TBLA - Tata Business Leadership Awards 2016 - Big Data and HR

1. Amit Arora I Shreyas Desai I Sony Ambooken
Big Data – Achieving Competitive
Advantage Through Analytics
Team BigInsights
Company :- Tata Consultancy Services (TCS)
1

2. 01
02
03
04
Industry Outlook & Palm Group
Situation Analysis
Transformation Roadmap
Cost Benefit Analysis | Q&A
Data Driven Approach For HR
(Insights & Potential of Big Data)
Agenda

3. Macro Factors Influencing Hospitality Sector
India Tourism Industry
Source – STR Global
Foreign Tourist arrivals
growing at 10% for 2016
2015 GDP growth of
India higher than China
7.3% vs 6.9%
Rooms Supply (3.9%) Vs.
Demand (10.5 %)
Growth
Domestic Travel
Expected Growth
( 6.6% )
India GDP Expected
Growth 7.5 % 2016/17
Brand India
(Incredible India , Make
in India)
‘India Domestic Market – Driver For Growth’
3

4. Projected Business Growth Plan
The Palm Group
4
PROJECTED NUMBER OF HOTELS PROJECTED REVENUE (CY 2016 – 2020)
40
%
2016 2017 2018 2019 2020

5. Business Growth Plan – Is The Palm Group ready ?
The Palm Group
• Ambitious plans of Palm
Group to drive Growth and
profitability and become
market leaders in the
Domestic sector
• Create an unique identity with
its products and distinctive
service
• In Human resources area,
multiple challenges are
hindering Palm group to
achieve its goals
HR Transformation People Challenges
‘ Strategic Investments in HR will be key to support the growth ’
5

6. What HCM Functionality should be deployed ?
The Palm Group
‘Data Driven Approach To Find the Right Starting Point”
6

7. Agenda
7
01
02
03
04
Industry Outlook & Palm Group
Situation Analysis
Transformation Roadmap
Cost Benefit Analysis | Q&A
Data Driven Approach For HR
(Insights & Data Analysis)

8. Future Investment Recommendation Model (FIRM)
8
The Palm Group
Recommendation
Data
Availability
Manual
Processes
Past
Investment(s)
Business
Impact
E & C
Satisfaction
‘Evaluating the entire lifecycle of HR function’
Potential
Employee
Candidate
On
Boarding
Hire to Retire
Events
Learning &
Development
Performance
Mgmt.
Career Develop &
Succession
Planning
Exit

9. Deep Dive : Analysis and Insights
• Avg. Hiring time 5.25 Months
Over Last 5 Years
• Increase in hiring time in 2014 &
early 2015
• 75 % of Hiring Process are Manual
8
2
8
9
8
• 75 % of Onboarding Process are
Manual
• Opportunity for increasing
productivity by automating
onboarding time
• Consistent New Hire Training
Time across 5 years
• Reduction in Hiring time
and onboarding time will
reduce costs and increase
revenues
• Getting right skilled
employees will help increase
CSAT and thus increase
revenue per employee
‘Opportunity to make an impact on both Top and Bottom Line’
Potential
Employee
Candidate
On
Boarding
Hire to Retire
Events
Learning &
Development
Performance
Mgmt.
Exit
9
Career Develop &
Succession Planning
The Palm Group

10. Deep Dive : Analysis and Insights
10
• Total no of new recruits mirrors with the total
exits with little difference for incremental
hiring
• Reactive hiring based on exits followed at the
Palm group.
• Opportunity to look at predictive hiring
7
2
9
7
7
• 66 % of processes are manual
• Regular and Consistent exits means high cost
to company on recruiting , training new
employees
‘Reactive Hiring Vs. Focus on Retention’
Potential
Employee
Candidate
On
Boarding
Hire to Retire
Events
Learning &
Development
Performance
Mgmt.
Exit
Career Develop &
Succession
Planning
The Palm Group

11. Deep Dive : Analysis and Insights
11
• L&D seems to be more focused on New Hire vs.
existing employees ( Avg. 42 hours vs. Avg. 16 hours )
• 75 % L&D Process are manual
6
2
7
8
7
• L&D will be key for Employee satisfaction
as it enables future career progression
and keep them updated about job
function
‘L&D key for Retention ,Focus on Existing Employees’
Potential
Employee
Candidate
On
Boarding
Hire to Retire
Events
Learning &
Development
Performance
Mgmt.
Exit
Career Develop &
Succession
Planning
The Palm Group

