isMedia consultants or self proclaimed to real life Social CRM, these are the and processes. Empower them to absolutely vital that Management“experts”. They are dime a dozen (or questions we need to ask and there is drive your Social CRM initiatives. Consulting and IT services companiesshould I say tweet a dozen). What I a shortage of people who are good at And since there are so few good have right talent in place foram saying is that we have a shortage both, Social Media AND Enterprise consultants available for recruitment leveraging Social CRM opportunity.of people who really understand the Solutions. when it comes to Social CRM, What do you think? Do you agreepower and potential of Social Media/ In the past few months, we have seen Management Consulting and IT that we are facing a talent crunchEnterprise 2.0 tools AND can relate a shift in attitude among senior Services companies should identify when it comes to Social CRM? Whatthese tools to existing marketing/IT marketing and IT executives in favor consultants in their organization who is your experience. Look forward toprocesses. of using Social Media and Enterprise “get” Social Media, are active on hearing your thoughts on the subject Just ask any self-proclaimed Social 2.0 tools for engaging customers/ Social Media channels and entrust …..Media “expert” or Social CRM employees and resources are being them task of building Social Media/“guru” how many years’ experience budgeted for Social Media initiatives. Social CRM competency withthey have implementing CRM Spending on Social CRM solutions is specific focus on industry verticals5 Ways Big Data Are Fundamentally ChangingInformation Systemsby Harish Kotadia, Ph.D. (Blog information systems such as ERP or Data Variety implies that Big Data is unstructued), in high volume and at aon Data Analytics, Big Data CRM are supported by RDBMS. not just about text or numbers high velocity, only way it can be usedand Social CRM) This is about to change in a big way, (alphanumeric fields), but also effectively for decision making is thanks to three Vs of Big Data unstructured data. Information through the use of PredictiveSubmitted at 3/24/2013 12:38:09 PM namely, Data Volume, Data Variety systems in future will have to be Analytics and in memory data A lot has been said and written lately and Data Velocity. Traditional data designed with capability of handling analytics. Information systems inabout whether Big Data revolution is storage and retrieval methods, such as both structured and unstructured data. future will have to be designedfor real or it is one more hype that RDBMS are no longer going to work 3. Real Time Data Processing: keeping this aspect in mind.will die down soon as tech world and would necessitate NoSQL(short Given the Velocity or speed with 5. Most data are either user ormoves on to the next fad. for “Not only SQL”) database instead which Big Data is being generated, machine generated: In my opinion, Big Data is a game of RDBMS. Unlike SQL data or information systems in future will And lastly but not the least, most ofchanging revolution that will RDBMS which places data inside require capability of processing Big Data are either generated by endfundamentally change how well defined structures or tables using massive volume of data in real time. users/customers (such as social mediainformation is collected, stored, meta data, NoSQL is designed to Even “near real time”, a phrase often data) or by machines/sensors outsidemanaged and consumed thereby capture all data without categorizing used with current generation of the confines or firewall of a company.transforming the way we work, live and parsing upon entry into the information systems, is not good This is unlike in the past, when mostand play. system. This will fundamentally enough. of the data were generated within the Given below are five reasons why change the architecture of corporate A good example of real time data firewall of a corporation (such asBig Data will change information information systems. processing is the ability to process transaction data, inventory data orsystems and corporate IT: 2. Unstructured data handling social media or sensor data as they factory production data) with very 1. Move away for traditional capability: are being generated and take little coming from outside. This willRDBMS: Capability of handling both, necessary action immediately, such as fundamentally transform the Ever since electronic storage and structured and unstructured data is responding to a tweet or Facebook architecture of information systems inprocessing of data began as a another important way information posting. Batch processing, nightly or future.centralized corporate systems are going to change weekly updates and even near real What do you think? Do you agreefunction(remember good old EDP or fundamentally thanks to Big Data. As time data processing are not good that Big Data will fundamentallyElectronic Data Processing noted above, Big Data has three enough because of high Data change information systems andDepartment!), Relational Database defining attributes – Data Volume, Velocity as is the case with Big Data. corporate IT? Please do share yourManagement System or RDBMS in Data Variety and Data Velocity and 4. Predictive analytics and in thoughts:short is fundamental to most of the together they constitute a memory analytics: About the author:computerized corporate information comprehensive definition of Big If data is being generated in a variety View Harish Kotadia, Ph.D.’s profilesystems. Even today, most of the Data. of formats (structured and
FeedJournal 3Social CRM and Customer Advocacy Programs:Case Studyby Harish Kotadia, Ph.D. (Blog like discount on products/services. mention. Answer is yes and you’ll beon Data Analytics, Big Data Once marketers have Social Media Step 3: Calculate Rewards or Points: surprised to learn name of that brand.and Social CRM) profiles or IDs of customers, it is Marketers should reward customer or It is Tasti D Lite, a frozen dessert important to store this information prospects for each mention of brand chain (and my favourite when I wasSubmitted at 11/25/2010 9:07:10 PM with other Customer Profile data like on Social Media channels by living in New York city). In my previous post titled Loyalty email ID and phone number in the awarding points/reward for each TastiRewards is a program thatPrograms are Passé, how about CRM system. Last but not the least, mention. This can be tailored specific rewards customers for associatingCustomer Advocacy Program?, I enough care should in taken in to each Social Media channel like their Twitter and Foursquare accountshighlighted the importance of handling this info and customers’ Twitter, Facebook, Foursquare or with their Tasti D-Lite membershiptracking outbound Word Of privacy should always be respected. LinkedIn and should take into cards and for sharing their experienceMouth(WOM) on Social Networking Step 2: Monitoring Social Media consideration how influential a with friends and followers(for more,sites and designing programs for Feed: customer is i.e. more points should be read this Mashable.com post titledrewarding Customer Advocacy Once marketers have Social Media awarded if customer is more Twitter and Foursquare Become thebehaviors like WOM. In this post, I profiles of their customers/prospects, influential. New Loyalty Program at Tasti D-want to elaborate more on the topic next step is to monitor Social Media Points so earned should be shared on Lite).and explain how Customer Advocacy feed (like Twitter or Facebook feed) that Customer’s social network in real In one of my earlier post s, I haveProgram can be integrated into Social for any mention of brands or key -time. Meaning if a customer earns defined and explained Social CRM asCRM initiative and system. words the marketer is interested in 100 points by checking into a the business strategy of engaging In order to motivate customers to do monitoring. For example, if there are Foursquare location, Social Media customers through Social Media withso, marketers can award points or any tweets or Facebook postings that monitoring or CRM system used to goal of building trust and brandoffer other rewards like discount on mention brands or key words that track social media channels should loyalty. A great customer advocacyproducts/services. marketer is interested in, those tweets share this with friends or followers of program will not only engage Step 1: Collecting Social Media or Facebook postings should be that customer using his/her Social customers through Social MediaProfiles: identified and imported/stored in Media profile like Twitter or channels, but reward them for their First step in tracking outbound Social Media Monitoring or the CRM Facebook ID. advocacy on Social Networks. TastiWOM on Social Networking sites is system clearly identifying name of One can argue that this sounds easy D Lite is a great case study worthto obtain Social Media profiles or IDs the customer, Social Media ID that in theory but what about practice? emulating by other brands and(like Twitter, Facebook, Foursquare was used by customer and how Are there any real life case studies of business.or LinkedIn ID) from customers and influential that customer is on Social a business or brand having What do you think about Socialprospects. This is easier said than Media channels (like number of successfully implemented such a CRM and Customer Advocacydone given reluctance of customers in Twitter Followers or Facebook solution? Programs? Please do share yoursharing their Social Media profiles Friends). A great customer advocacy program thoughts and comments:with business because of privacy Marketers should reward customer or will not only engage customersconcerns. In order to motivate prospects for each mention of brand through Social Media channels, butcustomers to do so, marketers can on Social Media channels by reward them for their advocacy onaward points or offer other rewards awarding points/reward for each Social Networks.Big Data and Rise of Predictive Analyticsby Harish Kotadia, Ph.D. (Blog would be common while analyzing and costs. But for a majority of ERP case of over optimism as advancedon Data Analytics, Big Data and reporting information collected or CRM applications, data collected analytics did not go mainstream inand Social CRM) using ERP or CRM systems. was never analyzed using Predictive 2009-2010 as I expected. Looking back, I think I was over Analytics and as a result investments Finally, yes, I say FINALLY afterSubmitted at 3/31/2013 10:43:11 PM optimistic as this did not happen in ERP or CRM systems did not waiting for fifteen years, I am happy Back in mid 1990s, when I was a around 2001-2002 time frame as I deliver expected return on investment to say that Predictive Analytics (orPh.D. student, one of the professors expected. Most of the ERP and CRM (ROI). Advanced Analytics as some wouldasked me what my career goal was applications had bare bones reporting Things started to change around prefer to say) is going main stream inand I said:“To help clients serve their functionality with just frequency (%) 2008-2009 with advent of social 2013, thanks to Big Data. It is not toocustomers better through use of and advanced analytics was not media tools. Again, I thought that it difficult to understand why given theInformation Technology and leveraged. was just a matter of 12-18 months three Vs of Big Data, namelyAnalytics“. If an application manager wanted before Predictive Analytics goes main Volume, Variety and Velocity. Only After completing my Ph.D. in anything more than frequency or % stream as large organizations will be way one can derive full benefits outNovember of 1998, when the IT information, he/she had to invest in required to use analytics tool to of Big Data is by using predictiverevolution in Enterprise Solutions Business Intelligence (BI) or Data engage their customers on social analytics and this is forcing large andwas about to take off and large and Warehouse (DW) solution. But again, media channels. In a blog post titled medium companies to makemedium companies had started BI or DW solutions analyze past Social Media: The New Front End of necessary investments in buildinginvesting in ERP or CRM systems in information and are not “predictive” CRM System published three years analytics infrastructure and reportinga major way, I thought it was just a in nature the way high end statistical ago, I wrote that“the best any capabilities. And this is excellentmatter of time before Predictive tools can be. marketer can do is to Listen and news for those in AnalyticsAnalytics goes main stream. Yes, one could invest in SAS based Learn from what customers are profession or technology companies/ Back then, Siebel ’98 and Vantive analytics solution, but that was saying and Engage them in service providers who help clientswere the ‘ hottest‘ new tools in the expensive, time consuming and out of meaningful conversations. In other derive insights from mountains ofmarket and Dot Com boom was on its reach of most companies – even words, treat Social Media channels as (big) data.way. I expected that in a year or two Fortune 500 ones. As a result, use of the front-end of CRM system, capture What do you think? Do you agree(or may be three), predictive analytics Predictive Analytics was limited to a all relevant information from Social that Predictive Analytics is goingwould become part and partial of all handful of use cases such as fraud Media channels in the database and main stream in 2013 or is it a case ofenterprise information systems and detection in banks or customer churn use Predictive Analytics and over optimism? Would love to hearuse of statistical techniques such as management in telecom companies Knowledge Management tools to your thoughts:Regression Analysis, Factor Analysis for example, where one could justify derive insights and help in decisionand Multi-Dimensional Scaling the investment in terms of time, effort making”. Again it turned out to be a
