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P 02 internal_data_first_2017_04_22_v6

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Data is the new oil and Analytics is the combustion engine. Internal data plays a special role in every organization. See how one can become internal data rich and move the value needle. Through what we call thoughtful data engineering, we found good data trumped good models time and again.

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P 02 internal_data_first_2017_04_22_v6

  1. 1. Internal Data First Vishwa Kolla Head of Advanced Analytics John Hancock Insurance
  2. 2. Technology (Programming) Analytics (Math, Stats) Business  Advanced Analytics CoE, Maturity Model  Customer Analytics (entire value chain)  Machine Learning  Scoring Engine  Optimization  Simulations  Forecasting & Time Series • 16+ Years • John Hancock Insurance • Deloitte Consulting (Industries – Insurance, Retail, Financial, Technology, Telecom, Healthcare, Data) • IBM • Sun Microsystems Expertise Experience Vishwa Kolla Head of Advanced Analytics John Hancock Insurance, Boston MBA Carnegie Mellon University MS University of Denver BS BITS Pilani, India
  3. 3. (Existing) Customer Centricity is … o Good o Bad o Both o None
  4. 4. On Customer Centricity Journey my firm … o talks best practices o implements best practices o understands best practices o thinks best practices
  5. 5. To further Customer Centricity Data is … o is the most important ingredient o is one of several ingredients
  6. 6. Internal Data contribution to data gold … o 00-25% o 25-50% o 50-75% o 75-100%
  7. 7. So What? Case In Point Now What?
  8. 8. Value from Internal Data is … well, HUGE ~$820 B Value of Customer Data + Algorithms $1.2 T Market Cap (11/30/2016) $120 B Debt (11/30/2016) $178 B Brand Value (05/2016) Source: http://www.forbes.com/powerful-brands/list/2/#tab:rank
  9. 9. Embracing Data helps with Top & Bottom lines 2001 – 2013 CAGR Revenue (Firm | Industry) Source: 2001 – 2013 Revenue figures from Capital IQ 3% 3% 3% 1% 5% 7% 7% 8% 10% 12%
  10. 10. Data is the new oil … Source: http://www.ibmbigdatahub.com/infographic/four-vs-big-data
  11. 11. 11 … and Analytics is the new combustion engine Descriptive Predictive Prescriptive Nudge Cognitive Experimental What Happened? What Will Happen? What Action? What Outcome? How does a Human do? What should I expect?
  12. 12. The promise is real
  13. 13. 13 Classification
  14. 14. 14 Recognition
  15. 15. 15 Recommendation
  16. 16. 16 Assistance
  17. 17. 17 Relevance
  18. 18. 18 Convenience
  19. 19. 19 Automation
  20. 20. So What? Case In Point? Now What?
  21. 21. Prospect Acquire Nurture
  22. 22. 22 Analytics Stack at Hancock Systems Infrastructure Software Infrastructure SQL Server SAS Server R Server RDP Server App Server Hadoop Data Infrastructure Accelerators Match Merge Profiling Segmentation Exploration Modeling Productivity Tools Innovation Rules Engine Scoring Engine Visualization Frameworks Presentation Templates OCR Engine Dynamic eApp Web Scraping Middleware Web Apps
  23. 23. Understanding the WHO is the first step … Insurance Investments Retirements
  24. 24. Look-alike Models are the next step > Source: Krux.com
  25. 25. The new target population is very different
  26. 26. Internal data alone is not enough
  27. 27. 27 Internal data helps improve operations Decline Standard or Better
  28. 28. 28 Internal data enables customer-centricity Decision Acquired Scheduled UnderwriterApplicant Part I Typically 3-6 weeks Process Bottle neck Traditional Process End to End Turn Around Time = Hours to 3 - 6 weeks Consent Proxy for Cholesterol, Glucose, Nicotine Likely to misrepresent Adjustment for Height and Weight Other issues found after roll out Encourages healthy people to apply
  29. 29. https://www.youtube.com/watch?feature=player_embedded&v=XswX1TSQwfQ
  30. 30. Earn points for Vitality Health Review 46 43 Save 50% on luxury hotel stay Earn points for biometrics from underwriting Earn points for going to the gym Earn points and save $$ buying HealthyFood Earn points for healthy activities Bob receives his free Fitbit Bob receives his Welcome Kit Bob receives his policy Age Age Internal data helps nurture the relationship
  31. 31. 31 Internal Data Helps Understand the Customer 7. Rewards: • Most Common Redemptions: • Nutrisavings • Amazon Gift cards • Starbucks 6. Activity: • Most Common Activities: • Physical Activity • Prevention • Education 1. Sales Force: • 2016 Campaigns Executed: # • 2016 New Leads: # • 2016 Vitality Apps: # 2. Application: • 2016 Applications: # (Vitality #) 4. Premiums • Median Annual Premium: # (Vitality #) 5. Engagement: • # Fitbit redemption • # Linked Fitbit 3. Approval: • 2016 New Policyholders: # (Vitality #)
  32. 32. So What? Case In Point? Now What?
  33. 33. Become internal data rich first
  34. 34. Then enhance w/ external data Image Source: http://www.janrain.com/resources/webinars/eureka-7-ways-to-mine-the-hidden-gold-in-your-customer-data/
  35. 35. (Existing) Customer Centricity is … o Good o Bad o Both o None
  36. 36. On Customer Centricity Journey my firm … o talks best practices o implements best practices o understands best practices o thinks best practices
  37. 37. To further Customer Centricity Data is … o is the most important ingredient o is one of several ingredients
  38. 38. Internal Data contribution to data gold … o 00-25% o 25-50% o 50-75% o 75-100%
  39. 39. 39

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