State of analytics in domestic firms in India 2017 - by AIM & Cartesian Consulting

STATE OF ANALYTICS
IN DOMESTIC FIRMS IN INDIA
2017
By Analytics India Magazine & Cartesian Consulting

State of Analytics in Domestic Firms in India 2017
2
CONTENT
05
13
07
21
09
27
Introduction
Indian Firms- Key Metrics
For Analytics Function
Types Of Analytics Firm
In India
Analytics Penetration vs.
Maturity
Key Findings
Banking- Analytics
Penetration vs. Maturity
31 Ecommerce- Analytics
11 Analytics At Indian Firms-
Key Trends
17 Industry View- State Of
Analytics in HDFC Bank
25 Sector View- Analytics
29 Conglomerates- Analytics
33 Telecom- Analytics
35 Industry View- State Of
Analytics in YES Bank

State of Analytics in Domestic Firms in India 2017 By Analytics India Magazine & Cartesian Consulting
54
According to a recent study, the analytics
industry in India is expected to almost double by
the year 2020 and ~4% of revenues are expected
to come from the domestic market. This data re-
affirms the fact that analytics industry in gaining
importance in India and is being deployed across
industries, including banking, finance, e-com-
merce, retail, and telecom.
The study gives us a quick insight into how the
analytics scenario is constantly changing and
the rapid evolution that all the major segments
of Indian analytics market is witnessing-- namely
service providers, captive centres and domestic
market.
Last year’s study suggested that mostly B2C
companies were interested in analytics. Let’s find
out if the scenario has changed and how has ana-
lytics managed to penetrate the domestic market.
This year’s study has been sponsored by
Cartesian Consulting, a global analytics servic-
es firm specializing in customer, marketing, and
business analytics. We looked at 20 large Indian
firms across industries that have adopted analyt-
ics to improve business.
introduction

76
types of
analytics
firm in
india
There are three major players — service provid-
ers (who provide analytics services to the end
consumer), captive centres (back offices that
do outsourced work) and the domestic market.
Service providers have been dominating the ana-
lytics market (their share of the market is ~75%) for
quite some years and it is only now that the other
two players are becoming equally competent. In
fact, the domestic market accounts for just 5% of
the Indian analytics market. Armed with their own
analytics team, these firms use analytics for their
internal processes.
Service Providers
Captive Centres
Domestic Market
1.
2.
3.

98
key
findings
Like last year, it is the private banks such as Kotak
Mahindra Bank, Axis Bank, ICICI, HDFC, Yes Bank
that are deploying analytics extensively. Among
the public banks, SBI is the most analytics savvy.
In the insurance space, Max Life Insurance leads
the pack.
Among the ecommerce players, the frontrunners
are Flipkart and Ola, while Patym and Zomato lag
substantially.
In telecom, Idea Cellular has embraced analytics
faster than big players like Bharti Airtel.
In the automobile sector, Mahindra Group and
TATA Motors are upping the game.
Considering the relative focus on advanced
analytics by other conglomerates, Aditya Birla
Group, Reliance Industries, L&T, ITC have a de-
cent focus on analytics.

1110
Percentage Of Analytics Function across Various Cities In India
50%
40%
30%
20%
10%
0%
Mumbai Bengaluru Delhi/
NCR
Hyderabad Chennai Kolkata Pune
44%
25%
16%
4% 4% 4% 3%
of all analytic functions
for Indian firms are based in
Mumbai
analytics at
indian firms
- key trends
• 44% of all analytic functions for Indian firms are
based out of Mumbai.
• Almost 85% of analytics functions are based out
of just three cities – Mumbai, Bangalore & Delhi/
NCR.
• The top 10 schools from which Indian firms recruit
their analytics teams are: University of Mumbai,
Delhi University, NMIMS, IIM Calcutta, The Institute
of Chartered Accountants of India, IIM Lucknow,
IIM Bangalore, IIM Ahmedabad & ISB Hyderabad.
44%