4 FeedJournal Infographic: BigMove over Customer Support, it’s Data and Predictivetime for Customer Engagement Analytics by Harish Kotadia, Ph.D. (Blogby Harish Kotadia, Ph.D. (Blog provide any necessary help. During to engage them and not wait for them on Data Analytics, Big Dataon Data Analytics, Big Data the whole support process, marketers to call customer support phone and Social CRM)and Social CRM) are in total control of the interaction numbers. Social Networking to the extent that agents use “scripts” technology provides great tools for Submitted at 4/3/2013 12:38:01 AMSubmitted at 7/4/2011 11:07:35 PM or pre-defined workflow during most “engaging” customers. Unlike I published a blog post titled Big Very few times in human history customer support calls. This also traditional media channels, Social Data and Rise of Predictive Analyticshave we witnessed an inflection point highlights the fact that customer media communication is not only two a couple of days back in which Iin technology that fundamentally support personnel are just working as -way, one-to-one, but customer is an highlighted that“ I am happy to saychanges the way we live and work. “agents” and are not really active participant and “owns” the that Predictive Analytics (orInvention of electricity, telephone, empowered to solve customers’ conversation. Advanced Analytics as some wouldTV & radio, computers and most problem and have to adhere to their Moreover, conversations over Social prefer to say) is going main stream inrecently, the internet are few scripts during the call. How many Media channels are public – visible to 2013, thanks to Big Data. It is not tooexamples of transformative powers of times have we heard the phrase all. And customers and potential difficult to understand why given thetechnology. Just imagine life without “sorry, my system won’t allow me to customers are discussing about three Vs of Big Data, namelyelectricity, TV & Radio or internet. do that” in response to a products and brands on Social Media Volume, Variety and Velocity. OnlyWe can’t live without these request during a support call. channels, including poor customer way one can derive full benefits outtechnological wonders even for few I am happy to note that thanks to support whether the marketer is of Big Data is by using predictivehours, let alone few days! Such is rapid expansion of reach and participating in the discussion or not. analytics and this is forcing large andtheir influence on how we live and effectiveness of Social Media This is why it is utmost important for medium companies to makework. Social Networking technology channels, this is about to change. marketer to have a Social CRM necessary investments in buildingis one such inflection point in history Social Media have empowered strategy and invest in Social Media analytics infrastructure and reportingof human evolution and we are in customers like never before as they tools for effectively engaging capabilities. And this is excellentmidst of a Social Media revolution can express their opinions/feelings customers and prospects. Gone are news for those in Analyticsthat will fundamentally change how about brands on Social Media the days of “scripted” customer profession or technology companies/we live, work and play. channels, including commenting support calls. service providers who help clients In this post, I want to discuss how about poor customer service or wait Level of customer engagement will derive insights from mountains ofSocial Networking technology and times for some one to answer determine mind-share and market- (big) data.“Social Media tools are transforming customer service calls. Marketers share for a brand. Those marketers Good to see that major enterprisecustomer support function. For many have no control over what customers who effectively engage their software vendors have starteddecades, marketers have been are saying about their brands or poor customers and prospects will emerge focusing their attention on predictiveproviding service to their customers service. Given this scenario, best as winners and those who are not analytics. Here’s a very goodover phone, and over email/chat after strategy for a business is to engage good in customer engagement will infographic on Predictive Analyticsspread of internet. Both, phone and customers on Social Media channels lose market share. published by SAP Blog(infographicemail/chat are private and one-to-one if customers prefer that option, What do you think? Is it time for embedded below):in nature. For any support, customers especially when wait time for phone, Customer Support to move over and Predictive Analytics Infographichave to call a phone number email or web based support is too Customer Engagement to take its from SAP Analytics(normally a 1-800 toll-free number long for the customers. place? Please do share your thoughtshere in the US) and wait for a As more and more customers air on the implications for business.Customer Support agent to answer their grievances on social mediathe phone and resolve any issues or channels, it is important for marketersSocial CRM Market Size Undervalued?by Harish Kotadia, Ph.D. (Blog size of the market or potential for Social, size of Social CRM market is that underlying demand for Socialon Data Analytics, Big Data Social CRM software and services is equivalent to the size of CRM market CRM software and services is veryand Social CRM) much higher than ‘just’ a billion in terms of number of installations strong, but software vendors and dollar. This is because Social CRM is (this includes large/enterprise class service providers have not risen to theSubmitted at 9/7/2011 7:59:27 PM an indispensable part of any CRM and SME/Small and Medium sized occasion to meet that demand and Gartner, Inc., the Stamford, system due to the fact that Social installations of CRM system). In hence haven’t been able to tap into it.Connecticut based IT research and Media has empowered customers like terms of dollar amount, size of Social Hence to say that “market for Socialadvisory firm recently reiterated its never before, they can discuss about CRM market is equivalent to a CRM is on Pace to Surpass $1 Billionguidance that “market for Social brands/products on Social Media substantial % of CRM market (atleast in Revenue by Year-End 2012 doesCRM is on Pace to Surpass $1 Billion channels and companies have no 25% of CRM market in my opinion). not truly reflect the size of Socialin Revenue by Year-End 2012 (for control over what customers are There is tremendous pent up demand CRM market. It is substantially moremore, see this). I have seen similar saying about their brands/products. for Social CRM software and than $1 Billion in my opinion, in factestimates regarding size of Social This discussion is visible to all services, not only among large many times more than that.CRM market from other research and including other customers, potential enterprises but also small and What do you think? Do you agreeanalyst firms in recent past. customers and competitors. medium ones. The only reason why it with Gartner that “market for Social Such crystal gazing for estimating The best any marketer can do is to is not manifesting in terms of $$$ or CRM is on Pace to Surpass $1 Billionmarket potential for Social CRM Listen and Learn from what revenue for Social CRM vendors is in Revenue by Year-End 2012 or you,software and services reminds me customers are saying and Engage that software/services offered by like me think that it is substantiallyof the story of two shoe salesmen in them in meaningful conversations. In existing vendors don’t address the more than $1 Billion? Please take theAfrica trying to assess size of the other words, marketers have to treat pent up demand for Social CRM. following survey and share yourmarket for shoes. One salesman Social Media channels as the front- In other words, most Social CRM opinion. (in case if survey questionreported that there is no potential for end of CRM system, capture all vendors don’t have a good product/ box is not visible below, you canselling shoes as no one wears them. relevant information from Social service offering to address this Click here to take surveySecond salesman reported that there Media channels in the database and demand. The moment any Social Create your free online surveys withis tremendous potential for selling use Predictive Analytics and CRM software/services vendor offers SurveyMonkey, the world’s leadingshoes as no one wears them. It’s all in Knowledge Management tools to a comprehensive solution for this questionnaire tool.the perspective! derive insights and help in decision pent up demand, marketers are going In my opinion, the magic revenue making. As a result, CRM ain’t CRM to lap it up the way customers lap upnumber of $ 1 Billion for Social if it isn’t Social! Apple’s iPad or iPhone for example.CRM is an under-estimate and true And if CRM ain’t CRM if it isn’t What I am trying to highlight here is
FeedJournal 5 Master DataWhy ‘Social’ will drive growth in Management (MDM): Key to Big Data2012 Successby Harish Kotadia, Ph.D. (Blog not going to work any more. by Harish Kotadia, Ph.D. (Blogon Data Analytics, Big Data Companies need to use social media on Data Analytics, Big Dataand Social CRM) channels and collaborate with their and Social CRM) customers at every step of product orSubmitted at 12/21/2011 1:36:38 PM Submitted at 4/7/2013 7:30:44 PM service creation and delivery. Time flies! Here we are just a few To survive and grow in the age of With the hype surrounding Big Datadays before Christmas and looking social media, companies will have to and current focus on tools andback at 2011, I cannot help but re-engineer their product design, technology such as Hadoop, it is easywonder at the amazing speed with manufacturing, delivery and support to forget that success of anywhich the year flew by! 2011 will be processes, and not just their technology project rests more onremembered for the effective role marketing processes, in order to strategy and less on technology/tools.Social Media played in activist involve customers at every stage of That’s true even in the case of Bigmovements across the globe. product/service creation and Data solutions. Looking at the future, one can see delivery. Companies that succeed in Architects and managersdark clouds on economic horizon involving customers at every step of implementing Big Data solutionsgiven the debt and deficit crisis in product/service creation and delivery would do well to remember that inEurope and North America. will thrive and grow in this tough order to truly leverage and deriveConsumer spending, which has economic climate. insights from Big Data, it is importantdriven economic growth for past stagnation, high unemployment, My suggestion to senior executives is to have a Master Data Managementseveral decades given easy eroding purchasing power because of that instead of viewing this tough (MDM) solution in place with aavailability of inexpensive credit, is inflation and when customers are economic climate as a challenge or a repository of relevant non-drying up as consumers are reluctant unwilling to spend because of problem to overcome, why not view transactional data entities (alsoto spend given the economic and economic uncertainty? In economic it as an opportunity for change by re- known as master data).political uncertainty. As a result, parlance, this is a perfect storm and it engineering business processes to For example, if an organizationeconomic growth is almost 0% if not requires some out of the box thinking take advantage of emerging wants to leverage social media datanegative and with rising inflation, on the part of companies. technological tools such as social for better sales, marketing orthere is real risk of dreaded ‘ Companies need to use emerging media and involve or engage customer support, it is important thatstagflation‘ (economic stagnation technological tools such as Social customers at every stage of product or a master database of all customerswith high inflation resulting in Media, Mobile and Cloud computing service creation and delivery. It can and prospects is in place withstubborn high unemployment). to drive down cost of doing business be as simple as a factory manager information on social media profiles/ In this scenario, companies are and at the same time, maximize value posting a YouTube video on how the handles for each customer. Masterfighting hard for share of customers’ delivered to customers. Remember, it product is made or a hotel employee D a t a M a n a g e m e n twallet/spend to meet their top line/ is not about price of a product or tweeting about new mattress in all (MDM) ”comprises a set ofrevenue growth targets at the cost of service but value perceived by the rooms in the hotel. By engaging processes, governance, policies,bottom line/profits. As a proof of this, customer and price he/she is willing customers on Social Media channels, standards and tools that consistentlyjust note the amount of discounts to pay for the perceived value of the companies can win greater mind- defines and manages the master datalarge retailers and leading brands product or service. share of customers and as we all of an organization”(for more, seeoffered to customers this holiday As I highlighted in one of my know, mind-share results in purchase this).season. And this is not just limited to previous post titled Why Industrial and greater share of the wallet! Trying to implement a Big Databudget brands for value conscious Era Marketing Won’t Work in the And before I end my post, I want to solution without a repository ofcustomers but also includes luxury Age of Social Media, not involving wish readers of this blog Merry relevant master data is a recipe forbrands targeted at affluent customers. customers during product/service Christmas and Happy Holidays. disaster in my opinion. What to you So how can companies not only creation and delivery, and very (Picture courtesy: The well lit think? Do you agree that MDM is keysurvive, but thrive in an economic limited after-sale support via phone is Christmas tree that you see above is to Big Data success? Please shareenvironment characterized by from my apartment in Dallas, Texas) your thoughts:Why CRM ain’t CRM if it isn’t Socialby Harish Kotadia, Ph.D. (Blog unthinkable even a few months What is important to note here is that for a medium or large business, theon Data Analytics, Big Data ago. The biggest lesson business can “Social” is not a middle-ware or emphasis should be on creatingand Social CRM) learn from recent events is that Social another layer in the architecture of advocacy and building trust among Media is the new front end of CRM CRM systems, but is the front-end of customers, keeping in mind theSubmitted at 3/5/2011 8:09:43 PM system and CRM ain’t CRM if it isn’t CRM system, where customers “Social Context” of the medium. Almost a year back, I wrote about Social. Here’s why: decide the format and content of No where this is more evident than inhow four independent trends, namely