12. Deep Dive : Analysis and Insights
12
• No increase of employee
headcount during demand
surges (peaks of revenue
increase)
• Implies that Hotel is operating
with a buffer during non-peak
times
• Potential to reduce the
headcount during non peak
times and hire temp staff
during peak times.
• Strong correlation between
Employee and Customer
satisfaction
• Potential opportunity to
increase Employee satisfaction
by automating HR processes
‘Growth (CSAT | Revenue ) & Profitability highly dependent on Employee Satisfaction’
The Palm Group

13. 0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Hiring
On Boarding
Employee Self Service
Learning and Development
Compensation and Payroll
Performance Appraisal
Talent Management
Exit
Alumni
Overall Score
FIRM Recommendation : Identified Future Initiatives
13
The Palm Group
‘Top priorities are Hiring , Exit, Onboarding and Learning and Development’

14. 14
01
02
03
04
Industry Outlook & Palm Group
Situation Analysis
Transformation Roadmap
Cost Benefit Analysis | Q&A
Data Driven Approach For HR
(Big Data & Analytics In Action)
Agenda

15. Data that’s
coming
Data outside
your firewall
Data you
possess +
+
What is Big Data ?
The Palm Group
‘Large volume of data – both structured and unstructured – that inundates a business on a day-to-day
basis.
15
Source 5 V Of Big Data : http://telecomunicaciones-peru.blogspot.com/2016/06/big-data-analytics-summit-19-20-ago2016.html

16. HR Strategy : Unleashing The Power of Big Data & Analytics
16
The Palm Group
‘Leverage Analytics for the key identified functions’
Talent Acquisition
▪ Build the profiles
▪ Use the past learning on
hiring
▪ Search in all domains
▪ Use bigdata to optimize the
search
▪ Create short list from
statistical models.
Talent Retention
▪ Build Associate satisfaction
score
▪ Traditional employee survey
and sentimental analysis
from social media.
▪ Do proactive steps on the HR
initiatives
▪ Build the attrition risk score
▪ Predict the potential exit
Onboarding
▪ Machine learning can be
used to bring productivity
▪ Inferences can be build from
the past learnings,
▪ Text analytics to be used for
better insights from old docs

17. Data processing
Internal Data
process
Analytics
matching
Past data
Profiling
Data lake
External Data
Profiling
Frequency Time series
Descriptive
Attrition –why it is happening
Reporting
Predictive
Association
rules
Cluster
Logistic
regression
model
Attrition prediction
Self learning
Target Operating Model to Support
Case Study
Data acquisition
Process Flow For Big Data
The Palm Group
17

18. Early attrition indicator
Attrition prediction & alert
1
2
Attrition control and enable the engagement
3
Prepare the attrition profiles
4
Prediction Model
➢ Logistic Regression based model (SAS ) (as an alternate knime based model)
➢ Multiple independent variables needed
➢ Y = β + β1X1 +…. βnXn with a minimum sample size is based on peducci model
Internal Data
Gender, Marital Status, Age, Education, Tenure in the
organization, City, Salary Grade, Designation
External data
Associate sentiments, recent moves,
compensation(relative to market), market demand(for
skills), life changing events
• Classify the clusters
• Develop association rules among n the variables
• Regression Modeling first done to identify the
coefficients of the Master Equation, at an
overall organization level
• Regression Modeling done for each of the
clusters
Data to be considered Model- highlights
HR Strategy : Attrition Prediction and Control ( Deep Dive )
The Palm Group
‘Leveraging the In-house Data to build insights’
18

19. 19
HR Strategy : Attrition Prediction and Control ( Sample Report)
The Palm Group
Employee
ID
Employee
Name
Gender Role Attrition Risk
Profile
Actionable Insights
1234 David S. Male Front Desk
Action to be taken on long
term basis
Apply group interventions
1224 Jennifer K. Female Concierge
HR to keep a close watch
Apply group interventions
1345
Anthony
G.
Male Housekeeping
Share details with
concerned manager
Validate business risk with
cluster heard
1678 Samuel P. Male Sommelier
No action required
High Risk Safe Zone
Low Risk
Attrition Risk Report
Medium
Risk
- Conduct multi-factor analysis* E.g. Attrition risk score v/s
employee performance.
- Identify high performing employees at greater risk of
attrition*
- Automated triggers can
be generated to warn HR
based on the thresholds
set.
- Managers can identify key
reasons for attrition to
reduce its occurrence
*Source – Predictive analytics in HR,TCS

20. 20
01
02
03
04
Industry Outlook & Palm Group
Situation Analysis
Transformation Roadmap
Cost Benefit Analysis | Q&A
Data Driven Approach For HR
(Insights & Potential of Big Data)
Agenda