1312
others
Larson & Toubro
SBI
Tata Motors
Reliance Industries
HDFC Bank
Airtel
ICICI Bank
Aditya Birla Group
Kotak Mahindra
Idea Cellular
Max Life Insurance
Axis Bank
Mahindra Group
ITC
Yes Bank
Tata Communications
Flipkart
relative average tenure of analytics professionals in indian firms
BANKING
Ola
Paytm
Zomato
e-commerceconglomeratestelecom
indian firms-
key metrics
for analytics
function
• On an average, Indian firms have an analytics
penetration of 1.7%. This essentially implies that
for every 59 employees in the organization, one
employee is associated with data and analytics.
• Analytics penetration is typically higher in new
age ecommerce firms and lower in traditional
businesses.
• The average tenure of analytics professionals in
Indian firms is 3.4 years.
• TATA Motors boasts the highest tenure among
India firms, whereas new age ecommerce start-
ups have a much lower analytics tenure.
• On the other hand, advanced analytics/ data
science as a percentage of total analytics function
is higher in new age ecommerce firms in India and
lower in traditional firms.
• On an average, analytics professionals in Indian
firms have 8 years of work experience.
• Zomato has the lowest seniority in terms of
analytics professionals in India firms.
• TATA Communications has the highest
seniority.

1514
relative focus on advanced analytics/ data science by indian firms
Axis Bank
HDFC Bank
ICICI Bank
Kotak Mahindra
Max Life Insurance
SBI
Yes Bank
Flipkart
Ola
Paytm
Zomato
Aditya Birla Group
ITC
Larson & Toubro
Mahindra Group
Tata Motors
Reliance Industries
Airtel
Idea Cellular
Tata Communications
BANKINGe-commerceconglomeratestelecomothers
Larson & Toubro
SBI
HDFC Bank
Airtel
ICICI Bank
Aditya Birla Group
Kotak Mahindra
Idea Cellular
Max Life Insurance
Axis Bank
Mahindra Group
ITC
Yes Bank
Tata Communications
Flipkart
Ola
Paytm
Zomato
relative seniority of analytics professionals at indian firms
Tata Motors
Reliance Industries
BANKINGe-commerceconglomeratestelecomOTHERS

171616
Industry view-
state of analytics
in HDFC bank
While analytics has made a headway to all the
major industries, banking sector has made a
fast progress in adopting analytics and other
technologies such as artificial intelligence and
chatbots. In addition to regular predictive analytics
for driving customer life cycle management, an-
alytics also drives customer experience, product
design, resource level efficiencies and geo-loca-
tional intelligence for sales force deployment.
Analytics India Magazine caught up with
Kaushik Ghate, Marketing Analytics at HDFC
Bank, one of the leading private banks in the coun-
try, to understand the state of analytics adoption
in the bank, and the ways that it has affected the
overall functioning of the bank.
HDFC bank is the pioneer in using unstructured
and nonnumeric data for enhancing custom-
er experience and channel efficiencies, for which
they have even won external recognition. The bank
has also deployed the first ever AI based email
subject line optimization tool in Banking industry
giving 28% lift in email opens. The adoption of arti-
ficial intelligence by the bank could also be seen