Social Media has empowered information. It is responsibility of the support communities, where brandSocial Media, Smart Phones/Portable customers like never before as they company to record and store all advocates/loyal customers help otherDevices, Cloud Computing/ SaaS and can discuss about brands/products on relevant information from Social customers out by answering theirPredictive Analytics were converging Social Media channels and companies Media channels and derive value questions or suggesting solution,and brining about a Paradigm Shift in have no control over what customers from it by using Predictive Analytics rather than company Reps trying toCRM(for more, see my post titled are saying about their brands/ and Knowledge Management tools answer all the question. As a part ofCRM Paradigm Shift). products. This discussion is visible to for effectively engaging customers. their CRM initiative, marketing Between then and now, we have seen all including other customers, Companies must also leverage managers should design programs toa lot happen due to this convergence. potential customers and competitors. unique characteristics of Social track and reward Customer AdvocacyCustomers empowered by Social The best any marketer can do is to Networks and re-engineer their CRM behaviors on Social Networking sites.Media tools such as Twitter, Listen and Learn from what business processes to derive full This will not only help in brandFacebook and YouTube have started customers are saying and Engage benefits from it, rather than trying to promotion on Social Media channelsconnecting and sharing like never them in meaningful conversations. In fit “Social” engine to their existing but will also help in building trust andbefore right from their mobile devices other words, treat Social Media CRM carriage or merely treating loyalty among target audience.and are asserting their influence, be it channels as the front-end of CRM Social Media as another 1-1 channel As you can see from my explanation,for venting their feeling towards a system, capture all relevant like phone and email, albeit public! CRM ain’t CRM if it is not Social,brand or their anger and frustration at information from Social Media This requires fresh outside the box thanks to ‘Social’ Customers!their rulers. This has even led to channels in the database and use thinking. For example, instead of What do you think? Would love todownfall of many a dictatorial Predictive Analytics and Knowledge trying to respond to each and every hear from you. Please do share yourregimes, in power for decades, in just Management tools to derive insights tweet or Facebook posting by thoughts on the subject:a matter of days – something and help in decision making. customers, something not practical
6 FeedJournal Big Data: WhereWhy Big Data Analytics is The the OpportunitiesNext Big Opportunity for Are! by Harish Kotadia, Ph.D. (BlogOutsourcing Companies on Data Analytics, Big Data and Social CRM)by Harish Kotadia, Ph.D. (Blog the TDWI Best Practices Report titled this on their own. But given the facton Data Analytics, Big Data Big Data Analytics): that Big Data stored in cloud can be Submitted at 3/17/2013 12:03:19 AMand Social CRM) • Big Data Analytics: Frequently accessed from anywhere the internet I am often asked the question as to Asked Questions (FAQ) is available and can be analysed which industries offer the bestSubmitted at 1/8/2012 10:18:48 PM • The Three Vs of Big Data almost instantaneously by third party potential for application of a Big Data Big Data Analytics is making big Analytics: VOLUME service providers, outsourcing solution and I have always said thatheadlines these days. Just check out a • The Three Vs of Big Data companies can offer to their clients Banking and Financial Services,few from recent past: Analytics: VARIETY value added services in the area of Insurance, Telecom, Media/• Big Data — Big Money Says It Is • The Three Vs of Big Data Big Data analytics without heavy Information Services andA Paradigm Buster- Forbes.com Analytics: VELOCITY investments on the part of clients in Manufacturing offer the best promise• For Start-Ups That Aim at Giants, specialized hardware and software as to begin with. And I have based mySorting the Data Cloud Is the Next Given three Vs of Big Data, was the case with ‘traditional’ data judgement not only on the potentialBig Thing- The New York Times ‘traditional’ data storage, retrieval analytics. This will bring down impact of a Big Data solution on the• Accel Makes Big Commitment To and analytics methodologies are no significantly costs (especially fixed top and bottom-line numbers but alsoBig Data With $100M Fund- The longer going to work. Cloud costs) associated with building and on “relative” ease with which BigWall Street Journal Computing is going to play a key role maintaining analytics infrastructure Data can be used for reducing costs• Five startup predictions for 2012- when it comes to Big Data and solution center. or improving productivity.c|net Management and Analytics. And here Just to give an example in the area of My thinking on this subject was• Big Data: Investments Flow into in lies the opportunity for Social CRM, Social Media has validated recently when I came acrossthe Next Big Thing- a great post by Outsourcing companies. empowered customers like never following excellent visualization onDick Weisinger Traditionally, data collected by before as they can discuss about opportunities for Big Data across organizations is ‘safely’ stored in brands/products on Social Media several industries prepared by Brett So what is Big Data and why it is in massive relational database accessible channels. The best any marketer can Sheppard based on Gartnerthe news so much these days? to only few within the organization do is to Listen, Learn and Engage Intelligence. According to Brett, this According to Philip Russom, and requires elaborate infrastructure customers. Given the three Vs of Big visualization is based on “Gartner’sDirector of TDWI Research, Big Data both in terms of hardware and ‘Social’ data and the fact that most of comparison of eleven industrieshas three defining attributes – three software for storage, retrieval and the user generated content resides in across seven dimensions using dataVs as he calls them. They are Data reporting/analytics. In such an the cloud, outsourcing companies can from Gartner forecasts, marketVolume, Data Variety and Data environment, it is not possible to offer cost effective analytics solution statistics and input from dozens ofVelocity and together they constitute easily outsource Data Analytics to their clients to enable them vertical industry experts”.a comprehensive definition of Big function/processes alone given the effectively engage their customers/ (Source: See this)Data. So Big Data is not just about heavy investments made in terms of prospects in real time.Data Volume, but also the variety of hardware and software. What do you think? Do you agreedata (mostly unstructured) and the Because of the business requirement that Big Data Analytics is The Nextvelocity with which the data is of analyzing vast amount of ever Big Opportunity for Outsourcinggenerated and need to be changing structured and unstructured Companies? Look forward to hearinganalyzed.(for more, check out Big Data almost instantaneously, your thoughts and comments:following posts by Philip Russom and companies will be hard pressed to doWhy Industrial Era Marketing Won’t Work inthe Age of Social Mediaby Harish Kotadia, Ph.D. (Blog But instead of engaging customers experience at a restaurant. But instead very limited after-sale support viaon Data Analytics, Big Data on social media, most companies still of listening to customers’ feedback phone is not going to work any more.and Social CRM) rely on marketing the old fashioned on Social Media channels and Companies need to use social media way – a vestige from the industrial engaging them, companies still channels and collaborate with theirSubmitted at 10/16/2011 12:06:41 AM age! Marketing processes being expect them to call or write to them if customers at every step of product or In the industrial age, companies mass followed today by most companies they need any help. In a nut shell, service creation and delivery.produced goods and promoted their are still very similar to what was done companies are still living in the To survive and grow in the age ofproducts and services through mass in the industrial age. industrial age when customers have social media, companies will have tomedia in order to sell them. Companies need to realize that when moved on into the social age. re-engineer their product design,Customers had little involvement in it comes to creation and delivery of In fact, I wrote about this almost two manufacturing, delivery and supportproduct creation (other than products and services, expectation of years’ back in a blog post titled “ processes, and not just theiroccasional feedback they provided “Social” customers are vastly How Customer Engagement will marketing processes, in order tothrough marketing research). And if different from that of customers in determine winning brands in Social involve customers at every stage ofcustomers had any problem, they industrial age. “Social” customers Era” In this post, I explained that product/service creation and delivery.contacted a support agent via mail or expect companies to “listen” to them level of customer engagement will Companies that succeed in involvingtelephone. and take appropriate action on their determine mind-share and market- customers at every step of product/ Social media have radically changed comments regarding products and share for a brand. ONLY those service creation and delivery willthis equation between companies and services they purchase and pay for. companies that effectively engage thrive and grow. Rest will becometheir customers by empowering Social media have provided tools for their customers and prospects will history. Question is how many seniorcustomers like never before. customers to express their opinion emerge as winners and those that are executive realize the challenge that isCustomers can discuss about products and customers are using Twitter and not good in customer engagement in front of them and are prepared toon social media channels and Facebook for the purpose. We see will lose market share. make this transition?companies have no control over what comments about brands/products on Unlike in industrial age, notcustomers are saying about their Twitter and Facebook all the time. involving customers during product/brands. For example, delayed flight or bad service creation and delivery, and
FeedJournal 7 Predictive Analytics:Why Social CRM? Because “The A Force Multiplier for Big DataConsumer Isn’t a Moron; She is by Harish Kotadia, Ph.D. (Blog on Data Analytics, Big DataYour Wife” and Social CRM)by Harish Kotadia, Ph.D. (Blog several countries with thousands of collaborate with customers and work Submitted at 4/5/2013 9:51:24 PMon Data Analytics, Big Data products and millions of customers, together irrespective of physical Force Multiplier, a noun, meansand Social CRM) exists is to serve its customers. All location and other barriers. Thanks to something that increases effect of the business decisions and actions social networking technology, force. In military usage, forceSubmitted at 7/12/2011 7:41:00 PM undertaken by every employee are business has an opportunity to engage multiplication refers to “an attribute David Ogilvy, popularly referred to aimed at satisfying needs and wants customer and prospects in ‘real-time’ or a combination of attributes whichas the father of modern advertising, of customers, starting right from at every stage of product design, make a given force more effectiveonce said “ The consumer isn’t a understanding customers’ needs/ manufacture and delivery process in than that same force would bemoron; she is your wife. You insult wants, designing a product, order to minimize risks and maximize without it”(for more, see this).her intelligence if you assume that a manufacturing the product, value delivered to customers. Big Data, which is characterizedmere slogan and a few vapid distributing and marketing the Question is not how business can by three Vs, namely Volume, Varietyadjectives will persuade her to buy product and post sales support. Any afford to engage customer on social and Velocity can be a major forceanything. She wants all the action not aimed at making customers media, it is how business cannot in running of any large or mediuminformation you can give her“(for happy is fruitless or is counter- afford NOT to engage customers on sized businessas as it addsmore, see Confessions of an productive. Social Media channels. Social CRM, tremendous value by improvingAdvertising Man, p. 96, Ballantine Heavy up-front investments are which has been defined as the quality of decision making. Thanks toBooks: quoted here). made (fixed costs incurred) in the business strategy of engaging Big Data revolution, it is possible to In these days of gender equality, we process of creation and delivery of a customers through Social Media with process large volumes of structuredcan rephrase this quote as “The product or a service with the goal of building trust and brand and unstructured data in real time andconsumer isn’t a moron; he/she is assumption that the customer will like loyalty is the way to go for business derive insights from large data sets.your spouse”, but the fact remains what is being offered and will (for more, see this). This by itself is a huge improvementthat a customer is the most important purchase the product. Any active To quote David Ogilvy again, “the over pre-Big Data era.person for any business, more so in a customer involvement in product consumer isn’t a moron; she is your What’s even better is that predictivecompetitive economy where design, manufacture and delivery wife”. Wouldn’t you want to engage analytics makes it possible not only tocustomers have many choices. You process is ‘minimal’ at the best your spouse or significant other analyze the past, but predict themay ask what that has got to do with through market research. This results (customers in this case) on an future too with high degree ofSocial CRM? Let me explain: not only in costly product failures/ ongoing basis? And we all know the confidence level. For example, social The sole reason any business, be a increased risk for the business but costs if we don’t engage significant media data can