Fractal analytics ace solution


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Fractal analytics ace solution

  1. 1. Analytics Center of Excellence<br />June 2011<br />
  2. 2. Agenda<br />Key notes from the last meeting<br />ACE Solution Approach<br />Proposed Team Composition<br />Time Lines<br />Investment Structure<br />Appendix<br />
  3. 3. Institutions need to move towards intelligent approaches to make sense of data<br />Optimization<br />What’s the best that can happen?<br />High<br />Predictive Modeling<br />What will happen next?<br />Business Impact and Competitive Advantage<br />Forecasting<br />What if these trends continue?<br />Statistical Analysis<br />What is this happening?<br />Alerts<br />What needs attention?<br />Query Drill Down<br />Where exactly is the problem?<br />Ad hoc Reports<br />How many, how often, where?<br />Standard Reports<br />What happened?<br />Information<br />Intelligence<br />Data<br />Low<br />Analytics has been instrumental to Capital One, which has exceeded 20% growth in earnings per share every year since it became public. – HBR Jan 2006<br />
  4. 4. To compete on analytics, organizations need to make it part of their DNA<br />How do I transform my business through Analytics?<br />How do I set up a business intelligence or centralized analytics unit?<br />How do I operationalize analytics in every instance? How can I use our analytics for day to day operations?<br />How do I achieve greater innovation through use of analytics?<br />How do I make information “come alive” in my business?<br />Questions you may have<br />The Institutionalizing Analytics (IA) Journey<br />Institutionalizing Analytics<br />Operationalizing Analytics<br />Solving Problems,<br />Optimization<br />Predictive Analytics & Models<br />Actionable Insights<br />
  5. 5. Proposed Solution Approach<br />Inception of a dedicated analytics center called the Analytics Center of Excellence (ACE) for Client <br />Built on the foundations of:<br />Dedicated Experienced Analytics Team<br />Core Analytics Process<br />Supported by the pillars of:<br />Proprietary Tools and Techniques<br />Quality Management Processes<br />Project/People Management Expertise<br />Project Review Mechanisms<br />Value Based Compensation Structure<br />ACE <br />Value based fee structure Strong Cost Benefits Pay for Performance<br />Quality Management Processes<br />Productivity Management Processes<br />Delivery Management Processes<br />People Management Processes<br />Core Analytics Processes <br />CRISP DM Methodology, Project Management Methodologies<br />Dedicated and Experienced Analytics Team<br />Well trained, talented and responsible people<br />
  6. 6. Establishing ACE<br />Business Diagnostic<br />Project Identification<br />Form Teams<br />Implementation<br />Mandate for ACE<br /><ul><li>ACE mandate
  7. 7. Executive sponsor
  8. 8. Guidance (steering) team
  9. 9. Business case
  10. 10. Agree on management strategy
  11. 11. Understanding organization needs
  12. 12. Conducting Business Intelligence assessments
  13. 13. Organizational readiness assessment
  14. 14. Identify projects based on Business diagnostic from IT, People and change management perspectives
  15. 15. BA standard practices, tools, and metrics
  16. 16. BA education and training
  17. 17. BA consulting services
  18. 18. ACE planning workshop
  19. 19. Execute projects
  20. 20. Review project and ACE function
  21. 21. Realign ACE scope</li></ul>Fractal’s Role ~Implementer <br />Fractal’s Role ~Consultant <br />Fractal’s Role ~Consultant <br />Fractal’s Role ~Implementer <br />Fractal’s Role ~Facilitator <br />
  22. 22. Setting the mandate for ACE<br />Conduct a ACE Kick-off Workshop where Fractal facilitates the process of defining the vision of ACE for the Client<br />Agree upon the broad scope of activities for ACE<br />Form the Steering Committee <br />Present the business case for ACE<br />Large-scale organizational change of this nature typically involves: <br />Restructurings<br />Cultural transformation<br />New technologies<br />New partnerships<br />Executive Sponsorship<br />Political Management Strategy<br />Short Term Wins<br />Visioning<br />Sense of Urgency<br />Communication for Buy-In<br />Guiding Team<br />
  23. 23. Starting off with Business Diagnostics<br />What is Business Diagnostics?<br />Business diagnostics is an assessment suite to study, analyze and improve the various practices/ initiatives of the Client <br />It aims to study the Client requirement in terms of: <br />Business Objectives<br />IT and Infrastructure<br />Data Availability and Quality<br />Manpower <br />Management Support<br />How can it help you?<br />The Business Diagnostics provides the Client :<br />An insight into its various functional areas, its strengths and key areas of improvement<br />A benchmarking against the best in class<br />A gap analysis to aid the Client in designing the roadmap to set up ACE<br />
  24. 24. The Methodology comprises of 3 key modules<br />Fractal OnsiteAssessment <br />Fractal HealthCheck Engine <br />Fractal Business Diagnostics Report<br />Analysis Module<br /><ul><li>Analysis of the Client’s practices