in the AI based self learning models
for driving channel usage and arriv-
ing at next best recommendation
at a customer level. “This not only
save costs but enhances customer
experience”, claims Ghate.
“The extent of analytics engage-
ment in the bank can be gauged
by the fact that the cutting edge
work being done by the team finds
mention in the bank’s annual re-
port”, says Ghate on being asked
how well infused is analytics at their
organization.
On Analytics driven approaches
at HDFC:
The bank which adopted analytics
in 2004 has since been carrying out
all its central marketing campaigns
driven by analytics. It has been
delivering an average of 3x-4x lift
over BAU (business as usual con-
version rates) since then. “HDFC
was the first bank to implement 10
second personal loan, 10 second
Auto loan and Two wheeler loan”,
he says.
Adoption of analytics has also
streamlined the overall functional-
ity of the organization as follows:
• Marketing efforts of the sales
channel and relationship
managers have been optimized
as all marketing recommenda-
tions are now available to them
at a customer level along with
pointers and context for those
recommendations.
• All central marketing campaigns
(SMS/E-mailers) are triggered
only to the high propensity
customers thereby ensuring
relevance of marketing commu-
nication at a customer level.
• It has ensured meaningful bank-
ing interventions based on event
based triggers are being deliv-
ered to relationship managers
18
The extent of analytics engagement
in the bank can be gauged by the fact
that the cutting edge work being
done by the team finds mention in the
bank’s annual report. Also, 95% of all
marketing efforts and activities done
by bank are analytically driven.
- Kaushik Ghate,
Marketing Analytics at HDFC Bank
“
on a T+1 day basis for a focussed
and optimized sales efforts.
• For key products like personal
loan, auto loan and credit cards,
analytics has enabled setting
up of an end to end fulfilment
process.
On Analytics Maturity at HDFC:
The bank that boasts an analytics
and business intelligence team
of around 265 employees has a
ratio of 0.004 of analytics team
personnel vs. other employees of
all other departments. Further cut
out explains a strength of 27 peo-
ple from marketing analytics, 65
from risk analytics unit and 173 from
business intelligence. This explains
the importance that analytics plays
in day to day working of the bank.
“Analytics staff strength is 0.40%
of the overall staff strength”, says
Ghate.
With an average experience of
15 years in predictive analyt-
ics domain and average of
11 years of experience with HDFC
bank, the unit head at HDFC are at
a task of deploying analytics and
generating better analytics driven
output. “Around 80% of all predic-
tive solutions being developed at
HDFC are based on advanced an-
alytical algorithms, which explains
the depth of analytics function at
the organization”, he adds.
As already highlighted, in addi-
tion to predictive analytics we also
drive product design, resource
level efficiencies, customer expe-
rience and geo-locational intelli-
gence for sales force deployment.
“The depth of analytics function
in the bank can be gauged by the
fact that 95% of all marketing ef-
forts and activities being done by
the bank are analytically driven”,
concludes Ghate.
19

State of Analytics in Domestic Firms in India 2017
212020
analytics
penetration
vs. maturity
We looked at organizations on the basis of analyt-
ics penetrations and analytics maturity. Analytics
penetration is a metric that denotes the degree
of infusion of analytics function in an organiza-
tion. Analytics maturity, on the other hand, is the
metric to quantify the quality and depth of ana-
lytics adopted within an organization. Maturity
is a combination of employee tenure, percent-
age of data science in the analytics function and
employee seniority in the organization.
It is important to note that these are relative
metrics and the organizations as plotted here
are based on a comparative study with respect
to each other and should not be compared to
organizations outside this study. Also, the values
may differ in terms of global standards.
By Analytics India Magazine & Cartesian Consulting

2322
Flipkart
Ola
Paytm
Zomato
Tata Communications
Reliance Industries
Max Life Insurance
Tata Motors
L&T Airtel
Mahindra Group
SBI
ITC Limited
Yes Bank
ICICI Bank
Idea CellularHDFC Bank
Axis Bank
Kotak Mahindra Aditya Birla
ANALYTICS maturity
ANALYTICS penetration
IVIII
III
Quadrant Quadrant
QuadrantQuadrant
Conclusions that
can be made from
the graph
• Like last year, there is a slight negative correlation between
maturity and penetration.
• Flipkart is the only company in the first quadrant, which
implies it is both high on penetration and maturity. Given
Flipkartwas amongst the first companies in the ecommerce
space to adopt analytics, it has ramped up its practice both
in terms of size and quality of work.
• Most companies seem to lie in quadrant III. This could
be attributed to how just few analytics companies have
aggressively adopted analytics. Mostly, the new age
ecommerce firms like Ola, Paytm & Zomato took a very
aggressive stance on their analytics function last year, also
coupled by large funding budget they had.
• Zomato tops in analytics penetration and is lowest in
analytics maturity.
• Sitting at the bottom of quadrant III, SBI’s analytics penetra-
tion and maturity profile suggests the bank needs to push
itself harder if it is to compete with private banks in ranking.
• TATA Communications has the highest analytics maturity of
all domestic firms in India.
• Quadrant III has many banks - Kotak Mahindra, ICICI, Yes
Bank, HDFC and Axis Bank. It would have been great to see
them building their analytics capabilities quicker than their
older peers in quadrant II.