enrich risk modelingmom and pop store serving a small also higher sales and support costs. people in our life, don’t we? and help auto insurance companiescommunity or a multi-national In ‘Social Age’, it is not only prepare much better risk profile of ancorporation (MNC) having tens of possible, but incredibly easy and individual. Car sensor data can helpthousands of employees across inexpensive for business to auto insurance companies better assess risk posed by a driver’s habitsBig Data and Rise of Predictive (like speeding, fast acceleration or braking) and come up with auto insurance policy tailored to thatEnterprise Solutions specific individual with individual level premium (not at a zip code or a city level).by Harish Kotadia, Ph.D. (Blog action/run the business based on customer level to generate Another good example is assessmenton Data Analytics, Big Data predicted outcome rather than statistically significant difference in of customer life time value (CLV).and Social CRM) analysis of historic data as is being analysis. Using big data, companies can come done currently. In future, no ERP or CRM system up with much better assessment ofSubmitted at 2/10/2012 7:46:01 PM Since Big Data is characterized by will be complete without Predictive customer life time value. What makes Given the three Vs of Big Data, not only Volume, but also Velocity Analytics functionality that will it even better is that predictivenamely Volume, Variety and and Variety, it is very important that enable companies take preventive modeling can be used on social mediaVelocity(read this for more), Big Data is used for analysis in real- steps (rather than reactive) in real or sensor data in arriving at a muchchallenge before large and medium time to predict the future and take time. For example, rather than better estimation of CLV so thatsized companies is how to unlock the corrective action based on that analyzing “historic” attrition rates, companies can better target customerspotential of Big Data and analysis. How about using Causal Predictive CRM application will with high CLV. This has been veryproductively leverage its value in Path analysis on Social Media data make it possible for companies to effectively used in Travel andrunning the business. (like Twitter and Facebook) to predict identify critical incidents leading to Hospitality industry. In “traditional” Data Analytics or Churn or Customer Attrition in customer attrition so that steps can be Point I want to highlight here is thatBusiness Intelligence, focus is more Telecom industry and taking taken to retain the customer before he Big data is a revolution in itself as iton analysis and reporting of corrective action to prevent Churn/ /she defects. enables organizations identify, store,“historic” or past data stored in the Attrition rather than analyzing And thanks to Predictive Analytics, process and analyze data sets fromdatabase. Take for example how most “historic” attrition rate, call volumes ERP or CRM applications will no outside the organizations in a wayorganizations use data from their or average response time as being longer be just a repository of which was not possible thus far. AddCRM or ERP applications. Almost all done currently. The real value is in “historical” information but will be predictive analytics to this mix and itthe reports that are generated pertain using predictive analytics and taking transformed into a Predictive pushes Big Data capability to a wholeto past or “historic” information. corrective action before it is too late, Knowledge base or Engine driving new level – a true force multiplier.Running a business based on rather than just reporting historical business decisions looking forward Don’t you agree?“historic” or past data is like driving a information. and not backwards/in the rear view Question is how many large andcar looking in the rear view mirror Techniques like Multiple-regression mirror of “historic” information. medium sized companies are in aand is not going to work. analysis coupled with Factor analysis, What do you think? Do you agree position to take advantage of not only Instead, companies must analyze all Cluster analysis and Causal Path that Big Data will result in rise of Big Data revolution, but alsothe available information in real time, analysis can be used very effectively Predictive Enterprise Solutions? effectively leverage Predictiveapply statistical modeling techniques with Big data – now that we have Please do share your thoughts. Analytics for driving better insightsto available information in order to many variables and multiple and decision making. Not too manypredict future outcomes and take observation for each variable at a in my opinion. What do you think? Please do share your opinion:
8 FeedJournal Wanna Save onWhy future of Retail is Social Customer Support Costs? Outsource it to(VIDEO) Your Customers!by Harish Kotadia, Ph.D. (Blog the potential of Social Media for suffered over the past few years by Harish Kotadia, Ph.D. (Blogon Data Analytics, Big Data collaboration among “ strangers” for because of global recession. One of on Data Analytics, Big Dataand Social CRM) group buying discounts. the ways retailers can improve their and Social CRM) Contrast this with the fact that performance and make up for lostSubmitted at 1/12/2011 6:40:09 PM Submitted at 7/9/2011 1:25:20 PM established retailers, both online and opportunity is to start using How many times have you purchased brick & mortar, have been slow in technology in innovative ways In these tough economic times, whensomething or scored a good deal and embracing Social Media despite the leveraging full potential of social companies often cut costs at thefelt the immediate urge to announce it realization that it has the potential to media, location based tools, smart expense of product quality orto all your family members and disrupt traditional retailing model ( phones with high speed internet customer service (or both!), what if Ifriends? or how many times have you for more, see my earlier post titled access and social gaming. Only those told you that there is a way marketerssought opinion from your friends How Social Media will disrupt the retailers who are successful in this can reduce customer support costsbefore buying something? Well, most traditional “Retailing” Model). Most will see their sales and margin grow AND improve customer satisfactionof us do it all the time, albeit offline. initiatives so far by retailers were at the cost of retailers who are slow to and loyalty at the same time. Better Thanks to Social Networking limited to either offering social adopt new technological tools. In still, this can done quickly and in atechnology, now it is quite easy to sharing options on their websites or other words, success of retailers will cost effective manner. Sounds tooconnect online with not only family limited shopping cart functionality on be determined by their effectiveness good to be true. Isn’t it? Read on forand friends, but with other like their Facebook page. in using new tech tools such as Social how this can be done …minded “strangers”(whom we J.C. Penny, the Plano, Texas based Networking. Here’s how – set up a branded andwouldn’t know otherwise) and retailing giant took a great stride in I want to end this post by sharing this moderated customer communityexchange information, opinion and this direction by moving their entire CNN video from National Retail focusing not only on product usageviews, such that it is visible to all in product catalog to Facebook, Federation’s annual event, the NRF but also underlying passionsour network. In other words, sharing meaning one can buy all their 100th Annual Convention & Expo surrounding usage of your product(s)and exchange of information or products from their Facebook page that concluded earlier today in New and let product enthusiasts and brandopinion about products or services is just as on their website(for more, see York. Note the emphasis on Social advocates help other customers out intruly social in nature. this and this). Imagine number of Media in this year’s event. resolving any issues. Community Startups like Groupon have clicks or free publicity this is likely to Enjoy the video and do share your Moderators (company appointedleveraged not only the innate urge of generate through Facebook sharing. I thoughts and comments: representatives similar to customerpeople to share information about expect other retailers to follow J.C. support agents) need to step in onlygood deals with family and friends Penny’s example in this direction. when required and provide necessaryusing online social networks, but also Retailing industry as a whole has info or resolve an issue. For example, if you are marketing cameras, have a4 Excellent Big Data Case Studies customer community on photography and travel (underlying passions) and not on cameras, where customers canby Harish Kotadia, Ph.D. (Blog curve during peak hours, eliminating interactions data in order to better share pics and tips, and help eachon Data Analytics, Big Data the need for creating additional predict customer defections. By other out on how to take great pics,and Social CRM) generating capacity just to meet peak leveraging social media data (Big which SLR lens to use or what should demand, saving electricity providers Data) along with transaction data be the shutter timing/ISO setting etc.Submitted at 7/22/2012 4:02:23 PM millions of dollars worth of from CRM and Billing systems, T- Who better to assist customers than In response to my previous post investment in generating capacity and Mobile USA has been able to “cut other customers who use the producttitled Big Data: The Coming Sensor plant maintenance costs.” customer defections in half in a single on a daily basis. CompanyData Driven Productivity Revolution, Well, I have a smart electric meter in quarter”. representatives (moderators) can chipsome one asked me if I had few good my home and one of the electricity US Xpress, provider of a wide in where required.case studies that highlight effective providers in my area (TXU Energy) is variety of transportation solutions This will not only reduce calluse of Big Data. I would like to share using the smart meter technology to collects about a thousand data volumes (and costs associated with it)following four excellent Big Data shape the demand curve by offering elements ranging from fuel usage to to other support channels like phonecase studies that shows how large “Free Night time Energy Charges — tire condition to truck engine and email, but will also empowercorporations have started leveraging All Night. Every Night. All Year operations to GPS information, and customers share their expertise andBig Data for driving productivity and Long.” (See this for more). uses this data for optimal fleet experience and be recognized in theirincreasing ROI: In fact, they promote their service as management and to drive productivity “community” of like minded TXU Energy – Smart Electric “Do your laundry or run the saving millions of dollars in operating individuals – something that is at theMeters: dishwasher at night, and pay nothing costs. heart of Social Media revolution. In my blog quoted above, I indicated for your Energy Charges”. McLaren’s Formula One racing team Besides setting up a branded andthat“Because of smart meters, What TXU Energy is trying to do uses real-time car sensor data during managed community, marketerselectricity providers can read the here is to re-shape energy demand car races, identifies issues with its should also integrate their CRMmeter once every 15 minutes rather using pricing so as to manage peak- racing cars using predictive analytics system to the community platform, sothan once a month. This not only time demand resulting in savings for and takes corrective actions pro- that activities of customers on theeliminates the need to send some one both, TXU and customers. This actively before it’s too late!(for more community can be monitored andfor meter reading, but as the meter is wouldn’t have been possible without on T-Mobile USA, US Xpress and individual customer can beread once every fifteen minutes, Smart Electric meters. McLaren’s F1 case studies refer to recognized/rewarded on the basis ofelectricity can be priced differently T-Mobile USA has integrated Big this article on FT.com) their contribution to the community.for peak and off-peak hours. Pricing Data across multiple IT systems to Customer Support communitiescan be used to shape the demand combine customer transaction and deliver ROI not only through reduction of call volume (andBig Data Ecosystem associated costs) to other support channels, but also can be a great source of new product or marketingby Harish Kotadia, Ph.D. (Blog classified major big data players Application and Data Sources areon Data Analytics, Big Data across Infrastructure, Analytics, geared for collection and storage of ideas and drive customer loyaltyand Social CRM) Applications and Data Sources. information that is used by Analytics through empowerment. You can’t go My take on this ecosystem is that we layer for deriving insights for wrong with that one. Can you?Submitted at 2/11/2013 11:51:05 PM are going to see a lot of action on big decision making. What do you think? Please do share Here’s a very good chart of big data data analytics front as it is the Big data landscape version 2.0 from your thoughts on the subject:eco-system prepared by Matt Turck analytics layer where major value Matt Turckand Shivon Zilis(see this link for addition happens in Big Data stack –more). Like the way they have others, namely Infrastructure,