  25. 25. Bench marking against the best in breed & identifying areas of improvement </li></ul>Consulting module<br /><ul><li>Final recommendations report presentation
  26. 26. Suggested approach and best practices to the Client</li></ul>Study Module<br /><ul><li>On-site study and assessment of current practices of the Client
  27. 27. Study of systems, resources, strategies and analysis done by the Client</li></li></ul><li>Solution Construct: Critical Assessment Areas<br />Readiness to accept change<br />Senior Management buy-in<br />Management Support<br /> Data Capture techniques<br /> Data Storage facilities<br /> Data Consolidation techniques<br /> Data feed to reporting cubes<br />Data Warehouse<br />Current Structure and its alignment to support analytics<br />Roles and KPI’s, related to analytics<br />Organization Structure<br />Mini-Projects required to bridge the gap for establishing ACE<br />Project Identification<br />Existing Segmentation frameworks<br />Applicability of existing segmentation<br />Key Business Objectives<br />Existing tools for data management<br />Extent of usage of data in strategy and operations<br />Analytics Usage and Capability<br />
  28. 28. Project identification and prioritization as per Client requirement <br />Conduct a ACE Kick-off Workshop session to finalize the charter and plans, and gain consensus on an implementation approach<br />Crate an Analytics calendar based on the priorities within the organization<br />Start reviewing projects and function and realign scope if required<br />Self-service model appropriate user <br />Create and promote standard processes<br />Adoption of standard performance metrics<br />Implementation Challenges<br />Pool of trained specialists <br />Offer flexible staff resources<br />Guiding Team<br />
  29. 29. Forming Teams<br />Form action teams to: <br />Develop business analysis practice standards<br />Provide for education and training<br />Mentoring and consulting support<br />Secure the needed facilities, tools, and supplies<br />Develop the ACE Business Plan/Operations Guide describing: <br />Implementation strategy<br />Phases<br />Deliverables<br />Training<br />Technology<br />Consulting services <br />Infrastructure requirements<br />
  30. 30. Proposed Team Composition<br />A team of Engagement Manager, Project Manager, Statistical Analysts, Data Analysts offshore.<br />Proposed Model<br />Fractal Team<br />Client Team<br />Escalation<br />Project Sponsor<br />Engagement Manager (Onsite)<br />Daily working relationship<br />Client SPOC<br />Project Manager<br />Statistical Analysts<br />Data <br />Analysts <br />
  31. 31. Roles and Responsibilities<br />
  32. 32. Resource Management<br />Fractal Resources<br />Client Resources<br />Analytical <br />Company<br />Localized <br />Analytics<br />Establishment of ACE<br />Time<br />Initiation of ACE Implementation<br />Day 0<br />Day 1000<br />
  33. 33. Possible Business Models<br />High<br />How it works?<br />Fractal will build, operate and manage the CoE and provide Client with option to assume ownership after a pre-defined period<br />How it works?<br />Fractal provides a fixed capacity team in Fractal office for Client to execute analytics projects <br />How it works?<br />Fractal will build and handover the captive centre to Client or we will provide resources for the centre on time and material basis<br />Cost of Delivery<br />BOT <br />(Build, Operate & Transfer)<br />Complete Outsourcing<br />Captive Center<br />Low<br />Control & Risk / Investment for Client<br />Low<br />High<br />
  34. 34. Advantages / Disadvantages<br />
  35. 35. Timelines<br />Fractal’s Role ~ Implementer<br />Implementation<br />Fractal’s Role ~ Consultant<br />8-12 Weeks*<br />Team Formation<br />Fractal’s Role ~ Consultant<br />1 Week<br />Project Identification<br />Fractal’s Role ~ Implementer<br />1 Week<br />Business Diagnostic<br />Fractal’s Role ~ Facilitator<br />4 Weeks<br />Vision for ACE<br />2 Weeks<br />*As per scope of work identified during business diagnostics.<br />
  36. 36. Investment Structure<br />Terms & Conditions:<br />T&E for the entire project will be charged at actual <br />Any taxes and levies, as applicable, will be charged at actual<br />Our fees do not include cost of data purchase (if required)<br />These payment terms are valid for a period of 30 days from the date of this proposal<br />At the end of each month, Fractal will invoice Client for the services provided in that month and Client will pay Fractal as per its standard payment terms<br />
  37. 37. Appendix: About Fractal<br />
