More Related Content Similar to Business Analytics and Process Performance (20) More from FCBPartners (17) 1. Maximizing the Business Impact of
Analytics
Webinar
June 15, 2016
Frank Capek
FCB Affiliate
To subscribe to the webinar series, email info@fcbpartners.com or call 617 245 0265
2. 2©2016 FCB Partners. All rights reserved.
2016 Webinars and Courses
Webinars
Title Date
Improving the Performance
Environment
Robert Sher, CEO to CEO
May 11
Smart Work: Book Launch
Steve Stanton, FCB Partners
May 18
Asset Commissioning & Startup
Tom Purves, VP Shell (ret’d)
June 1
Business Impact of Analytics
Frank Capek, Customer Innovations
June 15
Smart Strategy
Tim Collins, Director, Rich Products
June 29
Courses
Title Date and Location
Power of
Process
Steve Stanton
New Orleans, LA
October 24-25
Hammer Certification
Implementation
and Execution
Kay Coleman
New Orleans, LA
October 26-27
Advanced Certification
Leading
Transformation
Walter Popper
New Orleans, LA
October 26-28
Hammer Certification
For information about onsite courses and workshops call 617 245 0265 or
contact us by email: info@fcbpartners.com
3. Where We’re Coming From…
For more than 25 years, Customer Innovations has helped leading
organizations successfully innovate products, services and experiences that
transform the performance of their business by improving the well-being of
customers, employees, and other stakeholders.
Over this time, we’ve evolved unique capabilities in three areas:
3 | © 2016 Customer Innovations. All Rights Reserved.
4. Client Example: A Company With a Performance Challenge
The Challenge:
Katrina, Rita, Gustav, Ike, Isaac ,
Arkansas Ice Storm, etc…
In 2009, all 5 Entergy Operating Companies were in the 4th Quartile of J.D. Power.
Entergy New Orleans was in last place.
Entergy’s Utility Business
5 operating companies across 4
contiguous states: Arkansas, Louisiana,
Mississippi, Texas
4 | © 2016 Customer Innovations. All Rights Reserved.
5. Fast Forward a Few Years…
29%
26%
25%
25%
23%
14%
14%
13%
12%
12%
11%
11%
11%
Entergy Mississippi
Entergy New Orleans
Entergy Arkansas
Entergy Texas
Entergy Louisiana
PSE&G
We Energies
Con Edison
Pepco
Southern California Edison
Atlantic City Electric
L. A. Dept. of Water & Power
PPL Electric Utilities
Proactive Outage Communications
Entergy is the first company to
capture all of the top spots in any
category three years in a row.
2013 J.D. Power National Ranking
Over 3 years, Entergy’s overall JD
Power national ranking improved
from lower-4th quartile to mid-2nd
quartile with Entergy Arkansas now
in the 1st quartile.
Outage-related call volume was also
significantly reduced: from 35% of
effected customers to 8% with only
2% requiring agent contact.
5 | © 2016 Customer Innovations. All Rights Reserved.
6. Maximizing the Impact of Analytics: Aligning Three Processes
DEMAND
• Overall Objectives – Define clear and precise business objectives for
analytics-related projects or processes.
• Leadership & Strategic Direction – Alignment on the direction &
prioritization of analytic investments & activities
• Closed Loop Analytic Process– An integrated set of processes for
collecting, analyzing, communicating, applying, planning, & acting on
customer findings
SUPPLY
• Problem Statement – Ensuring
specific questions are effectively
framed.
• Collection – Gathering customer
and market data appropriate to the
objectives.
• Analysis – Deriving high impact
actionable insight from the data.
Developing recommendations for
improved performance or decision
making.
• Communication – Reporting and
briefing decision makers in a way
that creates understanding and
leads to desired actions.
APPLICATION
•Alignment on Implications – Building executive agreement and momentum on applying key findings
•Action Planning – Structuring an appropriate action plan for improving performance
•Execution – Ensuring accountability and follow through
•Feedback – Measuring the business impact of actions taken and refining the understanding of the firm’s
relationship to the market and to the customer.
6 | © 2016 Customer Innovations. All Rights Reserved.
7. These Processes Are Typically Misaligned
• Demand from individual
stakeholders idiosyncratically
negotiated.
• Demand framed as broad areas of
interest rather than prioritized
hypotheses and experiments.
• Analysis is commissioned within
silos.
• Patterns with strategic implications
go unrecognized; or, patterns that
have emerged have been largely
discounted or ignored (I.e, pricing
issues, service issues)
• Valuable analytic findings gather dust
in one silo while blocked from action
by other silos
• There is a “capability seeking a
problem” approach to investments in
big data analytics / decision sciences.