FeedJournal 9 Big Data: Are YouNetflix’s self-made CRM crisis and Ready for Multimedia Information Systems?how Social CRM can help by Harish Kotadia, Ph.D. (Blog on Data Analytics, Big Databy Harish Kotadia, Ph.D. (Blog see this link). services changes already announced.on Data Analytics, Big Data Social media has empowered Key is taking customers’ into and Social CRM)and Social CRM) customers like never before to confidence in such a way that they Submitted at 7/29/2012 12:31:21 AM connect and communicate with other feel that they have been involved inSubmitted at 9/24/2011 3:35:32 PM like minded individuals ‘publicly’ taking important decisions If you take a look at Enterprise Netflix, Inc., the provider of online and the last thing any marketer should concerning the service they receive Information Systems that arevideo streaming and DVD by mail be doing in this Social Media age is and pay for. Netflix doesn’t have to currently in use, you will notice thatservice, has fallen from customers’ to take important decisions impacting respond to comments from each and they are very restrictive in nature ingrace hard and fast. Once a darling of customers unilaterally and without every customer, but if they respond to the sense that it is quite difficult toits customers, Netflix management explaining the rationale or motives few customers in a fair and handle data types other than text orseems to have misjudged the negative behind such decisions. In other transparent way, other customers numbers. Moreover, text and numbersimpact of price increase and other words, customers expect to be would appreciate and would be much are handled using pre-defined (textservice changes they announced involved in such decision making or more supportive of Netflix’s position. and numbers) fields only in the“unilaterally” this summer and as a atleast expect a rationale explanation Netflix can use this CRM crisis and database. It is extremely difficult toresult have lost many customers. before any changes are made. turn it into a Social CRM success store/retrieve files of other data type Netflix’s CRM fiasco underscores So what can Netflix do to recover regaining its past glory (and stock like image or sound. This can bethe importance of not taking your from self-made CRM crisis. Answer price) if they can engage their attributed to the fact that although wecustomers for granted, especially in is to fight fire with fire, that is use customers on Social Media to have seen remarkable changes inthis day and age of Social Media. Social Media channels to engage (re)build Trust and Loyalty. computing power, storage capacityDissatisfied customers can not only customers and build (should I say I want to end this post by sharing and network speed/reach, thetake their business elsewhere, but can regain) trust and loyalty (for more, with you this excellent Bloomberg underlying database technologyalso leverage Social Media tools to see definition of Social CRM here). video on Netflix and profile of Reed hasn’t changed much in the past twoexpress their disapproval in a way For example, how about using Hastings, co-founder and chief decades.that can have big impact on other Youtube to explain why these executive officer of Netflix Inc. In Current generation of Enterprisecustomers and towards the brand. Just changes were made in the first place. case if you don’t see embedded video Information Systems use Relationalsee the impact of Social Media How about using Facebook and blog below, please click on this link for the Database Management Systems(orfirestorm generated by this CRM postings to respond to customers’ video. RDBMS for short). RDBMS is afiasco on Netflix stock for example ( criticism about price hike and Database Management System in which not only data is stored in tables, but relationships among theForget Black Friday, how about data are also stored in tables. RDBMS use Structured Query Language(or SQL) for managing data“Social Media Saturday”? and SQL places data in well defined structures using meta data.by Harish Kotadia, Ph.D. (Blog season. For example, how about to store for refund/exchange – a big Given three Vs of Big Data, namelyon Data Analytics, Big Data announcing deals on company’s or problem for retailers. Data Volume, Data Variety and Dataand Social CRM) store’s Facebook page rather than As I wrote in one of my previous Velocity, traditional data storage, newspaper advertisements or post titled Social CRM: Thinking retrieval and analysis tools/Submitted at 10/19/2011 11:56:30 PM promotional flyers? And to get the Outside the “Call Center” Box, we technology like RDBMS and SQL Halloween is just a few days away deal, customers will have to “Like” need fresh outside the box thinking to are no longer going to work and weand before we know, it will be the deal. Better still, a customer can take advantage of unique are going to leap frog into a newThanksgiving and more importantly avail of the deal only if few of of his/ characteristics of Social Media and generation of technology that willfor business, Black Friday and Cyber her Facebook friends buy the product. Social Networks. Companies must fundamentally change the way data isMonday(for those not familiar with More the number of Facebook friends leverage unique characteristics of stored, retrieved and analyzed.the term Black Friday, see this). who buy a product, higher the Social Networks and re-engineer their Big Data revolution has resulted in But on the economic front, all seems discount a customer get. Just imagine business processes to derive full the development of a whole host ofto be ‘gloom and doom’ and the excitement this will generate on benefits from it. new tools and technology that can‘economic’ forecast for this holiday Social Media and resultant free If used properly Social Media can meet the challenge posed by three Vsseason seems to be dark, damp and publicity. drive sales to such an extent that of Big Data. For example, Not Onlycloudy with possibilities of storms – And most online stores have option volume of sale on Social Media SQL(or NoSQL for short) doesn’tsome severe. Question is can social of Gift Shipping but what about Saturday will be far greater than adhere to RDBMS model and ismedia help marketers cheer up their having similar options on Facebook volume of sale on ‘traditional’ Black designed to capture all data withoutholiday sales this season? or page of the company or the store, Friday with promotion only through categorizing and parsing upon entryspecifically, how can social media where a customer can select what flyers and advertisements. into the system. Using NoSQL andhelp boost sales on Thanksgiving items he/she want as Christmas Gift What do you think? Do you agree other tools such as HBase, Hive etc.,weekend, which traditionally is the and this will be displayed on that Social Media can help marketers it is possible to store, retrieve, andstart of the Christmas shopping Customer’s Facebook profile letting cheer up their holiday sales this analyze very large data sets ofseason. friends and family know so that they season? Please do share your multiple data types not just text and Answer is yes, social media can be can buy the desired gifts rather than thoughts. Would love to hear from numbers. As a result, we are about toused very effectively for promoting something that is not going to be used you: enter into an era of multimediasale of merchandise this holiday or even worse, is going to be returned enterprise information systems not only capable of handling very largeOrganizational Challenge: data sets in real time but also capable of handling multiple data types likeWhere to Start in Big Data? sound, video etc. Question is how many large andby Harish Kotadia, Ph.D. (Blog yes, here’s a good YouTube video on medium enterprises are ready foron Data Analytics, Big Data the subject by Stacy Leidwinger, Multimedia Information (ERP orand Social CRM) Product Manager, IBM Big Data. CRM) Systems? Not many in my Hope you find this video not only opinion. What do you think?Submitted at 3/24/2013 6:35:33 PM interesting but also educative: Have ever wondered what is a good About the author:starting point for an organization as it View Harish Kotadia, Ph.D.’s profileembarks upon its Big Data voyage? If
10 FeedJournal 10 great Enterprise3 New Year’s Resolutions that 2.0 presentationsshould be on Every CEOs List for to ring out 2010 by Harish Kotadia, Ph.D. (Blog2012 on Data Analytics, Big Data and Social CRM)by Harish Kotadia, Ph.D. (Blog experiences. This growing trend of my opinion, these are as important as Submitted at 12/31/2010 12:31:09 AMon Data Analytics, Big Data empowered and assertive customers resolving to lose weight for someoneand Social CRM) This is my last post of the year 2010. leveraging technology for connecting who may suffer a heart attack if he/ Looking back, what a year it was. I with other like minded individuals to she doesn’t lose weight, or asSubmitted at 12/30/2011 10:06:21 PM started the year with a post titled share their experience about products important as bringing debt/expenses 2010: Year of Social CRM, published“ After Outcry, Verizon Abandons $2 and services will be the big story of under control for someone who may on January 2nd, 2010, which becameFee” screams a headline from today’s 2012. face financial ruin or bankruptcy one of the most popular post ononline edition of the New York In order to make sure that 2012 otherwise. Social CRM during the year withTimes. And the article makes it very doesn’t become a year of Social One may argue that these doesn’t thousands of page views.clear that Social Media played no Media disasters or Social CRM apply to leading companies or brands As I discussed in this post, wesmall role in telecom giant’s hasty crises, CEOs and CMOs of large and that enjoy dominant position in their witnessed growing acceptance ofretreat from levying a new $2 fee on medium sized companies should market. Well, think again. It doesn’t Social Media tools and technology bybill payments. This story is a include following three new year take long for assertive customers, business, large and small, forharbinger of things to come in 2012 resolutions on their 2012 list: empowered by social media to drive customer engagement during the yearand CEO and CMO of every large 1. Improve collaboration within the home their point of view. If you want and thanks to this, we are a stepand medium sized company should enterprise and invest in collaboration proof, look no further than Netflix or closer (or should I say several stepspay attention to it. tools GoDaddy in this regard. So as I said, closer) to achieving the goals of As I explained in my previous post 2. Listen to what customers/ better to lose weight than suffer a Enterprise 2.0.titled 2012: Year of Empowered and prospects are saying on Social Media heart attack and better to control So what better subject thanAssertive Digital Customer, thanks to channels and learn from it expenses/debt than face financial Enterprise 2.0 for my last blog post ofMobile, Tablet computing and Social 3. Empower employees to engage ruin. 2010. Here’s compilation of 10 greatNetworking revolutions, customers customers/prospects on social media Dear CEOs and CMOs, are you SlideShare presentations onare empowered like never before and channels and invest in customer listening? Wouldn’t you include these Enterprise 2.0. Collectively they offerthey are leveraging technology not collaboration platform three New Year’s resolutions to your great insights into what Enterprise 2.0only for shopping online, but also for How important are these to the 2012 list? is and its potential. Learn from thishighlighting poor customer service survival and growth of business? In great presos and Enjoy. Before I end this post, I want toBig Data: $16.9 Billion opportunity thank you, my dear readers, very much for your support during 2010 and wish you and your loved onesfor IT Services and Consulting prosperous new year. May all your dreams come true. Happy 2011! What Does Corporate America Think ofIndustry 2.0? View more presentations from amcafee. The Potential of Enterpriseby Harish Kotadia, Ph.D. (Blog Data is a key enabler for Social that Big Data stored in cloud can beon Data Analytics, Big Data Business and without Big Data accessed from anywhere the internet 2.0and Social CRM) Mining/Analytics, a large or medium is available and can be analysed View more presentations from sized company can neither make almost instantaneously by third party rossdawson. Enterprise 2.0 OverviewSubmitted at 3/24/2012 6:14:40 PM sense of all the user generated content service providers, outsourcing View more presentations from Billy International Data Corporation online nor can collaborate with companies can offer to their clients Cripe. Enterprise 2.0 – Efficientrecently released its “ Big Data customers, suppliers and partners value added services in the area of Collaboration and Knowledgetechnology and services forecast” effectively on Social Media channels. Big Data analytics without heavy Exchangepredicting that Big Data market will And both these activities, namely investments on the part of clients in View more presentations fromgrow from $3.2 billion in 2010 to gaining insights from user generated specialized hardware and software as Acando Consulting. Enterprise 2.0 –$16.9 billion in 2015, a compounded content online and collaborating with was the case with ‘traditional’ data A new Age of Aquarius?annual growth rate of 40% and customers and partners are critical for analytics. This will bring down View more presentations from“growth of individual segments from success in the age of Social Media. significantly costs (especially fixed Stephen Collins. What if Peter27.3% for servers and 34.2% for Big Data provides the critical costs) associated with building and Drucker Taught Enterprise 2.0software to 61.4% for storage”. So backbone for Social Business maintaining analytics infrastructure Strategy?what is driving this growth in Big leveraging advances in Cloud and solution center. I expect all major View more presentations from MarkData and how can IT Services and Computing, Mobile Platforms, Social IT Services and Consulting Fidelman. Enterprise 2.0 : LeveragingConsulting companies tap into this Media, Ubiquitous broadband companies to invest heavily in collaboration platforms to fosterphenomenal growth opportunity of internet, Gaming technology and building delivery capability in the knowledge, innovation and40% CAGR, which according to IDC Data Storage and Analysis. area of Big Data/Analytics to tap into productivityis “about 7 times that of the overall Because of the business requirement this opportunity. View more presentations from Cecilinformation and communications of analyzing vast amount of ever Do you agree that Big Data is a great Dijoux. Enterprise 2.0 = Knowledgetechnology (ICT) market”? changing structured and unstructured opportunity for IT Services and Management 2.0? As I indicated in one of my previous Big Data almost instantaneously, Consulting companies? Please do View more presentations from Danpost titled Why Big Data Mining/ companies will be hard pressed to do share your thoughts: Keldsen. Cloud and E2.0: ConnectingAnalytics is the New Gold Rush, Big this on their own. But given the fact the Dots – OSCON Cloud Summit – 2010 View more presentations from Dion Hinchcliffe. Value Creation in Enterprise 2.0 View more presentations from Todd Stephens.
