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What's In Your Big Data? Connecting the Dots in Your Sales Data to Drive Growth

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What’s all the hype around big data? In a recent study, CapGemini reported that leveraging Big Data to solve business problems will deliver 41% improvement in overall business performance over the next three years. However, most companies are still struggling to figure out how to leverage this data.

Join Radhika Subramanian, CEO, Emcien Corp. and Julie Fraser, Principal, IYNO Advisors, to discover how product and marketing managers can tap the power of pattern-based analytics to improve visibility across the product line based on customer buying patterns. The analysis of product data – along with sales, revenue and cost information – improves strategic decision-making because it reveals exactly which configurations customers are actually buying, highly popular feature combinations by segment, and then automatically optimizes the product mix to satisfy the demand most profitably.

Sales and marketing managers can discover how they can leverage these optimal configurations to boost sales, bundle and promote products and services as well as reduce lead times. Leveraging big data to sense and shape demand is already serving as a major competitive advantage for companies in manufacturing, telecommunications, retail and distribution. To see how it’s being deployed across departmental silos, Ms. Subramanian will share case studies from NCR and AGCO.

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What's In Your Big Data? Connecting the Dots in Your Sales Data to Drive Growth

  1. 1. ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 1
  2. 2. ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 2
  3. 3. What’s in Your Big Data? Connecting the Dots in Your Sales Data to Drive Growth Presenters: Julie Fraser, Principal, Iyno Advisors Radhika Subramanian, CEO, Emcien Corp.©2012 Emcien, Inc. All rights reserved worldwide. ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  4. 4. Agenda• Business strategies• Complexity challenges• Hidden assumptions• Reality• A new frontier• Case Study A new approach to marketing, sales and business success ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  5. 5. Discrete manufacturing business strategies Drivers & Objectives Relationship Goal Add more value Serve more markets Long-term Be “full line” supplier Relationship UVP per buyer Sell an “Experience” ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 5
  6. 6. Everyone is involved Service & Marketing SupportManufacturing R&D Customer Supply Chain Planning Management Finance Sales ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  7. 7. Proliferation of product configurations Drivers & Objectives Add more value Serve more markets Be “full line” supplier UVP per buyer Sell an “Experience” ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  8. 8. Desired business outcomeIncreased revenues• Appeal to more customers• Fit their needs better• Make closing a deal easier• Increase revenue per deal• Increase repeat, upsell, cross-sell• Boost lifetime revenue per customerHowever… there are unintended consequences ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  9. 9. Hidden Assumptions• Configuration per buyer to meet needs• Customer knows best – they guide, not us• Profit will be higher• We can make and ship efficiently regardless of number of variants• Cost a product configuration by materials and production process Add additional complexity to generate revenue with no additional cost? ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  10. 10. Cost to Serve Service & Marketing SupportManufacturing R&D Cost to Serve Supply Chain Planning Management Finance Sales ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  11. 11. What is the real impact?Costs rise Profit unclear• Fragmented ineffective • May not increase if• marketing campaigns – Marketing unclear• Design costs balloon – New products out late• Planning processes miss detail of variants – Forecasts are inaccurate• Extra sales and channel training – Not selling highest profit needed offers or price war• Special terms per buyer – Standard pricing muddled• Materials proliferate, thus cost to – Suppliers can’t keep up procure & hold rise – In-stock mismatch to• Plants inefficient, stuck in chaos demand, long lead-times and change• Service costs skyrocket – Service cannot respond ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  12. 12. Marketing & Sales Drive Cost-to-Serve Service & Marketing SupportManufacturing R&D Customer Supply Chain Planning Management Finance Sales Deal Decisions ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  13. 13. Struggle to make dramatic gains Achieved over 10% improvement per year 25% 20% 15% 10% 5% 0% Cost of quality as % of Yield Days raw material revenue inventory Business Movers OthersSource: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International Analysis of discrete manufacturers only ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 13
  14. 14. Alignment drives performance Operational and business metrics are closely linked Business Movers Others 0% 5% 10% 15% 20% 25% 30% 35%Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 14