2524
ANALYTICS maturity
Telecom
Utilities
Conglomerates
Banking
Ecommerce
Automotives
Sector view -
Analytics Penetration
vs. Maturity
• While ecommerce firms have the highest
analytics penetration of all sectors, they have
the lowest maturity.
• Analytics build-up for ecommerce is so high
that it makes other sectors appear in an almost
vertical line (having the same penetration).
• Massive analytics build-up by mostly new age
firms also means that the focus on maturity in
terms of tenure, seniority and advanced ana-
lytics is yet to kick in.
• Automobile firms have the highest maturity
and banking firms the lowest.

2726
Yes Bank
SBI
Max Life Insurance
Axis Bank
Kotak Mahindra
ICICI BankHDFC Bank
ANALYTICS maturity
Banking–
Analytics penetration
vs. maturity
• Max Life Insurance has emerged as one of the
largest adopters of analytics since last year’s list.
• It ranks highest in terms of analytics maturity,
higher than most private sector banks.
• Axis Bank has higher analytics maturity compared
to ICICI, HDFC and Kotak Mahindra.
• SBI has the lowest analytics maturity and analytics
penetration.

2928
ITC
Aditya Birla Group
Mahindra Group
Reliance Industries
ANALYTICS maturity
Conglomerates–
vs. maturity
• ITC has the highest analytics penetration of all
other companies in the domain, yet it has the low-
est maturity.
• Reliance Industries leads in terms of analytics
maturity whereas ITC is the lowest.
• Mahindra Group has a relatively higher analyt-
ics maturity than Aditya Birla Group but lower
analytics penetration.
• In terms of focus on advanced analytics and data
science, Reliance Industries is ahead of the pack.

3130
Zomato
Ola
Flipkart
ANALYTICS maturity
Paytm
ecommerce–
vs. maturity
• Ecommerce firms are biggest adopters of
analytics and they are focussed on hiring senior
analytics professionals.
• Flipkart is a leader in the ecommerce segment
with a significantly high analytics maturity. It,
however, lacks in terms of analytics penetration,
which is led by Zomato followed by Ola.
• Zomato, however, lacks in analytics maturity.
• The analytics build up is highest in Flipkart.

3332
Tata Communications
Airtel
Idea
ANALYTICS maturity
telecom–
vs. maturity
• Both in terms of analytics maturity and
penetration, TATA Communications is ahead of
big players such as Airtel and Idea.
• This can be attributed to the fact that the compa-
ny boasts the highest number of senior analytics
professionals and also to their focus on advanced
analytics and data science.
• Idea has the lowest analytics maturity.

3534
Industry view-
state of analytics
in YEs bank
YES BANK is new age Bank and Analytics
adoption by users within all business groups has
been phenomenal. The Bank has the culture of
making informed decision basis available data &
information. Analytics works as catalyst providing
them the right information using statistical tools
which helps the central teams to take appropri-
ate decisions. There is a significant demand in all
business groups to get maximum information be-
fore making strategic decisions.
“Our Analytics Team still is at nascent stage of
existence since last 2 years; however it has
infused its presence significantly in the Retail
banking space which is now mainly driven by an-
alytics. The journey of analytics from MI visualis-
ation to Machine learning is growing in significant
pace here at YES BANK”, says Anand K Sundaram,
Head - Credit Intelligence & Analytics, YES BANK,
while interacting with Analytics India Magazine.