FeedJournal 11 Missing Wood forKey to Social CRM success: Go Trees, Why Big Data Isn’t About the BigLocal! Databy Harish Kotadia, Ph.D. (Blog thousands of customers across the centralized way. by Harish Kotadia, Ph.D. (Blogon Data Analytics, Big Data world on social media channels. Here’s an example of this approach: on Data Analytics, Big Dataand Social CRM) Well, solutions to this problem is to Retail giant, Walmart recently and Social CRM) “Go Local”. Meaning, companies announced that any one of Walmart’sSubmitted at 10/13/2011 4:02:19 PM Submitted at 7/8/2012 12:45:29 PM must engage their customers on social facebook fans can get information Marketing is never a zero sum game. media channels at a “local” level. So from their “local” store by clicking on Big Data is a hot topic of discussionCompanies don’t have to lose for if a company segments or classifies the Local Walmart tab on the these days and is on top of “To Do”customers to win and customers don’t customers “geographically” or at a Walmart’s Facebook page. “Liking” a list of senior executives of large andhave to lose for companies to win. In “store” level, they should engage local store will enable customers see medium sized companies, many offact, marketing is the art and science their customers on social media local promotions for that particular whom have started investing inof finding a win-win approach to channels at a store level. This means store and a map of the store with required infrastructure for leveragingbusiness transactions in which both that companies need to have a Social exact location of advertised Big Data.the company and customers win. CRM team for engaging customers at specials(for more, see this and this). While this is a good start, it is Social Media can play a major role in every local unit (like geography or This strategy of “Going Local when important to remember that Big Datafinding this “win-win” equation store). it comes to Social CRM” is isn’t about the Big Data. Yes, youbetween companies and customers, Unlike traditional CRM, which was applicable to companies across all read that correctly – Big Data isn’tby helping companies better all about centralization of information industries, be it retailers, restaurants about the Big Data, rather it is allunderstand their customers’ needs into a database for decision making at or banks. Companies need to form about making better business(not wants or desires) and customers the top, Social CRM is all about Social CRM teams at a “local” level decisions using the insights gainedcan better collaborate with companies engaging customers at a “local” level to engage customers and build win- from analyzing structured andusing social media channels to design and empowering front-line managers win relationship with them. unstructured data that is available. Ifand co-create products or services for decision making where it matters What do you think? Do you agree one focuses solely on “Big Data” andthat fulfill their needs. One key the most – at the local level in a that key to Social CRM success is forgets the business context/how thechallenge facing all large and decentralized way. Because Going Local? data is going to be used, one is likelymedium sized companies in this companies cannot collaborate with to miss wood for trees.regard is how to engage tens of thousands of customers in a Instead of focusing on Big Data per se, how about starting with business2012: Year of Empowered and problems that we are trying to solve, for example reducing customer defection/churn or improving cross-Assertive Digital Customer sell/upsell rates in CRM context or reducing inventory carrying costs in ERP context.by Harish Kotadia, Ph.D. (Blog Once you have identified theon Data Analytics, Big Data problem to be solved, identify whatand Social CRM) structured and unstructured data are required for making better businessSubmitted at 12/28/2011 8:51:10 PM decisions. This may include Social As 2011 comes to an end and as we Media data for example besideslook forward to celebrating New Year ‘internal’ CRM data. Once you have2012, one thing that strikes most identified the structured andlooking back is the massive increase unstructured data, internal andin ownership and usage of external to the organization,Smartphones and Tablet computers. formulate a strategy on how the data Just consider following headlines in is going to be used or analyzed and atthe last few days: what level of granularity. Only after“On Christmas day alone, a total of this should one decide on what tools6.8 million iOS and Android devices to use and make required investmentsgot activated around the world, a in Big Data infrastructure and not353% increase from Christmas other way around.2010(for more, see this link) So don’t invest in Big Data“Consumers have spent a record $35 infrastructure first not knowing what,billion online shopping this holiday why and how, and put cart before theseason”(for more, see this link) horse. Rather identify a business“Apple’s iOS accounted for a online or scoring great bargains, but Social Media disasters and Social problem to solve first, identify whatwhopping 13.4% of Online Sales on also for highlighting poor customer CRM crises, and many companies structured and unstructured data areChristmas Day”(for more, see this service experiences. will learn the Social CRM lesson hard required for making better businesslink) This growing trend of empowered way. And that will spur investment decisions, develop a use case for Big“According to a recent report, and assertive customers leveraging not only in Social CRM, but also Data, run a successful pilot projectFacebook reached more than half of technology for connecting with other Enterprise Collaboration Platforms, and then invest in required Big Dataglobal audience in October 2011 and like minded individuals to share their Mobile engagement platforms and infrastructure.accounted for 1 in every 7 minutes purchase intentions and experiences Data Analytics. What do you think? Do you agreespent online around the world and 3 about products and services will be What do you think? Do you agree that Big Data Isn’t About the Bigin every 4 social networking the big story of 2012. that 2012 is going to be the year of Data, rather it is all about makingminutes”(for more, see this link) Questions is how many companies Social Media disasters and Social better business decisions using the These are just a few headlines I came are listening to customers, learning CRM crises? Please do share your insights gained from analyzingacross during last few day of 2011. from it and engaging them? Not thoughts: structured and unstructuredAnd they all points to the fact that many. So if 2012 is going to be the (Picture courtesy: Beautiful sunset in data? Look forward to hearing yourthanks to Mobile, Tablet computing year of Empowered and Assertive Dallas, Texas as seen from my thoughts and comments:and Social Networking revolutions, Digital Customer and if companies apartment)customers are empowered like never are not ready for it, we can also saybefore and they are leveraging that 2012 is going to be the year oftechnology not only for shopping
12 FeedJournalBig Data: Will Open Source RememberingSoftware Challenge BI & Analytics Steve Jobs (1955-2011)Software Vendors by Harish Kotadia, Ph.D. (Blog on Data Analytics, Big Databy Harish Kotadia, Ph.D. (Blog to levarage power of business freely available Open Source and Social CRM)on Data Analytics, Big Data analytics as they cannot afford Software, users can leverage workand Social CRM) investing in specialized harware, done by others for specific analytics Submitted at 10/7/2011 4:33:00 PM database and BI/Analytics software functionality and don’t have to re- Life of Steven Paul Jobs(popularlySubmitted at 2/3/2012 7:44:27 PM applications being marketed by invent wheel by rewriting the code. called Steve Jobs), the co-founder, Predictive Analytics has been billed enterprise software vendors such as This reduces cost of developing former Chairman and CEO of Appleas the next big thing for almost SAS and Teradata. analytics solution significantly. Computers, who died recently hasfifteen years, but hasn’t gained mass Well, this is about to change – thanks Established BI and Analytics been described in glorious terms. Inacceptance so far the way ERP and to technologies such as Apache software vendors have no option the past few days, much has beenCRM solutions have. One of the main Hadoop(which supports Big Data other than offering their solution written about his life and legacy, andreason for this is the high upfront distributed applications under a free under SaaS (Software as a Service) I don’t think I can add anything newinvestment required in Software, license), HBase(an open source, non- model so that it is cost effective for to what has already been said.Hardware and Talent for relational/distributed database) and their customers to implement But I will definitely add this, Steveimplementing a Predictive Analytics the freely available R programming analytics solution without requiring Jobs was more than an innovator andsolution. language(which is part of the GNU large upfront investment. This is all a visionary. He was not Thomas As a result, only a handful of very project). Using R, HBase and the more important for Big Data as Edison of our times as many havelarge enterprises such as mega banks Hadoop, it is possible to build cost- the field is evolving rapidly. And if said. I think he was an artist – aor top telecom companies have made effective and scalable Big Data any BI or Analytics software vendor Michelangelo or a Leonardo da Vincithe required investments and have Analytics solutions that match or fails to adapt to this changing of our times. Technology was hisbenefited from power of Predictive even exceed the functionality offered technological environment, they risk canvas and iMac, iPod, iPhone andModeling and advanced Statistical by costly proprietary solutions from losing their market share. IPad his masterpieces. He approachedtechniques that are in existence for leading BI/Analytics software technology with an artist’s “open”well over five decades. Most of the vendors at a fraction of the cost. And mindset rather than a technologist’sother companies have not been able since R programming language is a or scientist’s “Do’s and Don’ts” conditioned approach. As a result,Big Data: The Coming Sensor Data what he achieved is truly breathtaking and his creations speak for themselves. I don’t think we areDriven Productivity Revolution going to see any one similar to him in our life-time. It is often said that those whom the gods love die young.by Harish Kotadia, Ph.D. (Blog Thanks to Big Data tools and send some one for meter reading, buton Data Analytics, Big Data technology, we can identify, store, as the meter is read once every fifteen This surely seems to be true in caseand Social CRM) retrieve and analyze this data in a cost minutes, electricity can be priced for Steve Jobs. effective and timely manner. Think differently for peak and off-peak During Stanford University’sSubmitted at 7/21/2012 9:21:25 PM about the possibilities this opens up in hours. Pricing can be used to shape commencement speech in 2005, he When it comes to Big Data, we often the area of preventive maintenance the demand curve during peak hours, said that “You can’t connect the dotsthink of user (human) generated and fault prevention – resulting in eliminating the need for creating looking forward; you can onlysocial media data. But sensor reduced flight delays and additional generating capacity just to connect them looking backward. So(machine) generated data is a much cancellations because of technical meet peak demand, saving electricity you have to trust that the dots willbigger story as sensor data will drive issues with the plane. And given the providers millions of dollars worth of somehow connect in your future. Youthe next wave of productivity growth cost effectiveness of Big Data tools investment in generating capacity and have to trust in something — yourand innovation. Consider this for and technology, vast amount of plant maintenance costs. gut, destiny, life, karma, whatever.example, “Boeing jet engines can sensor data can be analyzed in almost These are just two examples. Now This approach has never let me down,produce 10 terabytes of operational real time in a wide array of fields, not imagine the possibilities of what can and it has made all the difference ininformation for every 30 minutes they just in aircraft maintenance. be done with a vast array of sensor my life.” So true. If only we can findturn. A four engine jumbo jet can Smart electric meters are another data that is analyzed and used in a little bit of Steve Jobs within ourcreate 640 terabytes of data on just good example of sensors generating industrial/business processes in real- heart and soul, our life will be soone Atlantic crossing, multiply that vast amount of data that can be used time. In my opinion, we are on the much richer and fulfilling!by the more than 25,000 flights flown to drive productivity. Because of cusp of a major sensor data driven Finally, to end this post I want toeach day”(Source: Information smart meters, electricity providers productivity revolution that will share this Bloomberg video on lifeManagement). Almost all of this data can read the meter once every 15 fundamentally change the way we do and work of Steve Jobs. I am sureis lost on completion of the flight, but minutes rather than once a month. business, for the better! you will find it informative andthis is about to change. This not only eliminates the need to inspiring. In case if you don’t see embedded video below, please click on this link for the video.Case Study: How Smartphone Rest in Peace Steve, you will be missed! You made it possible for metechnology is changing Retailing to video chat with my friends and family members on the other side of world at push of a button from aby Harish Kotadia, Ph.D. (Blog customers, TESCO Home plus And don’t forget the ROI this can device that a 3 year old or a 85 yearon Data Analytics, Big Data designed a “virtual store” to enable deliver because of not only savings in old person, and all age groups inand Social CRM) shoppers use their camera equipped cost of operating stores (Real Estate, between, find it not only easy to use, smart phone and shop “virtually” by Utilities, Employee salary etc..), but but also enjoy using it.Submitted at 6/24/2011 8:32:20 PM scanning QR codes of merchandise. also due to reduction in inventory Here’s an excellent case study of And what’s even more interesting is costs as this is a virtual store.how Smart Phones are changing the that the virtual store is located on You can’t beat that. Can you?way we shop. TESCO Home plus is a platform of a subway train station so Watch the following video and seeSouth Korean retail chain with 113 that customers can shop while they for yourself how it works:stores in South Korea. In order to wait for their train. How convenientreach out to their time-strapped is that!