21. Strategic Roadmap For HCM Initiatives
The Palm Group
21
Source – HCM Roadmap,TCS
* Already Done
HCM Transformation
( Cloud Based Product Deployment – Long Term )
Integrate New/Existing with
Analytics Platform
( Short - Mid Term )
Build Analytics Platform on HRMS
Repository
( Short Term )
‘ Recommendation : Workday or TCS CHROMA™ Next Generation for Cloud based deployment’

22. HCM Transformation Initiatives : Execution Roadmap
The Palm Group
22
‘MVP ( Most Viable Product ) Approach Towards Development’
18-30
Months
1 Month
2 – 8
Months
9 – 15
Months
Due Diligence
▪ HRMS Data
Assessment
▪ Technology/Product
Selection
▪ Program Planning
▪ Data Quality
▪ Data Enrichment
▪ Data Lake Foundation
▪ Retention Analytics
Model
▪ Hiring Process
Streamlining
▪ Data Visualization
▪ Analytics CoE
▪ Workforce Planning
▪ Plug and Play
Deployment
▪ Mobility & Digitization
▪ HR Policy
Transformation
▪ Cloud based HR
systems
Short To Mid Term Long Term

23. HCM Transformation Initiatives : Technical Architecture
The Palm Group
23
Source :http://insidebigdata.com/2016/06/29/a-hive-free-approach-to-hadoop-data-management
Phase 1 : Data Assessment Phase 2 : Data Lake Setup
Phase 2 : Modelling ( SAS | R | Phyton )
Phase 3 : Visualization
Phase 4 ( Long Term ) : HCM Transformation
( TCS CHROMA™ Next Generationor Workday)

24. 24
01
02
03
04
Industry Outlook & Palm Group
Situation Analysis
Execution Roadmap
Cost Benefit Analysis | Q&A
Data Driven Approach For HR
(Insights & Potential of Big Data)
Agenda

25. HCM Transformation Initiatives : Expected Benefits
The Palm Group
25
24 % Hiring Time
Reduction in Hiring time from 5.25 Months
to 4 Months .
15 % Onboarding time
Increase in Productivity , improving overall
revenue
10 % Attrition improvement
Reducing hiring , training & onboarding cost.
Improving overall customer satisfaction
‘Realizing Value of Big Data Analytics”

26. HCM Transformation Initiatives : Benefits Analysis
The Palm Group
26
Note : Average Exits is based on 2015 Data ; Average Attrition rate for 2015 is 15.1% ; Employee growth estimated at 7%
• Direct Costs
- Job advertising
- Consulting Agency costs
- Interviewing costs
- Salary increase/bonus costs
- Relocation costs
- New Hire training costs
• InDirect costs
- Loss of Institutional knowledge
- Loss of Productivity
- Loss of Morale amongst others
- Overtime expenses
₹ 25 K – 60 K
Projected Direct Cost Savings = ₹ 4.9 Cr
311
Average No. of Exits
Per Month
Reduction in Exit by
10%
Predictive Attrition Model
‘Realizing the benefits in bottom line’
COST of replacing an employee Projected Cost SAVINGS
280

27. HCM Transformation Initiatives : Investment Analysis
The Palm Group
27
*Includes product license costs
** Excluding Phase 4
*** Recurring Cost
Note : Dip in 2016 is due to the IT investments (phase 1,2 and 3(part.))
In 2017 net incr. revenue is ₹ 12.1 Cr. (including phase 3 investment)
Total incremental revenue till 2019 = ₹ 45.7 Cr.
₹18 Cr
Payback Period = 1.1 years
Annualized return = 29.49%
Note : New Hotel growth rate estimated at 7%
Projected PAYBACK
Projected INVESTMENTS
‘Recommendation : Invest in Big Data Analytics to Reap the Benefits and Get Competitive Advantage’
Implementation Cost : Phase 1
Data Quality and Data Enrichment
₹3 CR
Implementation Cost : Phase 2
DataLake Setup & Analytics CoE*
₹10 CR
Implementation Cost : Phase 3
Visualization & Enabling Business Decision
₹5 CR
Annual Maintenance***
Visualization & Enabling Business Decision
₹.9 CR
Total Cost**
Phase 1 + Phase 2 + Phase 3
Total incremental cost saving till 2019 = ₹ 4.9 Cr.