37
Starting with a 5 member analytics
team to a 20 member team, Sun-
daram says that it is still a small
unit compared to 21,000 employ-
ees of the bank, but largely the us-
ers of analytics would be the cen-
tral teams within different groups,
which would be ~100 staff. “Hence,
a 20 member team is mainly cater-
ing to about 100 central team us-
ers”, he marks.
Analytics adoption and maturity:
While basic analytics existed in the
Bank , a dedicated central analyt-
ics team was built two years ago.
The team has added to the bottom
line through various projects, which
were implemented successfully.
It used a mix of traditional & latest
technologies along with statistical
tools. Some of statistical tools used
include logistic regression, RFM,
Clustering, Segmentation, Random
forest, Scoring algorithm and some
of the technology tools includes
SQL, R, Tableau, etc.
Analytics has slowly started trans-
forming manual process and deci-
sioning to digital algorithm based
execution. Several digital changes
have streamlined multiple areas
within the Bank. “We have adopted
analytics in all our marketing cam-
paigns, strategic policy decision-
ing, simple excel MI to visualisation
applications, credit underwriting to
scorecard and so on”, he adds.
Talking about analytics maturity at
Yes Bank, Sundaram says “Analytics
has still a long way to go within the
organisation where almost every
action is driven basis data & infor-
mation. Analytics would also help
the Bank in driving Digital Transfor-
mation with the use of algorithms
and converting several manual pro-
cesses to rule based processes”.
“The team has made a great start
and has made its presence felt, but
it has a significant task ahead to
support our CEO’s vision of becom-
ing finest quality large Bank in India
by 2020”, he says in the concluding.
Our Analytics Team still is at nascent
stage of existence since last 2 years;
however it has infused its presence
significantly in the Retail banking
space which is now mainly driven by
analytics. The journey of analytics
from MI visualisation to Machine
learning is growing in significant pace
here at YES BANK.
“
- Ananad K Sundaram,
Head- Credit Intelligence & Analytics,
YES Bank
36

3938
about
analytics india
magazine
Founded in 2012, Analytics India Magazine has
since been dedicated to passionately champi-
oning and promoting the analytics ecosystem in
India. It chronicles the technological progress in
the space of analytics, artificial intelligence, data
science, big data by highlighting the innovations,
players in the field, challenges shaping the future,
through the promotion and discussion of ideas
and thoughts by smart, ardent, action-oriented
individuals who want to change the world.
Analytics India Magazine has been a pre-emi-
nent source of news, information and analysis
for the Indian analytics analytics ecosystem by
covering opinions, analysis and insights on the key
breakthroughs and developments in data-driven
technologies as well as highlighting how they are
being leverages for future impact.
With a dedicated editorial staff and a network of
more than 250 expert contributors, AIM’s stories
are targeted at futurists, AI researchers, Data sci-
ence entrepreneurs, analytics aficionados and
technophiles.
www.analyticsindiamag.com
about
cartesian
consulting
www.cartesianconsulting.com
Cartesian Consulting is a global analytics servic-
es firm specializing in customer, marketing and
business analytics. They help brands across the
world improve revenues and margins by helping
them with data driven decisions, and utilization of
machine learning and AI algorithms in their oper-
ations.
Cartesian’s ability to put advanced analytics
quickly into a business context and create impact
from it is what sets them apart. They work in three
modes where they, analyze data, act on it, and put
it into an Industrialized “always on” solution, dive
deep into a specific business problem and solve
it and work to create a culture in an organization
that is data driven and customer obsessed.
Their work has helped brands in Retail, QSR, Fi-
nancial Services, Telecom, eCommerce, and Hos-
pitality improve their toplines by 5-10%, Founded
in India in 2009, and with offices in India, Singa-
pore and North America, Cartesian today is a rap-
idly growing 180 person organization working for
over 50 brands in 10 countries.

This is an independent Study by Analytics India Magazine and Cartesian Consulting, and is based on
data publicly available or from sources considered reliable. The study is based on secondary data and
hence it does not represent that it is accurate or complete and hence should not be relied upon as such.
The opinions expressed herein are our current opinions, as on the date of this Report, and the data/
Report are subject to change without any prior notice. Nothing in this Study constitutes investment, legal,
accounting or tax advice or any solicitation, whatsoever. The subscriber/user assumes the entire risk of
any use made of this data/Report. The Report is for the personal information only of the authorised recip-
ient in India only, and holds no financial liability. Permission may be required from either or at least one of
the parties for reproduction of the information on this Report. All right reserved with the aforementioned
parties.

42
Analytics India
Magazine
info@analyticsindiamag.com
www.analyticsindiamag.com
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Consulting
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www. cartesianconsulting.com
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A-56, Road No. 1, Behind Tunga
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