FeedJournal 13 Social Media and theKLM Surprise: Is it Social CRM? Rise of Consumer to Consumer (C2C)by Harish Kotadia, Ph.D. (Blog at Amsterdam Schipol Airport, KLM like Foursquare for check-ins andon Data Analytics, Big Data employees collect information from “learns” about checked-in customers Marketingand Social CRM) their Social Media accounts like from their Social Media profiles, but Twitter, Facebook and Foursquare, “engages” select customers by giving by Harish Kotadia, Ph.D. (BlogSubmitted at 11/27/2010 12:44:51 AM select an individual gift for select them “individual” gifts and shares on Data Analytics, Big Data Here’s a great Social Media customers, locate them in the airport this information on social media and Social CRM)Customer Engagement Case Study – terminal and deliver surprise gift to channels. Submitted at 9/11/2011 12:54:39 AMRoyal Dutch Airlines KLM. KLM them and share this information on In one of my earlier posts, I havehas launched a pilot program called KLM’s Facebook page and Twitter defined Social CRM as “ the business I have seen several examples ofKLM Surprise to surprise their account(for more, read this). strategy of engaging customers marketers in both, Business tocustomers who check in on One can only imagine feeling of through Social Media with goal of Business (B2B) and Business toFoursquare at one of KLM’s venues pleasant surprise on the face of building trust and brand loyalty“. Consumer (B2C) segments, trying toat Amsterdam Schipol Airport with a customers receiving the gift. Well, KLM Surprise team is engaging use the same old B2B or B2Ccustomized gift based on information you don’t have to imagine it – check customers through Social Media for strategies when it comes to Socialcustomers have shared previously on out photos on KLM Surprise building trust and loyalty and as a Media marketing. Marketers areSocial Networking sites. Facebook page and see for yourself. result, KLM Surprise is a Social failing to take advantage of unique I have defined Social CRM as the KLM Surprise team is engaging CRM program in my opinion. characteristics of Social Networks bybusiness strategy of engaging customers through Social Media for What do you think? Is KLM Surprise not modifying or re-engineering theircustomers through Social Media with building trust and loyalty and as a Social CRM? Please share your business processes for Social Mediagoal of building trust and brand result, KLM Surprise is a Social thoughts and opinions: and are merely “fitting” Social engineloyalty. CRM program in my opinion. to their existing business processes For customers checking in using KLM Surprise team not only instead and this is bound to fail. InFoursquare at one of KLM’s venues “listens” to Social Media channels fact, i wrote about this more than a year back in a post titled SocialSocial CRM Case Study: Netflix CRM: Thinking Outside the “Call Center” Box. Companies must understand thatVs. Blockbuster Social Media channels empower customers to find & connect with other like minded individuals, interactby Harish Kotadia, Ph.D. (Blog Well, we have a great case study on offered a “30 day free trial geared at with them in a “public” way and thison Data Analytics, Big Data this subject. Netflix, Inc., the provider Netflix customer” on Twitter but also is Consumer to Consumer interactionand Social CRM) of online video streaming and DVD “started a new Twitter contest (C2C). Companies must leverage this by mail service seems to have promising a free year of service for C2C interaction for marketing ratherSubmitted at 10/3/2011 8:39:44 PM misjudged the negative impact of the four best Netflix breakup than using B2B or B2C marketing In one of my previous post titled price increase and other service stories”(for more, read this). techniques on consumers who areSocial Media: The New Front End of changes they announced Key takeaway from Netflix’s CRM interacting with other consumersCRM System, I highlighted that “unilaterally” this summer and as a crisis is that it pays to engage (C2C) on Social Media channels.Social Media has empowered result dissatisfied customers have customers on Social Media channels We need fresh outside thecustomers like never before as they leveraged social media tools to because if you don’t, your competitor box thinking to take advantage ofcan discuss about brands/products on express their disapproval(for more, will. In that case, you will not only be unique characteristics of SocialSocial Media channels and companies read this). sorry about not engaging your Media and C2C interactions. Forhave no control over what customers But instead of fighting fire with fire customers but as a double whammy, example, instead of trying to respondare saying about their brand. and using Social Media channels to will also be sorry about your to each and every tweet or FacebookMoreover, as this discussion is engage customers for building trust competitor leveraging the opportunity posting by customers, something not“public” – visible to all, including and loyalty, Netflix has maintained a and walking away with your practical for a medium or largeother customers, potential customers low profile on Social Media channels. customers. business, the emphasis should be onand competitors, it is critical that Guess what? Blockbuster, a Life for companies that don’t care creating advocacy and building trustcompanies engage their customers on competitor of Netflix has seized the about their customers is tough indeed among consumers, keeping in mindsocial media, else their competitors initiative by engaging Netflix’s in Social Age. Don’t you think so? the “Social Context” and C2Cwill and damage to the brand will be customers using Social Media potential of the medium. No whereimmense. channels. Blockbuster not only this is more evident than in support communities, where brand advocates/How to measure Social CRM ROI loyal customers help other customers out by answering their questions or suggesting solution (C2C) rather thanby Harish Kotadia, Ph.D. (Blog Strategy is a plan of action designed In other words, we need to define company Reps trying to answer allon Data Analytics, Big Data to achieve a particular goal. Social measurable Social CRM goals and a the question.and Social CRM) CRM is a plan of action to build Trust clear plan of action for achieving What do you think? Do you agree and Loyalty. Social CRM is not a them before embarking upon any that marketers need to re-engineerSubmitted at 12/24/2010 11:37:01 AM “technology”, “system” or Social CRM initiative. And their business processes to take One of the question frequently asked “processes”. While executing Social remember, ROI is not associated with advantage of Social Media’s C2Cabout Social CRM or Social Media is CRM (strategy), Social Media Social Media as they are the marketing potential or can theyWhat is the ROI? This is a great technology (tools) will be used to technological tools used to achieve continue to use their “good old” B2Bquestion to ask given the need to achieve the goal (building trust and the goal of building trust and loyalty. or B2C methods for Social mediajustify any major investment, loyalty), but tools are different from In order to measure Social CRM marketing?especially after the great plan. It is very important to remember ROI, first step is to define measurablerecession. Unfortunately, many this distinction between strategy, Social CRM goals, then workout anpeople (and this includes so called tools and goals. action plan for achieving these goals,“experts” or “thought leaders”) are Social CRM (strategy) ROI depends execute the plan and quantify themissing woods for the trees while on how well Social Media technology business benefits arising out it. Andtrying to answer this question. (tools) is used for achieving the goal this forms the basis for calculating It is important to remember that (building trust or loyalty). Return on Social CRM ROI (and remember, notSocial CRM is the business strategy Investment (ROI) is associated with Social Media ROI).of engaging customers through Social how well the goal has been achieved What do you think? Please do shareMedia with goal of building trust and and resultant business benefits given your comments and feedback:brand loyalty(for more on Social the investments and not with tools PerCRM definition, see this). se.
