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Big Data: Real-life Examples of Business Value Generation

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This presentation looks at real-world cases of how organizations are using, or planning to use, big data technology to drive value. It looks at the different ways in which the technology is being used in a business context. Examples are drawn from Retail, Telco, Financial Services and Consumer goods.

It also develops a range of business scenarios from simple cost reduction through to new business models specifically looking at how the business case has been built and what value has been realized.

First presented by Richard Brown, Capgemini Program Lead for Business Information Management, at the IP Expo – Big Data Summit 2014.

http://www.capgemini.com/big-data-analytics

Published in: Technology

Big Data: Real-life Examples of Business Value Generation

  1. 1. Big Data: Real-life examples of Business Value Generation Richard Brown Global Programme Leader Big Data & Analytics
  2. 2. 2 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Over 40% of the companies that were in the fortune 500 in 2000 were not there in 2010
  3. 3. 3 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Big Data: A confluence of Sources and Technology New Opportunities New Sources Public Social Geo RFID Meters Mobile Web New Technologies Sensors
  4. 4. 4 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown 4 Ways in which the opportunity is being exploited Improving Revenue New products and different markets Cost Reduction Data as a Revenue Stream Improving Revenue Existing products & services
  5. 5. 5 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown US Retail Chain Hadoop: Data storage cost down from $30k/Tb  $1k/Tb. The Situation The Solution The Benefits Massive EDW 4000 stores 650m SKUs 50 Tb per day 440 node Hadoop cluster POS, Inventory, Social Data optimized across EDW &HDFS. Max use of Opensource $23m saving p.a. Higher level of forecast accuracy Improved collaboration with vendors Improved data integrity Cost Reduction
  6. 6. 6 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown 60% of Hadoop implementations are for new business applications
  7. 7. 7 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown More sophisticated models: Cross-selling example Event calendar Sales history, events and customer buying history This customer fits demographic profile A they are buying product X then the model proposes product Y. Event calendar Sales history and event calendar Modified offer selection based on the fact that the world cup is running. Sales History People who bought product A bought product B. Event calendar Sales history, events and customer buying history + social media Either customer specific or general + what is trending. Existing Revenue
  8. 8. 8 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown You only need to be a few % points better to pull away from the competitors
  9. 9. 9 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Insight at the point of action Online enquiry Service B Product A Product selected Up-sell x-sell Customer Sales history Web transaction Success rate from 5% → 20% Stock out in store Source D Source C Sources indentified Supply Available stock Delivery lead times On-shelf Availability up 7% Product in transit – RFID location Model of optimum revenue for replenishment scenarios Shipping partner: Route data Current performance of supply routes Stores: live sales performance Competitor sales data in locality from 3rd party provider Recent social media activity Success rate for product in x-sell scenario Customer web profile data Predictive model of customer response Available Products Recent call history: Sentiment data Existing Revenue
  10. 10. 10 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Global Media & Entertainment company Existing Revenue Rapid correlation of social media and operational data The Ask The Solution The Benefits How to improve box office takings? Social media analysis •Sentiment •Mentions Theatre counts Key influencers Format release analysis Improved release schedules Improved marketing effectiveness Rapid response to market changes Improved yields ($ m)
  11. 11. 11 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown $ 90 Billion: Global Pharmaceutical Promotion Spend in 2012* $19.7 Billion: Pharmaceutical Promotion Spend in 2012 in European Union (EU5).** European Pharmaceutical *Source: Cegedim Strategic Data, “2012 Pharmaceutical Promotional Spending: Global Trends”. ** EU top 5 = France, Germany, Italy, Spain, United Kingdom. Physicians are key opinion leaders on drug selection Selection of right Opinion Leaders can allow more effective targeting of marketing funds More effective identification of Opinion leaders can deliver significant ROI. Emerging Trends in European Pharma Market. As Pharmaceutical promotional spends shrink (EU5 -3.6% in 2012 *) and sales force is reduced, effective identification segmentation and targeting of doctors becomes important. 1-to-1 Physician interaction (Detailing) Direct to Customer Existing Revenue
  12. 12. 12 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Opinion Leader Identification Process Network Influence Score gives measure of Influence in the Referral Network of doctors. Publication Score gives measure of Influence in Publication activities. Prescription Score gives measure of Influence from drugs’ Prescription activities. Affiliation Perception Score gives measure of perception based on affiliations to Prestigious Hospitals & Academic Institutes. Social Media Score gives measure of influence in social media, blogs etc. Opinion Leaders Prescription Data Publication Data Referral Data Survey Data Social Media Data Affiliation Data Existing Revenue Referral Data of doctors. Prescriptions Data. 3rd Party Survey Data. Hospitals, Institutes & Academic Institutes affiliation Data. PubMed Data for medical publications; clinical trials, research papers, news etc. Pharma blogs, forums and other social networking sites.
  13. 13. 13 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown “Shifting sands” In today’s information landscape new islands of value are appearing across organisation & industry boundaries
  14. 14. 14 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Global Telecommunications Provider Opening up new revenue streams The Ask The Solution The Benefits Traffic volumes Plan the network Data to help negotiate with partners Socio-thermodynamic modeling Network modeling Fault and fraud detection Traffic imbalance analysis Major cost saving Increase customer service / response to issues Identified new business opportunities: •New markets •New customer . New Revenue
  15. 15. 15 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Data Monetization Data Monetization “Data is the new oil.”
  16. 16. 16 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Public Sector Fraud Detection Crime Prevention Service Optimization
  17. 17. 17 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown How are organisations getting there? Digital Capability Leadership Capability The How: Successful transformations depend as much on how firms manage digital transformation than solely on implementing new technologies The What: Using digital technology to transform the customer experience, operational processes and business models
  18. 18. 18 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown How are organisations getting there? Digital Capability Leadership Capability DIGITAL MASTERS FASHIONISTAS CONSERVATIVES BEGINNERS
  19. 19. 19 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Revenue Generation Digital Capability Leadership Capability Revenue Generation +9% -10% -4% +6%
  20. 20. 20 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown Profitability Digital Capability Leadership Capability Profitability +26% +9% -24% -11%
  21. 21. 21 BIM Copyright © 2014 Capgemini. All rights reserved. Big Data: Real-life Examples of Business Value Generation | Richard Brown It is not from the edge You need Vision, Strategy and Business & IT working together
  22. 22. The information contained in this presentation is proprietary. Copyright © 2014 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. www.capgemini.com/bim About Capgemini With almost 140,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

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