  38. 38. Dedicated industry specific practices<br />Financial Services<br />Consumer goods and Retail<br />Manufacturing & Technology<br />Consistent recognition from Gartner and Black Book of Outsourcing global top 10 ratings for 2008, 2009 and 2010. <br />First Retail Banking engagement in 2001<br />Served more than 90 Banks worldwide as analytics providers or strategic partners to Payments and Insurance industry majors.<br />PCI compliant infrastructure and dedicated FTE team of 90 consultants<br />Fractal helps organizations across the world compete better through institutionalization of analytics and decision management<br />Founded in 2000 in India <br />Fully owned subsidiaries in Asia Pacific , Britain and United States. <br />Over 20 Fortune 500 relationships across Financial services<br />Pioneer in Offshore Analytic Delivery<br />Global Presence<br />London<br />Bay Area<br />New Delhi <br />Singapore<br />New York<br />Mumbai<br />Advanced Solutions across Data Intensive Businesses<br />Mature Capabilities for Diversified Financial Services<br />
  39. 39. Solution Dimensions<br />We have classified the Analytical Solutions for Financial Institutions on the basis of the following dimensions: <br />Type of Solution<br /> Products / Software<br /> Predictive Analytics<br /> Dashboards / Reports<br /> Diagnostics / Statistical Analysis<br />Impact<br /> High<br /> Medium<br /> Low <br />P<br />H<br />PA<br />M<br />DB<br />L<br />DG<br />Data Sources<br /> Data available with Client<br /> Multiple (Additional Data may be required)<br />Complexity<br />Complexity has been defined in terms of ease of use of the analytics solutions for Client.<br /> High<br /> Medium<br /> Low<br />B<br />M<br />H<br />M<br />Implementation Timeframe<br /> Specified in weeks show regular (R)<br />L<br />W<br />
  40. 40. Menu of services for Financial Institutions<br />Risk<br />Marketing<br />Executive Management<br />Acquisition<br />Marketing Mix<br />Management<br />Campaign &<br />Response <br />Mgmt<br />Credit <br />Scoring<br />M<br />M<br />M<br />PA<br />H<br />M<br />12<br />PA<br />H<br />H<br />8<br />PA<br />M<br />H<br />8R<br />Activation and<br />On boarding<br />Deposit <br />behavior <br />scoring<br />B<br />PA<br />M<br />H<br />8R<br />M<br />P<br />M<br />L<br />4<br />B<br />Segmentex<br />DG<br />M<br />M<br />8<br />Customer<br />Management<br />Customer <br />Lifetime Value<br />Behavioral Risk<br />Management<br />Revenue<br />Enhancement<br />B<br />M<br />B<br />PA<br />H<br />H<br />12<br />PA<br />H<br />H<br />24<br />PA<br />M<br />H<br />12R<br />Proactive<br />Retention<br />Collections <br />& Recoveries <br />B<br />PA<br />M<br />H<br />12R<br />M<br />PA<br />M<br />H<br />12<br />Operational<br />Effectiveness<br />Business <br />Diagnostics<br />Credit Risk <br />Dashboard<br />Campaign<br />Optimization<br />M<br />M<br />PA<br />H<br />H<br />R<br />DB<br />H<br />L<br />4<br />B<br />DB<br />M<br />M<br />4R<br />Spend Profiling & Pockets of Value<br />Portfolio Risk <br />Management<br />B<br />B<br />DG<br />M<br />M<br />R<br />DG<br />H<br />M<br />12<br />Payment Quality<br />Analysis <br />B<br />DG<br />M<br />L<br />R<br />
  41. 41. Risk Solutions for Customer Acquisition<br />Credit Scoring<br />A scorecard based approach for evaluation of credit worthiness of an individual. On the basis of parameters such as past transactional behavior, profile amongst others. <br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />Product<br />High<br />Medium<br />Medium<br />Low<br />Multiple<br />Multiple<br />12 Weeks<br />4 Weeks<br />Deposit Behavior Scoring<br />The deposit behavior scorecard looks at risk quantification across Liability Customers for Asset products acquisition.<br />
  42. 42. Marketing Solutions for Customer Acquisition<br />Campaign & Response Management<br />Campaign & Response Management is a set of processes designed towards usage of data analysis for creating and execution of marketing campaigns and evaluation of response generated from them.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />Predictive Analytics<br />Diagnostic<br />Medium<br />Medium<br />Medium<br />High<br />High<br />Medium<br />Multiple<br />Client<br />Client<br />8 Weeks (R)<br />8 Weeks (R)<br />8 Weeks<br />Activation and On boarding<br />A predictive analytics based solution for inducing usage through targeted campaigns and Incentivization programs. Further dimensions to the same process are opportunity / risk assessment studies if activated.<br />Segmentex<br />Customer segmentation solution in a 18 box framework that provides a portfolio snapshot, enables identification of revenue opportunities. Also acts as a diagnostic tool that helps create strategies for value enhancement. <br />
  43. 43. Performance Assessment for Customer Acquisition<br />Marketing Mix Management<br />Assessing the impact of marketing activity on overall growth of business. Determine the ROI of marketing and “Due-To”s of growth across each marketing activity.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />High<br />High<br />Multiple<br />8 Weeks<br />
  44. 44. Risk Solutions for Customer Management<br />Behavioral Risk Management<br />Analytic framework based dynamic credit limit / pre-approved offers management system. The approach relies on behavioral scorecards developed on client data in order to allow differential credit limits and pre approved expenses across the customer base.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />High<br />High<br />Client<br />4 Weeks<br />Collections and Recoveries<br />It uses debtor’s historical behavior information and correlates that to transaction history, bureau information, card characteristics and demographic data. Behavioral and demographic information is used to segment the portfolio of debtors and predict their behavior in the near future in order to ascertain delinquency levels at a portfolio level.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />Medium<br />High<br />Multiple<br />12 Weeks<br />