• Analysts lack critical contextual
understanding of data sources and of
customers’ real life motivations and
end-to-end experiences.
ApplicationSupplyDemand
Strategic Asset
Strength
Competence
Emerging
ad Hoc
Analytic Process Maturity
Example: Leading Finance Services Company
7 | © 2016 Customer Innovations. All Rights Reserved.
8. Getting it Right: Three Key Characteristics
Outcomes Driven
Holistically Integrated
Iteratively Convergent
Analytic investments are clearly
focused on understanding and
influencing the specific behaviors
that have the greatest impact on
business results
Analytic investments build a holistic
qualitative AND quantitative
understanding of what customers
do, why they do it, and how to
influence the most critical behaviors
Analytic investments are embedded in a
fast cycle experimentation process that
continuously evolves a deeper
understanding of customer behavior as
well as levers for influencing that behavior
8 | © 2016 Customer Innovations. All Rights Reserved.
9. A Small Number of Behaviors Drive Significant Performance Gains
Automotive Service
•Visit frequency
•Customer referrals
Financial Advisory
•Goal statement
•Completed plan
Restaurant Chain
•The second occasion
•Ordering wine with meal
Business News
•Second time renewals
•Online visit frequency
Insurance Company
•Life customers
that buy auto
•Auto renewal
rates
For Example:
9 | © 2016 Customer Innovations. All Rights Reserved.
Electric Utility
•Outage communications
•High-bill reactions
10. 10 | © 2016 Customer Innovations. All Rights Reserved.
11. What?
Why?
Moving From “Knowing About” to “Knowing” Customers
Analytics
Analysis of actual behavioral patterns and
social data in order to identify correlations,
clusters, potential influence levers, and the
results of experiments with new offerings.
Observation
Relating to people in their environment to
develop intimate awareness of their latent
needs, motivations, behavioral pathways,
usage patterns and choice drivers
Elicitation
A set of structured instruments and projective
techniques that surface behavioral preferences,
goals, metaphors, constructs, behavioral
pathways, emotional states and choice drivers.
Direct
Indirect
Discovery &
Sense-making
Loops
11 | © 2016 Customer Innovations. All Rights Reserved.
12. Innovating WITH Customers vs. Innovating AT Customers
Innovating WITH Customers
“Engage and Experiment”
Engages customers in the articulation and prioritization
of needs, as well as the design of products, services, and
experiences
Innovating AT Customers
“Plan and Push”
Researchers and designers get closer to the state
of mind, behavioral pathways, and feelings of the
customer
CustomersDesigners
12 | © 2016 Customer Innovations. All Rights Reserved.
13. The Innovation Lab Engages Customers and Other Key Stakeholders
The Innovation Lab is a structured approach and platform for engaging customers and designers along with business
stakeholders and other diverse participants in the process of innovating new products, services and experiences.
Concepts are iteratively defined, tested and validated in a way that accelerates progress and minimizes risk.
Innovation
Lab
Work Teams (Design,
Implementation, Testing)
Designers
Business
Analysts
Customers
Solution
Concepts
Solution
Concepts
Solution
Concepts
Solution
Concepts
Facilitator/Process
Manager/Recorder
Business
Stakeholders
13 | © 2016 Customer Innovations. All Rights Reserved.
14. The Lab Uses Experimentation to Move from Ideas into Action
Developing Innovative Product,
Service and Experience Concepts
Understand Customer
Goals and Behavior
Generate
Ideas
Develop
Concepts
Refine Potential
Offerings
Structure & Run
Experiments
Define Value
Chain Implications
Detail Operating
Model Changes
Prototype
Technology
Address
Cultural Changes
Develop Phased
Implementation Plan
Aligning for Deployment and
Profitable Operations
Fast-Cycle
Business
Experiments
Cycle Time:
1-3 Months
Validated Solutions
Cycle Time:
3-6 Months
14 | © 2016 Customer Innovations. All Rights Reserved.
15. Getting it Right: Three Key Characteristics
Outcomes Driven
Holistically Integrated
Iteratively Convergent
Analytic investments are clearly
focused on understanding and
influencing the specific behaviors
that have the greatest impact on
business results
Analytic investments build a holistic
qualitative AND quantitative
understanding of what customers
do, why they do it, and how to
influence the most critical behaviors
Analytic investments are embedded in a
fast cycle experimentation process that
continuously evolves a deeper
understanding of customer behavior as
well as levers for influencing that behavior
15 | © 2016 Customer Innovations. All Rights Reserved.
