The document discusses how analytics can be used across various business functions and industries: 1) Analytics can be used to optimize supply chain operations, identify high-value customers, select and compensate employees, detect product quality issues, understand financial and R&D performance, and establish best practices. 2) Companies like Harrah's and Dell have leveraged real-time analytics to improve customer retention, targeting, pricing, and inventory management. 3) Analytics techniques like predictive modeling, price optimization, and customer segmentation can drive revenue growth, cost savings, and increased customer lifetime value.

1. Analytics

2. “ In God we trust; everyone else bring data” Barry Beracha CEO, Sara Lee

3. Supply Chain Stimulate and optimize supply chain flows Reduce inventory and stock outs Examples Dell Walmart Amazon

4. Customer Selection, Loyalty & Service Identify customers with the greatest profit potential Increase likelihood that they will want the offering Retain Examples Harrah’s Capital One Barclays

5. Human Capital Select the best employees for particular tasks Set compensation levels Examples New England Patriots Oakland A’s Boston Red Sox

6. Product Quality Detect problems early Minimize problems Examples Honda Intel

7. Financial Performance Determine drivers of financial performance Understand the impact of non financial factors Examples MCI Verizon

8. Research & Development Improve quality and efficiency Improve safety Examples Novartis Amazon Yahoo

9. Best practices Champion it from the top Centralize the initiative. P&G Focus efforts. Harrah’s – customer loyalty Establish an analytics culture Hire the right people Use the right technology. Dell

10. Analytical Applications CHAID Conjoint analysis Lifetime value analysis Multiple regression analysis Price optimization Time series experiments

11. Real Time Analytics at Harrah’s Alerts to customer’s losing continuously Offers transmitted to smartphones Getting rid of excess inventory via timely offers Set pricing for slots, hotel rooms Optimize customer flow

12. Advertising Econometric analysis of time series data Dell build a database of 1.5 million ads over 7 years Online ads are easier to track Google provides as much analytics and metrics it can provide

13. Retention and Cross-selling DnB NOR uses ‘triggers’ to send customized offers Based on history, chooses effective channels Achieved 40 to 50% cross-selling Halved marketing budget Increased customer satisfaction

14. Tesco uses customer data to slot customer lifestyles Uses that to generate 7 million variations of coupons Tesco’s redemption rate is 20% as opposed to industry rate of 2% Tesco is the world’s largest online grocer

15. Skimming the Cream off the Garbage CapitalOne employs its own proprietary consumer creditworthiness tool to sift through perceived high risk customers Progressive Insurance also uses similar methodologies

16. Price Optimization JCPenny used price optimization software to increase gross margins Operating profits grew at double digit rates Inventory turnover increased by 10% Amazon priced its DVDs more to customers who spend more Marriott has improved its revenue opportunity from 83% to 91% Applies optimization to catering and conference facilities

17. Price Optimization Dell used forecasting systems to predict a downturn in 2000 and 2001 Sales came down by 2.3% in 2001 Compared to HP – 32%, Compaq – 36% and Gateway – 62% In 2006, 77% of B2B businesses were moving towards PO software

18. Brand management In 1999, Samsung sold 14 product categories in 200 countries for a total 476 product-category combinations and uses analytics to make budget allocations Budnet (Anheuser Busch) – sales rep give data on display, inventory levels, pricing and promotion. Gallo edge helps retailers optimize profit per shelf

19. Converting Customer Interaction into Sales Capital One health Care, uses doctor’s personal information to make an effective sales pitch. Best Buy uses a few stores as laboratories Analyzed ‘ frequent returners’ Trains employees to understand financial metrics Harrah’s optimizes range and configuration of gambling games

20. Customer Life Cycle management Predictive tools help Best Buy increase subsequent sales Sprint uses 25 models to determine best ways to maximize customer loyalty Uses retention agents to solve issues with unpaid bills

21. Customize O2 predicts and presents content to match consumer’s tastes 97% of their customers have opted for this feature O2 has 50% of UK’s mobile internet traffic

22. Connecting Customers to Suppliers Walmart has over 600 terabytes of sales and inventory data on a single platform 17,400 suppliers in 80 countries use Retail Link Allows Walmart to stock up on Strawberry pop tarts just before a hurricane Amazon recruited Gang Yu to make a proprietary inventory model

23. CEMEX increased market share in Mexico by reducing delivery times by route planning which factors in weather, traffic conditions, labor, etc.