28. Conclusion
The Palm Group
28
‘Big Data and Analytics Key To Gain The Competitive Advantage’
LEVERAGE THE POWER
OF
Data HCM Growth
TO IDENTIFY AND INVEST
IN
AND APPLY INSIGHTS
FOR

29. Q & A
The Palm Group
29
Q : How business users will be able to see the insights from the data?
A : Please refer slide “HR strategy attrition prediction and control (sample report)” depicting the
how the reporting/decision making will be enabled. Similar reports will be available across various
HR processes.
Q : How do you see revenue growth happening as a result of using Big data analytics ?
A : There are multiple areas where revenue growth can occur. For example considering two HR
processes of hiring and onboarding, using big data analytics, we will be able to reduce the hiring time
by 24% and onboarding time by 15%. What this means is that we will be able to get people earlier
than planned originally and more importantly have them ready for work(i.e. onboarded) faster. This
means that any loss of revenue due to a sudden exit is now minimized. Also as Palm group is in an
expansion mode, new hotels can open much faster than planned and thus lead to increase of
revenue.
Q : How big data can help the Workforce Planning using External Data ?
A : Please refer slide “Weather Patterns” depicting how weather pattern data from external
resources could be leverage to optimize workforce across location . Eg : Snow predicted in Shimla
means more People required but with Big Data these things can be planned much in advance vs.
waiting for weather men.

30. The Palm Group
30
Q : What was the basis of your projections for number of hotels and Revenues?
A : 7 % Growth rate for Domestic
Q : Do you think Revenues will grow linearly as number of Employees increase ?
A : Yes and No, we believe that with ambitious growth plans it will be important to have superior
service and employees will be key to provide those services so there will be strong correlation
between revenues and employees . However, with technology advancements and emerging business
models like asset light strategies focus will gradually shift towards non-linear growth
Q: How are you directly going into a big data solution without evaluating the IT systems?
A: As an output of the firm model, we are able to find out which HR processes need future
investment in their IT systems to help achieve growth objectives of the Palm group. This can be done
by enhancing the level of automation (investing in a new system) and/or by capturing the correct and
necessary data followed by analyzing the data for decision making and insights. As the Palm Group
has a limited budget and already has basic systems in place for capturing the data, in order to
address the current requirements, it is envisaged to focus on the existing data first by analyzing it
and creating analytical models using big data algorithms to process the same. At a future stage,
investment in new system is also recommended as laid down in the execution roadmap
Q & A

31. The Palm Group
31
Q : Which process areas in Hiring process you will automate or streamline ?
A : Please refer slide “Hiring Process Flow” depicting the process flow and areas that can be
improved.
Q : What products are out there that you recommend for The Palm Group? and why should we
invest separate solutions now ?
A : There are lot of COTS product in the market such as “TCS CHROMA™ Next Generation“, Workday
, Oracle HCM with each having their own pros’ and cons. However, we highly recommend to consider
TCS Chroma or Workday as they provide solution as Software as Service (SAS) eliminating need for
infrastructure. Its important to invest in Analytics separately to gain the competitive edge as you can
expand the analytics platform to correlate Finance with HR or procurement with HR or procurement
with Finance ( under various themes of Finance Analytics ,Procurement Analytics )
Q & A

32. THANK YOU !!!

33. Hiring Process Flow
The Palm Group
33
High Probability that the resume gathering and evaluation
process is manual today with Avg Hiring Time 5.25 Months
We believe currently there is no way to match internal candidates so you
might be hiring from outside every time , hence high hiring Time
Source :https://www.smartdraw.com/flowchart/examples/flowchart-example-hiring-process/
1
2

34. 34
Predicting Demand ( Weather Patterns) & Planning Workforce
The Palm Group
External Weather Data
for predicting demand
Optimize Workforce
Distribution
Providing Challenging
opportunities
‘Optimize Full Time Employees and Contractual Employees”

35. 35
TCS CHROMA™ Next Generation
The Palm Group
‘Software As A Service’

36. References
The Palm Group
36
➢ http://www.fairtrade.travel/uploads/files/Hospitality_2015_D
eloitte_report.pdf
➢ http://www.mckinsey.com/business-functions/organization/our-
insights/people-analytics-reveals-three-things-hr-may-be-getting-wrong
➢ http://www.workday.com/applications/human_capital_management.php
➢ http://rupeshkhare.com/wp-content/uploads/2013/12/Employee-Attrition-
Risk-Assessment-using-Logistic-Regression-Analysis.pdf
➢ http://www.tcs.com/SiteCollectionDocuments/White-Papers/Predictive-Analytics-
HR-0115-1.pdf
➢ http://telecomunicaciones-peru.blogspot.com/2016/06/big-data-analytics-
summit-19-20-ago2016.html
➢ http://www.tcsprocesscloud.com/pages/home.html