  15. 15. What are we pretending not to know?Assumption Reality• Configuration per buyer to • Many ways to meet needs (80- meet needs 20)• Customer knows best – they • Once you listen, the supplier guide, not us should guide• Profit will be higher • Price may be same and cost is• We can make and ship much higher efficiently regardless of • Making more variants hurts number of variants operational efficiency• Cost a configuration by • Cost based on impact to materials and production business – incentives for big process sellers Additional complexity drives additional cost ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  16. 16. Need a new way of working• New objective: – Serve Customers at Highest Profitability• Data-driven, not assumptions• New metrics• New processes• New culture with accountability This is not a one-time project! ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 16
  17. 17. What are logical first steps?• Find executive sponsor• Gather stakeholders• Streamline the portfolio• Prioritize offerings• Empower salesWith a caveat… ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  18. 18. May be conflict of opinion• Each group will have a view• Many based on latest experience• Diverse data sets suggest different paths• Complexity too much to sift through ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  19. 19. Requires special-purpose big data analysis• Must analyze diverse product data in context – sales, marketing, design, financial, operations• Enterprise portfolio planning – Not just R&D/marketing• Incent buying high volume configurations• Guide the sales processShape demand, don’t just react to it ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  20. 20. Reduce complexity to improve outcomes • Data-driven decisions • Enterprise-wide impact • Meet demand with a streamlined portfolio – increase revenues – lower costs • Guide the sales process • Streamline quoting and sales cycle • Simplify for employees, customers, distributors • Improve profits! ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  21. 21. The Problem Solution Manager Product Variety is key driver of “Cost To serve” Supply Chain Sales Management ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  22. 22. The Orchestra: Sales, Supply Chain, and Solutions Managers Solution Manager Supply Chain Sales Management“We saw this is an opportunity to bring three departments together onto one solution set. The ideaof Solutions Management, Sales and Operations together in one environment to enhance theperformance of our new product introduction, improve our sales enablement, and to give the supplychain a better demand signal was really compelling.” ~Mike Groesch, VP of Sales and Operations Planning, NCR Corp. ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  23. 23. Case Study: Cashing in on Estimated$110 Million Top-line Impact 2 3What’s selling where; Go to Market Defined Customerto whom; when and Guided Selling Segments; where to Strategy how often? go & what to sell Demand Sensing & Shaping Buying Pattern Analysis 1 Optimized performance; margins/pricing, lead- times, inventory, custom er satisfaction ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 23
  24. 24. Product Management: Create & Maintain Optimal Product Mix• Optimize Product Mix Based on Customer Buying Patterns – Create better bundled promotions based on actual customer demand – Improve Go-to-Market programs with increased product accuracy• Coordinate with Supply Chain – Product Mix Parts Usage• Coordinate With Sales – Increase customer loyalty and empower the brand based on reduced lead times and shorter sales cycles – Product Mix Best Availability & Maximum Margin ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 24
  25. 25. Product Management: High Resolution, Multi-dimensional View Option Portfolio Chart Optimal Configuration Average Volume per Effectiveness Configuration• Monitor customer buying patterns by product line, region and market segment• Analytics computes the most popular features groups by market segment• Trends by product mix, market segment, and features• Product Mix Parts Usage, Inventory Max. Margin ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 25
  26. 26. What is Guided Selling? I need a product that does X, Y, and Z I want to Here are the spend under best choices $500 Customer Sales Customers think of your product in features & “feature sets” Many ways to fillthe order Guide customer to the best choices at the point of sale Based on availability and margin ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  27. 27. Sales: Win the Customer, Increase Revenue• With Guided Selling Based Sales Can: – Shorten the Sales Cycle/Quote to Cash – Reduce Lead-Times – Increase Customer Satisfaction – Reduce Time to Train New Sales Members – Win Cooperation from Product Management/Operations ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 27
  28. 28. Supply Chain: Improve inventory turns and lead time byaligning with Product Management and Sales• Supply Chain Planning with product mix detail – What-if scenarios with different product mix – Select best mix based on parts usage, suppliers, lead time, etc.• Supply chain can influence Sales based on availability – Guide sales reps to sell the best product – Push choices based on excess inventory – Disallow products that use a part that is not available ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com 28
  29. 29. A Systemic SolutionDemand Shaping Demand Sensing Supply Chain Demand Management & Product Management Sensing Demand Assess/Supply Shaping Chain PlanSales Supply Chain Management NPI Analyze Product the Market Management ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com
  30. 30. Questions?©2012 Emcien, Inc. All rights reserved worldwide. ©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com

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