14 FeedJournal What Are Big Data,Big Data Analytics a Key Enabler Hadoop and HDFS: 3 Must Watch YouTubefor Social CRM – Airlines Case Videos by Harish Kotadia, Ph.D. (BlogStudy on Data Analytics, Big Data and Social CRM)by Harish Kotadia, Ph.D. (Blog For more on the methodology and data – not only text data but alsoon Data Analytics, Big Data results, see the following embedded pictures, video, GPS , Social Graph/ Submitted at 3/20/2013 9:56:26 PMand Social CRM) Slideshare presentation(if you cannot Social Media linkages and using that I received great response to one of see the embedded file, click here to information for engaging customers my previous post titled 5 Must WatchSubmitted at 2/1/2012 6:10:58 PM view it on Slideshare website). on Social Media channels. That in my YouTube Videos on Big Data and Big Data Analytics is a hot topic of As you can see on slide no. 27, the opinion is the ‘holy grail’ (if I may many of you reached out to mediscussion these days. But many feel twitter sentiment scores obtained for use that term) of Social CRM. requesting for more such blog posts.that it is more of a “hype” and less of many of the airlines are “comparable” In one of my earlier post, I have Well, your request is granted. Heresubstance. In my opinion, Big Data to results of The American Customer defined Social CRM as the business are three great videos on what is BigAnalytics is the real deal and if used Satisfaction Index (ACSI). What is strategy of engaging customers Data, Hadoop and HDFS. Hope youcorrectly, can deliver great business important to note here is that by through Social Media with goal of enjoy them and do let me know if it isresults at a fraction of cost compared analyzing few tweets using freely building trust and brand loyalty. Big useful.to other alternatives. available R programming language data analytics is a key enabler for Based on your comments and Here’s a simple yet very effective (which is part of the GNU project), it engaging customers on social media feedback, I will share more such greatexample of using analytics for is possible to achieve results similar channels for building trust and loyalty resources on Big Data. So eitherunderstanding consumer attitudes to that of an elaborate and expensive (Social CRM). What do you think? leave a comment in comments sectiontowards airlines in real time. In this market research study such as ACSI R by example: mining Twitter for of this post or better still, tweet yourstudy, Jeffrey Breen has used the R at a fraction of a cost, that too in real consumer attitudes towards airlines comment, mentioning my twitter IDprogramming language to analyze time. Isn’t that a game changer? View more presentations from Jeffrey @HKotadia and I will surely reply toconsumer sentiments about major Now imagine using Big Data Breen you.U.S. airlines expressed on Twitter. Analytics to analyze Social Media Enjoy and learn from these videos(double click on videos for fullWhy Big Data Mining / Analytics is screen view). 1. Explaining Big Data by explainingcomputers:the New Gold Rush 2. Introducing Apache Hadoop: The Modern Data Operating System by Stanford University:by Harish Kotadia, Ph.D. (Blog fundamentally change the way Similarly, it is impossible to run a 3. Hadoop Tutorial: Intro to HDFSon Data Analytics, Big Data business is done not only online but large or medium sized business in the by Marakana TechTV:and Social CRM) also offline. Here’s why: Big Data is age of Social Media without a key enabler for Social Business and leveraging user generated content orSubmitted at 2/14/2012 11:37:10 PM without Big Data Mining/Analytics, a without collaborating with customers Just mention the words “Big Data” to large or medium sized company can and partners. And for this to happen,any technology entrepreneur or neither make sense of all the user Big Data Management, Mining andinvestor and observe how his/her face generated content online nor can Analytics are critical/key enablers.lights up with excitement. Given the collaborate with customers, suppliers Being a key enabler and catalyst inperceived opportunity in Big Data, and partners effectively on Social Social Age, Big Data Management,tech entrepreneurs and investors want Media channels. And both of these Mining and Analytics companies areto capitalize on it by starting / activities, namely gaining insights going to command a premiuminvesting in a Big Data Management, from user generated content online valuation and hence Big Data MiningMining and Analytics business. Is this and collaborating with customers and and Analytics has triggered a new ‘perceived opportunity in Big Data for partners on Social Media channels are Gold Rush‘, not to mine gold thisreal or is it a bubble that will burst critical for success in the age of time but something even moresoon? Social Media. valuable – knowledge and insights. I think the perceived opportunity in Can you imagine any large or What do you think? Do you agreeBig Data is real and is here to stay as medium sized business without e- that Big Data has triggered a newBig Data Mining/Analytics will Business in the internet age? Gold Rush?Collaborative Consumption: How it will disrupt“traditional” Business Modelsby Harish Kotadia, Ph.D. (Blog their sharing of physical objects and Neal Gorenflo and pdf version of full themselves leveraging collaborativeon Data Analytics, Big Data spaces will increase in the next 5 report is available here). technology to connect with theirand Social CRM) years Rachel Botsman, co-author of the customers and giving them “access” • 78% of felt their online interactions book What’s Mine Is Yours: The Rise to products or services, rather thanSubmitted at 1/9/2011 9:05:50 PM with people have made them more of Collaborative Consumption, spoke “selling” them products or services. Time Magazine recently rated open to the idea of sharing with on the subject recently at This will radically change the wayCollaborative Consumption, which is strangers, suggesting that the TEDxSydney(please see following products (or services) are created,defined as technology enabled social media revolution has broken video): distributed, priced, accessed (notsharing, trading, renting and bartering down trust barriers Social Media is ‘enabling’ trust owned) and consumed. We live inof goods and services, as one of the • 85% of all participants believe that between strangers and this helps exciting time indeed!top ten green stories of 2010(for Web and mobile technologies will remove middle-man in exchange What do you think? Please do sharemore, see this). play a critical role in building large- process. As a result, Collaborative your thoughts on the subject: In a study titled The New Sharing scale sharing communities for the Consumption will disrupt traditionalEconomy by Latitude Research and future business models.Shareable Magazine, it was found (For more, see this excellent article To thrive in this brave new world,that:• 75% of respondents predicted titled The New Sharing Economy by companies will have to reinvent
FeedJournal 15 Data Rich, butKey Big Data Terms You Should Information Poor: Problem orKnow Opportunity?by Harish Kotadia, Ph.D. (Blog 4. Pig: Developed by Yahoo. It is a 13. Whirr: For automating hadoop by Harish Kotadia, Ph.D. (Blogon Data Analytics, Big Data higher level language than cluster processing on Data Analytics, Big Dataand Social CRM) MapReduce 14. Sqoop: For transfering structured and Social CRM) 5. Hive: Higher level language data to HadoopSubmitted at 4/9/2013 10:49:38 PM Submitted at 2/11/2013 8:38:28 PM developed by Facebook with SQL 15. Mahout: Machine learning on top Given below is a listing of key Big like syntax of MapReduce It is not uncommon to hear theData terms that you should know and 6. Apache HBase: For real-time 16: Bigtop: Integrate multiple phrase “Data Rich, but Informationa very brief explanation of what it is access to Hadoop data Hadoop sub-systems into one that Poor” in the context of enterprisein simple language. Hope you find it 7. Accumulo: Improved HBase with works as a whole information systems. This isuseful. new features like cell level security 17. Crunch: Runs on top of especially true when it comes to Big 1. Hadoop: System for processing 8. AVRO: New data serialization MapReduce, Java API for tedious Data, given the three Vs of Big Data,very large data sets format (protocol buffers etc.) tasks like joining and data namely Volume, Variety and 2. HDFS or Hadoop Distributed File 9. Apache ZooKeeper: Distributed co aggregation. Velocity(read this for more). WhatSystem: For storage of large volume -ordination system 18. Giraph: Used for large scale seems like a big problem posed byof data (key elements – Datanodes, 10. HCatalog: For combining meta distributed graph processing data deluge is in fact a greatNamenode and Tasktracker) store of Hive and merging with what Also, embedded below is an opportunity if only companies can 3. MapReduce: Think of it as Pig does excellent TechTalk by Jakob Homan unlock the potential of Big Data usingAssembly level language for 11. Oozie: Scheduling system of LinkedIn on the subject explaining predictive analytics.distributed computing. Used for developed by Yahoo these tech terms. DATA page 15computation in Hadoop 12. Flume: Log aggregation systemFedEx learns Social Should CEOs Tweet? BestCRM lesson, the hard Buy CEO @BBYCEOway! shows the way by Harish Kotadia, Ph.D. (Blog rather point customers and employeesby Harish Kotadia, Ph.D. (Blog the video showing one of our couriers on Data Analytics, Big Data to right resourceson Data Analytics, Big Data carelessly and improperly delivering and Social CRM) • Self post on Twitter and Facebookand Social CRM) a package the other day. As the leader accounts rather than asking others to of our pickup and delivery operations Submitted at 12/19/2010 7:23:44 PM do it for youSubmitted at 12/22/2011 1:06:20 AM across America, I want you to know During an early morning flight last • Lead by example, be responsible Here’s an excellent example of the that I was upset, embarrassed, and Monday, I was thumbing through for what you say online – the onlyimportance of responding to a Social very sorry for our customer’s poor some newspapers and magazines guidelines to follow is to act withinMedia crisis before it is too late. On experience. This goes directly against when an article on the last page of valuesDecember 19th, 2011, a YouTube everything we have always taught our Businessweek(Dec. 6-12, 2010 issue) • Get used to messiness of Socialuser (username “goobie55) uploaded people and expect of them. It was just caught my attention. The article was Mediavideo of a FedEx delivery person very disappointing.” by Best Buy CEO Brian Dunn on • Engage, don’t try to control what’sthrowing a video monitor into his/her (YouTube video response by FedEx “getting into social media to learn being mentioned on Social Mediayard. embedded below): about customers and employees”. channels This YouTube video has created a This incident of Social Media brand In this article, Brian makes few • Have a large monitor in office toSocial Media storm of sorts and as I crisis underscores the importance of excellent points about why and how display all Twitter/Facebook activitywrite this post, it has been viewed having a Social Media Crisis CEOs should engage customers and where the company/brands are3,576,412 times for this one YouTube Management Plan. It should clearly employees on social media channels mentioned, Listen to what is beingpost alone. I have seen it on my local highlight roles and responsibilities, such as Twitter. said and LearnTV news too here in Dallas, Texas. procedure and protocols to be Some of the points worth emulating (see this link for complete article on Well, before it was too late followed in the event of a brand by other CEOs and senior executives Businessweek website)(remember United Breaks Guitars crisis. Because the first step in are:• It helps to be enthusiastic about Hope other CEOs and seniorYouTube video), FedEx posted its solving any crisis is to identify and engaging Customers and Employees executives will emulate Brian Dunnown response to customer’s video respond to it, and respond FAST on Social Media channels and start Listening, Learning andwith the following statement by when it comes to Social Media as • Listen and Learn first, Engage Engaging customers and employeesMatthew Thornton III, Senior Vice FedEx seems to have done here. selectively on Social Media channels.President, US Operations, FedEx What do you think? • Don’t try to fix problems directly,Express:“Along with many of you, we’ve seen DATA continued from page 15Social Intranet – Unleash the power Since Big Data is characterized by not only Volume, but also Velocity and Variety, it is very important thatof Enterprise Big Data is used for analysis in real- time to predict the future and take corrective action based on thatby Harish Kotadia, Ph.D. (Blog of them were in the same room. take a look at this excellent preso by analysis. The real value is in usingon Data Analytics, Big Data You may say that this is a pipe Oscar Berg on the subject. My insights derived from predictiveand Social CRM) dream and cannot be reality any time favorite is slide no. 91 ( Know analytics and taking corrective action soon unless we have futuristic thyself). before it is too late, rather than justSubmitted at 12/28/2010 7:12:01 PM gadgets similar to what were featured Enjoy and please do share your reporting historical information. Imagine a large enterprise with tens in popular TV series Star Trek. comments and thoughts: The Social Techniques like Multiple-regressionof thousands of employees across Well, I say think again. We have Intranet analysis coupled with Factor analysis,several time zones on multiple Social Media tools and technology View more presentations from Cluster analysis and Causal Pathcontinents, all collaborating with each that can be used over enterprise Acando Consulting.other, aware of others’ expertise and intranet(as opposed to internet) to DATA page 16interests, working seamlessly as if all make this a reality. To know more,
16 FeedJournalDATAcontinued from page 15analysis can be used very effectively big data and derived insights madewith Big data. For example, rather available to decision makers and frontthan analyzing “historic” attrition line employees in real time, if not itrates, predictive analytics will make it can be a great problem.possible for companies to identify Dear CEOs, CMOs and CIOs, what’scritical incidents leading to customer your choice? And what are youattrition so that steps can be taken to waiting for?retain the customer before he/shedefects. So whether Big Data deluge is aproblem or an opportunity dependson what you make of it. It can be agreat opportunity if advancedstatistical tools are used for analyzing5 Must WatchYouTube Videos onBig Databy Harish Kotadia, Ph.D. (Blog EconomistMagazineon Data Analytics, Big Data 3. What is Hadoop? Other big dataand Social CRM) terms like MapReduce? Cloudera’s CEO talks us through big data trendsSubmitted at 2/24/2013 11:55:14 PM by Robert Scoble Here’s a compilation of my five 4. TEDxUofM – Jameson Toole –favorite YouTube videos on the topic Big Data for Tomorrow byof Big Data. Please note that they are TEDxTalksin random/no particular order. Hope 5. Leaders in Bi g Data byyou enjoy these videos! GoogleTechTalks 1. Big Data by EconomistMagazine 2. Big data in 2013 by