  45. 45. Marketing Solutions for Customer Management<br />Bespoke Segmentation Analysis<br />Client specific segmentation analysis of transactional behavior within the card portfolio. Key aims of the analysis are:<br /><ul><li>Identification of customer segments for targeted marketing initiatives
  46. 46. CRM endeavors such as usage enhancement, loyalty/customer retention and value migration through up selling</li></ul>Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Dashboard<br />High<br />Medium<br />Client<br />12 Weeks<br />Revenue Enhancement <br />Predictive Analytics based broad approach that helps create model based, specific programs for revenue impacting activities such as card spends (Fee, Balance Transfers , Retail ,Cash withdrawal) and revolving charges (Fines, Interest). <br />Cross Sell / Up Sell programs are executed on the basis of response modeling for identification of customers showing propensity to respond to offers for other products offered by the Client.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />Medium<br />High<br />Client<br />12 Weeks (R)<br />
  47. 47. Marketing Solutions for Customer Management (Contd.)<br />Proactive Retention <br />A response model driven attrition strategy that enables identification of profitable / high potential customers on the basis of parameters and helps in strategy formulation in order to secure the most profitable customers.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />Medium<br />High<br />Client<br />12 Weeks (R)<br />
  48. 48. Performance Assessment for Customer Management <br />Customer Lifetime Value Management <br />Assessment of Customer relationship potential in accordance with their expected relationship life cycle, in order to provide a reference framework for a wide variety of processes such as customer acquisition, sequencing of campaigns and attrition management.<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />High<br />High<br />Multiple<br />24 Weeks<br />
  49. 49. Risk Solutions for Operational Efficiency<br />Credit Risk Dashboard<br />A comprehensive credit risk management dashboard which incorporates “forward” looking indicators and disseminates information on <br /><ul><li>Logs
  50. 50. Originations Reports
  51. 51. Portfolio Performance
  52. 52. Vintage analysis
  53. 53. Collection Reports
  54. 54. Forecast portfolio losses</li></ul>Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Dashboard<br />Medium<br />Medium<br />Client<br />4 Weeks (R)<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Portfolio Management & Basel II<br />Fractal has comprehensive Basel II Health Check solution suite for Financial Institutions. The suite includes a Gap analysis, Data readiness tool kit, Basel II set up tool kit and MIS framework.<br />Diagnostic<br />High<br />Medium<br />Client<br />12 Weeks<br />Payment Quality Analysis<br />Payment Quality analysis provides a qualitative assessment of transactions undertaken by a member’s customer base. Members are able to benchmark their performance on key parameters such as card declines, charge backs and referrals against payment quality norms. <br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Diagnostic<br />Medium<br />Low<br />Client<br />Regular<br />
  55. 55. Marketing Solutions for Operational Efficiency<br />Campaign Optimization<br />Campaign Optimization Engine optimizes offer channel assignment across customers and programs keeping in mind the practical constraints, maximizing profitability<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Predictive Analytics<br />Diagnostics<br />High<br />Medium<br />High<br />Medium<br />Multiple<br />Client<br />Regular<br />Regular<br />Pockets of Value <br />Comparative analysis for identification of key growth and value opportunity areas on the basis of competitive mapping of Clients across dimensions such as: <br /><ul><li>Spend levels on merchant categories across customer segments
  56. 56. Types of transactions</li></li></ul><li>Performance Assessment for Operational Efficiency<br />Business Diagnostics<br />An objective third party evaluation of Client strategy It aims at identification of gaps and provide recommendations for increasing the ROI on the basis of current processes. Key components evaluated include: <br /><ul><li>Data warehouse
  57. 57. Customer segmentation
  58. 58. Predictive modeling
  59. 59. Management Information Systems
  60. 60. Campaign Management
  61. 61. Organization Structure</li></ul>Type of Service<br />Complexity<br />Impact<br />Data Sources required<br />Implementation Timeframe<br />Dashboard<br />High<br />Low<br />Multiple<br />4 Weeks<br />
  62. 62. NirmalPalaparthi<br /><br />+65 91280581<br />